The Small Business Administration lacks a process for assuring that agencies provide sufficient justification for awarding sole-source contracts to SBA-preferred contractors, the Government Accountability Office reported Wednesday.
Auditors reviewed 72 sole-source contracts worth $20 million or more in the 8(a) program designed to benefit Alaska native corporations since 2009. Under a change in the Federal Acquisition Regulation mandated by the fiscal 2010 National Defense Authorization Act, agencies are required to spell out their justification for not awarding the work to competing contractors.
Contracting preferences for Alaska native corporations have led to cases of fraud perpetrated by front companies.
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