Review of the Test of Mandatory Subcontracting to Small Business

Gao ID: PSAD-78-108 May 19, 1978

On March 11, 1976, the Office of Federal Procurement Policy requested six federal agencies to conduct a test of mandatory subcontracting to small businesses. The agencies involved were the Departments of Defense; Interior; and Health, Education, and Welfare; the Energy Research and Development Administration, now within the Department of Energy (DOE); the General Services Administration; and the National Aeronautics and Space Administration. The Office provided test criteria and on September 22, 1976, approved the agencies' test plans. The six agencies have awarded 55 contracts in the test program. DOE has awarded 78 cooperative agreements in which it has a cost sharing relationship with the performing organization. These were awarded under a single solicitation for solar heating and demonstration projects. Of the 55 contracts awarded, 28 were for manufacturing and production, 8 were for research and development, 12 were for construction, 3 were for maintenance, and operations, 2 were for facilities management and 2 were for support services. The cooperative agreements were construction-type awards.

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