How Not to Alienate Business Partners: A Framework for Addressing Factors Impacting Retention of Defense Contractors

Abstract

The U.S. government and the Department of Defense (DoD) continue to add new social policy, regulatory, and legislative burdens to the federal contracting process, despite growing consensus that these practices have led to a sluggish and inefficient acquisition system that erodes our competitive advantage against adversaries. This dynamic is also driving companies to leave the defense marketplace in droves, despite efforts to recruit new businesses to sell to the DoD and encourage the use of alternative procurement processes. Our research provides a framework for how defense buyers and policymakers can improve retention rates for defense contractors, with specific recommendations for removing requirements that do not support critical national security needs. Fundamentally, defense acquisition should be governed by fewer requirements and checklists, freeing up acquisition professionals and leaders to develop and sustain long-term business relationships that take a win-win philosophy.