The Department of Defense needs measures for its small
business-subcontracting program, the General Accounting
Office has said.
It said small businesses turning to subcontracting as a
way to participate in the federal government’s $250
billion procurement program are on the rise and that DoD
accounts for about two-thirds of those contracts.
DoD’s “test program” promotes small business opportunities,
yet after 12 years of operation it has yet to establish
metrics to evaluate the program’s results and effectiveness
– so there’s no systematic way to determine if it is
meeting objectives and where changes are necessary,
said GAO.
It said contractors participating in the test program
experienced mixed results in meeting their various goals.
Contracting officials point to a changing acquisition
environment and the complexity of DoD prime contracts that
require teaming arrangements with other, typically large
contractors that often make strategic sourcing decisions
to leverage purchasing power by reducing the number of
suppliers, including small businesses.
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