Analysis of Overpricing of Maintenance Service Contracts Awarded via the 8(a) Program and by Formal Advertising

Abstract

Section 8(a) of the small Business Act, as amended, authorizes the Small Business Administration (SBA) to enter into contracts with other government procuring agencies for goods and services. The SBA subcontracts the work on a sole source basis to small businesses that are owned and controlled by socially and economically disadvantaged individuals. Overpricing of 8(a) contracts occurs when an award is made above the current fair market value and the SBA does not provide business development expense funds for the price differential. Both General Accounting Office and United States Army Audit Agency audits cite cases of overpricing. This thesis examines overpricing from a total change order rate perspective for 8(a) and formally advertised maintenance service. From the data accumulated for this study, it was determined that the change order rates were comparable.

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1986
Accession Number
ADA176780

Entities

People

  • Eric J. Benson

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Business Administration
  • Contract Administration
  • Contracts
  • Databases
  • Department Of Defense
  • Engineering
  • Governments
  • Maintenance
  • National Governments
  • Negotiations
  • Procurement
  • Schools
  • Small Business
  • Storage
  • United States
  • United States Government

Readers

  • Government and Public Administration Law.
  • Life Cycle Cost Analysis
  • Small Business Innovation Research Program (SBIR) EDI Research and Innovation.