DOD large sole-source contracts to 8(a)s have shrunk

The value and number of large sole-source contracts that the Defense Department awards to 8(a) small businesses has shrunk dramatically in the last four years.

The total of such contracts dropped from $2 billion awarded to 27 firms in fiscal 2009 to $221 million awarded to 4 firms in fiscal 2013, the Government Accountability Office found in a new study.

The National Defense Authorization Act for fiscal 2010 set new requirements for federal agencies making sole-source awards over $20 million to 8(a) firms, including written justifications.

Of the DOD’s five most recent such justifications reviewed by the GAO, only two of the justifications met all requirements, the report said.

The DOD awarded $8.7 billion in 8(a) contracts in fiscal 2013.

More information: GAO report http://www.gao.gov/products/GAO-14-721R

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