“What OIG Reviewed
The 8(a) Business Development Program helps small businesses owned by socially and economically disadvantaged individuals gain business skills and access to federal contracting opportunities so that they can better compete in the open marketplace. Congress authorized the 8(a) program for a business development purpose and approved special 8(a) contracting benefits limiting competition for this purpose. The objective of this audit was to determine to what extent SBA measures and monitors an 8(a) firm’s progress toward achieving individual business development goals. The objective was also to ensure 8(a) firms receive the help needed to meet their goals and if the program adapted during the Coronavirus Disease 2019 pandemic. We reviewed the business development assistance SBA provided 8(a) program participants from 2011-2020, which included reviewing the files for 40 of the firms assigned to 5 district offices. We also reviewed applicable public laws, regulations, policies, and procedures and interviewed program officials.
What OIG Found
SBA’s business development process did not consistently allow for SBA or its stakeholders to determine whether firms met their individual goals to successfully complete the program. There was no mechanism in place to ensure that SBA consistently reviewed business plans and goals and then objectively monitored business development progress.
Consequently, we found that 15 of the 40 firms tested did not have approved business plans, making these firms ineligible to receive $93 million in 8(a) awards. We also found SBA did not consistently document that its staff assessed the needs, counseled, or conducted field visits with 8(a) firms to ensure they received the assistance needed to be prepared to compete for contracts without further 8(a) assistance.
However, we found SBA program officials offered program flexibilities to all 8(a) participants during the pandemic, adapting business development assistance to help firms stay in business and remain in the program.
OIG Recommendations
We made eight recommendations for the agency to measure, monitor, and better deliver training and other business development assistance to 8(a) firms…”
Access the full 44-page reoprt here.
Source: SBA’s Business Development Assistance to 8(a) Program Participants – February 14, 2022. Oversight.gov.
