Small and Disadvantaged Businesses: Most Agency Advocates View Their Roles Similarly
Published: 2004-03-22T00:00:00

Fast Facts:

Highlights:
section_title: Why GAO Did This Study
paragraphs: The Small Business Act is one of several laws designed to enhance the participation of small and disadvantaged businesses in federal procurement--a market that reached more than $200 billion in fiscal year 2002. Section 15(k) of the act requires that all federal agencies with procurement powers establish an Office of Small and Disadvantaged Business Utilization (OSDBU) and specifies eight functions that OSDBU directors are responsible for carrying out in their roles as advocates for small businesses. GAO surveyed OSDBU directors at 24 agencies to obtain information on the extent to which the respondents (1) viewed the functions listed in section 15(k) as functions of their offices, (2) viewed other potential activities as OSDBU duties, and (3) saw potential challenges to carrying out their functions.
section_title: What GAO Found
paragraphs: At least 19 OSDBU directors, or almost 80 percent, said that they viewed five of the eight functions identified in section 15(k) as their duties. A smaller majority of OSDBU directors (from 13 to 17) viewed the remaining three functions as responsibilities of their offices. However, the extent to which respondents said they carried out these functions varied. Directors who did not view all of the functions as responsibilities of their offices provided explanations. For example, the OSDBU directors at the Departments of the Army and the Navy explained that their role is one of developing policy for small business programs at their agencies. Most of the OSDBU directors responded that they also viewed functions other than those listed in section 15(k) as their responsibilities. These functions included outreach activities, such as holding meetings and hosting conferences for small businesses and trade associations, and reviewing plans for how prime contractors would use small businesses as subcontractors. A much smaller number of respondents reported that they viewed participating in their agencies' procurement process as one of their duties. While most OSDBU directors reported experiencing few challenges in carrying out their responsibilities, some reported challenges in three areas--lack of influence in the procurement process, limited budgetary resources, and lack of adequate staffing levels.

section_title: Letter
paragraphs: During the last 25 years, Congress has enacted several laws designed to  foster small business participation in federal procurement—a market that  reached more than $200 billion in fiscal year 2002. One of these laws, Public  Law 95-507, enacted in 1978, amended section 15 of the Small Business Act  (15 U.S.C. § 644) to require that all federal agencies with procurement  powers establish an Office of Small and Disadvantaged Business Utilization  (OSDBU) and appoint a director to head the office. Under this act, the  OSDBU is responsible for helping to oversee the agency’s functions and  duties related to the awarding of contracts and subcontracts to small and  disadvantaged businesses. Paragraphs (4)-(10) of section 15(k) of the act  specify a number of functions that OSDBU directors are responsible for  carrying out in their roles as advocates for small businesses.
On September 4, 2003, we issued a report to you assessing federal agencies’  compliance with section 15(k)(3) of the Small Business Act, which requires  that the OSDBU director be responsible to and report only to agency heads  or deputy heads. The report covered the 24 federal agencies that procured  at least $200 million or more in goods and services in fiscal year 2001. As  requested, this current report provides additional information on the views  of the OSDBU directors regarding their functions within the agencies.  Specifically, we obtained information on the extent to which the OSDBU  directors (1) viewed the functions listed in section 15(k) as the duties of  their offices, (2) viewed other potential functions as OSDBU duties, and (3)  saw any potential challenges to their ability to carry out their duties.
To address these objectives, we administered a Web-based questionnaire to  24 OSDBU directors between May 2003 and September 2003. The  questionnaire asked the directors about their functions in three areas: (1)  participation in the agency procurement process, (2) facilitation of small  business participation in agency contracting, and (3) interaction with the  Small Business Administration (SBA). The three areas covered OSDBU  functions listed in section 15(k) of the Small Business Act as well as  functions mentioned by OSDBU directors during our preliminary  interviews with them. In addition, the questionnaire asked the directors  what challenges they faced in carrying out their responsibilities. All 24  OSDBU directors responded to the questionnaire. In order to understand  the basis of their responses, we conducted follow-up interviews with those  directors who indicated that one or more of the functions listed in section  15(k) were not functions of their OSDBU. However, we did not assess the  24 agencies’ compliance with the provisions of section 15(k). We  conducted our work in accordance with generally accepted government  auditing standards.
subsections: section_title: Background
paragraphs: The federal government purchases billions of dollars in goods and services  each year in a structured process regulated by the Federal Acquisition  Regulation (FAR). The FAR establishes uniform policies and procedures  for the acquisition of supplies and services. For the purpose of our survey,  we divided the procurement process into four steps:  Acquisition planning involves developing an overall management  strategy for the procurement process for a potential contract. It takes  place well in advance of a contract’s award date and generally involves  both a close partnership between the program and procurement offices  and the involvement of other key stakeholders.
Solicitation development is the process of preparing requests for  vendors to submit offers, or bids. Solicitations can be conducted using  various procedures, such as sealed bids, negotiation, or a simplified  acquisition.
Proposal evaluation occurs after potential contractors submit  proposals that outline how they will fulfill the solicitation requirements.  Contracting officers evaluate quotations and award the contract.
Monitoring, also known as surveillance, helps to determine a  contractor’s progress and identify any factors that may delay  performance.
