Agency for International Development: The Minority Shipping Program Is Constrained by Program Requirements

Highlights

Pursuant to a congressional request, GAO reviewed the Agency for International Development's (AID) program to award contracts under section 8(a) of the Small Business Act, focusing on whether: (1) AID 8(a) program criteria limited the number of contracts available for 8(a) firms; (2) the program enhances the competitive viability of 8(a) firms; and (3) proposed new program requirements comply with the Small Business Act and federal procurement regulations.

Recommendations

Recommendations for Executive Action

Agency Affected	Recommendation	Status
U.S. Agency for International Development	Given past AID difficulty in meeting its voluntary 8(a) contracting goal for minority shippers, the Administrator, AID, should increase the number of potential 8(a) contract opportunities by lifting the tonnage ceiling for 8(a) cargoes.	Closed – Implemented AID has implemented interim program procedures that lift the tonnage ceiling. These program procedures will be issued in final when the agency receives SBA approval on another technical matter that is totally unrelated to AID's decision to lift the tonnage ceiling.
U.S. Agency for International Development	Given past AID difficulty in meeting its voluntary 8(a) contracting goal for minority shippers, the Administrator, AID, should increase the number of potential 8(a) contract opportunities by issuing procedures that ensure 8(a) firms are given the opportunity to use foreign-flag vessels whenever possible.	Closed – Implemented AID has implemented interim program procedures that allow 8(a) firms to use foreign-flag vessels when appropriate. These program procedures will be issued in final when the agency receives SBA approval on another technical matter that is totally unrelated to AID's decision to allow 8(a) firms to use foreign-flag vessels.

Full Report

Full Report (14 pages)

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Topics

International Affairs

Bidder eligibilityContract costsEligibility criteriaFood relief programsInternational food programsMinority business assistanceShipping industrySmall business assistanceSource selectionTransportation contracts