Small and Disadvantaged Businesses: Most Agency Advocates View
Their Roles Similarly (22-MAR-04, GAO-04-451).
The Small Business Act is one of several laws designed to enhance
the participation of small and disadvantaged businesses in
federal procurement--a market that reached more than $200 billion
in fiscal year 2002. Section 15(k) of the act requires that all
federal agencies with procurement powers establish an Office of
Small and Disadvantaged Business Utilization (OSDBU) and
specifies eight functions that OSDBU directors are responsible
for carrying out in their roles as advocates for small
businesses. GAO surveyed OSDBU directors at 24 agencies to obtain
information on the extent to which the respondents (1) viewed the
functions listed in section 15(k) as functions of their offices,
(2) viewed other potential activities as OSDBU duties, and (3)
saw potential challenges to carrying out their functions.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-04-451
ACCNO: A09538
TITLE: Small and Disadvantaged Businesses: Most Agency Advocates
View Their Roles Similarly
DATE: 03/22/2004
SUBJECT: Federal agencies
Federal procurement
Federal procurement policy
Procurement practices
Procurement regulations
Small business
Small business set-asides
Small disadvantaged business contractors
Federal agency reorganization
******************************************************************
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GAO-04-451
United States General Accounting Office
GAO Report to the Committee on Small Business and Entrepreneurship, U.S. Senate
March 2004
SMALL AND DISADVANTAGED BUSINESSES
Most Agency Advocates View Their Roles Similarly
a
GAO-04-451
Highlights of GAO-04-451, a report to the Committee on Small Business and
Entrepreneurship, U.S. Senate
The Small Business Act is one of several laws designed to enhance the
participation of small and disadvantaged businesses in federal
procurement-a market that reached more than $200 billion in fiscal year
2002. Section 15(k) of the act requires that all federal agencies with
procurement powers establish an Office of Small and Disadvantaged Business
Utilization (OSDBU) and specifies eight functions that OSDBU directors are
responsible for carrying out in their roles as advocates for small
businesses. GAO surveyed OSDBU directors at 24 agencies to obtain
information on the extent to which the respondents (1) viewed the
functions listed in section 15(k) as functions of their offices, (2)
viewed other potential activities as OSDBU duties, and (3) saw potential
challenges to carrying out their functions.
March 2004
SMALL AND DISADVANTAGED BUSINESSES
Most Agency Advocates View Their Roles Similarly
At least 19 OSDBU directors, or almost 80 percent, said that they viewed
five of the eight functions identified in section 15(k) as their duties. A
smaller majority of OSDBU directors (from 13 to 17) viewed the remaining
three functions as responsibilities of their offices. However, the extent
to which respondents said they carried out these functions varied.
Directors who did not view all of the functions as responsibilities of
their offices provided explanations. For example, the OSDBU directors at
the Departments of the Army and the Navy explained that their role is one
of developing policy for small business programs at their agencies.
Most of the OSDBU directors responded that they also viewed functions
other than those listed in section 15(k) as their responsibilities. These
functions included outreach activities, such as holding meetings and
hosting conferences for small businesses and trade associations, and
reviewing plans for how prime contractors would use small businesses as
subcontractors. A much smaller number of respondents reported that they
viewed participating in their agencies' procurement process as one of
their duties.
While most OSDBU directors reported experiencing few challenges in
carrying out their responsibilities, some reported challenges in three
areas- lack of influence in the procurement process, limited budgetary
resources, and lack of adequate staffing levels.
Survey Results from 24 OSDBU Directors on Section 15(k) Functions
Number of OSDBU
directors viewing
function as a current
Section 15(k) functions duty
Supervisory authority over personnel with the duties and functions of
OSDBU
Working with agency acquisition officials to revise procurement
strategies for bundled contract requirements to increase small business
participation 22
Attempting to identify solicitations that involve bundling of contract
requirements 21
Assisting small businesses to obtain payments from your agency 20
Facilitating small business participation as subcontractors to bundled
contracts 19
Assisting small businesses to obtain payments from prime contractors 17
Reviewing individual acquisitions for small business contract awards 17
Assigning a small business technical advisor 13
Source: GAO analysis of survey data.
www.gao.gov/cgi-bin/getrpt?GAO-04-451.
To view the full product, including the scope and methodology, click on
the link above. For more information, contact David G. Wood at (202)
512-8678 or [email protected].
Contents
Letter
Background Results in Brief Almost All of the OSDBU Directors Viewed Most
Section 15(k)
Functions as Duties of Their Offices OSDBU Directors Reported Performing
Additional Activities as Well as Their Section 15(k) Functions Most OSDBU
Directors Saw Few Challenges to Carrying Out Their
Responsibilities Scope and Methodology Agency Comments and Our Evaluation
1 2 5
7
17
19 20 22
Appendixes
Appendix I: Appendix II:
Appendix III: Twenty-four Agencies Surveyed on OSDBU Roles and Functions
Summary of GAO Survey Results from 24 OSDBU Directors
Introduction
OSDBU Roles in Agency Procurement
GAO Contact and Staff Acknowledgments
GAO Contacts
Staff Acknowledgments
24
25 25 25
44 44 44
Figures Figure 1: Figure 2: Figure 3: Figure 4: Figure 5:
Survey Results from 24 OSDBU Directors on Section
15(k) Functions 8
Level of OSDBU Activity on Contract Bundling
Functions 10
Level of OSDBU Activity of Reviewing Individual
Acquisitions for Small Business Set-asides 12
Level of OSDBU Director Cooperation and Consultation
with SBA 13
OSDBU Directors' Reporting Challenges 20
Contents
Abbreviations
DLA Defense Logistics Agency
DOD Department of Defense
DOT Department of Transportation
FAR Federal Acquisition Regulation
GSA General Services Administration
HUD Department of Housing and Urban Development
NASA National Aeronautics and Space Administration
OMB Office of Management and Budget
OPM Office of Personnel Management
OSDBU Office of Small and Disadvantaged Business Utilization
SBA Small Business Administration
SSA Social Security Administration
USAID U.S. Agency for International Development
This is a work of the U.S. government and is not subject to copyright
protection in the United States. It may be reproduced and distributed in
its entirety without further permission from GAO. However, because this
work may contain copyrighted images or other material, permission from the
copyright holder may be necessary if you wish to reproduce this material
separately.
A
United States General Accounting Office Washington, D.C. 20548
March 22, 2004
The Honorable Olympia J. Snowe
Chair
The Honorable John F. Kerry
Ranking Minority Member
Committee on Small Business and Entrepreneurship
United States Senate
During the last 25 years, Congress has enacted several laws designed to
foster small business participation in federal procurement-a market that
reached more than $200 billion in fiscal year 2002. One of these laws,
Public
Law 95-507, enacted in 1978, amended section 15 of the Small Business Act
(15 U.S.C. S: 644) to require that all federal agencies with procurement
powers establish an Office of Small and Disadvantaged Business Utilization
(OSDBU) and appoint a director to head the office. Under this act, the
OSDBU is responsible for helping to oversee the agency's functions and
duties related to the awarding of contracts and subcontracts to small and
disadvantaged businesses. Paragraphs (4)-(10) of section 15(k) of the act
specify a number of functions that OSDBU directors are responsible for
carrying out in their roles as advocates for small businesses.
On September 4, 2003, we issued a report to you assessing federal
agencies'
compliance with section 15(k)(3) of the Small Business Act, which requires
that the OSDBU director be responsible to and report only to agency heads
or deputy heads. The report covered the 24 federal agencies that procured
at least $200 million or more in goods and services in fiscal year 2001.1
As
requested, this current report provides additional information on the
views
of the OSDBU directors regarding their functions within the agencies.
Specifically, we obtained information on the extent to which the OSDBU
directors (1) viewed the functions listed in section 15(k) as the duties
of
their offices, (2) viewed other potential functions as OSDBU duties, and
(3)
saw any potential challenges to their ability to carry out their duties.
1See U.S. General Accounting Office, Small and Disadvantaged Businesses:
Some Agencies' Advocates Do Not Report to the Required Management Level,
GAO-03-863 (Washington, D.C.: Sept. 4, 2003).
