This resulted from issues with the GSA-managed federal procurement data system.
There have been “significant inaccuracies” in the Federal Acquisition Service’s reporting of small business contracts, a watchdog reported earlier this week.
The General Service Administration inspector general has issued a report that looked at the data GSA’s Federal Acquisition Service entered into the Federal Procurement Data System – Next Generation, which is managed by GSA. The Small Business Administration uses that system to assess if the federal government achieves its overall annual goal of awarding 23% of contracts to small businesses. Based on its review of Federal Acquisition Service procurements from fiscal 2016 and 2017 (that totaled $3.7 billion), the IG identified issues that led to overstating of small businesses procurements.
“We found that FAS’s reporting of small business procurements contained significant inaccuracies. We identified $89 million in procurements erroneously recorded as small business in [the Federal Procurement Data System–Next Generation],” said the IG. “In addition, FAS’ small business procurement reporting does not identify the extent of the work performed by large businesses. We found approximately $120 million of small business procurements in which large businesses performed a portion of the work.”
The IG reviewed the agency’s contracting data and internal policies as well as interviewed GSA officials and small business contractors, for its audit that was conducted from June 2018 to June 2019. While the report was about FAS, the IG found the issues were, in some ways, out the agency’s control.