HOW DO ACCELERATED PAYMENTS FOR DOD CONTRACTORS HELP SMALL BUSINESSES?

Abstract

The purpose of this research is to analyze small-business responses to the accelerated payments policy for DOD contractors. This research explored small-business decision-making due to the DOD accelerated payments policy. The thesis methodology is to conduct surveys with populations taken from open-source access of the Federal Procurement Data System-Next Generation. Random population of registered businesses were solicited for input on the business’ present or potential application of contracting activity as a result of accelerated payments. This project reviewed the trends reported to determine whether the accelerated payment incentive is useful to small business as the regulation stands, or if changes should be made to the process. The results provide an introductory analysis into the accelerated payment policy relationship with small-business concerns. The feedback from businesses indicates a need for in-depth exploration of accelerated payment policy and DOD processes, internal controls, personnel, stakeholder impact, and areas for improvement for adequate incentive application. The trend is that the accelerated payment timeline is not being met. The insights provided by the report have the potential to support further research for the benefit of providing realistic future acquisition reform or modification.