To address these objectives, we administered a Web-based questionnaire to
24 OSDBU directors between May 2003 and September 2003.2 The questionnaire
asked the directors about their functions in three areas: (1)
participation in the agency procurement process, (2) facilitation of small
business participation in agency contracting, and (3) interaction with the
Small Business Administration (SBA). The three areas covered OSDBU
functions listed in section 15(k) of the Small Business Act as well as
functions mentioned by OSDBU directors during our preliminary interviews
with them. In addition, the questionnaire asked the directors what
challenges they faced in carrying out their responsibilities. All 24 OSDBU
directors responded to the questionnaire.3 In order to understand the
basis of their responses, we conducted follow-up interviews with those
directors who indicated that one or more of the functions listed in
section 15(k) were not functions of their OSDBU. However, we did not
assess the 24 agencies' compliance with the provisions of section 15(k).
We conducted our work in accordance with generally accepted government
auditing standards.
Background The federal government purchases billions of dollars in goods
and services each year in a structured process regulated by the Federal
Acquisition Regulation (FAR). The FAR establishes uniform policies and
procedures for the acquisition of supplies and services. For the purpose
of our survey, we divided the procurement process into four steps:
o Acquisition planning involves developing an overall management strategy
for the procurement process for a potential contract. It takes place well
in advance of a contract's award date and generally involves both a close
partnership between the program and procurement offices and the
involvement of other key stakeholders.
2See appendix I for the list of agencies that participated in the survey.
3See appendix II for a summary of the OSDBU directors' responses to the
questionnaire.
o Solicitation development is the process of preparing requests for
vendors to submit offers, or bids. Solicitations can be conducted using
various procedures, such as sealed bids, negotiation, or a simplified
acquisition.4
o Proposal evaluation occurs after potential contractors submit proposals
that outline how they will fulfill the solicitation requirements.
Contracting officers evaluate quotations and award the contract.
o Monitoring, also known as surveillance, helps to determine a
contractor's progress and identify any factors that may delay performance.
The federal government's long-standing policy has been to maximize
procurement opportunities for small, small disadvantaged, and womenowned
businesses. To ensure that small businesses receive a share of federal
procurement contract dollars, Congress has mandated that SBA negotiate
annual procurement goals with each federal agency. Congress has also
amended the Small Business Act several times to increase small business
participation in the federal procurement marketplace. For example, the
Business Opportunity Reform Act of 1988 amended the Small Business Act to
require the President to establish an annual governmentwide goal of
awarding not less than 20 percent of prime contract dollars to small
businesses.5 The Small Business Reauthorization Act of 1997 further
amended the Small Business Act to increase the goal to not less than 23
percent. To help meet this goal, SBA annually establishes prime contract
goals for all categories of small businesses for each federal agency.6
Although SBA is responsible for coordinating with executive
4The use of sealed bids is a method of contracting that uses competitive
bidding where the award is made generally on the basis of cost. For
negotiated contracts, bids are not sealed. Agencies use negotiation when
it may be in the best interest of the government to consider awarding the
contract on a basis other than the lowest price. Agencies use simplified
acquisition procedures to the maximum extent practicable for all purchases
of supplies or services not exceeding a certain threshold, generally
$100,000. Purchases can be made through various streamlined means,
including governmentwide commercial purchase cards, purchase orders, and
blanket purchase agreements.
5A prime contract is any direct contract between the government and a
contractor.
6The small business categories include small businesses; women-owned small
businesses; small disadvantaged businesses, including section 8(a) and
non-section 8(a) disadvantaged businesses; HUBZone small businesses;
veteran-owned small businesses; and servicedisabled, veteran-owned small
businesses.
branch agencies to prompt the federal government toward this mandated
goal, agency heads are responsible for achieving the small business goals
within their agencies.
Section 15(k) of the Small Business Act describes eight functions of OSDBU
directors as follows:7
o Identifying solicitations that involve bundled contract requirements.8
o Working with agency procurement officials to revise bundled contracts
to increase the probability of participation by a small business.
o Facilitating the participation of small businesses as subcontractors
for bundled contracts.
o Assisting small businesses in obtaining payments from an agency with
which it has contracted.
o Helping small businesses acting as subcontractors to obtain payments
from prime contractors.9
o Making recommendations to agency contracting officers regarding whether
a particular contract should be awarded to a small business.10
o Maintaining supervisory authority over OSDBU personnel.
o Cooperating and consulting on a regular basis with SBA in carrying out
OSDBU functions and duties, and assigning a small business technical
7These functions are also part of section 19.201(d) of the FAR, the
implementing regulation for section 15(k) of the Small Business Act.
8The Small Business Reauthorization Act of 1997 defines the bundling of
contract requirements as the consolidation of two or more procurement
requirements for goods or services previously provided or performed under
separate, smaller contracts into a solicitation of offers for a single
contract that is likely to be unsuitable for award to a small business
concern.
9A subcontractor is any person, other than the prime contractor, who
offers to furnish or furnishes any supplies, materials, equipment, or
services of any kind under a prime contract.
10Under section 15(k), the OSDBU director is to make recommendations
regarding whether a particular contract should be awarded to a small
business under certain programs designed to promote contracting
opportunities for small businesses.
advisor to each office where SBA has appointed a procurement center
representative.11 (A procurement center representative is an SBA staff
member assigned to a federal agency's contract administration office to
carry out SBA policies and programs.)
In addition to these eight functions, OSDBU directors have working
relationships with SBA and the agency procurement staff. However, OSDBU
directors are not the only officials responsible for helping small
businesses participate in federal procurement. The FAR establishes a
number of responsibilities for SBA and agency procurement staff in
implementing small business programs. The FAR provides that, among other
things, SBA may assign one or more procurement center representatives to
any agency's contracting activity or contract administration office to
carry out SBA policies and programs. A procurement center representative's
responsibilities include
o increasing small businesses' share of federal procurement awards by
initiating small business set-asides,
o reserving procurements for competition among small business firms,
o providing small business sources to federal agencies, and
o counseling small firms.
At the agency level, the heads of procurement departments are responsible
for implementing the small business programs at their agencies, including
achieving program goals. Generally, staff within agency procurement
departments who are assigned to work on small business issues, or small
business specialists, coordinate with OSDBU directors on their agencies'
small business programs.
Results in Brief Almost all of the 24 OSDBU directors reported that they
viewed most of the section 15(k) functions we asked about as current
responsibilities of their offices. Specifically, at least 19 of the 24
directors reported that they viewed five of the eight as functions of
their office. These five functions included
11The small business technical advisor is to be a technically trained
employee of the contracting activity who is familiar with the supplies or
services purchased at the office, and is to assist the procurement center
representative.
the three relating to contract bundling; the other two were helping small
businesses obtain payments from the agencies and maintaining supervisory
authority over OSDBU staff. A smaller majority (from 13 to 17) of OSDBU
directors viewed the remaining three functions-helping small businesses
obtain payments from prime contractors, reviewing individual contracts for
small business set-asides, and appointing a small business technical
advisor to offices with an SBA representative-as their responsibilities.
However, the extent to which respondents said they carried out these
functions varied. For example, 17 of the 24 directors reported that they
attempted to identify solicitations that involve contract bundling to
either a great or very great extent, but fewer than half reported helping
small businesses with payment problems to a great or very great extent.
Directors who did not view all of the functions as responsibilities of
their offices provided reasons for their responses. For example, the OSDBU
directors at the Departments of the Army and the Navy explained that their
role is one of developing policy for the small business programs at their
agencies, and that the 15(k) functions are generally carried out by the
Army's and Navy's small business specialists.
Most of the OSDBU directors responded that they also viewed functions
other than those listed in section 15(k) as their responsibilities. For
example, a majority of the directors reported that they viewed outreach
activities, such as holding meetings and hosting conferences for small
businesses and trade associations, as their functions, and 20 reported
having hosted such events in the last 2 years. In addition, almost all
(21) of the OSDBU directors agreed that one of their functions was
reviewing subcontracting plans that show how prime contractors would use
small businesses as subcontractors. A much smaller number of OSDBU
directors reported that they viewed participating in the various steps of
their agencies' procurement process as one of their functions. For
example, only 9 directors cited developing proposed bid solicitations as a
function, and 8 cited evaluating bid proposals.
