How Selected DOD Consolidation Efforts Affected Small Business Opportunities
NSIAD-83-30: Published: Aug 12, 1983. Publicly Released: Aug 17, 1983.
Additional Materials:
- Full Report:
Contact:
(202) 275-4268
contact@gao.gov
Office of Public Affairs
(202) 512-4800
youngc1@gao.gov
GAO was asked to review recent Department of Defense (DOD) procurement practices that may be running contrary to longstanding procurement principles.
GAO believes that consolidated procurements have the potential for limiting prime contract awards to small business firms and may not always result in the lowest cost to the Government. GAO concerns are that: (1) decisions to consolidate procurements are made without performing adequate economic analyses; (2) when major commands decide on consolidation or a regional approach during the procurement planning stage, a local procurement activity's small disadvantaged business utilization specialist will find it difficult to carry out his function of identifying requirements for a small business to perform; and (3) procurement activities may be placing an overreliance on subcontracting opportunities for small businesses to compensate for loss of opportunity on prime awards. GAO also believes that an any-or-all procurement approach, which would allow firms to submit proposals to perform the total requirement or individual components of the total requirement, offers more opportunity for small business participation and yet still allows the contracting officer to obtain the lowest cost to the Government.
Recommendations for Executive Action
Status: Closed - Implemented
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: The Secretary of Defense should task the Director of the DOD Small and Disadvantaged Business Utilization Office to review policies and practices related to consolidated procurement and determine if the factors GAO identified as inhibiting small business opportunities in these two cases are systemic within DOD.
Agency Affected: Department of Defense
Status: Closed - Implemented
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: When economy is the critical factor in determining the most desirable procurement approach, DOD should consider adopting the following approach: unless cost analysis demonstrates that the all-or-none approach can be expected to be less costly, the contracting officer should use the any-or-all approach because it allows the contracting officer to rely on the marketplace to determine the most cost-effective award or combination of awards and provides maximum opportunity for small firms to participate a prime contractors.
Agency Affected: Department of Defense
Status: Closed - Implemented
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: When economy is the critical factor in determining the most desirable procurement approach, DOD should consider adopting the following approach: the small and disadvantaged business utilization specialist at an activity should participate during the requirements determination process to ensure that, when proposed, the all-or-none approach is justified by the expected cost savings or, lacking such a basis, that the any-or-all approach is followed instead.
Agency Affected: Department of Defense
Status: Closed - Implemented
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: When economy is the critical factor in determining the most desirable procurement approach, DOD should consider adopting the following approach: the Director of the DOD Small and Disadvantaged Business Utilization Office should develop a methodology, which should be followed when the contracting officer determines that it is cost effective to award an entire package to a large firm, for encouraging prime contractors to subcontract work to small firms.
Agency Affected: Department of Defense
Explore the full database of GAO's Open Recommendations
»
Nov 23, 2020
-
Consumer Privacy:
Better Disclosures Needed on Information Sharing by Banks and Credit UnionsGAO-21-36: Published: Oct 22, 2020. Publicly Released: Nov 23, 2020.
Nov 19, 2020
-
Consumer Product Safety Commission:
Actions Needed to Improve Processes for Addressing Product Defect CasesGAO-21-56: Published: Nov 19, 2020. Publicly Released: Nov 19, 2020.
Oct 30, 2020
-
Small Business Loans:
SBA Generally Incorporated Key Elements for Estimating Subsidy Cost of 7(a) ProgramGAO-20-618: Published: Sep 30, 2020. Publicly Released: Oct 30, 2020.
Oct 13, 2020
-
Aviation Consumer Protection:
Increased Transparency Could Help Build Confidence in DOT's Enforcement ApproachGAO-21-109: Published: Oct 13, 2020. Publicly Released: Oct 13, 2020.
Oct 1, 2020
-
Small Business Administration:
COVID-19 Loans Lack Controls and Are Susceptible to FraudGAO-21-117T: Published: Oct 1, 2020. Publicly Released: Oct 1, 2020.
Sep 30, 2020
-
Small Business Research Programs:
Many Agencies' Award Issuances Are Not Timely; Some Practices May Improve TimelinessGAO-20-693: Published: Sep 30, 2020. Publicly Released: Sep 30, 2020.
Sep 28, 2020
-
Intellectual Property:
Additional Agency Actions Can Improve Assistance to Small Businesses and InventorsGAO-20-556: Published: Aug 27, 2020. Publicly Released: Sep 28, 2020.
Jul 30, 2020
-
Small Business Contracting:
Better Documentation and Reporting Needed on Procurement Center RepresentativesGAO-20-462: Published: Jun 30, 2020. Publicly Released: Jul 30, 2020.
Jun 29, 2020
-
Small Business Subcontracting:
Oversight of Contractor Compliance with Subcontracting Plans Needs ImprovementGAO-20-464: Published: May 28, 2020. Publicly Released: Jun 29, 2020.
Jun 22, 2020
-
Small Business Development Centers:
Reevaluation of How SBA Sets Initial Funding Estimate Needed to Help Reduce BurdenGAO-20-457: Published: May 22, 2020. Publicly Released: Jun 22, 2020.
Looking for more? Browse all our products here