Analysis of overpricing of maintenance service contracts awarded via the 8(a)program and by formal advertising.
Benson, Eric John.
Liao, Shu S.
Duke, James R.
MetadataShow full item record
Section 8(a) of the Small Business Act, as amended, authorizes the Small Business Administration (SBA) to enter into contracts with other government procuring agencies for goods and services. The SBA subcontracts the work on a sole source basis to small businesses that are owned and controlled by socially and economically disadvantaged individuals. Overpricing of 8(a) contracts occurs when an award is mad above the current fair market value and the SBA does not provide business development expense funds for the price differential. Both General Accounting Office and United States Army Audit Agency audits cite cases of overpricing. This thesis examines overpricing from a total change order rate perspective for 8(a) and formally advertised maintenance service. From the data accumulated for this study, it was determined that the change order rates were comparable.
Approved for public release; distribution is unlimited