Most OSDBU Directors Report to Appropriate Agency Officials

Of the eight federal agencies we reviewed, only DLA’s and DOE’s OSDBU heads do not report to the appropriate agency official. Currently, DOD’s OSDBU director reports to the Under Secretary of Defense for Acquisition and Technology, who is the Secretary’s designee. Two OSDBU Directors Do Not Report to the Agency Head or Deputy

The OSDBU directors at DLA and DOE report to officials other than the agency head or agency’s deputy. Defense Logistics Agency

DLA’s OSDBU director reports to the agency’s Deputy Director for Acquisition. In response to a congressional request, in 1993 OMB surveyed federal agencies to determine the organizational reporting levels of their OSDBU directors. OSDBUs Perform a Variety of Activities to Assist Small Businesses

All eight OSDBUs we examined conduct activities consistent with the requirements of Public Law 95-507 and OFPP’s Policy Letter 79-1 for assisting small and disadvantaged businesses in obtaining federal contracts. These activities include (1) developing the agency’s small business contracting and subcontracting goals, (2) sponsoring and/or participating in small business outreach efforts, (3) serving as an interagency liaison for procurement activities relating to small businesses and small disadvantaged businesses, and (4) supervising and training employees involved with the agency’s small business activities. Conclusions

The organizational reporting levels of the OSDBU directors at the Defense Logistics Agency and the Department of Energy do not comply with the requirements of Public Law 95-507. Additional copies are $2 each.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the Office of Small and Disadvantaged Business Utilization (OSDBU) at eight federal agencies, focusing on: (1) whether OSDBU directors report to the required agency official and, if not, the rationale for the deviation; and (2) OSDBU activities to assist small and disadvantaged businesses (SDB) in obtaining federal contracts.

What GAO Found

GAO found that: (1) except for at the Defense Logistics Agency (DLA) and the Department of Energy (DOE), OSDBU directors report to the appropriate agency official as required; (2) DLA OSDBU director reports to the Deputy Director for Acquisition, since that official is responsible for all contracting matters; (3) DLA plans to have its OSDBU director report either to the DLA head or the DLA principal deputy under its reorganization plan; (4) DOE maintains that its authorizing legislation enables the Secretary of Energy to use discretion in determining the OSDBU director's reporting level; (5) DOE plans to comply with federal OSDBU reporting requirements; (6) OSDBU activities are consistent with legal requirements for assisting SDB in obtaining federal contracts; (7) these activities include developing contracting goals, sponsoring or participating in outreach efforts, being an interagency liaison for small business procurement activities, and supervising and training agency staff who work with small businesses; and (8) several agency OSDBU have undertaken additional initiatives to promote SDB participation in federal contracting.