Most OSDBU directors reported experiencing few challenges in carrying out
their responsibilities. Of the seven potential challenges identified in
our survey, more than half of the directors viewed three issues-lack of
influence in the procurement process, limited budgetary resources, and
lack of adequate staffing levels-as challenges to at least some extent.
We sent a draft of this report to all 24 agencies in our study and SBA for
their comments. Of these agencies, we received comments from the
Department of Defense (DOD), the Department of Transportation (DOT),
the National Aeronautics and Space Administration (NASA), and SBA. The
comments were largely technical, and we incorporated them as appropriate.
DOD also commented that the draft contained statements attributed to the
Navy OSDBU director that were incorrect. Because our draft accurately
characterized the statements made by the director, we did not change them.
However, we added language to the report to reflect DOD's reasons, as
stated in its comments, for viewing the information as incorrect.
Almost All of the OSDBU Directors Viewed Most Section 15(k) Functions as
Duties of Their Offices
Almost all of the 24 OSDBU directors that we surveyed reported that they
viewed most of the functions outlined in section 15(k) of the Small
Business Act as current duties of their offices. At least 19 OSDBU
directors, or almost 80 percent, said that they viewed five of the eight
functions identified in 15(k) as their duties, and a smaller majority (13
to 17) saw the remaining three functions as their responsibilities (fig.
1). In cases where we asked respondents about the extent to which they
carried out these functions, responses varied. For example, a large
majority of the OSDBU directors reported that they identified
solicitations for contract bundling to either a great or very great
extent. In contrast, only 5 OSDBU directors reported helping small
businesses to obtain payments from agencies to either a great or very
great extent. Some directors did not view all of the functions as their
responsibilities, but in follow-up interviews these directors provided
explanations for their responses.
Figure 1: Survey Results from 24 OSDBU Directors on Section 15(k) Functions
Source: GAO analysis of survey data.
aAccording to the OSDBU directors, SBA had not assigned a procurement
center representative to 3 of the 24 agencies in our study-the Department
of the Interior, the Office of Personnel Management, and the U.S. Agency
for International Development. Therefore, the OSDBU directors at these
agencies were not required to assign a small business technical advisor.
The Extent to Which OSDBU Directors Carried Out Some Section 15(k)
Functions Varied
We asked OSDBU directors about the extent to which they carried out
several of the section 15(k) functions. Of those directors who saw the
contract bundling functions as responsibilities of their OSDBUs, more than
half reported carrying out these duties to a great or very great extent
(fig. 2). For example, 17 of the 21 OSDBU directors who viewed identifying
solicitations that involved contract bundling as a function reported doing
so to a great or very great extent, as did more than half (13) of the 22
directors who viewed working with agency acquisition officials to revise
procurement strategies for bundled contracts as a duty. For example, 1
OSDBU director wrote: "When and if a program office announces its
intention to bundle, the OSDBU works with it to ensure that the small
business market share does not suffer." Another OSDBU director stated, "We
are reviewing previously bundled contracts in order to unbundle them.
We're also developing questions for the [contracting] personnel to answer
regarding past contract awards."
Eleven of the 19 OSDBU directors who viewed facilitating small business
participation as subcontractors on a bundled contract as a duty said that
they carried out the function to a great or very great extent. In their
written comments, several directors noted that they worked with the
acquisition officials on large contracts to increase subcontracting for
small businesses. One director wrote the following:
"...the Director reviews major acquisitions and other acquisitions that
have agencywide impact. These venues provide the OSDBU with opportunities
to ensure that acquisitions are not unnecessarily consolidated, and to
influence the establishment of aggressive proposal evaluation factors and
subcontracting goals to encourage small business opportunities."
Another OSDBU director commented, "OSDBU works with acquisition officials
on large dollar contracts to encourage contracting officers to include
increased subcontracting incentives in solicitations."
Figure 2: Level of OSDBU Activity on Contract Bundling Functions
Source: GAO analysis of survey data.
Our survey occurred after the Office of Federal Procurement Policy, an
office within the Office of Management and Budget (OMB), issued new
guidance on limiting the use of contract bundling. In October 2002, OMB
issued a plan entitled Contract Bundling: A Strategy for Increasing
Federal Contracting Opportunities for Small Business. The aim of the plan
was to eliminate unnecessary contracting bundling and to mitigate the
effects of necessary contract bundling. Under the plan, OSDBUs were to be
required to conduct periodic reviews and submit their assessments to
OMB.12 By giving the issue of contract bundling more prominence, the
guidance in this plan may have affected how the OSDBU directors saw their
role in contract bundling. In written comments on contract bundling,
12Another GAO team is currently conducting a study on the extent to which
contract bundling occurs and the effect of OMB's strategy on small
business federal contracting opportunities.
several OSDBU directors referred to OMB's guidance. One OSDBU director
wrote, "We are changing our procurement review function as a result of the
recent OMB guidance so we will become more involved more than currently."
Similarly, another director commented, "...under OMB's renewed interest in
his area, OSDBU is very active in identifying and taking action to avoid
unnecessary contract bundling."
Twenty OSDBU directors viewed assisting small businesses to obtain payment
from agencies as an OSDBU function, but only 5 reported doing so to a
great or very great extent. Eleven reported that they carried out this
function to a moderate level or less. In written comments and follow-up
interviews, a majority of the OSDBU directors who viewed this assistance
as a function stated that the problem of nonpayment to small business had
arisen only occasionally. Moreover, the directors explained that although
they will assist small businesses with payment problems whenever they are
contacted, the issue is more clearly administrative and thus more likely
be handled by other agency personnel. Several OSDBU directors reported
that they typically refer such matters to contract administrators, and 1
director noted that his office worked with the agency's Vendor Claims
Division on payment issues. Another director said that the agency's Office
of Acquisition Management was responsible for ensuring payment for all
vendors, large and small, but that the OSDBU acted as a mediator when
necessary.
A slightly lower number (17) of respondents viewed helping to obtain
payments from prime contractors as an OSDBU function. Slightly less than
half (8) of the 17 OSDBU directors reported that they carried out this
function to a moderate extent or less; only 3 said they had carried out
the function to either a great or very great extent.13
Seventeen OSDBU directors reported that they viewed reviewing or
determining individual contracts that should be set aside for a small
business as an OSDBU function. As figure 3 shows, 8 of the 17 OSDBU
directors stated that they reviewed proposed small business set-asides for
individual acquisitions in all or most cases, and another 8 carried out
this function in some or a few cases. An additional 3 OSDBU directors
reported that determining small business set-asides for a class of
acquisitions was a function of their OSDBU.
13Six respondents did not provide an answer.
Figure 3: Level of OSDBU Activity of Reviewing Individual Acquisitions for
Small Business Set-asides
In all cases
In most cases
In some cases
In few cases
In no cases
Don't know
No answer
01234567
Number of respondents (n=17)
Source: GAO analysis of survey data.
The process of setting aside contracts for small business programs is a
responsibility that is shared among SBA, the agencies' contracting staff,
and the OSDBU. The OSDBU director's role in the process, according to the
FAR, consists of making recommendations on whether particular contracts
can be set aside. In their written comments, several OSDBU directors
stated that they reviewed contracts above the threshold for simplified
acquisitions (generally $100,000), and then they either concurred or did
not concur with the contracting officers that the contracts should be set
aside. One OSDBU director wrote the following:
"For acquisitions valued over $100,000, contracting officers are required
to submit small business set-aside clearance review forms to the OSDBU via
the bureau's small business specialist. The clearance forms document the
acquisition planning activities and strategies for individual contract
actions. The OSDBU works with the contracting officers to create
acquisition strategies for full and partial set-asides."
We also asked OSDBU directors to indicate the extent to which they
cooperated and consulted with SBA in carrying out their responsibilities.
Twenty-three directors reported that they cooperated and consulted with
SBA on small business matters, 16 of them to a great or very great extent
(fig. 4). For example, in commenting on their working relationship with
SBA staff, 1 OSDBU director wrote, "We work closely with various SBA
district offices that manage the portfolios of our various 8(a)
contractors. We also participate on the Small Business Procurement
Advisory Council, which is co-chaired by SBA and meets monthly."
Figure 4: Level of OSDBU Director Cooperation and Consultation with SBA
Very great extent
Great extent
Moderate extent
Some extent
Little or no extent
Don't know
No answer
0 2 4 6 810
Number of respondents (n=24)
Source: GAO analysis of survey data.
