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Assessing the Impact of Requiring Justification and Approval Review for Sole Source 8(a) Native American Contracts in Excess of $20 Million

Assessing the Impact of Requiring Justification and Approval Review for Sole Source 8(a) Native American Contracts in Excess of $20 Million

Nancy Y. Moore
Amy G. Cox
Clifford A. Grammich
Judith D. Mele
Copyright Date: 2012
Published by: RAND Corporation
Pages: 76
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  • Book Info
    Assessing the Impact of Requiring Justification and Approval Review for Sole Source 8(a) Native American Contracts in Excess of $20 Million
    Book Description:

    Participants in the federal 8(a) Business Development Program can receive low-value procurement contracts without competitive bidding; certain firms can receive contracts of any size. Concern over these firms' advantage led Congress to require a justification and approval process for contracts over $20 million. The effect is still emerging, but it may delay large contracts more than reduce the number awarded because the underlying need remains.

    eISBN: 978-0-8330-8353-1
    Subjects: Law, Economics

Table of Contents

  1. Front Matter
    (pp. i-ii)
  2. Preface
    (pp. iii-iv)
  3. Table of Contents
    (pp. v-vi)
  4. Figures
    (pp. vii-viii)
  5. Tables
    (pp. ix-x)
  6. Summary
    (pp. xi-xiv)
  7. Acknowledgments
    (pp. xv-xvi)
  8. Abbreviations
    (pp. xvii-xviii)
  9. CHAPTER ONE Introduction
    (pp. 1-6)

    Efforts to boost small businesses, both generally and of specific types, are an enduring theme of federal policy. One general policy to boost small businesses is a government-wide goal to spend at least 23 percent of its federal contract dollars for goods and services with small businesses.

    In addition to this general goal, Section 8(a) of the Small Business Act seeks to “promote the business development of small business concerns owned and controlled by socially and economically disadvantaged individuals” (Public Law 85-536).¹ The federal government pursues this goal through a variety of business-development services as well as through the award...

  10. CHAPTER TWO 8(a) Policies and Native American Companies
    (pp. 7-14)

    The 8(a) program takes its name from Section 8(a) of the Small Business Act. The current program, including its provisions for helping SDBs gain access to federal contracts, is a result of evolving, parallel efforts by Congress and successive administrations to help small businesses generally and those owned by members of racial and ethnic minorities particularly. (Appendix C lists several significant dates in the evolution of the 8(a) program and the eligibility of Native Group–owned companies.)

    Small and disadvantaged businesses are those meeting two broad criteria. First, their size must be below the size threshold specified for their industry....

  11. CHAPTER THREE Quantitative Analysis of Recent Contracts Awarded to Native Groups
    (pp. 15-30)

    To explore the possible effects of a J&A process on Native American companies in particular and on contracting processes in general, we use two data sources: the Central Contractor Registry and the Federal Procurement Data System. Firms willing and able to do business with the federal government must register with the CCR, providing ownership and industry information. The FPDS provides details of federal purchases with private contractors, including ownership information, industry and amount of purchase, and other details.

    The data on contractors owned by Native Americans, to include Native Groups and those owned by individuals of Native American, Alaskan, or...

  12. CHAPTER FOUR Findings from Qualitative Analyses
    (pp. 31-38)

    To deepen our understanding of the effect of J&As on large 8(a) sole-source contracts, we sought the perspective of three groups of key stakeholders. First, we sought the views of Native Groups eligible for these contracts on how this requirement might affect them. Second, we sought how these requirements might affect potential business competitors who are not eligible for the contracts, including whether placing these requirements on Native Group firms would lead to more competitive opportunities for them. Third, we asked federal staff who administer these contracts for insight into the contracting process and the potential effect of J&As on...

  13. CHAPTER FIVE Findings and Recommendations
    (pp. 39-40)

    The requirement that 8(a) sole-source contracts in excess of $20 million be subject to an additional review through the J&A process is a new requirement. We were asked to

    “. . . [D]etail the impact of the provision on the selection of Native American companies for large dollar contracts;

    Discuss how the provision is affecting the contracting process, whether an excessive administrative burden has been placed on contracting personnel;

    Provide recommendations on how the provision can be amended to mitigate any unintended negative consequences.”

    Because the implementation of the new policy was delayed to FY 2011 by required consultation with...

  14. APPENDIX A Public Law 111-84, Section 811: Justification and Approval of Sole-Source Contracts
    (pp. 41-42)
  15. APPENDIX B Congressional Request for a Study of the Effects of J&A Provisions
    (pp. 43-44)
  16. APPENDIX C Selected Dates in the Evolution of Small Business Policy
    (pp. 45-46)
  17. APPENDIX D Variation in 8(a) Requirements, by Type of Business
    (pp. 47-48)
  18. APPENDIX E Provision and Incentives for DoD to Outsource Directly to Native American–Owned Firms
    (pp. 49-50)
  19. APPENDIX F Numbers of Contracts, by Year
    (pp. 51-52)
  20. APPENDIX G Interview Protocol
    (pp. 53-54)
  21. Bibliography
    (pp. 55-58)