Georgia Tech Procurement Assistance Center

Want to get paid? Don’t let your CAGE code expire!

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Keep SAM happy, and your CAGE will be alright.

Let’s explain that first sentence.

  • SAM stands for System for Award Management.  In essence, it’s the federal government’s vendor database.  If your company wants to do business with the federal government, it’s imperative that you register in SAM.  (For tips on how to register, click here.)
  • CAGE stands for Commercial and Governmental Entity, another code.  The government automatically creates and issues your business a CAGE code once you properly register in SAM.  Having a CAGE code is very important because without one, your business is not eligible to receive U.S. Government funds — and that could mean you won’t be paid for contract work you are performing.

So, to restate the first sentence: If you keep your SAM registration up-to-date, your CAGE code will stay active.  

SAM requires all registrants to update their records at least once a year.  Now, with a change that takes effect on Aug. 25, 2016, if you don’t keep SAM up-to-date, you risk allowing your CAGE code to expire.  There is a saving grace: If you allow your SAM registration to lapse, you can renew it.  In turn, the CAGE system will pick up your SAM renewal and reset the expiration date on your CAGE code.

Remember, there is no fee charged to register in SAM and no cost to obtain a CAGE code.

If you need help with SAM registration or verifying your CAGE code, the best place to get help is your nearest procurement technical assistance center (PTAC).  In Georgia, that means the Georgia Tech Procurement Assistance Center (GTPAC).  To see a list of GTPAC offices and staff, visit: http://gtpac.org/team-directory.

 

 

FAR amendment to make it clear: Businesses must be registered in SAM before submitting an offer

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Federal RegisterA proposal has been made to amend the Federal Acquisition Regulation (FAR) to clarify System for Award Management (SAM) vendor registration requirements.  The proposed change to the FAR also will correct an inconsistency in representation and certification requirements.

The proposed changes were published in the May 20, 2016 edition of the Federal Register which may be seen here: https://www.gpo.gov/fdsys/pkg/FR-2016-05-20/pdf/2016-11977.pdf.  Comments on the proposed changes must be submitted not later than July 19, 2016 in order to be considered in the formation of the final rule.  Instructions for submitting comments appear in the Federal Register notice.

The clarification called for by the proposed FAR amendment is driven by the fact that current language in the FAR is not consistent in terms of whether offerors need to be registered in SAM prior to submitting an offer or prior to award.

  • FAR clause 52.204–7 states that an offeror is not ‘‘registered in the SAM database’’ unless an offeror has completed its online annual representations and certifications.
  • FAR 52.204–8(b) and (d) state that if clause 52.204–7 is included in the solicitation, then the offeror verifies by submission of the offer that the representations and certifications in SAM are current and accurate.
  • FAR 4.1102 states that SAM registration (which includes online reps and certs) must be completed by the time of award.

In order to correct the inconsistency cited above, amendments to FAR 4.1102 and 4.1103 are proposed in order to require vendor registration in SAM prior to submission of an offer.

In addition, the proposed rule will require contracting officers to use the name and physical address from the contractor’s SAM registration for the provided Data Universal Numbering System (DUNS).

The proposed rule also changes the references to the SAM web site from ‘‘acquisition.gov’’ to ‘‘SAM.gov’’ to be consistent with the rest of the FAR.  The word ‘‘database’’ is also added to ‘‘SAM’’ so that in the FAR it is clearly understood that the reference is to the ‘‘SAM database.”

Vendors are reminded that assistance with registering in SAM is available at no cost through any Procurement Technical Assistance Center (PTAC).  To find a nearby PTAC office, consult http://www.aptac-us.org/find-a-ptac.

 

 

 

GTPAC staffer elected to leadership of national organization

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The Association of Procurement Technical Assistance Centers (APTAC) recently announced that Chuck Schadl, Group Manager of Government Contracting Services at the Georgia Institute of Technology’s Enterprise Innovation Institute, has been elected Region 4 Director of the Association.  APTAC’s Region 4 encompasses the states of North Carolina, South Carolina, Georgia, Alabama, Mississippi, and Florida and the territory of Puerto Rico.  At APTAC’s annual membership meeting on April 6, 2016, Schadl also was appointed Chair of the Association’s Communications Committee.  APTAC’s Board and Committees are comprised entirely of volunteers employed by member PTACs.