The federal government’s long-standing policy has been to maximize  procurement opportunities for small, small disadvantaged, and women- owned businesses. To ensure that small businesses receive a share of  federal procurement contract dollars, Congress has mandated that SBA  negotiate annual procurement goals with each federal agency. Congress  has also amended the Small Business Act several times to increase small  business participation in the federal procurement marketplace. For  example, the Business Opportunity Reform Act of 1988 amended the Small  Business Act to require the President to establish an annual  governmentwide goal of awarding not less than 20 percent of prime  contract dollars to small businesses. The Small Business Reauthorization  Act of 1997 further amended the Small Business Act to increase the goal to  not less than 23 percent. To help meet this goal, SBA annually establishes  prime contract goals for all categories of small businesses for each federal  agency. Although SBA is responsible for coordinating with executive  branch agencies to prompt the federal government toward this mandated  goal, agency heads are responsible for achieving the small business goals  within their agencies.
Section 15(k) of the Small Business Act describes eight functions of  OSDBU directors as follows:   Identifying solicitations that involve bundled contract requirements.
Working with agency procurement officials to revise bundled contracts  to increase the probability of participation by a small business.
Facilitating the participation of small businesses as subcontractors for  bundled contracts.
Assisting small businesses in obtaining payments from an agency with  which it has contracted.
Helping small businesses acting as subcontractors to obtain payments  from prime contractors.
Making recommendations to agency contracting officers regarding  whether a particular contract should be awarded to a small business.
Maintaining supervisory authority over OSDBU personnel.
Cooperating and consulting on a regular basis with SBA in carrying out  OSDBU functions and duties, and assigning a small business technical  advisor to each office where SBA has appointed a procurement center  representative. (A procurement center representative is an SBA staff  member assigned to a federal agency’s contract administration office to  carry out SBA policies and programs.)
In addition to these eight functions, OSDBU directors have working  relationships with SBA and the agency procurement staff. However,  OSDBU directors are not the only officials responsible for helping small  businesses participate in federal procurement. The FAR establishes a  number of responsibilities for SBA and agency procurement staff in  implementing small business programs. The FAR provides that, among  other things, SBA may assign one or more procurement center  representatives to any agency’s contracting activity or contract  administration office to carry out SBA policies and programs. A  procurement center representative’s responsibilities include   increasing small businesses’ share of federal procurement awards by  initiating small business set-asides,   reserving procurements for competition among small business firms,   providing small business sources to federal agencies, and   counseling small firms.
At the agency level, the heads of procurement departments are responsible  for implementing the small business programs at their agencies, including  achieving program goals. Generally, staff within agency procurement  departments who are assigned to work on small business issues, or small  business specialists, coordinate with OSDBU directors on their agencies’  small business programs.
section_title: Almost All of the OSDBU Directors Viewed Most Section 15(k) Functions as Duties of Their Offices
paragraphs: Almost all of the 24 OSDBU directors that we surveyed reported that they  viewed most of the functions outlined in section 15(k) of the Small  Business Act as current duties of their offices. At least 19 OSDBU directors,  or almost 80 percent, said that they viewed five of the eight functions  identified in 15(k) as their duties, and a smaller majority (13 to 17) saw the  remaining three functions as their responsibilities (fig. 1). In cases where  we asked respondents about the extent to which they carried out these  functions, responses varied. For example, a large majority of the OSDBU  directors reported that they identified solicitations for contract bundling to  either a great or very great extent. In contrast, only 5 OSDBU directors  reported helping small businesses to obtain payments from agencies to  either a great or very great extent. Some directors did not view all of the  functions as their responsibilities, but in follow-up interviews these  directors provided explanations for their responses.
subsections: section_title: The Extent to Which OSDBU Directors Carried Out Some Section 15(k) Functions Varied
paragraphs: We asked OSDBU directors about the extent to which they carried out  several of the section 15(k) functions. Of those directors who saw the  contract bundling functions as responsibilities of their OSDBUs, more than  half reported carrying out these duties to a great or very great extent (fig.  2). For example, 17 of the 21 OSDBU directors who viewed identifying  solicitations that involved contract bundling as a function reported doing  so to a great or very great extent, as did more than half (13) of the 22  directors who viewed working with agency acquisition officials to revise  procurement strategies for bundled contracts as a duty. For example, 1  OSDBU director wrote: “When and if a program office announces its  intention to bundle, the OSDBU works with it to ensure that the small  business market share does not suffer.” Another OSDBU director stated,  “We are reviewing previously bundled contracts in order to unbundle them.  We’re also developing questions for the  personnel to answer  regarding past contract awards.” “…the Director reviews major acquisitions and other acquisitions that have agencywide  impact. These venues provide the OSDBU with opportunities to ensure that acquisitions are  not unnecessarily consolidated, and to influence the establishment of aggressive proposal  evaluation factors and subcontracting goals to encourage small business opportunities.”
Another OSDBU director commented, “OSDBU works with acquisition  officials on large dollar contracts to encourage contracting officers to  include increased subcontracting incentives in solicitations.”
