Fiscal Year 2004 Performance and Accountability Report Published November 15, 2004
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FY 2004 Obligation ($ in Millions) |
% of Total VA Resources |
Strategic Goal 4: Contribute to the public health, emergency management, socioeconomic well-being, and history of the Nation. |
$1,039 |
1.5% |
Objective |
Performance Results
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4.4 Enhance the socioeconomic well-being of veterans, and thereby the Nation and local communities, through veterans' benefits; assistance programs for small, disadvantaged, and veteran-owned businesses; and other community initiatives. |
Statutory Goal: 23 percent of total procurement dollars to be spent on small business*
*Data unavailable due to migration to new reporting system (Federal Procurement Data System-Next Generation)
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<$1M |
<0.1% |
Performance
The purpose of Objective 4.4 is to fully utilize veterans' benefits and other business assistance programs to enhance the socioeconomic well-being of the Nation and its veterans. The array of benefits and services provided by VA has a direct impact on the lives of veterans and beneficiaries. Each benefit program has specific outcomes used to assess program results. For example, the housing program assists veterans with purchasing homes and this has a positive impact on the national economy. The delivery of health care benefits and services has a positive effect on the overall well-being of the Nation and can facilitate longer, more productive lives for veterans.
VA's Office of Small and Disadvantaged Business Utilization (OSDBU) administers the Department's small business program and serves as the Secretary's representative on small business issues, ensuring compliance with the Small Business Act, which requires all departments and agencies to establish with the Small Business Administration annual procurement goals for prime contract and subcontract awards to small businesses, small disadvantaged businesses, small women-owned businesses, Section 8(a) small business concerns, HUBZone small businesses, and especially service-disabled veteran-owned small businesses. Although actual data for FY 2004 were unavailable at the time this report was prepared, every indicator suggests VA exceeded the statutory small business goal of 23 percent. OSDBU has responded to many changes in public laws affecting small business programs. Through reorganization, business process reengineering, utilization of information technology resources, and electronic commerce, OSDBU continues to provide high-quality support to the small business community ensuring equitable opportunities. In FY 2004, OSDBU extended its outreach and training programs with the use of video teleconferencing capabilities.
Program Assessment Rating Tool (PART) Evaluation
There are no PART evaluations that have been completed, nor are there any planned, that specifically address Objective 4.4.
Major Management Challenges
Neither VA's Office of Inspector General nor the Government Accountability Office identified any major management challenges related to Objective 4.4.
Program Evaluations
In 2000 the Department published the results of an independent program evaluation of VA's education programs. The principal finding of this evaluation was that the Department's primary education programs for veterans and reservists showed some success in meeting the intended purposes of the legislation establishing these programs, and that they returned over $2 to the economy for every $1 in taxpayer money funding the 2-year and 4-year degree programs. Compared to those who have not taken advantage of the education program, the men and women who furthered their education with government support have lower unemployment, have increased career and education goals, and enjoy an earnings advantage. In addition, one-half of the users of the education program believe they could not have pursued their education without the education benefits provided by the Department's program. This independent evaluation also recommended that the level of VA education program benefits be raised, which the Department has successfully achieved through close collaboration with the Administration and Congress.
New Policies and Procedures
In support of Objective 4.4, VA continues to provide accurate and timely information to the small business community on how, what, when, and where VA purchases goods and services. This is done through print and electronic formats. The Department also participates in procurement conferences and sessions to train small businesses on VA's acquisition process and systems. VA continues to make personnel aware of the Department's responsibilities to support small business through VA's acquisition program.
In an effort to improve accomplishments in the important Service-Disabled Veteran-Owned Small Business socioeconomic category, VA became the first Federal organization to implement provisions of Public Law 108-183, the Veterans Benefits Act of 2003. This law, signed by the President on December 16, 2003, authorizes government contracting officers to limit competition on Federal acquisition to Service-Disabled Veteran-Owned Small Businesses, and in certain situations, to award contracts to Service-Disabled Veteran-Owned Small Businesses on a sole source basis. Contracting officers now have a set-aside mechanism to aid in achieving the statutory 3 percent goal contained in Public Law 106-50, the Veterans Entrepreneurship and Small Business Development Act of 1999. On May 5, 2004, the provisions of the Veterans Benefits Act of 2003 were implemented as an Interim Rule in the Federal Acquisition Regulation.
In March 2004, VA implemented an important initiative from the President's Small Business Agenda concerning contract bundling. Contract bundling is the combining of multiple contracts normally awarded to small businesses into larger single contracts that are frequently unsuitable for award to small businesses, thus reducing the number of contract dollars awarded to small businesses. Implementing regulations for this change required executive civilian departments and agencies to conduct contract bundling reviews for all acquisitions of $2 million or greater to ensure acquisitions are not bundled, and where contract bundling occurs, that it is necessary and justified in terms of measurably substantial benefits. VA set a lower threshold for contract reviews of $1 million in order to achieve maximum efficacy.
In June 2002, the VA Procurement Executive and the Director of the Office of Small and Disadvantaged Business Utilization established the Veteran-Owned (VO) and Service-Disabled Veteran-Owned (SDVO) Small Business Task Force to develop strategies to help VA attain procurement goals in these two important socioeconomic categories. The task force ultimately identified 5 goals and made 16 recommendations with action steps to improve VA's VO and SDVO small business accomplishments. The Secretary of Veterans Affairs approved the task force's report in March 2003. A number of recommendations were implemented in FY 2004. Chief among them were incorporating VA's goals for VO and SDVO small businesses into the performance plans of executives, managers, and staff who have contracting authority, take part in procurement actions, or oversee employees engaged in these activities, and issuing policy guidance on preference and special procedures to enhance VO and SDVO small business participation in VA acquisitions. (The report may be viewed and downloaded at: http://www.vetbiz.gov/library/report.pdf.)
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