Small Business Act:

Energy's Disadvantaged Business Advocate Not Reporting to Proper Management Level

GGD-87-69: Published: May 26, 1987. Publicly Released: May 26, 1987.

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Pursuant to a congressional request, GAO reviewed the Department of Energy's (DOE) compliance with section 15 of the Small Business Act, which requires that the Director, Office of Small and Disadvantaged Business Utilization (OSDBU), be responsible only to and report directly to the agency head or deputy.

GAO found that, although OSDBU reported directly to the agency head, it did not comply with the statutory requirements of the act, since it received day-to-day supervision from another management level.

Recommendation for Executive Action

  1. Status: Closed - Not Implemented

    Comments: DOE is still not in compliance with the cited act. In a previous report, DOE was cited as not being in full compliance with the act. In 1983, the Director, OSDBU, sent a letter to the Secretary of Energy requesting action to correct the condition. The situation still has not been corrected. Further action by DOE is not planned.

    Recommendation: To bring DOE into compliance with section 15(k)(3) of the Small Business Act, the Secretary of Energy should require that the Director, OSDBU, be responsible only to, and report directly to, his office or the Deputy Secretary of Energy.

    Agency Affected: Department of Energy


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