Chuck Schadl, Group Manager of Government Contracting Services at the Georgia Institute of Technology's Enterprise Innovation Institute. He is APTAC’s Region 4 Director and the Association’s Communications Chair.
Chuck Schadl, Group Manager of Government Contracting Services at the Georgia Institute of Technology’s Enterprise Innovation Institute. He is APTAC’s Region 4 Director and the Association’s Communications Chair.

In his role with Georgia Tech’s Enterprise Innovation Institute, Schadl provides instruction and guidance to government contracting officials and business professionals on behalf of the Contracting Education Academy, an official equivalency training provider for the Defense Acquisition University.  Formerly the Program Manager of the Georgia Tech Procurement Assistance Center (GTPAC), Schadl also continues to perform procurement counseling duties for the GTPAC, bringing to bear more than 40 years of experience in the government contracting field at both federal and local government levels.  He served as APTAC’s Vice President for Education from 2011 until taking the Region 4 post.  In 2014, he was honored with APTAC’s Betty McDonald Outstanding Member Achievement Award, the highest recognition the association bestows.

APTAC is the professional organization of and for the 97 Procurement Technical Assistance Centers (PTACs) awarded under the Department of Defense’s Procurement Technical Assistance Program.  These PTACs, located across the United States, including Alaska, Hawaii and the District of Columbia as well as the territories of Puerto Rico and Guam, help local businesses become capable government contractors, on the belief that a broad base of small business suppliers provides the highest quality and best value to our government agencies and at the same time creates a strong and vibrant economic base for our communities.  They assist small businesses by offering training events, bid-matching services, one-on-one sessions with a procurement counselor, notification of important contracting changes, help with understanding government contracting procedures and requirements, guidance in registering with the federal government, and much more.  They assist government agencies by locating and educating the contractors and potential contractors which can provide the products and services they need.

APTAC supports the PTACs by providing them critical updates on the ever changing procurement processes across all federal agencies,  comprehensive training opportunities and certification to ensure that PTAC staff can bring the highest level of capability to their work, networking forums so that PTAC professionals across the country can share best practices and draw upon their collective expertise, and a national presence to collaborate with federal agencies on small business contracting initiatives and otherwise provide a voice  in national government contracting assistance and policy arenas.  The work of APTAC is carried out by a cadre of dedicated volunteers, all of whom are procurement professionals employed by member PTACs, and supported by a small administrative staff.

For More Information, contact:
APTAC headquarters at communication@aptac-us.org    APTAC website:  www.aptac-us.org

PTACs help businesses win $12 billion in government contracts

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aptac 2The Association of Procurement Technical Assistance Centers (APTAC) reports that businesses, nationwide, won 73,000 government contracts worth $12 billion, thanks to the assistance provided by the network of procurement technical assistance centers (PTACs).    Small businesses won 88% of these contracts.

There are 300 PTAC offices across the country, plus in Guam and Puerto Rico, and each one is supported by a local host organization that provides funds matching the support granted by the Defense Logistics Agency (DLA).  APTAC estimates that the return-on-investment is $344 for every federal dollar invested in the PTAC program.

Through the free or low-cost assistance provided by PTACs:

  • 57,000 businesses – located in all 50 States, the District of Columbia, Guam and Puerto Rico – were educated in the past year through one-on-one counseling sessions, electronic tools, and training seminars on how to do business with the government.
  • The equipment and supply needs of our country’s warfighters are supported – and the nation’s industrial base is boosted – through the influx of businesses seeking to compete for government contracts.
  • Help is targeted toward small businesses, especially veteran-owned businesses, women and minority entrepreneurs, and businesses located in economically depressed HUBZones.

PTACs contribute not only to the success of small businesses, they also help government agencies and large businesses.  For example, PTACs:

  • Support initiatives by the Department of Veterans Affairs to make more veteran-owned firms “procurement ready.”
  • Boost vendor registrations in the General Services Administration’s System for Award Management (SAM).
  • Show businesses how to use DLA’s Internet Bid Board System (DIBBS), radio frequency identification (RFID) tagging and unique identification (UID) marking.
  • Increase qualified sources, competition and create better value for the military, agencies and American taxpayers.
  • Stimulate local economic activity by helping businesses across the country navigate federal, state and local government contracting processes.
  • Educate businesses on how to meet stringent government standards and complex contract requirements.
  • Help large government contractors identify qualified subcontractors and suppliers to address their small business subcontracting requirements.

