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![handle is hein.gao/gaobadxvd0001 and id is 1 raw text is:
DOCUMENT RESUME
02964 - CA1933008]
The Small Business Administration's 8(a) Procurement Program.
Jujy 8, 1977. 8 pp.
Testimony before the Senate Committee on Governmental Affairs:
Federal Spending Practices and Personnel Management Subcommittee
; by Henry Eschwege, Director, Community and Economic
Development Div.
Issue Area: Non-Discrimination and Equal opportunity Programs:
Federal Agencies' Achievement of Equal Opportunity and
Nondiscrimination Objectives (1010); Federal Procurement of
Goo~s and Services (1900).
Contact: Community and Economic Development Div.
Budget Function: General Government: Other General Government
(806).
Organization Concerned: Small Business Administration.
Congressional Relevance: Senate Committee on Governmental
Affairs: Fe4eral Spending Practices and Perso,[.el Management
Subcommittee.
Authority: P.L. 93-386.
The Small Business Administration (SBA) uses its 8(a)
procurement program to assist disadvantaged small businessmen by
entering into procurement contracts with Federal agencies and
subcontracting the work to these businessmen. Through
sponsorship arrangements, SBA encourages nondisadvantaged
businesses (sponsors) to provide management services, training,
and capital to disadvantaged small businesses. SBA's success in
helping disadvantaged firms to become self-sufficient and
competitive had been minimal, and sponsorship arrangements did
little to contribute to success. Contractors became sponsors to
make profits and to protect their livelihoods in the Government
contracting industry and had little incentive to develop 8(a)
firms into viable businesses. SBA did not monitor the sponsors'
control of firms, and did not establish procedures cn ianagement
fees. SBA has recently J evised procedures, but progress has not
been evaluated. (HTW)](ViewImageLocal?handle=hein.gao/gaobadxvd0001&div=1&collection=&method=preview&ext=.png&size=3)