What GAO Discovered

The Division of Protection’s (DOD) contract obligations to small companies elevated from fiscal years 2011 to 2020, whereas the variety of small companies contracting with DOD declined. The development of upper obligations to a decrease variety of companies utilized to each small companies and bigger companies.

Division of Protection Small Enterprise Contract Obligations and Distributors, Fiscal Years 2011–2020

Department of Defense Small Business Contract Obligations and Vendors, Fiscal Years 2011–2020

DOD engages in lots of efforts throughout the division to leverage small companies to fulfill its acquisition wants and leverage technological innovation. Such efforts are carried out by many various workplaces within the division and embody a wide range of outreach initiatives, comparable to vendor occasions, trainings, and different actions to contact and educate small companies on working with DOD. Its 2019 Small Enterprise Technique describes these efforts and different initiatives to enhance the effectiveness of DOD’s small enterprise packages. Nevertheless, GAO discovered that DOD lacked key mechanisms to implement the technique and higher monitor and coordinate its small enterprise contracting efforts.

  • DOD has not developed the technique’s implementation plan, which is required by regulation. Such a plan would assist make sure the initiatives described within the technique are carried out and coordinated throughout DOD.
  • DOD has not created a coverage to information the implementation of a unified administration construction, as known as for within the technique. Doing so may enhance communication and coordination amongst DOD workers who interact in small enterprise efforts throughout the company.
  • DOD doesn’t have a proper course of for monitoring and reporting on the implementation of its Small Enterprise Technique. Establishing such a course of would higher place DOD to evaluate and talk department-wide progress in implementing the technique.

Why GAO Did This Examine

In fiscal yr 2020, DOD recorded greater than $80 billion in contract obligations to small companies for items and companies. In October 2019, DOD revealed its Small Enterprise Technique, as directed within the Nationwide Protection Authorization Act (NDAA) for Fiscal 12 months 2019, to facilitate contracting alternatives for small companies.

A Senate Report referring to the NDAA for Fiscal 12 months 2021 features a provision for GAO to overview DOD’s small enterprise contracting efforts. This report examines protection small enterprise contracting traits and the steps DOD has taken to watch the implementation of its 2019 Small Enterprise Technique.

GAO analyzed information from the Federal Procurement Information System and reviewed DOD’s 2019 Small Enterprise Technique, different small enterprise documentation, and related research and stories. GAO additionally interviewed DOD officers, lecturers, researchers, and representatives of small companies and trade associations.

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