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The Small Business Administration's 8(a) program is one of the federal government's primary vehicles for developing small businesses. Tribal 8(a) firms, such as firms owned by Alaska Native Corporations, can win sole-source contracts for any dollar amount in the 8(a) program, while other 8(a) firms generally must compete for contracts valued above certain dollar thresholds. In March 2011, the Federal Acquisition Regulation was amended to include a new requirement for a written justification for sole-source 8(a) awards over $20 million, where previously no justification was required. GAO has previously reported on tribal 8(a) contracting and recommended improved oversight. The Appropriations Act of 2015 contained a provision for GAO to assess the impact of the 8(a) justification at DOD. This report addresses: (1) trends among DOD sole-source and competitive 8(a) awards from fiscal years 2006 through 2015; and (2) the factors to which DOD officials attribute these trends. GAO analyzed data from the Federal Procurement Data System-Next Generation, reviewed 14 sole-source 8(a) contracts over $20 million-9 of which had been followed by additional contracts for the same requirement, and spoke with contracting officials. GAO judgmentally selected most of the 14 contracts from offices that had

GAO was requested to examine the effectiveness of the Federal Procurement Data System. Progress has been made in setting up the system despite initial difficulties. Areas in need of greater progress include timeliness of reporting by the agencies and accuracy of the data submitted. Some agencies are still having difficulty in meeting the due dates for data. The Federal Procurement Data Center provided information from eight agencies which provided data in a timely manner, but had difficulty with the number of errors in their data. The accuracy of the system depends on the integrity of many individuals to prepare reports correctly. If a report is not prepared, the contract award data will not enter the system. The cost of converting the existing Department of Defense (DOD) contractor identification system to the recommended Dun and Bradstreet system would be about $1.45 million. GAO does not believe that the difference between the capabilities of a modified DOD system and the Dun and Bradstreet system justify the added costs that ihe Government will incur. The Center experienced a 5 percent cost overrun on its contract for computer processing time and paid for two software packages which it could not use because insufficient time was allowed for proper implementation of a database management system. Consequently, a less complex system was installed. A feasibility study is planned to determine the most economic method of acquiring computer time.