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Legislation Aims to Enhance SBA’s IT Modernization Efforts

In response to concerns regarding the Small Business Administration’s (SBA) technology projects, a prominent Democrat from the House has put forth a proposal aimed at elevating the agency’s IT modernization initiatives. This legislative effort follows a critical report from a federal watchdog that examined the SBA’s recently introduced federal contracting assistance system.

The newly introduced bill by Rep. Nydia Velázquez, a Democrat from New York and the ranking member of the House Small Business Committee, was brought forward this past Wednesday. This action was prompted by insights from a Government Accountability Office (GAO) report that identified obstacles the SBA faces in developing a platform intended to assist small enterprises in applying for and managing certifications associated with its contracting programs.

The GAO’s evaluation, released on November 6 but publicly made available only recently, scrutinized the SBA’s progress on the Unified Certification Platform (UCP). According to the GAO, this modernization initiative, which the SBA initiated in 2023, aimed to rectify existing issues in the systems that support small business certifications for various contracting assistance programs.

The SBA’s objective with the UCP project is to implement an efficient IT system that enhances the management of its 8(a), HUBZone, VetCert, and Women-Owned Small Business (WOSB) programs. Although the UCP system went live on October 18, the GAO reported that there remains substantial work to be carried out to develop more sophisticated features, ensure system security, and facilitate data migration.

In its report, the GAO provided 14 recommendations for the SBA to consider, emphasizing the need for improved oversight regarding IT modernization efforts. The recommendations underscore the necessity for the SBA’s chief information officer to establish comprehensive policies and strategies related to risk management and to enhance scrutiny of strategic planning activities.

Expressing her viewpoint in a statement to Nextgov/FCW, Velázquez remarked that her proposed legislation would compel the SBA to “prioritize and address the gaps identified by GAO and assist in enhancing the SBA systems that America’s small businesses rely on.”

If enacted, Velázquez’s legislation would require the SBA to deliver a detailed plan to the House and Senate Small Business committees within 180 days following the bill’s passage. This plan would outline the measures the agency intends to take “to establish and implement policies and procedures governing information technology modernization projects.”

The legislation delineates 11 strategic areas aligned with GAO’s recommendations, focusing on how the SBA could bolster management of its IT modernization projects. Key areas of focus involve the necessity for the SBA to define risk parameters, uphold risk management strategies, and ensure that its IT acquisition and strategic plans incorporate essential information for managing cyber risks.

Velázquez highlighted the significance of the SBA’s transition to a unified platform for all small business certifications, noting it as a progressive development that would enhance the experience and outcomes for small businesses engaged in federal contracting programs. However, she expressed concern over the GAO’s findings, which illustrated that the SBA lacks consistent and adequate risk management policies for overseeing extensive IT projects.

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