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IG finds lax oversight of Alaska 8(a) contracts.

The Commerce Department did not begin monitoring Alaska Native Corporations' contracts for more than a year after it signed an agreement to take on that responsibility, the department's inspector general found.

Under a June 7, 2007, partnership agreement with SBA, Commerce assumed oversight of its contracts with Alaska Native 8(a) firms, including the responsibility to monitor their subcontracting. But the IG found that in June, 2008, the department still had not notified its contracting officers of the agreement.

Commerce's Office of Acquisition Management said it was waiting for an update of its IT system to support the monitoring responsibilities. The office told the IG it would complete the update promptly.

Prime contractors under the 8(a) program are allowed to subcontract no more that 50% of the work to others. The Government Accountability Office has raised questions about some ANCs' subcontracting and teaming arrangements with large corporations.

In reponse to GAO's 2006 report, SBA said it was exploring possible new controls on ANC partnerships with non-8(a) companies.
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Publication:Set-Aside Alert
Article Type:Brief article
Geographic Code:1USA
Date:Jul 11, 2008
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