The Electronic Subcontract Reporting System (eSRS). It Is Not Feasible to Link Small Business Subcontractors to Prime Contracts Using Existing Contract Reporting Systems

Contract reporting systems we reviewed contain relevant information on  subcontracting plans, subcontracts, and subcontractors, but no one  system was designed to link small business subcontractors to prime  contracts. Linking small business subcontractors to prime contracts under  comprehensive or commercial reporting plans is especially difficult  because these plans do not specify the particular contracts to which they  apply. Despite the limited data available in existing contract reporting  systems, we were able to link a few small business subcontractors to  prime contracts, including those with comprehensive plans, but multiple  steps were required. Linking Small Business Subcontractors to Prime Contracts Is Possible for Some Contracts but Involves Multiple Steps

We found that it is possible to link small business subcontractors to prime  contracts for a limited number of contracts, but our attempts involved  multiple steps using several systems. We queried these systems using  contract numbers for 199 contracts and found that 37 reported  subcontract data, including contracts with individual and comprehensive  plans. We selected a nongeneralizable sample of 12 of these 37  contracts and entered their subcontractors’ information into SAM and  were able to identify a number of small businesses. This allowed us to associate a contract with a  subcontracting plan that pertains to multiple contracts. Executive Agencies Have Actions Under Way That Could Facilitate Linking Subcontractors to Prime Contracts

There are multiple actions currently under way, or called for by legislation,  that may result in a single system that can link small business  subcontractors to prime contracts. Agencies Are Currently Redesigning Contract Reporting Systems

GSA is currently involved in an effort to consolidate the functions and  information of several existing contract reporting systems, including  eSRS, FPDS-NG, and FSRS. In 2014, OMB designated  Treasury as the agency responsible for operating and maintaining  USASpending.gov. Treasury plans to improve the usability of the  website, presentation of data, and search functionality. Additional Actions Could Improve Reliability of Data

In addition to the actions under way to improve the retrieval or  presentation of data, there are a number of actions required by legislation  or proposed in new regulations that could improve the reliability of data. Specifically, the Digital Accountability and Transparency Act of 2014  (DATA Act) requires that agencies disclose additional data relevant to  contracts and subcontracts; establish common, government-wide  standards to provide consistency in such data; make reporting of these  data simpler; and periodically review the completeness, timeliness,  quality, and accuracy of the data. Agency Comments

We are not making any recommendations in this report. Appendix I: Scope and Methodology

We had two objectives for this review: (1) to assess the feasibility of using  data in contract reporting systems to link small business subcontractors to  particular prime contracts and (2) to identify actions executive agencies  are taking that might help facilitate linking small business subcontractors  to prime contracts.
Why GAO Did This Study

In fiscal year 2013 the federal government awarded about $460 billion on contracts, many of which involve subcontracts. Federal regulations require prime contractors to report on their subcontracting with small businesses.
The Joint Explanatory Statement for the National Defense Authorization Act for Fiscal Year 2014 mandated that GAO review the feasibility of linking small business subcontractors to particular prime contracts when there is a subcontracting plan that pertains to multiple contracts. This report (1) assesses the feasibility of using contract reporting systems to link small business subcontractors to particular contracts and (2) identifies actions executive agencies are taking that might help facilitate linking small business subcontractors to prime contracts.
To address these objectives, GAO reviewed four government-wide contract reporting systems and extracted data using contract information from previously reviewed defense programs to attempt to link small business subcontractors to prime contracts. In addition, GAO met with officials who are responsible for the management of, or are users of, the contract systems to validate the methodologies used and determine actions being taken to facilitate linking small business subcontractors to prime contracts.
GAO is not making any recommendations in this report.

What GAO Found

The contract reporting systems GAO reviewed contain relevant information on subcontracting plans, subcontracts, and subcontractors, but no single system was designed to link small business subcontractors to prime contracts. Linking small business subcontractors to prime contracts when there is a subcontracting plan that pertains to multiple contracts is especially difficult because these plans do not specify the particular contracts to which they apply. Despite the limited data, GAO was able to link a few small business subcontractors to prime contracts, but multiple steps were required. GAO queried subcontract reporting systems regarding 199 contracts and found that 37 reported subcontract data, including contracts with a subcontracting plan that pertains to multiple contracts. GAO selected a nongeneralizable sample of 12 of these 37 contracts and was able to identify a number of small business subcontractors.
There are multiple actions currently under way, or called for by legislation, that may result in a single system that can link small business subcontractors to prime contracts. The General Services Administration is currently involved in an effort to consolidate the functions and information of several existing contract reporting systems, and the Department of the Treasury was recently given responsibility to operate and maintain USASpending.gov and plans to make changes to improve the search function of that website, which could help facilitate linking subcontractors to prime contracts. In addition to the actions under way to improve the retrieval or presentation of data, the Digital Accountability and Transparency Act, enacted May 2014, requires that agencies disclose additional data relevant to subcontracting; improve the consistency and reporting of these data; and periodically review their completeness, timeliness, quality, and accuracy.