Summary: Pursuant to a congressional request, GAO reviewed small and small disadvantaged business subcontracting opportunities for major telecommunications contracts, focusing on whether the Federal Telecommunications System (FTS) 2000, Technical Assistance and Management Services (TAMS), and Washington Interagency Telecommunications System (WITS) contracts afforded such businesses maximum practicable opportunity for subcontracting, as the Small Business Act required.
GAO found that: (1) the prime contractors exceeded their subcontracting goals under the FTS 2000, TAMS, and WITS contracts, by subcontracting with small and small disadvantaged businesses for telecommunications and other services; (2) since five large subcontractors failed to develop required subcontracting plans valued at about $109 million, subcontracting opportunities for small and small disadvantaged businesses may have been missed; and (3) the General Services Administration and prime contractors lack adequate oversight to ensure that large subcontractors comply with the Small Business Act.
