Report: A Few Favorites Dominate DHS Contracting The Department of Homeland Security has been one of the friendliest to small businesses, exceeding its goal every year since it was created in 2002. But a congressional report says a few favored small contractors are getting the bulk of DHS work. The report by the Democratic staff of the House Homeland Security Committee finds that more than half the money in each socioeconomic category went to the top 10 contractors in the category. The companies were not named. “Surely, such a concentration of awards among a relatively few firms is not in accord with the spirit of the Small Business Act’s objective of facilitating federal contracting opportunities as a means to develop a robust small, minority, and disadvantaged business community,” the report commented. DHS figures showed that 28% of the money spent with 8(a) firms went to Alaska Native Corporations, which can receive sole-source contracts in unlimited amounts. DHS awarded 33% of its prime contract dollars to small businesses in 2007, totaling nearly $4 billion. The department exceeded its goals in every socioeconomic category. The report questioned the practice of double-counting firms that qualify in more than one socioeconomic category. It said, “This simultaneous counting renders the picture of small, minority, and disadvantaged business participation in federal procurement hazy and can create a perception of robust participation by small, minority, and disadvantaged businesses that may be misleading.” Such double-counting is practiced governmentwide. Committee Chairman Bennie Thompson, D-MS, said, “We cannot allow this numbers game to continue. Small, minority and disadvantaged businesses deserve the same opportunities as other businesses. The federal government cannot attain true transparency in contracting until the numbers game ceases.” The report also criticizes DHS’s high volume of spending during the final quarter of the fiscal year. It said 40% of procurement dollars were awarded in the fourth quarter of 2007. The staff report urged the department to address weaknesses in its small business programs and to look at the impact of awards to Alaska Native firms. The report is linked at