Our survey occurred after the Office of Federal Procurement Policy, an  office within the Office of Management and Budget (OMB), issued new  guidance on limiting the use of contract bundling. In October 2002, OMB  issued a plan entitled Contract Bundling: A Strategy for Increasing  Federal Contracting Opportunities for Small Business. The aim of the  plan was to eliminate unnecessary contracting bundling and to mitigate the  effects of necessary contract bundling. Under the plan, OSDBUs were to be  required to conduct periodic reviews and submit their assessments to  OMB. By giving the issue of contract bundling more prominence, the  guidance in this plan may have affected how the OSDBU directors saw  their role in contract bundling. In written comments on contract bundling,  several OSDBU directors referred to OMB’s guidance. One OSDBU director  wrote, “We are changing our procurement review function as a result of the  recent OMB guidance so we will become more involved more than  currently.” Similarly, another director commented, “…under OMB’s  renewed interest in his area, OSDBU is very active in identifying and taking  action to avoid unnecessary contract bundling.”
Twenty OSDBU directors viewed assisting small businesses to obtain  payment from agencies as an OSDBU function, but only 5 reported doing so  to a great or very great extent. Eleven reported that they carried out this  function to a moderate level or less. In written comments and follow-up  interviews, a majority of the OSDBU directors who viewed this assistance  as a function stated that the problem of nonpayment to small business had  arisen only occasionally. Moreover, the directors explained that although  they will assist small businesses with payment problems whenever they are  contacted, the issue is more clearly administrative and thus more likely be  handled by other agency personnel. Several OSDBU directors reported that  they typically refer such matters to contract administrators, and 1 director  noted that his office worked with the agency’s Vendor Claims Division on  payment issues. Another director said that the agency’s Office of  Acquisition Management was responsible for ensuring payment for all  vendors, large and small, but that the OSDBU acted as a mediator when  necessary.
A slightly lower number (17) of respondents viewed helping to obtain  payments from prime contractors as an OSDBU function. Slightly less than  half (8) of the 17 OSDBU directors reported that they carried out this  function to a moderate extent or less; only 3 said they had carried out the  function to either a great or very great extent.
Seventeen OSDBU directors reported that they viewed reviewing or  determining individual contracts that should be set aside for a small  business as an OSDBU function. As figure 3 shows, 8 of the 17 OSDBU  directors stated that they reviewed proposed small business set-asides for  individual acquisitions in all or most cases, and another 8 carried out this  function in some or a few cases. An additional 3 OSDBU directors reported  that determining small business set-asides for a class of acquisitions was a  function of their OSDBU. “For acquisitions valued over $100,000, contracting officers are required to submit small  business set-aside clearance review forms to the OSDBU via the bureau’s small business  specialist. The clearance forms document the acquisition planning activities and strategies  for individual contract actions. The OSDBU works with the contracting officers to create  acquisition strategies for full and partial set-asides.”
We also asked OSDBU directors to indicate the extent to which they  cooperated and consulted with SBA in carrying out their responsibilities.  Twenty-three directors reported that they cooperated and consulted with  SBA on small business matters, 16 of them to a great or very great extent  (fig. 4). For example, in commenting on their working relationship with  SBA staff, 1 OSDBU director wrote, “We work closely with various SBA  district offices that manage the portfolios of our various 8(a) contractors.  We also participate on the Small Business Procurement Advisory Council,  which is co-chaired by SBA and meets monthly.”
Section 15(k) of the Small Business Act requires the OSDBU director to  designate a small business technical advisor when SBA has assigned a  procurement center representative to their agency. Twenty OSDBU  directors stated that SBA had assigned a procurement center  representative to their agencies. Of these, 13 directors reported that they  had assigned a small business technical advisor, and 7 said that they had  not.
section_title: OSDBU Directors Explained Why They Did Not View Some 15(k) Functions as Their Current Responsibilities
paragraphs: The number of OSDBU directors who did not view a section 15(k) function  as their current responsibility varied, depending on the specific function.  The number of directors ranged from 2 who did not view supervisory  authority over OSDBU personnel as a responsibility to 8 who did not view  assigning a small business technical advisor as a responsibility. During  follow-up interviews, the OSDBU directors provided a variety of reasons  for their views.
Two OSDBU directors (the Office of the Secretary of Defense and the  Social Security Administration (SSA)) reported that they did not  supervise OSDBU personnel. In a follow-up interview, the OSDBU  director at the Office of the Secretary of Defense told us that he does not  supervise the OSDBU directors at the military services because his  duties are primarily developing policy and providing oversight of the  military OSDBUs. The OSDBU director at SSA stated that he did not  have OSDBU staff assigned to his office, and that he was assisted by a  small business specialist, who works for the Office of Acquisition and  Grants.
Two OSDBU directors (Navy and the U.S. Agency for International  Development (USAID)) indicated that two functions involving contract  bundling were not their responsibilities: working with agency  acquisition officials to revise procurement strategies for bundled  contract requirements and attempting to identify solicitations that  involve bundling contract requirements. In our follow-up conversations,  Navy’s OSDBU director told us that her role was primarily developing  policy for small business programs at her agency. She stated that her  role stems mostly from the decentralized nature of the DOD’s  procurement system. She stated that she does not review individual  contracts to identify bundling of contract requirements because these  duties are the responsibility of the small business specialists. The  OSDBU director at USAID stated that she is not aware of any bundling  at the agency and thus did not consider the two functions a  responsibility. However, she noted that her response did not mean that  USAID had not bundled any contracts.