30th Anniversary - GTPAC 2016In Georgia, the PTAC is known as the Georgia Tech Procurement Assistance Center (GTPAC).  In 2015 alone, GTPAC:

  • Served 2,568 businesses across the state, providing representatives of these firms counseling, instruction, and bid opportunities.
  • Sponsored 169 seminars and webinars, and participated in 52 events state-wide where more than 6,112 business people received instruction on how to effectively compete for government contracts.
  • Conducted 8,737 counseling sessions with small businesses as well as 368 counseling sessions with large businesses.
  • Assisted clients in winning 4,526 government prime contracts and 764 subcontracts worth a total of $1.2 billion.

For more information about APTAC and the national network of PTACs, visit www.aptac-us.org.  For more information about GTPAC, including how to enroll as a client, please visit www.gtpac.org.

To see a fact sheet on APTAC, click on this link: PTAC Fact Sheet – May 2016.

To see a fact sheet on GTPAC, click on this link: GTPAC Fact Sheet – April 2016

In Congressional testimony, PTAC association says better compliance with subcontracting requirements is needed

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aptac 2Association of Procurement Technical Assistance Centers (APTAC) President Chuck Spence appeared before the U.S. House Small Business Committee’s Subcommittee on Contracting and the Workforce last week, testifying as part of the Hearing, “Hotline Truths: Issues Raised by Recent Audits of Defense Contracting.” Spence is Deputy Director of the Utah Procurement Technical Assistance Center (PTAC).

The hearing focused on Department of Defense Office of Inspector General (DoD OIG) reports that two key Marine Corps commands failed to meet their legally-mandated requirements for small business subcontracting plans, as part of the subcommittees efforts to help small firms better compete for contracts with DoD, providing value to the taxpayer and quality to the warfighter.

“The Small Business Act contains important protections for small companies that provide services to our men and women in uniform,” said Subcommittee Chairman Richard Hanna (R-NY). “Existing law ensures that we have a vibrant community of small contractors ready to provide innovative and cost effective solutions. However, if the statutory provisions of the Small Business Act are not observed, those benefits are lost.”

“The Marine Corps’ documented failure to comply with statutory requirements concerning the approval and oversight of small business subcontracting plans has resulted in significant harm to the small business community. Continued failure to provide mandatory oversight of small business subcontracting plans has real consequences,” Hanna added.

In his testimony, Spence confirmed that such oversight failures present a real problem. “We are not surprised by the OIG findings in response to Defense Hotline allegations. On the contrary, we suspect that the problems identified – lack of adequate policies for requiring subcontracting plan submissions and reports, insufficient training for contracting officials regarding their responsibilities for evaluating and administering subcontracting plans, and failure to monitor compliance with subcontracting plans – are common across all federal agencies, because the root causes are not unique.” He cited an unrealistic overreliance on contracting officers with insufficient resources to effectively enforce subcontracting compliance, as well as an inadequate disincentives for prime contractors, noting that no firm has been penalized for failure to comply in many years.

However, Spence went on to commend the House Small Business Committee for their efforts to tackle the problems, stating “We applaud Chairman Chabot, Ranking Member Velázquez, and the House Small Business Committee for the ambitious effort to address these issues through HR. 4341, The Defending America’s Small Contractors Act of 2016. The bill’s comprehensive approach to clarifying the language and definitions of contracting provisions in the Small Business Act – as well as promoting greater transparency in goaling and accountability in execution – is much needed.”

Procurement Technical Assistance Centers (PTACs) are deeply engaged with subcontracting issues, helping small businesses identify subcontracting opportunities, connect with and market to prime contractors, and generally become responsible, “procurement ready” subcontractors, as well as assisting large prime contractors with developing subcontracting plans and locating small business vendors that can meet their requirements. In 2014, PTACs helped over 57,000 small businesses win government contracts and subcontracts valued at over $12 billion.  APTAC is the professional organization of the 98 PTACs nationwide.

Click here to view a recording of the hearing.

