SBA's 7(j) Management Assistance Program--Changes Needed To Improve Efficiency and Effectiveness

Highlights

The 7(j) Management Assistance Program is part of a Small Business Administration (SBA) effort to help socially and economically disadvantaged people create and maintain small businesses by improving their technical and management skills. In 10 years, funds allocated to the program have risen from about $1 million to about $10 million, and the number of small business owners served has grown from about 1,000 to 6,000. The Economic Opportunity Act authorized SBA to: (1) contract with consulting firms that agree to provide counseling and general management assistance to individuals referred to them by SBA on an "on call" basis; and (2) provide supplementary management and technical assistance exclusively to firms participating in the SBA 8(a) program, which was designed to channel noncompetitive federal contracts to disadvantaged small businesses.

Recommendations

Recommendations for Executive Action

Agency Affected	Recommendation	Status
Small Business Administration	The Administrator, SBA, should direct the Associate Administrator for Minority Small Business and Capital Ownership Development to establish a maximum task-day cost allowable under noncompetitive 8(a) contracts for various types of on call-contract services.	Closed Please call 202/512-6100 for additional information.
Small Business Administration	The Administrator, SBA, should direct the Associate Administrator for Minority Small Business and Capital Ownership Development to revise the 7(j)(10) standard operating procedures to clarify the criteria for 7(j)(10) project selection.	Closed Please call 202/512-6100 for additional information.
Small Business Administration	The Administrator, SBA, should direct the Associate Administrator for Minority Small Business and Capital Ownership Development to revise the 7(j)(10) standard operating procedures to clarify the criteria and process for the allocation of 7(j)(10) program resources.	Closed Please call 202/512-6100 for additional information.
Small Business Administration	The Administrator, SBA, should direct the Associate Administrator for Minority Small Business and Capital Ownership Development to develop a written plan describing how program resources will be used. This plan should be compatible with the agency's defined program goals and objectives.	Closed Please call 202/512-6100 for additional information.
Small Business Administration	The Administrator, SBA, should direct the Associate Administrator for Minority Small Business and Capital Ownership Development to direct regional and district offices to follow existing agency procedures for obtaining feedback on client satisfaction with services provided by on call contractors.	Closed Please call 202/512-6100 for additional information.
Small Business Administration	The Administrator, SBA, should direct the Associate Administrator for Minority Small Business and Capital Ownership Development to define and rank: (1) 7(j)(10) program goals and objectives consistent with the program's legislative mandate; (2) the number and needs of program participants; and (3) the availability of 7(j)(10) resources.	Closed Please call 202/512-6100 for additional information.
Small Business Administration	The Administrator, SBA, should direct the Associate Administrator for Minority Small Business and Capital Ownership Development to develop procedures for systematically screening all requests for management assistance which identify the types of assistance programs available and the situations and clients these programs are best capable of helping.	Closed Please call 202/512-6100 for additional information.
Small Business Administration	The Administrator, SBA, should direct the Associate Administrator for Minority Small Business and Capital Ownership Development to revise the 7(j)(10) standard operating procedures to clarify the responsibilities of individuals charged with contract monitoring.	Closed Please call 202/512-6100 for additional information.
Small Business Administration	The Administrator, SBA, should direct the Associate Administrator for Minority Small Business and Capital Ownership Development to direct regional and district offices to follow existing agency procedures for assuring that on call contractors are not exceeding SBA subcontracting limits.	Closed Please call 202/512-6100 for additional information.

See All 9 Recommendations

Full Report

Full Report (64 pages)

Media Inquiries

Sarah Kaczmarek

Managing Director

Office of Public Affairs

media@gao.gov

Public Inquiries

Topics

Business Regulation and Consumer Protection

Community development programsDisadvantaged personsFinancial managementManagement consultantsMonitoringPlanningProcurement practicesProgram evaluationSmall business assistanceTechnical assistance