Section 15(k) of the Small Business Act requires the OSDBU director to
designate a small business technical advisor when SBA has assigned a
procurement center representative to their agency. Twenty OSDBU directors
stated that SBA had assigned a procurement center representative to their
agencies.14 Of these, 13 directors reported that they had assigned a small
business technical advisor, and 7 said that they had not.
14Three of the 24 OSDBU directors (those at the Department of the
Interior, the Office of Personnel Management, and the U.S. Agency for
International Development) reported in the survey that SBA had not
assigned a procurement center representative.
OSDBU Directors Explained Why They Did Not View Some 15(k) Functions as
Their Current Responsibilities
The number of OSDBU directors who did not view a section 15(k) function as
their current responsibility varied, depending on the specific function.
The number of directors ranged from 2 who did not view supervisory
authority over OSDBU personnel as a responsibility to 8 who did not view
assigning a small business technical advisor as a responsibility. During
follow-up interviews, the OSDBU directors provided a variety of reasons
for their views.
o Two OSDBU directors (the Office of the Secretary of Defense and the
Social Security Administration (SSA)) reported that they did not supervise
OSDBU personnel. In a follow-up interview, the OSDBU director at the
Office of the Secretary of Defense told us that he does not supervise the
OSDBU directors at the military services because his duties are primarily
developing policy and providing oversight of the military OSDBUs. The
OSDBU director at SSA stated that he did not have OSDBU staff assigned to
his office, and that he was assisted by a small business specialist, who
works for the Office of Acquisition and Grants.
o Two OSDBU directors (Navy and the U.S. Agency for International
Development (USAID)) indicated that two functions involving contract
bundling were not their responsibilities: working with agency acquisition
officials to revise procurement strategies for bundled contract
requirements and attempting to identify solicitations that involve
bundling contract requirements. In our follow-up conversations, Navy's
OSDBU director told us that her role was primarily developing policy for
small business programs at her agency. She stated that her role stems
mostly from the decentralized nature of the DOD's procurement system. She
stated that she does not review individual contracts to identify bundling
of contract requirements because these duties are the responsibility of
the small business specialists. The OSDBU director at USAID stated that
she is not aware of any bundling at the agency and thus did not consider
the two functions a responsibility. However, she noted that her response
did not mean that USAID had not bundled any contracts.
o Four OSDBU directors (the Department of Education, Army, Navy, and the
Office of Personnel Management (OPM)) indicated that they did not view
facilitating small business participation as subcontractors to bundled
contracts as a duty of their offices. In a follow-up interview, the OSDBU
director at Education stated that she worked with the contracting officer
to unbundle contracts, but she added that the
OSDBU did not work with subcontractors. She indicated that her role was
limited to referring the names of small businesses to the contracting
office as potential subcontractors. The OSDBU directors at Army and Navy
stated that their roles were primarily developing policy, and that small
business specialists generally carry out this function. The OSDBU director
at OPM told us that he did not view the function as a duty because
contract bundling had not happened at OPM in the past fiscal year.
o Four OSDBU directors (the Office of the Secretary of Defense, the
Department of Housing and Urban Development (HUD), Navy, and the
Department of the Treasury) reported that they did not see assisting small
businesses to obtain payments from agencies as their function. In
follow-up interviews, the OSDBU director at the Office of the Secretary of
Defense told us that few if any problems occurred in this area and, if
there were any problems, they would be handled by the small business
offices. The OSDBU director at HUD explained that the agency's contract
administrators handle this function. The OSDBU director at Navy explained
that small businesses seeking payment would need to contact the small
business specialist at one of the commands or the Defense Contract
Management Agency. Treasury officials told us that assisting small
businesses to obtain payments would be the responsibility of the
contracting office or the financial management office.
o Seven OSDBU directors (the Defense Logistics Agency (DLA), the
Department of Agriculture, Army, Education, HUD, Navy, and Treasury) did
not view assisting small businesses to obtain payments from prime
contractors as a function of their offices. Several OSDBU directors (DLA,
Agriculture, and Education) told us in follow-up interviews that they did
not view it as a function primarily because as government personnel, they
could not become involved in a contractual dispute between the prime
contractors and the subcontractors. The OSDBU directors at Army and Navy
explained that the Defense Contract Management Agency or the small
business specialists would resolve these issues. Treasury officials
explained that contracting officers at individual bureaus were responsible
for addressing the payment problems, and that the agency's involvement
would be limited by legal constraints. Again, the OSDBU director at HUD
stated that the agency's contract administrators would handle the
problems.
o Four OSDBU directors (Army, Navy, the General Services Administration
(GSA), and USAID) stated that determining a small business set-aside for
either an individual contract or a class of acquisitions was not a
function of their offices. The OSDBU directors for Army and Navy stated
that the small business specialists review contracts for small business
set-asides. Also, the OSDBU director at GSA told us that procurement
officials determine set-asides. The OSDBU director at USAID stated in a
follow-up interview that she makes set-aside recommendations on contracts
when she sees the contract.
o Seven OSDBU directors (DLA, the Office of the Secretary of Defense,
Education, the Department of State, the Department of Veterans Affairs,
SSA, and the Environmental Protection Agency) reported that they did not
assign a small business technical advisor at offices where SBA had
assigned a procurement center representative. For example, the OSDBU
director at the Office of the Secretary of Defense told us that his
responsibility for assigning small business technical advisors was
delegated to the military services, and the OSDBU director at DLA said
that the function had been delegated to the head of DLA's contracting
affairs. Also, the OSDBU director at SSA told us that the small business
specialist from the agency's Office of Acquisition and Grants, who works
with him, could fulfill the role of a small business technical advisor. He
explained that the small business specialist assists the procurement
center representative when the procurement center representative comes to
the agency to review the set-aside determinations.
In commenting on a draft of this report, the Director, Office of Small and
Disadvantaged Business Utilization, Office of Under Secretary of Defense
for Acquisition, Technology, and Logistics, stated that the draft included
information, attributed to the Navy OSDBU director, that is incorrect. Our
draft report stated that the director did not view three of the section
15(k) duties we asked about-working with agency acquisition officials to
revise procurement strategies for bundled contract requirements,
attempting to identify solicitations that involve bundling contract
requirements, and assisting small businesses to obtain payments from
agencies-as responsibilities of her office. Our report was based on the
Navy director's response to our survey, which we reaffirmed in a follow-up
interview with her. DOD's OSDBU director commented that generally these
functions are performed by small business specialists, but that if
mutually agreeable solutions cannot be worked out between the parties, the
matters are elevated to the Navy OSDBU director for resolution.
OSDBU Directors Reported Performing Additional Activities as Well as Their
Section 15(k) Functions
During preliminary interviews, OSDBU directors noted that they view as
their responsibility some functions, such as outreach activities and
reviewing subcontracting plans, that are not among those specifically
identified in section 15(k). Our survey results show that nearly all of
the 24 directors viewed most of these additional functions as a current
duty. Some directors also reported that they viewed involvement in the
solicitation development and proposal evaluation phases of the procurement
process as a current function of their office.
Most Directors Saw Outreach to Small Businesses as a Function of Their
OSDBU
Nearly all (21) of the OSDBU directors saw hosting conferences for small
businesses as one of their responsibilities, and 20 had hosted such an
event in the last 2 years. In their written comments, several OSDBU
directors said that they typically designed the conferences to expose
small businesses to their agency's specific needs. For example, 1 OSDBU
director described (1) hosting annual networking sessions for small
businesses and prime contractors and a "fair" for veteran-owned small
businesses and (2) cohosting six information technology "fairs." Those
OSDBU directors that had not hosted conferences said that they had either
participated in another agency's fairs or had assigned this duty to the
small business specialists. For example, 1 OSDBU director said that his
office usually participated in outreach conferences hosted by relatively
large organizations, including SBA, the Minority Business Development
Agency, and the Department of Commerce.