Four OSDBU directors (the Department of Education, Army, Navy, and  the Office of Personnel Management (OPM)) indicated that they did not  view facilitating small business participation as subcontractors to  bundled contracts as a duty of their offices. In a follow-up interview, the  OSDBU director at Education stated that she worked with the  contracting officer to unbundle contracts, but she added that the  OSDBU did not work with subcontractors. She indicated that her role  was limited to referring the names of small businesses to the contracting  office as potential subcontractors. The OSDBU directors at Army and  Navy stated that their roles were primarily developing policy, and that  small business specialists generally carry out this function. The OSDBU  director at OPM told us that he did not view the function as a duty  because contract bundling had not happened at OPM in the past fiscal  year.
Four OSDBU directors (the Office of the Secretary of Defense, the  Department of Housing and Urban Development (HUD), Navy, and the  Department of the Treasury) reported that they did not see assisting  small businesses to obtain payments from agencies as their function. In  follow-up interviews, the OSDBU director at the Office of the Secretary  of Defense told us that few if any problems occurred in this area and, if  there were any problems, they would be handled by the small business  offices. The OSDBU director at HUD explained that the agency’s  contract administrators handle this function. The OSDBU director at  Navy explained that small businesses seeking payment would need to  contact the small business specialist at one of the commands or the  Defense Contract Management Agency. Treasury officials told us that  assisting small businesses to obtain payments would be the  responsibility of the contracting office or the financial management  office.
Seven OSDBU directors (the Defense Logistics Agency (DLA), the  Department of Agriculture, Army, Education, HUD, Navy, and Treasury)  did not view assisting small businesses to obtain payments from prime  contractors as a function of their offices. Several OSDBU directors  (DLA, Agriculture, and Education) told us in follow-up interviews that  they did not view it as a function primarily because as government  personnel, they could not become involved in a contractual dispute  between the prime contractors and the subcontractors. The OSDBU  directors at Army and Navy explained that the Defense Contract  Management Agency or the small business specialists would resolve  these issues. Treasury officials explained that contracting officers at  individual bureaus were responsible for addressing the payment  problems, and that the agency’s involvement would be limited by legal  constraints. Again, the OSDBU director at HUD stated that the agency’s  contract administrators would handle the problems.
Four OSDBU directors (Army, Navy, the General Services  Administration (GSA), and USAID) stated that determining a small  business set-aside for either an individual contract or a class of  acquisitions was not a function of their offices. The OSDBU directors for  Army and Navy stated that the small business specialists review  contracts for small business set-asides. Also, the OSDBU director at  GSA told us that procurement officials determine set-asides. The  OSDBU director at USAID stated in a follow-up interview that she  makes set-aside recommendations on contracts when she sees the  contract.
Seven OSDBU directors (DLA, the Office of the Secretary of Defense,  Education, the Department of State, the Department of Veterans Affairs,  SSA, and the Environmental Protection Agency) reported that they did  not assign a small business technical advisor at offices where SBA had  assigned a procurement center representative. For example, the OSDBU  director at the Office of the Secretary of Defense told us that his  responsibility for assigning small business technical advisors was  delegated to the military services, and the OSDBU director at DLA said  that the function had been delegated to the head of DLA’s contracting  affairs. Also, the OSDBU director at SSA told us that the small business  specialist from the agency’s Office of Acquisition and Grants, who works  with him, could fulfill the role of a small business technical advisor. He  explained that the small business specialist assists the procurement  center representative when the procurement center representative  comes to the agency to review the set-aside determinations.
In commenting on a draft of this report, the Director, Office of Small and  Disadvantaged Business Utilization, Office of Under Secretary of Defense  for Acquisition, Technology, and Logistics, stated that the draft included  information, attributed to the Navy OSDBU director, that is incorrect. Our  draft report stated that the director did not view three of the section 15(k)  duties we asked about—working with agency acquisition officials to revise  procurement strategies for bundled contract requirements, attempting to  identify solicitations that involve bundling contract requirements, and  assisting small businesses to obtain payments from agencies—as  responsibilities of her office. Our report was based on the Navy director’s  response to our survey, which we reaffirmed in a follow-up interview with  her. DOD’s OSDBU director commented that generally these functions are  performed by small business specialists, but that if mutually agreeable  solutions cannot be worked out between the parties, the matters are  elevated to the Navy OSDBU director for resolution.
section_title: OSDBU Directors Reported Performing Additional Activities as Well as Their Section 15(k) Functions
paragraphs: During preliminary interviews, OSDBU directors noted that they view as  their responsibility some functions, such as outreach activities and  reviewing subcontracting plans, that are not among those specifically  identified in section 15(k). Our survey results show that nearly all of the 24  directors viewed most of these additional functions as a current duty. Some  directors also reported that they viewed involvement in the solicitation  development and proposal evaluation phases of the procurement process  as a current function of their office.
subsections: section_title: Most Directors Saw Outreach to Small Businesses as a Function of Their OSDBU
paragraphs: Nearly all (21) of the OSDBU directors saw hosting conferences for small  businesses as one of their responsibilities, and 20 had hosted such an event  in the last 2 years. In their written comments, several OSDBU directors said  that they typically designed the conferences to expose small businesses to  their agency’s specific needs. For example, 1 OSDBU director described (1)  hosting annual networking sessions for small businesses and prime  contractors and a “fair” for veteran-owned small businesses and (2)  cohosting six information technology “fairs.” Those OSDBU directors that  had not hosted conferences said that they had either participated in  another agency’s fairs or had assigned this duty to the small business  specialists. For example, 1 OSDBU director said that his office usually  participated in outreach conferences hosted by relatively large  organizations, including SBA, the Minority Business Development Agency,  and the Department of Commerce.
