GAO: DOD sole-source 8(a) contracts have declined

By Marjorie Censer / June 8, 2016 at 4:27 PM

The number of sole-source contracts worth more than $20 million the Pentagon has awarded to small business through the 8(a) program has been declining since 2011, the Government Accountability Office reported in a study released today.

At the same time, the number of competitive 8(a) contracts worth over $20 million has increased, according to the report. GAO noted that the decline in sole-source contracts followed the establishment of a requirement that such purchases include written justification.

The 8(a) program is a Small Business Administration initiative focused on growing small businesses.

"DOD contracting officials GAO spoke to overwhelmingly cited an agency-wide emphasis on using competition to obtain benefits, such as better pricing, as a reason for the decline in the use of sole-source 8(a) contracts over $20 million," the GAO report says.

UPDATE June 9, 12:00 p.m.: The Pentagon issued an instruction that "establishes policy, assigns responsibilities, and provides procedures for DOD small business programs."

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