Army falls short on small biz subbing: IG

      The Army failed to ensure small business subcontracting opportunities for 57% of the contract value reviewed in a recent audit, Michael J. Roark, assistant inspector general for readiness and global operations, testified to a House subcommittee.

      The audit reviewed 50 contracts valued at $1.6 billion in total at the Redstone, AL and Warren, MI contracting centers.

      The inspectors found that the Army contracting officers did not make sure that prime vendors met their small business subcontracting goals for 23 contracts, worth $915 million.

      Among the deficiencies:

• Six contracts, worth $331 million, were awarded without subcontracting plans or without a determination if subcontracts were possible;
• 11 contracts, worth $480 million, had subbing plans but the Army did not monitor the primes’ compliance with the plans;
• For 5 contracts, valued at $82 million, the Army did not determine why prime contractors with individual subcontracting plans did not meet their goals;
• and the Army accepted an Individual Subcontracting Report for a $22 million contract that may have misrepresented subbing awards.

      Army officials said some personnel did not understand subcontracting plan requirements due to inadequate training; also, administering such plans “was not a high priority.” It was unclear who was in charge of monitoring the plans.

      For prime contracts, the Army performed better, providing adequate opportunity to small firms to compete for prime contracts.

More information: DoD IG Statement: https://bit.ly/2IZEFVS

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Army falls short on small biz subbing: IG

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