The effect of acquisition reform on small business participation in the Federal marketplace

Abstract

This thesis investigates the effect that acquisition reform has had on small business participation in the Federal contracting arena. As a result of the transformation of the Federal acquisition process through acquisition reform legislation and the reduction in the acquisition workforce, small business contractors are faced with new challenges to compete for and win Federal contracts. This paper concentrates on examining contract bundling, reverse auctions, electronic commerce and multiple award schedules. It concludes that contract bundling has had a negative effect on small businesses by excluding them from many competitions. It also finds that electronic commerce has had a positive effect on small businesses by giving them greater access to Federal contract opportunities and by speeding up the acquisition process. Regarding multiple award schedules, the research supports benefits for small businesses when they are given the chance to compete through multiple award schedules. It also finds negative implications for small businesses in that multiple award schedules often favor large established businesses at the expense of small businesses. The paper finds a lack of awareness on the part of small business concerning reverse auctions and finds no major impact on small businesses resulting from reverse auctions.