Department of Energy's Procurement Practices as They Affect Small Business

In response to a congressional inquiry, a review was conducted of the Department of Energy's (DOE) procurement practices as they affect small business. DOE data showed that 10.3 percent of the former Energy Research and Development Administration's (ERDA) fiscal year 1977 obligations was for prime contracts with small business firms. The review indicated that the 10.3 percent included subcontracts let to small business firms by ERDA prime contractors. Accounting records show that 2.6 percent of the ERDA 1977 obligations was for prime contracts with small business firms. DOE officials said that this concentration was largely due to DOE and ERDA missions and cost-sharing targets for large pilot and demonstration plants. Including subcontractor data in statistics representing prime contracts can be misleading unless the amount included is clearly disclosed. The Secretary of Energy should take steps to ensure that the small business subcontracts reported as prime contracts are clearly disclosed.