USPTO Needs to Improve Its Small Business Contracting Practices

The objectives were to determine whether USPTO (1) achieved its small business utilization goals, (2) contracting officials provided small businesses with adequate contract award opportunities, and (3) took appropriate actions to ensure contracting officials met small business contracting goals. We contracted with Booth Management Consulting, LLC (BMC)—an independent firm—to perform this audit of USPTO. Our office oversaw the progress of this audit to ensure that BMC performed the audit in accordance with generally accepted government auditing standards and contract terms. However, BMC is solely responsible for the attached report and conclusions expressed in it. As discussed in the attached report, BMC concluded that USPTO did not (1) meet its small business utilization goals, (2) provide small businesses with adequate contract award opportunities, and (3) take appropriate actions to meet small business contracting goals. BMC recommended in the report that the Under Secretary of Commerce for Intellectual Property and Director of the U.S. Patent and Trademark Office direct the Director of the Office of Procurement to ensure that the following occur: (1) Contract specialists verify small business eligibility prior to awarding small business contracts. (2) Contract specialists perform and appropriately document small business set-aside reviews. (3) Historically Underutilized Business Zones small business consideration is included in its annual acquisition forecasting activities and marketing efforts to maximize contracting opportunities. (4) The Office of Procurement uses the Forecasting and Advanced Acquisition Planning System and establishes clear lines of communication between the Office of Procurement, small business specialists, and contracting specialists for all procurement requests.