Examining the Effects of Set Aside Policies on Competition and Growth for Small and Mid-Sized Suppliers
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Authors
Brown, Trevor L.
Girth, Amanda M.
Subjects
Advisors
Date of Issue
2017-03
Date
2017-03
Publisher
Monterey, California. Naval Postgraduate School
Language
Abstract
We examine the federal small business set aside program and assess the impact of small business set asides on supplier competitiveness, program participation, and firm growth. We track the performance of over 700 small businesses over a 10-year period (FY2005 ﾖ FY2014). We analyze firm-level characteristics and attributes of their federal contracting portfolios. Our exploratory study tests hypotheses to (a) determine whether there is a difference between firms that remain a small business throughout the 10-year period and those that transition to the middle market and become mid-sized firms, and (b) establish a framework for future study. Our preliminary results show that there are differences between firms that remain a small business during the 10-year period and those that grow into the middle market. Firm attributes that differ include whether the business is woman-owned, the creditworthiness of the firm, firm efficiency, and the firmﾒs number of corporate relationships. Federal portfolios are also different between the two groups. Firms that grow into the middle market on average have contracts in more agencies, across more product or service lines, and have more contract actions related to multi-award vehicles
Type
Report
Description
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Organization
Identifiers
NPS Report Number
SYM-AM-17-077
Sponsors
Naval Postgraduate School Acquisition Research Program
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This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.