A majority (17) of OSDBU directors saw sponsoring training for small
businesses as a function, and 15 said that they had sponsored a training
program in the last 2 years. In their written responses, several directors
said that the purpose of the training programs is to familiarize small
businesses with doing business with their agencies. Four directors said
that they had partnered with another agency to provide training. For
example, 1 director said, "In conjunction with the SBA Baltimore District
Office, the OSDBU has hosted training events on subjects concerning GSA
schedules, teaming agreements, and how to do business with [the agency]."
Of those OSDBU directors that did not host their own training programs, 1
said he had provided small businesses with a brochure explaining
contracting opportunities at the agency, and 2 referred small businesses
to SBA for training.
Almost All of the Directors Reported That Reviewing and Monitoring
Subcontracting Plans Are Functions of Their OSDBU
Almost all (22) of the OSDBU directors said that reviewing prime
contractors' subcontracting plans for small business consideration is a
current function, and 15 reported that they performed this activity in all
or most cases. According to the FAR, any prime contractor with a contract
above the simplified acquisition threshold ($100,000) must agree to allow
small businesses the "maximum practicable opportunity" to participate in
the contract. If a contract for more than $500,000 is awarded, or is to be
awarded, to a business other than a small business, the government
requires the winner of the contract to submit an acceptable subcontracting
plan that shows how small businesses will be used as subcontractors.15 We
found that some OSDBU directors reviewed subcontracting plans for all
acquisitions, while a few OSDBU directors said they reviewed plans for
contracts only above certain dollar thresholds.
Almost all (19) of the OSDBU directors also reported that they monitor
prime contractors' implementation of the subcontracting plans. Several of
the OSDBU directors stated they reviewed certain standard forms to
determine if the prime contractors were following their subcontracting
plans.16 Three of the five defense services noted that the Defense
Contract Management Agency monitors implementation of the subcontracting
plans of DOD prime contractors. One director at a civilian agency said
that the OSDBU had implemented a pilot program that required the prime
contractors to report monthly on the level of subcontracting and the
actual payments made to small business. According to the director, "This
handson approach was highly successful and resulted in significant levels
of small business participation at the subcontracting level."
15The threshold for construction contracts is $1,000,000.
16These forms include the Standard Form 294 (Subcontracting Report for
Individual Contracts) and the Standard Form 295 (Summary Subcontract
Report).
Some Directors Saw Participating in Soliciting and Evaluating Proposals as
Responsibilities of Their OSDBU
Nine of the OSDBU directors we surveyed said that developing proposed
solicitations was a function of their OSDBU.17 Two OSDBU directors noted
that their involvement was limited to major procurements. For example, 1
director noted that his office worked with contracting officers and
program officials through the agency small business specialists "to
develop special language or provisions for some solicitations."
Only 8 OSDBU directors said that evaluating proposals submitted by
potential contractors in response to bid solicitations was a function of
their OSDBU.18 Of these directors, 3 said that they participated in the
function only on an exception basis or in a few cases.19 Two of the OSDBU
directors wrote that their participation in evaluating proposals submitted
by potential contractors consisted of reviewing the subcontracting plans
of the prime contractors.
Most OSDBU Directors Saw Few Challenges to Carrying Out Their
Responsibilities
Most of the OSDBU directors we surveyed reported that they face few
challenges to carrying out their responsibilities. However, more than half
viewed three issues-lack of influence in the procurement process, limited
budgetary resources, and lack of adequate staffing-as challenges to at
least some extent. As shown in figure 5, between 15 and 19 respondents saw
four of the access and independence issues in our questionnaire as
challenges to little or no extent. On the other hand, a slight majority
saw their lack of influence over procurement as a challenge to at least
some extent, and a larger majority (17) saw limited budgetary resources
and inadequate staffing levels as challenges to at least some extent. We
received very few written comments explaining respondents' views on the
challenges.
17The Departments of the Air Force, Agriculture, Commerce, Energy, Health
and Human Services, Labor, the Treasury; the National Aeronautics and
Space Administration; and the Office of Personnel Management.
18The Defense Logistics Agency; the Departments of Agriculture, Commerce,
Health and Human Services, Labor, State, and Transportation; and the
National Aeronautics and Space Administration.
19The Defense Logistics Agency and the Departments of Transportation,
Health and Human Services, and State.
Figure 5: OSDBU Directors' Reporting Challenges
Source: GAO analysis of survey data.
Scope and Methodology
To learn more about the duties and functions of OSDBUs, we administered a
Web-based questionnaire to OSDBU directors at 24 federal agencies.20 To
develop the survey instrument, we conducted pretest interviews with 2
OSDBU directors and obtained input from GAO experts on survey design. A
summary of the OSDBU directors' responses to the questionnaire is
contained in appendix II. The questions asked the respondents whether
certain functions were a current role or function of their OSDBU. The
functions covered three areas: OSDBU participation in the procurement
20The Federal Emergency Management Agency was not included in the survey
because it became part of the Department of Homeland Security in March
2003 and ceased to be an independent agency.
process, OSDBU facilitation of small business participation in agency
contracting, and OSDBU interaction with SBA staff. The questions were
drawn from the OSDBU functions listed in section 15(k) of the Small
Business Act as well as those functions mentioned by OSDBU directors
during preliminary interviews we conducted during the design phase of the
instrument.
We began the survey in late May 2003 by sending an e-mail either directly
to the OSDBU director or through their agency liaisons with unique
passwords and the locations of our Web survey. Follow-up contacts with
those not completing the survey were made in June and July, and the survey
was closed in early September 2003. We received completed questionnaires
from all 24 directors in the survey population. In one case, a GAO liaison
officer reviewed the OSDBU director's responses before submitting the
survey to GAO.
We conducted 17 follow-up discussions with OSDBU directors, consisting of
15 interviews and 2 e-mail discussions. The purpose of the follow-ups was
to confirm answers when respondents said they did not view one or more
functions listed in section 15(k) as a role of their office. On the basis
of these discussions, we changed 23 of the answers originally placed on
the survey as the director not viewing a 15(k) function as an OSDBU role
to the director viewing it as an OSDBU role. We used the following two
criteria to make these changes: (1) the directors explicitly stated that
they wished to change their answer and provided a reason for the change or
(2) the directors misunderstood the question. Thus, these adjustments are
reported as being a "yes" response in our findings.
While OSDBU directors at the 24 agencies were asked to participate in the
survey and the survey results are therefore not subject to sampling
errors, not all OSDBUs responded to every individual question.
Nonresponse, and the practical difficulties of conducting any survey, may
introduce error in survey results. We took steps to minimize such errors
in the development and testing of our questionnaire by conducting
follow-ups with nonrespondents, and by checking and editing survey
responses and analysis. We did not assess the 24 agencies' compliance with
the provisions of section 15(k).
We conducted our work in Washington, D.C., between January 2003 and
January 2004 in accordance with generally accepted government auditing
standards.
Agency Comments and Our Evaluation
We sent a draft of this report to all 24 agencies in our study and to SBA
for their comments. We received technical comments from DOD, DOT, NASA,
and SBA, which we incorporated as appropriate. DOD also commented that the
draft did not accurately reflect responses attributed to the Navy OSDBU
director. Our draft report stated that the director did not view three of
the section 15(k) duties we asked about-working with agency acquisition
officials to revise procurement strategies for bundled contract
requirements, attempting to identify solicitations that involve bundling
contract requirements, and assisting small businesses to obtain payments
from agencies-as responsibilities of her office. According to the comments
received from DOD's OSDBU director, Navy's OSDBU director is ultimately
responsible for carrying out these duties (1) if Navy's small business
specialists are unable to reach a mutually agreeable solution when working
with agency officials to revise procurement strategies for a bundled
contract and identify solicitations that involve contract bundling
requirements and (2) when the buying command or contract administration
office has not been able to resolve matters regarding payments.
We do not take exception with DOD's statement that Navy's OSDBU director
is ultimately responsible for these three duties if the matters have not
been resolved by other agency officials. However, we believe the Navy
OSDBU director's responses are accurately reflected in this report. In
both the questionnaire and follow-up interview, Navy's OSDBU director
stated that she did not view the three functions as her duties.
As agreed with your offices, unless you publicly release its contents
earlier, we plan no further distribution of this report until 30 days from
its issuance date. At that time, we will send copies of this report to the
Chairman and the Ranking Minority of the House Committee on Small
Business. We will make copies available to others on request. In addition,
this report will be available at no charge on the GAO Web site at
http://www.gao.gov.
