About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

GAO-16-423R 1 (2016-03-24)

handle is hein.gao/gaobaajss0001 and id is 1 raw text is: G A O U.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Washington, DC 20548 March 24, 2016 The Honorable David Vitter Chairman The Honorable Jeanne Shaheen Ranking Member Committee on Small Business and Entrepreneurship United States Senate The Honorable Steve Chabot Chairman The Honorable Nydia Velazquez Ranking Member Committee on Small Business House of Representatives HUBZone Program: Actions Taken on February 2015 GAO Recommendations Firms in the Historically Underutilized Business Zone (HUBZone) program of the Small Business Administration (SBA) had almost $6.6 billion in obligations on active federal contracts for calendar year 2015.1 As of December 31, 2015, there were about 16,500 HUBZones and 4,600 firms in the program. Congress established the HUBZone program to stimulate economic development in economically distressed communities. The program provides federal contracting preferences to small businesses located in HUBZone areas that also employ residents of the areas.2 The contracting preferences that a certified HUBZone firm (one that meets program requirements) can receive include limited competition awards such as sole-source and set-aside contracts. An eligible HUBZone firm can also receive an award through open and full competition should its price exceed by not more than 10 percent the price of the otherwise lowest offeror (other than another small business concern). Federal agencies are responsible for trying to meet an annual statutory goal for awarding contracts to HUBZone firms (3 percent of all prime contracts and subcontracts). We and SBA's Office of Inspector General (OIG) previously reported on the need for SBA to strengthen its internal controls and its fraud prevention to ensure only eligible firms participate in the HUBZone program.3 We identified a number of internal control-related deficiencies in the 1The $6.6 billion represents prime contracts awarded directly by a procuring agency to the bidder or offeror (prime contractor). 2HUBZone Act of 1997, Pub. L. No. 105-135, Title VI, 111 Stat. 2592, 2627-36 (1997). 3GAO, Small Business Contracting: Opportunities Exist to Further Improve HUBZone Oversight, GAO-I 5-234, (Washington, D.C.: Feb. 12, 2015); Small Business Administration: Undercover Tests Show HUBZone Program Remains Vulnerable to Fraud and Abuse, GAO-1 0-920T (Washington, D.C.: July 28, 2010); Small Business Administration: Undercover Tests Show HUBZone Program Remains Vulnerable to Fraud and Abuse, GAO-1 0-759 (Washington, D.C.: June 25, 2010); HUBZone Program: Fraud and Abuse Identified in Four Metropolitan Areas, GAO-09-440 (Washington, D.C.: Mar. 25, 2009); HUBZone Program: Fraud and Abuse Identified in Four Metropolitan Areas, GAO-09-519T (Washington, D.C.: Mar. 25, 2009); Small Business Administration: Status of Efforts to Address Previous Recommendations on the HUBZone Program, GAO-09-532T (Washington, D.C.: Mar. 25, 2009); HUBZone GAO-16-423R HUBZone Program Page 1

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most