A Government Accountability Office report indicates a decline in the Defense Department’s sole-source contracts worth more than $20 million that are awarded to small businesses under the 8(a) program.
The number of DoD 8(a) sole-source contract awards began to drop below 20 in 2011 upon the implementation of a new Federal Acquisition Regulation requirement for a written justification for sole-source contracts, GAO said Wednesday.
That number dropped to just two between September 2014 and the end of fiscal year 2015, the agency noted.
DOD contracting officials attributed the decline to competitive acquisition processes and budget cuts, according to GAO.
GAO added the number of competed 8(a) contracts over $20 million started to rise in 2014 to approximately 120 from below 100 in 2013 and the number of competed 8(a) contracts awarded to tribal companies grew since the justification’s implementation in 2011.