Small Business and Defense Acquisitions: A Review of Policies and Current Practices

Abstract

For much of the past century, the federal government has consistently sought to boost small businesses. These efforts have included, in recent years, a federal government's wide statutory goal for 23 percent of prime contract dollars on goods and services to be spent with small businesses. Recent federal policies have also set spending goals with more narrow categories of women-owned businesses and small “disadvantaged” businesses as certified by the Small Business Administration (SBA). Because the Department of Defense (DoD) accounts for most federal purchases, its spending practices draw considerable attention from small business advocates. This report reviews the origin of these small business policies, evidence of their effects, and what lessons best commercial practices may offer for their improvement.