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Business, Industry, and Consumers: Small Business Subcontracting Report Validation Can Be Improved

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Report Type Reports and Testimonies
Report Date Dec. 13, 2001
Report No. GAO-02-166R
Subject
Summary:

GAO assessed agencies' validation of data submitted by prime contractors on their subcontracting achievements. Of $77 billion in subcontracting reported in fiscal year 2000, $31 billion went to small businesses, such as women-owned, and small disadvantaged businesses, as well as those located in historically underutilized business zones. Both civilian and defense agencies follow a similar process to validate subcontracting data--one that involves visiting contractors, assessing compliance with subcontracting plans, and evaluating accounting systems as well as management support of the subcontracting program. Most contractors GAO reviewed are making good faith efforts to comply with their subcontracting plans. However, these reviews could be improved to enhance the validation and use of subcontracting data.

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