SMALL BUSINESS ADMINISTRATION: 8(a) Is Vulnerable to Program and Contractor Abuse

Abstract

In March and April 1995 as a part of our continuing work on the 8(a) program, we testified that the program has continued to experience problems in achieving its objectives. As the value and number of 8(a) contracts continue to grow, the distribution of those contracts remains concentrated among a very small percentage of participating 8(a) firms, while a large percentage get no awards at all. This is a long-standing problem. For example, in fiscal year 1990, 50 firms representing fewer than 2 percent of all program participants obtained about 40 percent, or $1.5 billion, of the total $4 billion awarded. Of additional concern is that, of the approximately 8,300 8(a) contracts awarded in fiscal 1990 and 1991 combined, 67 contracts were awarded competitively. in fiscal year 1994, the top 50 firms represented 1 percent of the program participants and obtained 25 percent, or $1.1 billion, of the $4.37 billion awarded, while 56 percent of the firms got no awards. In fiscal year 1994, $383 million in contracts were awarded competitively.

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Document Details

Document Type
Technical Report
Publication Date
Sep 01, 1995
Accession Number
ADA344817

Entities

People

  • B. Alsip
  • D. J. Wheeler
  • M. J. Hunt

Organizations

  • United States Government Accountability Office

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  • Economics
  • Government Contracting/Procurement.
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