Small Business:

Nonprofit Agencies Employing the Disabled Seldom Seek Set-Aside Contracts

RCED-93-44: Published: Nov 27, 1992. Publicly Released: Dec 29, 1992.

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GAO provided information on the: (1) extent to which nonprofit agencies are participating in the small business set-aside program; and (2) reasons for any limited participation and the actions taken to improve participation.

GAO found that: (1) nonprofit agencies received only a very small portion of all small business set-aside contracts; (2) the total value of contracts awarded to nonprofit agencies has been far below the annual ceilings authorizing these contracts; (3) there was limited participation by nonprofit agencies in the small business set-aside program because legislation prohibited nonprofit agencies from supplying a product or service on a permanent, non-competitive basis once the product or service has been awarded under a competitive set-aside contract; and (4) the Small Business Administration has received only one appeal of proposed award and denied it because the for-profit business' bid was too high and would not have been accepted.

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