service or component from a major system in order to create a separate contract that can be performed by small business. Procurement center representatives covered 133 Government buying installations full time and regularly contacted 149 other facilities, all of which accounted for about 80 percent of the Federal purchase dollar. In fiscal year 1970, approximately $1.8 billion in contracts were awarded to small business under the set-aside program. It resulted in savings to the Government of some $10.5 million, based on previous prices by sole source suppliers. $4.3 Billion Subcontracts Small business firms also compete for subcontracts from prime contractors for the Government. In the SBA's voluntary subcontracting program, 66 of the major U.S. contractors having 340 plants throughout the country keep the agency informed of subcontract awards and future subcontracting opportunities, and the agency, in turn, informs prime contractors of small businesses available to perform subcontracts. Once a small firm is awarded a subcontract, the prime contractor provides technical and financial assistance, if needed, to improve the capabilities of the small firm. In addition, SBA provides counsel to small firms interested in Government subcontracting. Of the $4.3 billion Department of Defense subcontracts in 1970, more than $3.1 billion went to small businesses participating in the SBA's program. Property Sales The property sales assistance program helps small firms obtain a fair share of the material and property which the Government sells as surplus or supplies as raw material. During 1970, SBA conducted extensive negotiations with the Department of Agriculture dealing with a new interagency agreement governing the small business assistance program in the field of timber sales from national forests. Near the end of the year, a basic understanding of governing principles was reached. It will not be signed until the public and members of industry have an opportunity to suggest changes, but it is expected to increase significantly the amount of timber set aside for small business competition, and thereby improve materially the competitive opportunities of small firms in the forest products industry. Certificates of Competency The SBA certificate of competency (COC) program provides a means by which small firms can appeal for help when their low bids are rejected by Government procuring agencies on the grounds that the firm lacks either the capacity or credit to perform the contract. If SBA issues a COC, after investigating the firm's financial resources and productive facilities, a Government contracting officer is required to accept the results and make the award. The 1970 record shows that 221 contract awards totaling $58 million went to small business through this program, with an estimated savings to the Government of $6.4 million, based on the difference between the contract price and the next higher bid price. Interagency Cooperation SBA also promoted joint efforts with the Veterans Administration, Department of Labor, Department of Commerce, and other Federal agencies that have compatible programs in management assistance. Greater emphasis was placed on assisting minority small businessmen. Special workshops were conducted and assistance under the 406 management contract program was directed mainly toward the needs of the economically deprived already in business or who needed assistance in starting a new business. Plans were completed in 1970 to implement a new national benefit-cost measurement study in 1971. A pilot study of management assistance programs completed in 1969 showed a net increase of $10 in profits for every $1 spent by the Federal Government. A public information program was intensified to bring about a greater awareness of the availability of management assistance, especially to reach that segment of small business which thinks of SBA as a lending agency only. The dissemination of information included radio and television public service announcements arranged by the Advertising Council, Inc. Organizations Join Program The roster of SCORE increased in 1970 by some 400 members, bringing the total membership to 3,800, with 166 chapters in cities. throughout the Nation. The Third National SCORE Conference, held in Atlanta in October, was attended by volunteers from 138 of the chapters. 1970 marked the sixth year of continuous growth for the SCORE concept. The ACE volunteer program, comprised of working executives from both large and small business, was multiplied many times by agreements with four major national business organizations to provide massive management assistance via their widespread local chapters. The organizations included the Society for the Advancement of Management, the National Association of Accountants, the American Institute of Industrial Engineers, and the Sales and Marketing Executives, International. These groups have a combined membership of more than 100,000 active executives in more than 800 cities. Businessmen Trained Approximately 90,000 small businessmen received management counseling on a one-to-one basis during 1970. Another 50,000 received assistance in solving specific management problems, and the managerial ability of 8,000 loan applicants was evaluated. The Counseling Division also briefed visiting businessmen from 25 foreign countries on the role of small business and free enterprise In the United States. Also during the year, 95,000 small businessmen took advantage of SBA-cosponsored management training workshops, participating in more than 2,000 group meetings on various managerial aspects of conducting a business. This was a participation increase of 22 percent over the previous year. Another 14,800 prospective small business owner-managers attended more than 300 prebusiness workshops. Information Utilized Management assistance publications released by SBA during 1970 were directed toward the newest problems of small business, with special emphasis on taxes, crime prevention, and the starting of new businesses. In addition to keeping some 350 management publications and bibliographies updated, 30 new titles were released. These covered a broad spectrum of subjects from "Pointers on Using Temporary-Help Services" to "Factors in Considering a Shopping Center Location." The public requested more than 3.4 million of these free publications in 1970, and an additional 315,000 other publications were sold by the U.S. Superintendent of Documents. SBA's management film popularity continued with 3,300 showings to nearly 100,000 persons, with films on crime prevention the most in demand. Four new films were produced during the |