Source: http://www.aptac-us.org/news/aptac-president-chuck-spence-testifies-subcontracting-issues/ 

Free SAM registration assistance and new video now available

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SAM logoThere is no need to pay a fee for government contracting registration – free help is available!

Registration Do’s and Don’ts

The first step in pursuing government contracts is registering in the System for Award Management (SAM), the federal government’s vendor database.  One agency – FEMA – has their own database that supplements SAM.  Small businesses contractors may also seek special certifications, such as 8(a), woman-owned, veteran-owned and/or HUBZone, or want to explore the potential for a GSA Schedule contract.

A number of for-profit assistance providers target small business owners who are unfamiliar with – or confused by – the various government registration and certification processes.  They market their services aggressively, sending official-sounding emails directing small business owners to sign-up for their services to be registered or certified – for a hefty fee, of course.  Commercial websites (.com websites, in other words) are just that — commercial.  When a commercial website advertises to help you with the process of registering to do business with the government, there’s almost always going to be a fee involved.  By contrast, government websites (designated as .gov) always offer free advice and registration.

Remember: There is NEVER a fee to register as a government contractor.  Repeat – there is NEVER a fee to register as a government contractor.  And, there is free or low-cost help available to get you through the process.

Some commercial enterprises target companies as soon as they begin a government registration process.  Because SAM and other vendor databases are public, for-profit providers can obtain your contact information almost as soon as it is entered.  Once they obtain it, they send automated emails with messages like: “Your registration is not complete.  Contact us immediately.”  Such messages are not legitimate government notices.  When a business clicks the link – or calls the number provided – they are prompted to sign-up for assistance, usually at a cost of hundreds of dollars.

One commercial website runs an aggressive advertising campaign directed at businesses, soliciting vendors to fill out a “FEMA Contract Registration Form.”  Once the form was filled out and submitted on-line, applicants received the following message: “Thank you for submitting your information. We will be in contact with you shortly. Click below to make a payment of $500.00 for this service.”  By clicking on the “Buy Now” button, businesses are directed to a site to pay $500.00 via a PayPal account for “FEMA Registration.”  Other marketing campaigns by similar outfits target veteran-owned businesses, women business owners, 8(a) applicants, and others.

Please know that neither SAM, FEMA, nor any other government agency charges money to register as a vendor.

Free Help with SAM Registration

Most business owners can navigate SAM, FEMA, and other registrations quite successfully on their own. For those who’d like help with registrations, certification applications, or any other government contracting issue, the Georgia Tech Procurement Assistance Center (GTPAC) provides free, expert assistance with registrations, certifications and all other aspects of government contracting, offering classes, one-on-one counseling, electronic bid-matching services, advice on proposal preparation, matchmaking/networking opportunities, and much more.  GTPAC’s counselors have backgrounds in government acquisition offices and/or prime contractor government contracting departments, so they bring real world experience to help you.

For businesses located outside the state of Georgia, you can contact a Procurement Technical Assistance Center (PTAC) near you for free or low-cost assistance with SAM registration and any other aspect of government contracting.  To locate the PTAC in your state (as well as Guam, Puerto Rico, and the District of Columbia), simply visit: http://www.aptac-us.org/find-a-ptac/

Of course, there are circumstances in which it makes sense for a small business to pay a consultant for specialized legal or financial help or for intensive project development, and there are many qualified professionals to choose from.  As with any business decision, thorough research into qualifications, costs and realistic expectations and deliverables are keys to determining the right solution for your business.  Never let yourself be pressured into a hasty decision or enticed by an “easy fix.”  Careful due diligence is always the best investment you can make.

More Resources — Including a Helpful New Video — Are Now Available … and They’re Free

More help with SAM is available at: http://www.aptac-us.org/sam-registration.  A brand new instructional video on how to register in SAM is also now available.  View it at: https://youtu.be/nggDCxZqY0g

For more information and background about the development of SAM.gov, please visit: www.gtpac.org/tag/sam

 

 

GTPAC receives funding commitments to enter 30th year of service to Georgia businesses

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30th Anniversary - GTPAC 2016On Feb. 1, 2016, the Georgia Tech Procurement Assistance Center (GTPAC) will enter its 30th year of continuous operation, serving Georgia businesses with assistance in winning and managing government contracts.

