These three on-line procurement programs are small but growing in comparison to overall federal procurement dollars. According to the Federal Procurement Data System (FPDS), the government procured about $232 billion and $209 billion in goods and services in fiscal years 2000 and 1999, respectively. Some of these obstacles relate to the general readiness of small businesses to conduct electronic commerce while others are specific to how the government has implemented electronic procurement activities. were small, which may at least partially account for the relatively large share of dollars awarded to small businesses in these programs. Obstacles to Small Businesses Conducting Electronic Procurements With the Government Reported

Although small businesses received a higher share of awards in the three on-line procurement programs than the governmentwide share, some small businesses still face reported obstacles to successfully participating in on-line government purchasing activities. An example of such an action is GSA’s Federal Business Opportunities (FedBizOpps) Web site, which has been designated the single governmentwide point of electronic entry on the Internet where vendors can access all the information they need to bid on available government business opportunities greater than $25,000. Federal Programs Provided Locally Coordinated Electronic Commerce Education to Businesses

Each of the four federally funded business assistance programs in our review provided electronic commerce education as part of its operations, although the level of involvement varied.
What GAO Found

The federal government has been pursuing electronic initiatives to strengthen its buying processes, reduce costs, and create a competitive "virtual" marketplace. Small businesses, however, may have difficulty participating in federal on-line procurement programs. Furthermore, the government's business outreach and education programs related to electronic commerce may not be adequately coordinated. For the three federal on-line procurement programs GAO reviewed, the dollar share of awards to small businesses exceeded the overall small business share of total federal contract dollars awarded in fiscal years 2000 and 1999. Although small businesses successfully participated in these three programs, they still face obstacles in conducting electronic procurements with the government. The federal government is taking steps to address some of these obstacles, such as implementing a single point of entry on the Internet for vendors to access information on available government business opportunities greater than $25,000. Each of the four business assistance programs GAO examined had taken steps to educate its clients on electronic commerce as part of its operations. However, GAO could not fully determine the extent of these activities because they are conducted by hundreds of local and regional offices, and only one of the programs collected performance metrics specific to electronic commerce.