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How Does the Better Buying Power Initiative Affect Small Business Participation in Department of the Army Acquisition

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Technical Report,28 Jul 2014,15 Apr 2015

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Defense Acquisition University Aberdeen Proving Ground United States

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On June 28, 2010, Ashton Carter, then the Under Secretary of Defense for Acquisition, Technology, and Logistics, released the Better Buying Power 2.0 guidance Carter, 2010. One of its focus areas was the promotion of effective competition by increasing small business roles and opportunities. The Small Business Act requires that small business entities have the maximum practicable opportunity to participate in Federal contracts and subcontracts. According to the Small Business Administration SBA report of 2013, the Department of the Army, like other Services, has experienced a decline in the contract dollars awarded to small businesses over the years. One of the reasons why competition is important in defense acquisition is that it provides opportunities for capable small businesses to enter new markets. Because they represent a driving economic force, small businesses are integral to maintaining our industrial base and assisting the Department of the Army in meeting the needs of the warfighter. This study utilizes a quantitative approach to explain the relationship between small business participation, contracting competition rate, and the contacting rate of entry into a new market. The study investigates industrys perspective on the Better Buying Power initiative by collecting information on how it affects small business participation.

Subject Categories:

  • Logistics, Military Facilities and Supplies
  • Economics and Cost Analysis

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