GTPAC is one of about a dozen programs – known as Procurement Technical Assistance Centers (PTACs) – that were established shortly after Congress launched the initiative in 1985. Today, there are 97 PTACs across the nation that serve all 50 states, the District of Columbia, Guam, and Puerto Rico.

GTPAC’s continued operation is possible based on a 50-50 funding match between the Defense Logistics Agency (DLA) and state funding made available through Georgia Tech’s Enterprise Innovation Institute (EI2).

On Jan. 22, 2016, GTPAC received a fully executed award document from the DLA ensuring that funding would be made available to Georgia Tech for another year of PTAC operations in the state of Georgia.

The Georgia Tech program is recognized as a PTAC with one of the strongest track records. Last year, GTPAC was ranked as one of the top five programs in the nation by the Association of Procurement Technical Assistance Centers. On average, GTPAC helps Georgia businesses annually win between $500 million and $1 billion in government contracts.

In calendar year 2015, GTPAC’s clients won 3,618 government prime contracts and 613 subcontracts worth a combined total of $1.2 billion.

GTPAC counseled, instructed, and provided bid opportunities to an active client base of 2,500 businesses across the State of Georgia last year. GTPAC also conducted 126 classes and participated in 33 events statewide where more than 6,000 business people received instruction on how to effectively compete for government contracts. In all, GTPAC staff members conducted 6,339 counseling sessions with Georgia-based small businesses in 2015 as well as 262 counseling sessions with large businesses.

GTPAC maintains staff in Albany, Athens, Atlanta, Gainesville, Carrollton, Savannah, and Warner Robins.  All businesses in Georgia are eligible to receive GTPAC’s services at no cost. The program provides Georgia businesses with counseling, training, and a complete set of electronic tools to research and identify government contracting opportunities.

For contact information, and to register for any GTPAC workshop statewide, visit the program’s website at www.gtpac.org.

Procurement assistance centers help small business owners, government buyers

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PTACJane Dowgwillo knows hundreds of small businesses and how they could support the Department of Defense’s worldwide mission. As the manager of 10 Procurement Technical Assistance Centers scattered throughout Florida, she leads a team of 13 government contracting specialists who help small-business owners understand the requirements of working with the government.

“We’ve got a lot of small manufacturing and spare-part businesses here that we provide specialized advice and training to. Any time we offer sessions on how to do business with DoD, it’s very well received,” Dowgwillo said.

The Procurement Technical Assistance Program was created in 1985 to increase the number of small businesses capable of participating in government contracts at local and state levels, as well as with the DoD and other federal agencies. The program is administered by the Defense Logistics Agency’s Office of Small Business Programs.

Today there are centers operating in Washington D.C., Puerto Rico, Guam and all 50 states. They provide a variety of services, from identifying contracting opportunities to providing guidance on the bidding process and detailed instruction on registering in or using federal procurement systems, such as the System for Award Management and www.fbo.gov, which is the website where DoD and other federal agencies post opportunities for contracts. Counselors also ensure small business owners have proper licenses and certifications.

The training and assistance PTACs offer are usually free and well appreciated by small businesses, which may lack the time and staff to explore the ins and outs of government contracting. Adino, Inc., a service-disabled veteran-owned small business, described the PTAC in Glen Ellyn, Illinois, as “a highly specialized and hands-on resource to tackle the overwhelming and intimidating sector of government contracting.”

Government contracting officers and buyers can also benefit from the program, said Christopher Hall, who oversees the program for DLA.  “By supporting new suppliers, the PTACs promote a stronger industrial base, which results in greater competition and higher quality goods at a lower cost. The Department’s acquisition professionals are striving toward these goals as they work to create competitive environments and increase small business participation, which is part of DoD’s Better Buying Power 3.0,” he said.

Kevin Scoles, a DoD business opportunity specialist, recently taught small business owners serviced by Washington PTACs how to use a web-based application that allows users to search for contract opportunities and securely submit quotes. While meeting with PTAC clients, Scoles was also able to share with prospective suppliers information on areas with low competition.

Although government representatives frequently partner with PTACs to provide training and have sought input from PTAC counselors during market research for specific commodities, the partnership could be stronger, said Tiffany Scroggs, manager of eight PTACs in the state of Washington.

