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GAO-18-195R 1 (2017-12-18)

handle is hein.gao/gaobacsii0001 and id is 1 raw text is: GAO U.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Washington, DC 20548 December 18, 2017 Congressional Committees Minority- and Women-Owned Business Contracting: Analysis of DOD Contract Awards, Fiscal Years 2010-2016 Section 890 of the National Defense Authorization Act for Fiscal Year 2017 contained a provision for us to report on the number and types of contracts for the procurement of products or services that the Department of Defense (DOD) awarded to minority-owned and women- owned businesses. This report examines Federal Procurement Data System-Next Generation (FPDS-NG) data on DOD contracting with minority- and women-owned businesses for fiscal years 2010-2016. To address our objective, we used FPDS-NG data to identify trends in DOD's procurement of products and services from minority- and women-owned businesses for fiscal years 2010-2016. Although the Act contained a provision for us to review only fiscal years 2010 through 2015, we added fiscal year 2016 because it was the most recent year for which complete data were available at the time of our review. All obligations data are presented in constant fiscal year 2016 dollars adjusted for inflation using the fiscal year gross domestic price index. We analyzed this data to determine which contract types were used; the percentage of obligations used to purchase products versus services; the top products and services procured; and the number of contracts awarded from fiscal years 2010-2016. For the purposes of this report, in calculating the number of contracts awarded during fiscal years 2010-2016, we counted the award of purchase orders, definitive contracts, and indefinite delivery vehicles-which are contracts or agreements that allow agencies to place orders against them. However, we did not count delivery orders or calls awarded through indefinite delivery vehicles. We assessed the reliability of the FPDS-NG data by electronically testing for errors in accuracy and completeness and reviewed related documentation. We determined the data to be sufficiently reliable for the purposes of this report. We conducted this performance audit from July 2017 through December 2017 in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. In summary, from fiscal years 2010 to 2016, DOD obligated over $230 billion to minority- and women-owned businesses, more than 80 percent of which was through fixed-price contracts. DOD awarded almost 444,500 contracts to these businesses during this time frame. See the enclosure which contains our detailed analysis of these data. Agency Comments We provided a draft of this report to DOD and the Small Business Administration (SBA) for comment. DOD had no comments on the draft report. In an email response, SBA suggested that we break out obligations to small minority and small women-owned businesses, noting that GAO-18-195R DOD Contracting Page 1

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