GAO Urges Congress to Make DoD’s Subcontracting Plan Test Program Permanent

ContractSigningThe Government Accountability Office recommends that the Defense Department collaborate with Congress to make the Test Program for Negotiation of Comprehensive Small Business Subcontracting Plans permanent.

GAO said Monday the program has helped 12 participating companies to save a combined $18.5 million in administrative costs during fiscal 2013.

DoD launched the program in 1990 to examine whether the use of a single subcontracting plan can help larger companies save money and increase their small business partnerships.

The watchdog agency analyzed performance reports of participants and found a 72-percent success rate in their efforts to subcontract high-end technical work to small businesses from fiscal 2006 to fiscal 2013.

During that period, companies also exceeded aggregate subcontracting goals under the program by nearly $5.4 billion, the report states.

Businesses interviewed by GAO said the program’s test status hinders potential expansion of partnerships between large and small contractors.

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