“I think there’s opportunity for growth. There’s an upcoming Meet ‘n Greet with Industry Day in our backyard, for example. When I discovered it, I instantly asked if we could help promote the event and have 5 minutes to talk about all the great things that PTACs can do to help businesses connect,” she said.

Federal agencies should include PTACs in the early planning stages for marketing events like industry days, Scroggs added. PTAC counselors can also help identify qualified suppliers for hard-to-source parts.

“If buyers are seeing trends or have areas with really low competition, we’re more than happy to help promote that to our firms,” she said. “A lot of PTACs have newsletters where we can include articles on needs, or we can get the details out through social-media campaigns.”

Market research is another step in the acquisition process where PTACs can contribute, Hall added.

“They have an in-depth knowledge of local small businesses and their capabilities and can identify potential suppliers that have demonstrated their capability to deliver,” he said.

PTAC OKThough PTACs do host “matchmaking” events to connect small businesses with government officials, counselors don’t do the legwork or place bids on behalf of their clients, Dowgwillo said. And just because PTAC services are usually free doesn’t mean they’re inferior.

“Most of my counselors and those around the country have been contracting officers themselves, or they came to us from a state or local agency purchasing area. They have a wealth of experience and hands-on expertise,” she said.

Winnie Cichosz runs a small, woman-owned janitorial business in Alaska. “Federal contracting is overwhelming for a small business like mine,” Cichosz said. “The PTAC helped me along the way.”

Find your local PTAC at http://www.dla.mil/HQ/SmallBusiness/PTAP.aspx.

Source: http://www.dla.mil/News/tabid/12178/Article/639728/procurement-assistance-centers-help-small-business-owners-government-buyers.aspx

GTPAC receives funding commitments to enter into 29th year of service to Georgia businesses

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In 2015, the Georgia Tech Procurement Assistance Center (GTPAC) will enter into its 29th year of continuous operation, serving Georgia businesses with assistance in winning and managing government contracts.

That’s made possible based on a 50-50 funding match between the Defense Logistics Agency (DLA) and state funding made available through Georgia Tech’s Enterprise Innovation Institute (EI2).  With financial support from Georgia Tech and DLA, GTPAC is one of the longest, continuously operating PTAC’s in the nation.  GTPAC is one of 98 PTACs operating in the United States, Guam, Puerto Rico, and the District of Columbia.

On Thursday, Nov. 13, 2014, the Georgia Tech Procurement Assistance Center (GTPAC) received a fully executed award document from the DLA ensuring that funding would be made available to Georgia Tech for another year of procurement technical assistance center (PTAC) operations in the state of Georgia.

Of the nation’s PTACs, the Georgia Tech program has one of the strongest track records.  In the past 10 years, for example, GTPAC has supported Georgia businesses in winning between $500 million and $1 billion in government contracts annually.

In calendar year 2013, GTPAC’s clients won 4,952 government prime contracts and 593 subcontracts worth a total of $661 million.  GTPAC counseled, instructed, and provided bid opportunities to 2,908 businesses across the State of Georgia last year.  GTPAC also conducted 160 classes and participated in 62 events state-wide where more than 6,000 business people received instruction on how to effectively compete for government contracts.  In all, GTPAC staff members conducted 8,377 counseling sessions with Georgia-based small businesses in 2013 as well as 395 counseling sessions with large businesses.

GTPAC maintains staff in Albany, Athens, Atlanta, Gainesville, Carrollton, Savannah and Warner Robins.  All businesses in Georgia are eligible to receive GTPAC’s services at no cost.  The program provides Georgia businesses with counseling, training, and a complete set of tools to research and identify government contracting opportunities.  For contact information, and to register for any GTPAC class statewide, visit the program’s web site at www.gtpac.org.

IG reports continued weaknesses in small business reporting and 8(a) program

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The Office of the Inspector General (IG) of the U.S. Small Business Administration reports on 11 weaknesses in a range of SBA programs.  Two of the “challenges” identified in the Oct. 17, 2014 report pertain directly to small business participation in federal contracting:

  • Procurement flaws allow large firms to obtain small business awards, and allow agencies to count contracts performed by large firms towards their small business goals.
  • The SBA needs to modify the Section 8(a) Business Development  Program so more firms receive business development assistance, standards for  determining economic disadvantage are justifiable, and the SBA ensures that firms follow 8(a) regulations when completing contracts.