A majority (17) of OSDBU directors saw sponsoring training for small  businesses as a function, and 15 said that they had sponsored a training  program in the last 2 years. In their written responses, several directors  said that the purpose of the training programs is to familiarize small  businesses with doing business with their agencies. Four directors said that  they had partnered with another agency to provide training. For example, 1  director said, “In conjunction with the SBA Baltimore District Office, the  OSDBU has hosted training events on subjects concerning GSA schedules,  teaming agreements, and how to do business with .” Of those  OSDBU directors that did not host their own training programs, 1 said he  had provided small businesses with a brochure explaining contracting  opportunities at the agency, and 2 referred small businesses to SBA for  training.
section_title: Almost All of the Directors Reported That Reviewing and Monitoring Subcontracting Plans Are Functions of Their OSDBU
paragraphs: Almost all (22) of the OSDBU directors said that reviewing prime  contractors’ subcontracting plans for small business consideration is a  current function, and 15 reported that they performed this activity in all or  most cases. According to the FAR, any prime contractor with a contract  above the simplified acquisition threshold ($100,000) must agree to allow  small businesses the “maximum practicable opportunity” to participate in  the contract. If a contract for more than $500,000 is awarded, or is to be  awarded, to a business other than a small business, the government  requires the winner of the contract to submit an acceptable subcontracting  plan that shows how small businesses will be used as subcontractors. We  found that some OSDBU directors reviewed subcontracting plans for all  acquisitions, while a few OSDBU directors said they reviewed plans for  contracts only above certain dollar thresholds.
Almost all (19) of the OSDBU directors also reported that they monitor  prime contractors’ implementation of the subcontracting plans. Several of  the OSDBU directors stated they reviewed certain standard forms to  determine if the prime contractors were following their subcontracting  plans. Three of the five defense services noted that the Defense Contract  Management Agency monitors implementation of the subcontracting plans  of DOD prime contractors. One director at a civilian agency said that the  OSDBU had implemented a pilot program that required the prime  contractors to report monthly on the level of subcontracting and the actual  payments made to small business. According to the director, “This hands- on approach was highly successful and resulted in significant levels of  small business participation at the subcontracting level.”
section_title: Some Directors Saw Participating in Soliciting and Evaluating Proposals as Responsibilities of Their OSDBU
paragraphs: Nine of the OSDBU directors we surveyed said that developing proposed  solicitations was a function of their OSDBU. Two OSDBU directors noted  that their involvement was limited to major procurements. For example, 1  director noted that his office worked with contracting officers and program  officials through the agency small business specialists “to develop special  language or provisions for some solicitations.”
Only 8 OSDBU directors said that evaluating proposals submitted by  potential contractors in response to bid solicitations was a function of their  OSDBU. Of these directors, 3 said that they participated in the function  only on an exception basis or in a few cases. Two of the OSDBU directors  wrote that their participation in evaluating proposals submitted by  potential contractors consisted of reviewing the subcontracting plans of  the prime contractors.
section_title: Most OSDBU Directors Saw Few Challenges to Carrying Out Their Responsibilities
paragraphs: Most of the OSDBU directors we surveyed reported that they face few  challenges to carrying out their responsibilities. However, more than half  viewed three issues—lack of influence in the procurement process, limited  budgetary resources, and lack of adequate staffing—as challenges to at  least some extent. As shown in figure 5, between 15 and 19 respondents  saw four of the access and independence issues in our questionnaire as  challenges to little or no extent. On the other hand, a slight majority saw  their lack of influence over procurement as a challenge to at least some  extent, and a larger majority (17) saw limited budgetary resources and  inadequate staffing levels as challenges to at least some extent. We  received very few written comments explaining respondents’ views on the  challenges.
section_title: Scope and Methodology
paragraphs: To learn more about the duties and functions of OSDBUs, we administered  a Web-based questionnaire to OSDBU directors at 24 federal agencies. To  develop the survey instrument, we conducted pretest interviews with 2  OSDBU directors and obtained input from GAO experts on survey design.  A summary of the OSDBU directors’ responses to the questionnaire is  contained in appendix II. The questions asked the respondents whether  certain functions were a current role or function of their OSDBU. The  functions covered three areas: OSDBU participation in the procurement  process, OSDBU facilitation of small business participation in agency  contracting, and OSDBU interaction with SBA staff. The questions were  drawn from the OSDBU functions listed in section 15(k) of the Small  Business Act as well as those functions mentioned by OSDBU directors  during preliminary interviews we conducted during the design phase of the  instrument.
