During its approval of the defense budget backin 1989, Congress added a new test program intended to simplify thesubcontracting process for large defense contractors. In theory, proponentssaid, the tweak would lead large prime contractors to pass more work along tosmall businesses.

A quarter century later, some of the world'slargest defense contractors are still taking advantage of the program — which,oddly enough, remains in "test" mode. Odder still, the test has yet to beevaluated.

Called the Comprehensive Subcontracting PlanTest Program, the initiative allows large defense contractors to establishcompany-wide or division-wide subcontracting plans that outline how the companyor each of its units generally intends to partner on any work awarded by thefederal government. Any time one of the participating companies competes forwork, it can present the general subcontracting strategy.

Normally, prime contractors are required as part of the bidding process tosubmit a specific subcontracting plan for each individual project, whichdetails how much of the work they plan to outsource and to what type ofcompanies.

Originally approved for a two-year test, thetest program has since been extended by Congress several times, with its latestauthorization set to expire at the end of the year. Its current testparticipants include a dozen of the nation's largest defense contractors,including Lockheed Martin, Boeing, Northrop Grumman and General Dynamics.

Now 25 years after its inception, the DefenseDepartment's Web site still refers to the program as a "test," stating that itspurpose is "to determine whether comprehensive subcontracting plans will resultin increased subcontracting opportunities for small business while reducing theadministrative burden on contractors."

The idea is that, by alleviating some of the hassle of partnering with smallbusinesses and by allowing those subcontractors to perhaps become part of alarger firm's overarching, routinely-used subcontracting network (rather thancompeting for one-off projects), more work — and more contracting dollars — would trickle down to smallfirms.

However, there's no telling whether that haspanned out.

In 2004, the Government Accountability Officereleased the government's first report on the initiative, stating that, "althoughthe test program was started more than 12 years ago, DOD has yet to establishmetrics to evaluate the program's results and effectiveness."

Six years later, still without any metrics inplace, several lawmakers sent a letter to the GAO formally requesting afollow-up investigation, noting that the program still had "never beenevaluated." A second GAO report was never filed. DOD, meanwhile, still hasnever put forth a report on the results of the program.

Not surprisingly, that hasn't sat well withsmall business organizations. The National Small Business Association, SmallBusiness and Entrepreneurship Council, U.S. Hispanic Chambers of Commerce and ahalf dozen other advocacy groups in April sent a letter to the House Small Business Committee and House Armed ServiceCommittee urging them not to keep extending an initiative that has no datademonstrating its value and effectiveness.

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