SBA - IGThe IG’s full document, entitled “Report on the Most Serious Management and Performance Challenges Facing the Small Business Administration In Fiscal Year 2015” can be downloaded here, but the text of the IG’s finding on the two point just cited appears below.

Procurement Reporting

The Small Business Act established a Government-wide goal that 23 percent of the total value of all prime contracts be awarded to small businesses each fiscal year. As the advocate for small business, the SBA should strive to ensure that only small firms obtain and perform small business awards. Further, the SBA should ensure that procuring agencies accurately report contracts awarded to small businesses when representing their progress in meeting small business contracting goals.

In September 2014, we issued a report that identified over $400 million in FY 2013 contract actions that may
have been awarded to ineligible firms. We also identified over $1.5 billion dollars in contract actions for
which the firms were in the 8(a) or HUBZone programs at the time of contract award, but were no longer in
these programs in FY 2013. Previous OIG audits and other Government studies have shown widespread
misreporting by procuring agencies, since many contract awards that were reported as having gone to small
firms have actually been performed by larger companies. While some contractors may misrepresent or
erroneously calculate their size, most of the incorrect reporting results from errors made by Government
contracting personnel, including misapplication of small business contracting rules. In addition, contracting
officers do not always review the on-line certifications that contractors enter into Government databases
prior to awarding contracts. The SBA should ensure that procuring agencies accurately report contracts
awarded to small businesses when representing their progress in meeting small business contracting goals,
and that contracting personnel are reviewing on-line certifications prior to awarding contracts.

The SBA revised its regulations to require firms to meet the size standard for each specific order to address a
loophole within General Services Administration Multiple Awards Schedule (MAS) contracts, which contain
multiple industrial codes that determine the size of the company. Previously, a company awarded an MAS
contract could identify itself as a small business on individual task orders awarded under that contract, even
though it did not meet the size criteria for the applicable task. Thus, agencies received small business credit
for using a firm classified as small, when the firm was not small for specific orders under the MAS contract. In
addition, the SBA submitted a final rule to the Federal Acquisition Regulations (FAR) Council to implement the
changes made to its regulations in the FAR. The SBA also updated its standard operating procedure (SOP) to
ensure consistency in conducting its surveillance reviews to assess Federal agencies’ management of their
small business programs and compliance with regulations and applicable procedures.

While the SBA has made substantial progress on this challenge, we are working with the Agency to verify that
the surveillance reviews were conducted in a thorough and consistent manner.

                                                                                               ***

8(a) Program

The SBA’s 8(a) Business Development (BD) Program was created to assist eligible small disadvantaged
business concerns to compete in the American economy through business development. Previously, the
SBA did not place adequate emphasis on business development to enhance the ability of 8(a) firms to
compete, and did not adequately ensure that only 8(a) firms with economically disadvantaged owners in
need of business development remained in the program. Companies that were “business successes”
were allowed to remain in the program and continue to receive 8(a) contracts, causing fewer companies
to receive most of the 8(a) contract dollars and many to receive none.

The SBA has made progress towards addressing issues that hinder its ability to deliver an effective 8(a)
BD Program. For example, the SBA expanded its ability to provide assistance to program participants
through its resource partners—small business development centers, service corps of retired executives,
and procurement technical assistance centers. In addition, the SBA has taken steps to ensure business
opportunity specialists assess program participants’ business development needs during site visits. The
SBA also revised its regulations, effective March 2011, to ensure that companies deemed “business
successes” graduate from the program. These regulations also establish additional standards to address
the definition of “economic disadvantage.” Agency officials stated that the rule-making process served
as an adequate proxy to objectively and reasonably determine effective measures for economic
disadvantage, and were not aware of any reliable sources of data to determine economic disadvantage.

However, for the second consecutive year, the SBA has not completed updating its SOP for the 8(a) BD
Program to reflect the March 2011 regulatory changes. In addition, we continue to maintain that the
SBA’s standards for determining economic disadvantage are not justified or objective based on the
absence of economic analysis. In December 2011, the SBA awarded a contract to develop and deploy a
new IT system by December 2012 to assist the SBA in monitoring 8(a) program participants. However,
the new system has not been deployed, and its delivery date and capabilities are undetermined at this
time.

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