We began the survey in late May 2003 by sending an e-mail either directly to  the OSDBU director or through their agency liaisons with unique  passwords and the locations of our Web survey. Follow-up contacts with  those not completing the survey were made in June and July, and the  survey was closed in early September 2003. We received completed  questionnaires from all 24 directors in the survey population. In one case, a  GAO liaison officer reviewed the OSDBU director’s responses before  submitting the survey to GAO.
We conducted 17 follow-up discussions with OSDBU directors, consisting  of 15 interviews and 2 e-mail discussions. The purpose of the follow-ups  was to confirm answers when respondents said they did not view one or  more functions listed in section 15(k) as a role of their office. On the basis  of these discussions, we changed 23 of the answers originally placed on the  survey as the director not viewing a 15(k) function as an OSDBU role to the  director viewing it as an OSDBU role. We used the following two criteria to  make these changes: (1) the directors explicitly stated that they wished to  change their answer and provided a reason for the change or (2) the  directors misunderstood the question. Thus, these adjustments are  reported as being a “yes” response in our findings.
While OSDBU directors at the 24 agencies were asked to participate in the  survey and the survey results are therefore not subject to sampling errors,  not all OSDBUs responded to every individual question. Nonresponse, and  the practical difficulties of conducting any survey, may introduce error in  survey results. We took steps to minimize such errors in the development  and testing of our questionnaire by conducting follow-ups with  nonrespondents, and by checking and editing survey responses and  analysis. We did not assess the 24 agencies’ compliance with the provisions  of section 15(k).
We conducted our work in Washington, D.C., between January 2003 and  January 2004 in accordance with generally accepted government auditing  standards.
section_title: Agency Comments and Our Evaluation
paragraphs: We sent a draft of this report to all 24 agencies in our study and to SBA for  their comments. We received technical comments from DOD, DOT, NASA,  and SBA, which we incorporated as appropriate. DOD also commented that  the draft did not accurately reflect responses attributed to the Navy  OSDBU director. Our draft report stated that the director did not view three  of the section 15(k) duties we asked about—working with agency  acquisition officials to revise procurement strategies for bundled contract  requirements, attempting to identify solicitations that involve bundling  contract requirements, and assisting small businesses to obtain payments  from agencies—as responsibilities of her office. According to the  comments received from DOD’s OSDBU director, Navy’s OSDBU director is  ultimately responsible for carrying out these duties (1) if Navy’s small  business specialists are unable to reach a mutually agreeable solution when  working with agency officials to revise procurement strategies for a  bundled contract and identify solicitations that involve contract bundling  requirements and (2) when the buying command or contract administration  office has not been able to resolve matters regarding payments.
We do not take exception with DOD’s statement that Navy’s OSDBU  director is ultimately responsible for these three duties if the matters have  not been resolved by other agency officials. However, we believe the Navy  OSDBU director’s responses are accurately reflected in this report. In both  the questionnaire and follow-up interview, Navy’s OSDBU director stated  that she did not view the three functions as her duties.
As agreed with your offices, unless you publicly release its contents earlier,  we plan no further distribution of this report until 30 days from its issuance  date. At that time, we will send copies of this report to the Chairman and  the Ranking Minority of the House Committee on Small Business. We will  make copies available to others on request. In addition, this report will be  available at no charge on the GAO Web site at http://www.gao.gov.
If you have any questions regarding this report, please contact me or  Charles E. Wilson, Jr., Assistant Director, at (202) 512-8678. Key  contributors to this report are listed in appendix III.
section_title: Twenty-four Agencies Surveyed on OSDBU Roles and Functions
section_title: Summary of GAO Survey Results from 24 OSDBU Directors
subsections: section_title: Introduction
paragraphs: The United States General Accounting Office (GAO) is conducting a study  on small business contracting for the Senate Committee on Small Business  and Entrepreneurship. Several weeks ago, we asked you and each of the  other OSDBU directors at the 21 federal agencies with procurements of  $200 million or more in 2001 for information on the reporting relationship  between the OSDBU director and other agency officials, including the  agency head.
Now we would like to know more about how the OSDBU directors are  carrying out the duties and functions of their offices. To make the task of  reporting this information easier for you, we delayed this second part of  our request until now.
This questionnaire should take about half an hour to complete, depending  on the need to consult records and other people. Your response by June  11th would be greatly appreciated.
Your cooperation in answering all of the questions in this survey is vital to our ability to report to Congress.
Q1. How long have you been Director of the Office of Small and Disadvantaged Business Utilization (OSDBU)?
Q2. Please briefly describe the overall mission of your OSDBU.
The following sections ask you about the functions and duties that your  OSDBU might perform under Section 15(k) of the Small Business Act. For  each of the following activities, please tell us whether each is currently a  role or function that your OSDBU can perform, even if it has not yet done  so. For those activities that fall to your OSDBU as official roles or  functions, please tell us to what extent your OSDBU actually engages in  those activities, and describe that involvement.
Q3. Is involvement in acquisition planning, as defined in Part 7 of the Federal Acquisition Regulation, currently a role or function of your  OSDBU?
Q4. In general, to what extent is your OSDBU involved in acquisition planning?
Q5. Please briefly explain your answer to the previous question - what level of activity, if any, has your OSDBU had in this area?
Q6. Is determining small business set-asides for individual acquisitions currently a role or function of your OSDBU?
