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<p>Many acquisition organizations have difficulty meeting their mandated small business utilization goals. Much literature is rightly dedicated to methods of increasing this utilization. However, small businesses are actually making a greater contribution to an organizationÎ±s mission than the current reporting system demonstrates. Mis-reported, under-reported and unreported small business utilization comprises a significant percentage of an acquisition organizationÎ±s total procurement obligations for which the current reporting system grants no credit. The areas of first-tier subcontracting, second-tier subcontracting, Interagency acquisition, GSA FSS orders, indirect costs, Other Transactions, Micro-purchases and contracts under $500K were analyzed to quantify the amount of reporting variance at the Space and Naval Warfare Systems Command. First and second-tier subcontracting were found to account for the majority of mis/unreported utilization, and are the only areas whose inclusion in SPAWARÎ±s utilization statistics is clearly advantageous. Research demonstrates that an additional 9-16% of SPAWARÎ±s procurement dollars end up in the hands of small businesses by granting SPAWAR credit for this small business utilization. To effect a change in the reporting system, improvements must be made in an automated system to collect and report subcontracting utilization data, the use of a new reporting metric and the issuance of clear policy guidance.
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<br>Subjects:</div>
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Schweer, Mark R.</div>
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