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PSAD-77-76 1 (1977-02-28)

handle is hein.gao/gaobaacav0001 and id is 1 raw text is: DOCUMENT RESUME 01125 - [108916091 Departmnt of Defense Program to Help Minority-Run Businesses Get Subcontracts Not Working Well. PSAD-77-76; B-132740. February 28, 1977. Released March 3, 1977. 20 pp. + appendice3. Report to Rep. Joseph P. Addabboo Chairman. House Committee on Small Business: SBA Oversight and Minority Enterprise Sub'oamittee; ty Robert F. Keller, Acting Ccmptrcller General. Issue Area,: Kon-Discrimination and Equal Opportunity Programs: Effectiveaeus of Federal minority Assistance Programs (1008); Federal Procurement of Goods and Services (1900). Contact: Procurement and Systems Acquisition Div. Budget Function: National Defense: Department of Defense - Procurement & Contracts (05). organization concerned: Department of Defense. Congressional Relevance: House Committee on Small Business: SBA Oversight and minority Enterprise unbcommittee. Authority: A.S.P.R. 7-104.36. Executive Order 11625. Implementation of the Department of Defense (DOD) inority Business Enterprise (MBE) Subcontracting Program was reviewed; the review focused on the way DOD and four prime contractors implemented the program. The program calls fcr contracts over S500,000 to have a clause stipulating that contractors identify and solicit mino;22y businenses to perform subcontracting. Findings/Conclusions: DLD's implementation of the KBE Subcontracting Program is inadequate it three respects: (1) the contract clause overlooks certain key aspects and requirements necessary to assure program success; (2) the program is not adequately monitored and has inadequate standards to judge contractors' efforts; and (3) DOD contracting officers have not been given guidance on when the subcontracting clause should be inserted in prime contracts. Inadequate contract requirements and poorly planned programs are the primary reasons the subcontracting prograo is not effective. None of the prime contractors adequately complied with regulations for maintaining records related to minority business subcontracting. The contractors have not established a regular practice of soliciting bids from minority firms. About half cf the minority businessess contacted were dissatisfied with the program. Recommendations: DOD should: include goals aad objectives for contractors to achieve in identifying and soliciting minority firms capable of providing the required services; define the role of corporate liaison otficials; and require contractors to record in summary form the number and value cf solicitations made to minority businesses as well ac awards to such businesses. (RES)