If you have any questions regarding this report, please contact me or
Charles E. Wilson, Jr., Assistant Director, at (202) 512-8678. Key
contributors to this report are listed in appendix III.
David G. Wood Director, Financial Markets and Community Investment
Appendix I
Twenty-four Agencies Surveyed on OSDBU Roles and Functions
Defense Logistics Agency Department of Agriculture Department of Commerce
Department of Defense-Office of the Secretary Department of Education
Department of Energy Department of Health and Human Services Department of
Housing and Urban Development Department of Justice Department of Labor
Department of State Department of the Air Force Department of the Army
Department of the Interior Department of the Navy Department of the
Treasury Department of Transportation Department of Veterans Affairs
Environmental Protection Agency General Services Administration National
Aeronautics and Space Administration Office of Personnel Management Social
Security Administration U.S. Agency for International Development
Appendix II
Summary of GAO Survey Results from 24 OSDBU Directors
Introduction The United States General Accounting Office (GAO) is
conducting a study on small business contracting for the Senate Committee
on Small Business and Entrepreneurship. Several weeks ago, we asked you
and each of the other OSDBU directors at the 21 federal agencies with
procurements of $200 million or more in 2001 for information on the
reporting relationship between the OSDBU director and other agency
officials, including the agency head.
Now we would like to know more about how the OSDBU directors are carrying
out the duties and functions of their offices. To make the task of
reporting this information easier for you, we delayed this second part of
our request until now.
This questionnaire should take about half an hour to complete, depending
on the need to consult records and other people. Your response by June
11th would be greatly appreciated.
Your cooperation in answering all of the questions in this survey is vital
to our ability to report to Congress.
Q1. How long have you been Director of the Office of Small and
Disadvantaged Business Utilization (OSDBU)?
Number
of
Mean Median Minimum Maximum respondents
How long have
you been
Director of
OSDBU? 4 2 01524
Q2. Please briefly describe the overall mission of your OSDBU.
OSDBU Roles in The following sections ask you about the functions and
duties that your OSDBU might perform under Section 15(k) of the Small
Business Act. For
Agency Procurement each of the following activities, please tell us
whether each is currently a role or function that your OSDBU can perform,
even if it has not yet done so. For those activities that fall to your
OSDBU as official roles or functions, please tell us to what extent your
OSDBU actually engages in those activities, and describe that involvement.
Appendix II
Summary of GAO Survey Results from 24
OSDBU Directors
Q3. Is involvement in acquisition planning, as defined in Part 7 of the
Federal Acquisition Regulation, currently a role or function of your
OSDBU?
Yes -an OSDBU role or function
No -not an OSDBU role or function Don't know
Number
of
respondents
18 6 024
Q4. In general, to what extent is your OSDBU involved in acquisition planning?
Number
Moderate Little or of
Very great no
extent Great extent Some extent Don't respondents
extent extent know
2 7 4 4 1 0 18
Q5. Please briefly explain your answer to the previous question -what
level of activity, if any, has your OSDBU had in this area? Q6. Is
determining small business set-asides for individual acquisitions
currently a role or function of your OSDBU?
Yes -an OSDBU role or function
No -not an OSDBU role or function Don't know
Number
of
respondents
17 7 024
Q7. How often is your OSDBU involved in determining small business
set-asides for individual acquisitions?
Number
of
In all In most In some In few In no Don't respondents
cases cases cases cases cases know
2 6 7 1 0 0 16
Q8. Please briefly explain your answer to the previous question -what
level of activity, if any, has your OSDBU had in this area?
Q9. Is determining small business set-asides for a class of acquisitions
currently a role or function of your OSDBU?
Yes -an No -not an Number
OSDBU role or OSDBU role or of
function function Don't know respondents
17 6 0 23
Appendix II
Summary of GAO Survey Results from 24
OSDBU Directors
Q10. How often is your OSDBU involved in determining small business
set-asides for a class of acquisitions?
Number
of
In all In most In some In few In no Don't respondents
cases cases cases cases cases know
3 2 5 5 0 0 15
Q11. Please briefly explain your answer to the previous question - what
level of activity, if any, has your OSDBU had in this area?
Q12. In the event of a formal disagreement between your OSDBU and
procurement officials during the acquisition planning process concerning
small business matters, what is the first level of appeal for your OSDBU
if the situation is not resolved?
N/A - OSDBU
cannot No specific Chief Other Number
-please
formally first level Deputy Financial describe of
of in
disagree appeal Agency Agency Officer box below respondents
Head Head
0 3 4 5 0 12 24
If you checked "Other" - please describe below:
Q13. Does your agency require written justification from procurement
officials if they disagree with your OSDBU objections?
Written
justification
required -please
No written describe elements Number justification of this justification of
required in box below respondents
9 14 23
If you checked "Written justification required" - please describe below:
Q14. Has your OSDBU formally disagreed with the procurement officials
during acquisition planning concerning small business matters in the past
24 months?
Yes - OSDBU has disagreed No - OSDBU has
with not disagreed Number
procurement with procurement of
officials officials respondents
15 722
Appendix II
Summary of GAO Survey Results from 24
OSDBU Directors
Q14a. How often has your OSDBU formally disagreed with procurement
officials during acquisition planning concerning small business matters in
the past 24 months?
Number
of
In all cases In most cases In some In few Don't know respondents
cases cases
0 0 7 7 2 16
Q14b. Typically, what were the outcomes of these disagreements?
Q15. If your OSDBU is not currently involved in acquisition planning, what
entity is involved in acquisition planning that advocates for small
business consideration?
Number
of
Checked respondents
Other Entity involved
in acquisition
planning: N/A -
OSDBU involved 14 24
Other Entity involved
in acquisition
planning: None 1 24
Other Entity involved
in acquisition
planning:
Procurement Officials 11 24
Other Entity involved in acquisition planning: SBA Procurement Center Reps
7 24
Other Entity involved
in acquisition
planning: Agency
Program Officials 11 24
Other Entity involved
in acquisition
planning: Other 5 24
If you checked "Other" - please describe:
Appendix II
Summary of GAO Survey Results from 24
OSDBU Directors
Q16. Is developing proposed solicitations currently a role or function of your
OSDBU?
Yes -an OSDBU role or function
No -not an OSDBU role or function Don't know
Number
of
respondents
915 024
Q17. In general, to what extent is your OSDBU involved in developing
proposed solicitations?
Number
Moderate Little or of
Very great no
extent Great extent Some extent Don't respondents
extent extent know
0 2 1 6 0 0 9
Q18. Please briefly explain your answer to the previous question - what
level of activity, if any, has your OSDBU had in this area?
Q19. Is attempting to identify proposed solicitations that involve
bundling of contract requirements currently a role or function of your
OSDBU?
Yes -an OSDBU role or function
No -not an OSDBU role or function Don't know
Number
of
respondents
21 3 024 Q20. In general, to what extent does your OSDBU attempt to identify
proposed solicitations that involve bundling of contract requirements?
Number
Moderate Little or of
Very great no
extent Great extent Some extent Don't respondents
extent extent know
7 10 1 3 0 0 21
Q21. Please briefly explain your answer to the previous question - what
level of activity, if any, has your OSDBU had in this area?
Q22. Is working with agency acquisition officials to revise procurement
strategies for bundled contract requirements to increase small business
participation currently a role or function of your OSDBU?
Yes -an No -not an Number
OSDBU role or OSDBU role or of
function function Don't know respondents
22 2 0 24
Appendix II
Summary of GAO Survey Results from 24
OSDBU Directors
Q23. In general, to what extent does your OSDBU work with agency
acquisition officials to revise procurement strategies for bundled
contract requirements to increase small business participation?
Number
Moderate Little or of
Very great no
extent Great extent Some extent Don't respondents
extent extent know
6 7 2 4 0 1 20
Q24. Please briefly explain your answer to the previous question - what
level of activity, if any, has your OSDBU had in this area? Q25. Is
facilitating small business participation as subcontractors to bundled
contracts currently a role or function of your OSDBU?
Yes -an OSDBU role or function
No -not an OSDBU role or function Don't know
Number
of
respondents
19 4 023 Q26. In general, to what extent does your OSDBU facilitate small
business participation as subcontractors to bundled contracts?