Q7. How often is your OSDBU involved in determining small business set-asides for individual acquisitions?
In all cases In most cases In some cases Q8. Please briefly explain your answer to the previous question - what level of activity, if any, has your OSDBU had in this area?
Q9. Is determining small business set-asides for a class of acquisitions currently a role or function of your OSDBU?  23 Q10. How often is your OSDBU involved in determining small business set-asides for a class of acquisitions?
In all cases In most cases In some cases Q11. Please briefly explain your answer to the previous question - what level of activity, if any, has your OSDBU had in this area?
Q12. In the event of a formal disagreement between your OSDBU and procurement officials during the acquisition planning process  concerning small business matters, what is the first level of appeal for your OSDBU if the situation is not resolved?
If you checked "Other" - please describe below:  Q13. Does your agency require written justification from procurement officials if they disagree with your OSDBU objections?
If you checked "Written justification required" - please describe below:  Q14. Has your OSDBU formally disagreed with the procurement officials during acquisition planning concerning small business matters in  the past 24 months?  22 Q14a. How often has your OSDBU formally disagreed with procurement officials during acquisition planning concerning small business  matters in the past 24 months?
In all cases In most cases In some cases Q14b. Typically, what were the outcomes of these disagreements?
Q15. If your OSDBU is not currently involved in acquisition planning, what entity is involved in acquisition planning that advocates for small  business consideration?  24 Q16. Is developing proposed solicitations currently a role or function of your OSDBU?
Q17. In general, to what extent is your OSDBU involved in developing proposed solicitations?
Q18. Please briefly explain your answer to the previous question - what level of activity, if any, has your OSDBU had in this area?
Q19. Is attempting to identify proposed solicitations that involve bundling of contract requirements currently a role or function of your  OSDBU?
Q20. In general, to what extent does your OSDBU attempt to identify proposed solicitations that involve bundling of contract requirements?
Q21. Please briefly explain your answer to the previous question - what level of activity, if any, has your OSDBU had in this area?
Q22. Is working with agency acquisition officials to revise procurement strategies for bundled contract requirements to increase small  business participation currently a role or function of your OSDBU?  24 Q23. In general, to what extent does your OSDBU work with agency acquisition officials to revise procurement strategies for bundled  contract requirements to increase small business participation?
Q24. Please briefly explain your answer to the previous question - what level of activity, if any, has your OSDBU had in this area?
Q25. Is facilitating small business participation as subcontractors to bundled contracts currently a role or function of your OSDBU?
Q26. In general, to what extent does your OSDBU facilitate small business participation as subcontractors to bundled contracts?
Q27. Please briefly explain your answer to the previous question - what level of activity, if any, has your OSDBU had in this area?
Q28. Is developing evaluation factors for solicitations for your agency currently a role or function of your OSDBU?
Q29. How often does your OSDBU develop evaluation factors for solicitations for your agency?
In all cases In most cases In some cases Q30. Please briefly explain your answer to the previous question - what level of activity, if any, has your OSDBU had in this area?
Q31. In the event of a formal disagreement between your OSDBU and procurement officials during solicitation development concerning  small business matters, what is the first level of appeal for your OSDBU if the situation is not resolved?
Other - please  describe in  Q32. Does your agency require written justification from procurement officials if they disagree with your OSDBU objections?
If you checked "Written justification required" - please describe:  Q33. Has your OSDBU formally disagreed with the procurement officials during solicitation development concerning small business  matters in the past 24 months?
Q33a. How often has your OSDBU formally disagreed with procurement officials during solicitation development concerning small  business matters in the past 24 months?
In all cases In most cases In some cases Q33b. Typically, what were the outcomes of these disagreements?
Q34. Is evaluating proposals submitted by potential contractors in response to solicitations currently a role or function of your OSDBU?
Q35. How often does your OSDBU evaluate proposals submitted by potential contractors in response to solicitations?
In all cases In most cases In some cases Q36. Please briefly explain your answer to the previous question - what level of activity, if any, has your OSDBU had in this area?
Q37. Is reviewing sub-contracting plans for small business consideration from potential prime contractors currently a role or function of  your OSDBU?
Q38. How often does your OSDBU review sub-contracting plans for small business consideration from potential prime contractors?
In all cases In most cases In some cases Q39. Please briefly explain your answer to the previous question - what level of activity, if any, has your OSDBU had in this area?
Q40. Is making recommendations to procurement officials on whether a particular contract should be awarded to a small business  currently a role or function of your OSDBU?  23 Q41. How often does your OSDBU make recommendations to procurement officials on whether a particular contract should be awarded to  a small business?
In all cases In most cases In some cases Q42. Please briefly explain your answer to the previous question - what level of activity, if any, has your OSDBU had in this area?
Q43. If your OSDBU does not make contract recommendations, what entity makes recommendations on contracts for small business  consideration?  24 Q44. In the event of a formal disagreement between your OSDBU and procurement officials during proposal evaluation concerning small  business matters, what is the first level of appeal for your OSDBU if the situation is not resolved?
Other - Please  describe in  Q45. Does your agency require written justification from procurement officials if they disagree with your OSDBU objections?
If you checked "Written justification required" - please describe:  Q46. Has your OSDBU disagreed with the procurement officials during solicitation review concerning small business matters in the past 24  months?
