The current structure for agency reporting relevant to small business utilization goals is flawed, in that it allows agencies to grossly misinterpret the intent of the these goals. Agencies are required to report dollar volumes at this time. This is an accurate representation of whether or not the dollars are going to small businesses, but it is not an accurate representation of how many small businesses are receiving contracts under a given NAICS or SIN. This means that a an agency could literally meet 100% of it's SB/VOB/SDVOSB/8(a) utilization goals with one contract to one SMB per NAICS or SIN. The intent of the government utilization goals is to support many small businesses, not a handful under each NAICS or SIN. Along with volume spend reporting, agencies, GSA most specifically, should be required to report the percentage of small businesses utilized under all given NAICS or SIN based on data collected from FPDS, SAM, eLibrary, and other reporting mechanisms, where spend activity exceeding 5 million dollars is also being reported for a given fiscal cycle. This will allow the government to get a better understanding of how agencies are currently utilizing small businesses at this time so that target goals can be established to increase support of the increasing numbers of small businesses emerging in America.
Idea No. 113