Number
Moderate Little or of
Very great no
extent Great extent Some extent Don't respondents
extent extent know
5 6 3 3 0 0 17
Q27. Please briefly explain your answer to the previous question - what
level of activity, if any, has your OSDBU had in this area? Q28. Is
developing evaluation factors for solicitations for your agency currently
a role or function of your OSDBU?
Yes -an OSDBU role or function
No -not an OSDBU role or function Don't know
Number
of
respondents
15 9 024
Q29. How often does your OSDBU develop evaluation factors for
solicitations for your agency?
Number
of
In all In most In some In few In no Don't respondents
cases cases cases cases cases know
0 3 9 3 0 0 15
Q30. Please briefly explain your answer to the previous question - what level of
activity, if any, has your OSDBU had in this area?
Appendix II
Summary of GAO Survey Results from 24
OSDBU Directors
Q31. In the event of a formal disagreement between your OSDBU and
procurement officials during solicitation development concerning small
business matters, what is the first level of appeal for your OSDBU if the
situation is not resolved?
N/A - OSDBU
cannot No specific Chief Other Number
-please
formally first level Deputy Financial describe of
of in
disagree appeal Agency Agency Officer box below respondents
Head Head
1 5 4 3 0 10 23
If you checked "Other" - please describe:
Q32. Does your agency require written justification from procurement
officials if they disagree with your OSDBU objections?
No written justification required Written
justification
required -please describe elements of this justification
in box below
Number
of
respondents
15 823
If you checked "Written justification required" - please describe:
Q33. Has your OSDBU formally disagreed with the procurement officials
during solicitation development concerning small business matters in the
past 24 months?
Yes - OSDBU has disagreed with procurement officials
No -OSDBU has not disagreed with procurement officials
Number
of
respondents
13 1023
Q33a. How often has your OSDBU formally disagreed with procurement
officials during solicitation development concerning small business
matters in the past 24 months?
Number
of
In all cases In most cases In some In few Don't know respondents
cases cases
0 0 5 6 2 13
Q33b. Typically, what were the outcomes of these disagreements?
Appendix II
Summary of GAO Survey Results from 24
OSDBU Directors
Q34. Is evaluating proposals submitted by potential contractors in response to
solicitations currently a role or function of your OSDBU?
Yes -an OSDBU role or function
No -not an OSDBU role or function Don't know
Number
of
respondents
816 024
Q35. How often does your OSDBU evaluate proposals submitted by potential
contractors in response to solicitations?
Number
of
In all In most In some In few In no Don't respondents
cases cases cases cases cases know
0 0 6 2 0 0 8
Q36. Please briefly explain your answer to the previous question - what
level of activity, if any, has your OSDBU had in this area?
Q37. Is reviewing sub-contracting plans for small business consideration
from potential prime contractors currently a role or function of your
OSDBU?
Yes -an OSDBU role or function
No -not an OSDBU role or function Don't know
Number
of
respondents
22 2 024 Q38. How often does your OSDBU review sub-contracting plans for small
business consideration from potential prime contractors?
Number
of
In all In most In some In few In No Don't respondents
cases cases cases cases cases know
9 6 3 2 0 1 21
Q39. Please briefly explain your answer to the previous question - what
level of activity, if any, has your OSDBU had in this area?
Q40. Is making recommendations to procurement officials on whether a
particular contract should be awarded to a small business currently a role
or function of your OSDBU?
Yes -an No -not an Number
OSDBU role or OSDBU role or of
function function Don't know respondents
15 8 0 23
Appendix II
Summary of GAO Survey Results from 24
OSDBU Directors
Q41. How often does your OSDBU make recommendations to procurement
officials on whether a particular contract should be awarded to a small
business?
Number
of
In all In most In some In few In No Don't respondents
cases cases cases cases cases know
2 4 6 1 1 1 15
Q42. Please briefly explain your answer to the previous question - what
level of activity, if any, has your OSDBU had in this area?
Q43. If your OSDBU does not make contract recommendations, what entity
makes recommendations on contracts for small business consideration?
Number
of
Checked respondents
Other entity
recommending
-N/A, OSDBU
role 11 24
Other entity
recommending
-None 0 24
Other entity
recommending
-Procurement
officials 9 24
Other entity
recommending
-SBA
Procurement
Center Rep 2 24
Other entity
recommending
-Agency
program
officials 5 24
Other entity
recommending
-Other 3 24
If you checked "Other" - please describe:
Appendix II
Summary of GAO Survey Results from 24
OSDBU Directors
Q44. In the event of a formal disagreement between your OSDBU and
procurement officials during proposal evaluation concerning small business
matters, what is the first level of appeal for your OSDBU if the situation
is not resolved?
N/A -
OSDBU
cannot No specific Chief Other - Number
Please
formally first level of Deputy Financial describe of
in
disagree appeal Agency Agency Officer the box Don't respondents
Head Head below know
2 3 2 4 1 10 0
If you checked "Other" - please describe:
Q45. Does your agency require written justification from procurement
officials if they disagree with your OSDBU objections?
No written justification required
Written justification required -Please describe in the box below
Number
of
respondents
12 921
If you checked "Written justification required" - please describe:
Q46. Has your OSDBU disagreed with the procurement officials during
solicitation review concerning small business matters in the past 24
months?
Yes - OSDBU has disagreed with procurement officials
No -OSDBU has not disagreed with procurement officials
Number
of
respondents
5 15 20
Q47. If your OSDBU and the procurement officials have disagreed in the
past 24 months, approximately what percentage of contract awards was in
dispute?
Number
of
1%-25% 26%-50% 51%-75% 76%-99% 100% respondents
4 0 1 0 0 5
Q48. Typically, what were the outcomes of these disagreements?
Appendix II
Summary of GAO Survey Results from 24
OSDBU Directors
Q49. Is monitoring small businesses that receive prime contracts from your
agency currently a role or function of your OSDBU? For example, monitoring
can include your OSDBU meeting at regular intervals with small businesses
that receive prime contracts.
Yes -an OSDBU role or function
No -not an OSDBU role or function Don't know
Number
of
respondents
1212 024
Q50. In general, to what extent does your OSDBU monitor small businesses
that receive prime contracts from your Agency?
Number
Moderate Little or of
Very great no
extent Great extent Some extent Don't respondents
extent extent know
2 3 2 4 1 0 12
Q51. Please briefly explain your answer to the previous question - what
level of activity, if any, has your OSDBU had in this area?
Q52. Is monitoring prime contractors' implementation of sub-contracting
plans currently a role or function of your OSDBU? For example, monitoring
can include your OSDBU meeting at regular intervals with small businesses
that receive sub-contracts.
Yes -an OSDBU role or function
No -not an OSDBU role or function Don't know
Number
of
respondents
19 5 024
Q53. In general, to what extent does your OSDBU monitor the prime
contractors implementation of sub-contracting plans?
Number
Moderate Little or of
Very great no
extent Great extent Some extent Don't respondents
extent extent know
4 5 4 5 1 0 19
Q54. Please briefly explain your answer to the previous question - what level of
activity, if any, has your OSDBU had in this area?
Appendix II
Summary of GAO Survey Results from 24
OSDBU Directors
Q55. In what ways are agency program officials and procurement officials
made aware of small businesses as potential contractors?
Number
of
Checked respondents
Ways made
aware-Not
done 0 24
Ways made
aware-Agency
Small Business
Contractor
Database 19 24
Ways made
aware-
Meetings
between
procurement &
business 22 24
Ways made
aware-
Meetings
between
agency
program off &
business 22 24
Ways made
aware-SBA
PRO-Net 22 24
Ways made
aware-Dont
know 0 24
Ways made
aware-Other
ways 11 24
If you checked "Other ways" - please describe:
Q56. Does your OSDBU have written policies and procedures relating to the
functions and duties of your OSDBU?
Yes - briefly describe
the topics covered
under these policies Number and procedures in the of box below No
respondents
22 224 If you checked "Yes" -please describe:
Appendix II
Summary of GAO Survey Results from 24
OSDBU Directors
Q57. Is facilitating small business participation with your agency as
contractors, sub-contractors or suppliers currently a role or function of
your OSDBU?
