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dc.contributor.authorCunha, Jesse
dc.contributor.authorMarion, Justin
dc.contributor.otherAcquisition Research Program
dc.date05/10/21
dc.date.accessioned2021-11-01T21:24:27Z
dc.date.available2021-11-01T21:24:27Z
dc.date.issued2021-05-10
dc.identifier.other75
dc.identifier.urihttp://hdl.handle.net/10945/68117
dc.description.abstractIn 2011, the Department of Defense (DoD) set a goal of paying small business contractors within 15 days of invoice receipt rather than the standard 30 days. In 2012, other federal agencies also set a goal of accelerated payments to small businesses, and all agencies later expanded this goal to include all contractors regardless of size. We study whether small businesses benefited from these accelerated payment goals. Using a difference-in-difference design, we find that small business participation in government contracts rose following the setting of accelerated payments goals. Importantly, contracts for perishable foods and construction services, which were unaffected by the new accelerated payments policies, did not see an increase in small business participation. We also find that the benefits of accelerated payments are concentrated among small businesses with a backlog of ongoing projects. This is consistent with the hypothesis that accelerated payments alleviate the liquidity constraints that may be particularly acute for small businesses.en_US
dc.description.sponsorshipPrepared for the Naval Postgraduate School, Monterey, CA 93943.en_US
dc.description.sponsorshipNaval Postgraduate Schoolen_US
dc.publisherMonterey, California. Naval Postgraduate Schoolen_US
dc.rightsThis 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.en_US
dc.titleDo Accelerated Payments for DoD Contractors Help Small Businesses?en_US
dc.typePresentationen_US
dc.contributor.corporateNaval Postgraduate School (U.S.)
dc.identifier.npsreportSYM-AM-21-054
dc.description.distributionstatementApproved for public release; distribution is unlimited.en_US
dc.description.distributionstatementApproved for public release; distribution is unlimited.en_US


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