8(a) Firms Prosper on Recovery Act Contracts About $686 million in Recovery Act funds has been awarded to 8(a) firms on sole source contracts, the Government Accountability office reported. While that was less than 3% of Recovery Act contract spending through May, the 8(a) firms received the vast majority of noncompetitive contracts under the program. GAO did not tally the amount awarded through competitive 8(a) contracts. GAO found nearly 90% of Recovery Act dollars were awarded competitively. The Act requires competitive awards unless agencies can justify limiting competition. Contracting officials at several agencies told the auditors that they viewed the sole source 8(a) contracts “as a trade-off for expediency and the ability to provide opportunities to small businesses.” Contracting officers said they felt pressure to get the money moving quickly. The Army Corps of Engineers said it awarded a sole source 8(a) contract in about four months, compared to more than a year for a new competitive contract. The auditors said agency inspectors general paid little attention to the 8(a) awards, instead focusing on spending that they considered higher risk. GAO said the sole source awards deserved greater scrutiny, citing its own findings that SBA’s monitoring and enforcement of 8(a) rules has been lax. (SAA, 5/14) In response, Joseph Jordan, the SBA associate administrator who supervises the 8(a) program, protested that GAO was suggesting “wrongdoing without supporting evidence.” GAO said it was not alleging anything improper in the 8(a) awards. GAO said more than two-thirds of the Recovery Act money was spent through pre-existing contracts, reflecting agencies’ desire to expedite awards.