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Energy Management: DOE Can Improve Distribution of Dollars Awarded Under SBA's 8(a) Program

RCED-94-28 Published: Feb 23, 1994. Publicly Released: Mar 25, 1994.
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Highlights

Pursuant to a congressional request, GAO reviewed the distribution of Department of Energy (DOE) contract awards to firms participating in the Small Business Administration's 8(a) program, focusing on whether DOE: (1) distributes its 8(a) contract funding equitably; and (2) has complied with noncompetitive contract award requirements.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Energy To meet the objectives of the 8(a) program, the Secretary of Energy should direct program offices at headquarters to avoid structuring 8(a) procurements to avoid the thresholds for competition established in the Business Opportunity Development Reform Act. Furthermore, the Secretary of Energy should provide the same direction to offices at other DOE locations, as appropriate.
Closed – Implemented
In a memorandum for heads of DOE units, the Secretary of Energy stated that they should "Exercise caution when estimating the cost of a proposed 8(a) contract so as not to structure the price estimate artificially low to avoid the thresholds for competition established in the Business Opportunity Development Program Reform Act."

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Topics

Disadvantaged personsFederal procurementMinority business contractsProcurement policySmall business assistanceSmall business contractorsSmall business contractsSole source procurementSmall business development programsSmall business