Yes -an OSDBU role or function
No -not an OSDBU role or function Don't know
Number
of
respondents
24 0 024
Q58. In general, to what extent does your OSDBU facilitate small business
participation with your agency as contractors, sub-contractors or
suppliers?
Number
Moderate Little or of
Very great no
extent Great extent Some extent Don't respondents
extent extent know
17 5 0 1 0 0 23
Q59. Please briefly explain your answer or describe the office that
carries out this role or function.
Q60. Is assisting small businesses to obtain payments from your agency
currently a role or function of your OSDBU?
Yes -an OSDBU role or function
No -not an OSDBU role or function Don't know
Number
of
respondents
20 4 024
Q61. In general, to what extent does your OSDBU assist small businesses to
obtain payments from your agency?
Number
Moderate Little or of
Very great no
extent Great extent Some extent Don't respondents
extent extent know
1 4 2 7 3 0 17
Q62. Please briefly explain your answer or describe the office that
carries out this role or function.
Q62a. Is assisting small businesses to obtain payments from prime
contractors currently a role or function of your OSDBU?
Yes -an No -not an Number
OSDBU role or OSDBU role or of
function function Don't know respondents
17 7 0 24
Appendix II
Summary of GAO Survey Results from 24
OSDBU Directors
Q62b. In general, to what extent does your OSDBU assist small businesses
to obtain payments from prime contractors?
Number
Moderate Little or of
Very great no
extent Great extent Some extent Don't respondents
extent extent know
1 2 1 4 3 0 11
Q62c. Please briefly explain your answer or describe the office that
carries out this role or function.
Q63. Is disseminating information to small businesses on how to secure
business opportunities with your agency currently a role or function of
your OSDBU?
Yes -an OSDBU role or function
No -not an OSDBU role or function Don't know
Number
of
respondents
24 0 024
Q64. In general, to what extent does your OSDBU disseminate information to
small businesses on how to secure business opportunities with your agency?
Number
Moderate Little or of
Very great no
extent Great extent Some extent Don't respondents
extent extent know
19 3 1 1 0 0 24
Q65. Please briefly explain your answer or describe the office that
carries out this role or function:
Q66. Is hosting conferences to familiarize small businesses with
opportunities at your agency currently a role or function of your OSDBU?
Yes -an No -not an Number
OSDBU role or OSDBU role or of
function function Don't know respondents
21 3 0 24
Q67. Has your OSDBU hosted any conferences to familiarize small businesses with
opportunities at your agency in the past 24 months?
Number
of
Yes No respondents
20 1 21
Appendix II
Summary of GAO Survey Results from 24
OSDBU Directors
Q68. How many conferences has your OSDBU hosted to familiarize small
businesses with opportunities at your agency in the past 24 months?
Number
of
Mean Median Minimum Maximum respondents
How many
conferences
has OSDBU
hosted in past
24 months? 39 12 3 405 19
Q69. Please briefly explain your answer or describe the office that
carries out this role or function.
Q70. Is sponsoring training programs for small businesses currently a role
or function of your OSDBU?
Yes -an No -not an Number
OSDBU role or OSDBU role or of
function function Don't know respondents
17 6 0 23
Q71. Has your OSDBU sponsored any training programs for small businesses
in the past 24 months?
Number
of
Yes No respondents
15 2 17
Q72. Please briefly explain your answer or describe the office that
carries out this role or function.
Q73. Is conducting meetings with small business trade associations and/or
prime contractors currently a role or function of your OSDBU?
Yes -an No -not an Number
OSDBU role or OSDBU role or of
function function Don't know respondents
22 1 0 23
Q74. Has your OSDBU conducted any meetings with small business trade
associations and/or prime contractors in the past 24 months?
Number
of
Yes No respondents
20 2 22
Appendix II
Summary of GAO Survey Results from 24
OSDBU Directors
Q75. On average, how many meetings does your OSDBU conduct with small
business trade associations and/or prime contractors in a typical week?
Number
of
Mean Median Minimum Maximum respondents
Average
meetings
OSDBU
conducts w/
trade assocs in
week 7 4 04720
Q76. Please briefly explain your answer or describe the office that
carries out this role or function.
Q77a. How many full-time equivalent (FTE) staff in fiscal year 2003,
excluding administrative support staff, does your OSDBU employ?
Number
of
Mean Median Minimum Maximum respondents
FTEs in FY
12 6 1 90 23
Q78. Do you, the Director of the OSDBU, have supervisory authority over
personnel with duties and functions of your OSDBU?
Number
of
Yes No respondents
22 2 24
Q78a. Do you, the Director of the OSDBU, serve as the primary contact for
your agency for inquiries into small business matters and those affecting
your agency's socioeconomic program goals?
No - please
list the Number primary of Yes contact below respondents
22 123
Q79. If you checked "No" - list the primary contact:
Appendix II
Summary of GAO Survey Results from 24
OSDBU Directors
Q80. Who is responsible for ensuring that small businesses receive the maximum
practicable procurement opportunities from the agency?
Other -please Number OSDBU Procurement Deputy explain in the of Director
Director Agency Head Agency Head box below respondents
13 1 3 1 523
If you checked "Other" - explain:
Q81. Has the SBA designated one or more procurement center representatives
to your agency?
Yes No
Number
of
respondents
20 323
Q82. Have you, the Director of the OSDBU, assigned a small business
technical advisor to each office with a SBA procurement center
representative?
Yes No
Number
of
respondents
13 720
Q83. To what extent does your OSDBU work with the SBA procurement center
representatives?
Number
Moderate Little or of
Very great no
extent Great extent Some extent Don't respondents
extent extent know
4 6 1 3 5 0 19
Q84. Please briefly explain your answer to the previous question - what
level of activity, if any, has your OSDBU had in this area? Q85. To what
extent does your OSDBU cooperate and consult with the SBA?
Number
Moderate Little or of
Very great no
extent Great extent Some extent Don't respondents
extent extent know
10 6 3 2 2 0 23
Q86. Please briefly explain your answer to the previous question - what level of
activity, if any, has your OSDBU had in this area?
Appendix II
Summary of GAO Survey Results from 24
OSDBU Directors
Q87. Does your OSDBU negotiate the small business goals, (also referred to as
socioeconomic goals) for your agency with the SBA?
Yes No
Number
of
respondents
21 324
Q88. In your agency's annual small business goal-setting process, does
your OSDBU discuss potential goals with any of the following parties?
Number
of
Yes No respondents
OSDBU discuss
goals with:
A. Agency head or
deputy? 16 3 19
OSDBU discuss
goals with:
B. Procurement
officials 18 0 18
OSDBU discuss goals with:
C. Agency program
officials 14 2 16
OSDBU discuss
goals with:
D. Other - please
describe in the box
below 628
If you checked "Other" - please describe:
Q89. Does your OSDBU have other functions that do not relate to section
15(k) of the Small Business Act? For example, responsibilities for
monitoring agency processes in areas other than those relating to small
business.
Appendix II
Summary of GAO Survey Results from 24
OSDBU Directors
Q90. To what extent is your OSDBU facing each of the following challenges in
performing its mission?
Number
Very great Moderate Little or no of
extent Great extent extent Some extent extent Don't know respondents
Challenges:
A. Lack of
independent
budget 1115150
Challenges:
B. Limited
budgetary
resources 233960
Challenges:
C. Lack of
adequate
staffing level 1 4 5 7 6 0
Challenges:
D. Lack of
influence in
procurement
process 2236100
Challenges:
E. Director has
insufficient
access to
head/deputy 0 0 2 3 18 0
Challenges:
F. Lack of
independence
to oppose
procurement
decns 0222170
Challenges:
G. Director
employment
status
(appointee vs.
civil) 0011191
Challenges:
H. Other -
Please
describe in box
below 1010002
If you checked "Other" -Please describe:
Q91. If you have any other comments on the topics covered in this survey,
please enter them below.
Appendix III
GAO Contact and Staff Acknowledgments
GAO Contacts David G. Wood, (202) 512-8678 Charles E. Wilson, Jr., (202)
512-6891
Staff In addition to the individuals named above, Emily R. Chalmers,
William R. Chatlos, Nancy Eibeck, Brodi Fontenot, John T. McGrail, Marc
Molino, and
Acknowledgments Carl Ramirez made significant contributions to this
report.
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