Q47. If your OSDBU and the procurement officials have disagreed in the past 24 months, approximately what percentage of contract  awards was in dispute?
Q48. Typically, what were the outcomes of these disagreements?
Q49. Is monitoring small businesses that receive prime contracts from your agency currently a role or function of your OSDBU? For  example, monitoring can include your OSDBU meeting at regular intervals with small businesses that receive prime contracts.
Q50. In general, to what extent does your OSDBU monitor small businesses that receive prime contracts from your Agency?
Q51. Please briefly explain your answer to the previous question - what level of activity, if any, has your OSDBU had in this area?
Q52. Is monitoring prime contractors’ implementation of sub-contracting plans currently a role or function of your OSDBU? For example,  monitoring can include your OSDBU meeting at regular intervals with small businesses that receive sub- contracts.
Q53. In general, to what extent does your OSDBU monitor the prime contractors implementation of sub-contracting plans?
Q54. Please briefly explain your answer to the previous question - what level of activity, if any, has your OSDBU had in this area?
Q55. In what ways are agency program officials and procurement officials made aware of small businesses as potential contractors?
If you checked "Other ways" - please describe:  Q56. Does your OSDBU have written policies and procedures relating to the functions and duties of your OSDBU?  24 Q57. Is facilitating small business participation with your agency as contractors, sub-contractors or suppliers currently a role or function of  your OSDBU?
Q58. In general, to what extent does your OSDBU facilitate small business participation with your agency as contractors, sub-contractors  or suppliers?
Q59. Please briefly explain your answer or describe the office that carries out this role or function.
Q60. Is assisting small businesses to obtain payments from your agency currently a role or function of your OSDBU?
Q61. In general, to what extent does your OSDBU assist small businesses to obtain payments from your agency?
Q62. Please briefly explain your answer or describe the office that carries out this role or function.
Q62a. Is assisting small businesses to obtain payments from prime contractors currently a role or function of your OSDBU?  24 Q62b. In general, to what extent does your OSDBU assist small businesses to obtain payments from prime contractors?
Q62c. Please briefly explain your answer or describe the office that carries out this role or function.
Q63. Is disseminating information to small businesses on how to secure business opportunities with your agency currently a role or  function of your OSDBU?
Q64. In general, to what extent does your OSDBU disseminate information to small businesses on how to secure business opportunities  with your agency?
Q65. Please briefly explain your answer or describe the office that carries out this role or function:  Q66. Is hosting conferences to familiarize small businesses with opportunities at your agency currently a role or function of your OSDBU?
Q67. Has your OSDBU hosted any conferences to familiarize small businesses with opportunities at your agency in the past 24 months? 21 Q68.  How many conferences has your OSDBU hosted to familiarize small businesses with opportunities at your agency in the past 24  months?
Q69. Please briefly explain your answer or describe the office that carries out this role or function.
Q70. Is sponsoring training programs for small businesses currently a role or function of your OSDBU?
Q71. Has your OSDBU sponsored any training programs for small businesses in the past 24 months?
Q72. Please briefly explain your answer or describe the office that carries out this role or function.
Q73. Is conducting meetings with small business trade associations and/or prime contractors currently a role or function of your OSDBU?
Q74. Has your OSDBU conducted any meetings with small business trade associations and/or prime contractors in the past 24 months?  22 Q75. On average, how many meetings does your OSDBU conduct with small business trade associations and/or prime contractors in a  typical week?
Q76. Please briefly explain your answer or describe the office that carries out this role or function.
Q77a. How many full-time equivalent (FTE) staff in fiscal year 2003, excluding administrative support staff, does your OSDBU employ?
Q78. Do you, the Director of the OSDBU, have supervisory authority over personnel with duties and functions of your OSDBU?
Q78a. Do you, the Director of the OSDBU, serve as the primary contact for your agency for inquiries into small business matters and those  affecting your agency’s socioeconomic program goals?
Q79. If you checked "No" - list the primary contact:  Q80. Who is responsible for ensuring that small businesses receive the maximum practicable procurement opportunities from the agency?
Other - please  explain in the  Q81. Has the SBA designated one or more procurement center representatives to your agency?
Q82. Have you, the Director of the OSDBU, assigned a small business technical advisor to each office with a SBA procurement center  representative?
Q83. To what extent does your OSDBU work with the SBA procurement center representatives?
Q84. Please briefly explain your answer to the previous question - what level of activity, if any, has your OSDBU had in this area?
Q85. To what extent does your OSDBU cooperate and consult with the SBA?
Q86. Please briefly explain your answer to the previous question - what level of activity, if any, has your OSDBU had in this area?
Q87. Does your OSDBU negotiate the small business goals, (also referred to as socioeconomic goals) for your agency with the SBA?
Q88. In your agency’s annual small business goal-setting process, does your OSDBU discuss potential goals with any of the following  parties?
Q89. Does your OSDBU have other functions that do not relate to section 15(k) of the Small Business Act? For example, responsibilities  for monitoring agency processes in areas other than those relating to small business.
Q90. To what extent is your OSDBU facing each of the following challenges in performing its mission?
Q91. If you have any other comments on the topics covered in this survey, please enter them below.
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