House Talks DoD Subcontracting

May 23, 2018

On May 17, the House Small Business Subcommittee on Contracting and Workforce held a hearing discussing the failure of the Department of Defense (DoD) to implement statutory  requirements relating to small business and subcontracting plans. The hearing, “Hotline Truths II: Audit Reveals Inconsistencies in Defense Subcontracting” featured witnesses from DoD and the Office of the Secretary of the Army, along with a government procurement expert.

The focus of discussion was a recent audit of the Army Contracting Commands (ACC) Redstone and Warren. According to the DoD Office of the Inspector General (IG), the ACC has inconsistently complied with statutory requirements regarding the administration of subcontracting plans. This has resulted in the denial of $914.8 million in subcontracting opportunities for small businesses.

“I believe a vibrant small business community is essential to our national security,” said Subcommittee Chairman Steve Knight (R-CA). “Perhaps most alarming is the IG’s finding that administering subcontracting plans is not a high priority at the ACC.  This is a short-sighted view, failing to take into account the enormous cost the loss of qualified, high-performing small business contractors would have on our industrial base.”

According to DoD Assistant Inspector General Michael J. Roark, ACC-Redstone and ACC-Warren generally provided small businesses with the opportunity to compete for prime contracts; however, contracting officials did not ensure that prime contractors provided small businesses adequate subcontracting opportunities.

Click here to read full testimony and here to watch the hearing.