The affect the downsizing of the Department of Defense is having on small business subcontractors of the top ten defense contractors
O'Rear, Dennis P.
Adams, Rebecca J.
Lamm, David V.
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This study was conducted to identify the effect the downsizing of the Department of Defense is having on the small business subcontractors and subcontracts of the top ten defense contractors. A questionnaire via telephone interviews was utilized to gather information from the top ten defense contractors. The study concludes that small business subcontract trends and goal percentages within DOD will remain constant despite the decrease in defense spending. The study identified commodity and industry groups adversely affected as well as those that have benefited from the downsizing. Additionally, the study identified strategies small businesses should use for survival in this environment, as well as assistance available from industry and the Government. The study recommends the Government identify actual dollar amounts being subcontracted to specific commodity groups or industries, instead of using percentage goals. The Government should provide more adequate training and communication to small business firms.
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