IG: GSA system erred on small business designation
The General Services Administration misclassified millions of dollars in procurements, due to inaccurate coding in its procurement data system, according to a new report from the agency’s Office of Inspector General’s audits division.
The IG’s Office of Audits found that almost $90 million in procurements registered in GSA’s Federal Procurement Data System-Next Generation (FPDS-NG) were mislabeled as small business set-asides, when the contracting businesses didn’t fit the definition, according to the report issued Sept. 14.
The GSA IG office audited a sample of procurements from fiscal 2016 and 2017 to gauge the accuracy of small business designations. The report looked at the use of North American Industry Classification System (NAICS) codes used to designate business size, differentiating large from small.
The distinction is significant, since federal agencies have goals of supporting small businesses by