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Impediments may exist that hamper small-business contracting opportunities. Among the issues examined in the report are federal goals for small business purchases, the unique purchase needs of the Department of Defense, and how they affect opportunities for small businesses. The study also examines contract “bundling,” subcontracting in professional services and research and development, opportunities in the Small Business Innovation Research and the Mentor-Protégé Programs, electronic payment systems, and whether firms “graduate” from the programs or increase in size from “small” to larger businesses as a result of various small-business preferences, including those for procurement.

Table of Contents

  • Chapter One

    Small Business and the Department of Defense

  • Chapter Two

    DoD Prime Contract Purchases from Small Businesses as Defined by Government Threshold Sizes

  • Chapter Three

    The Effect of Bundling on Small-Business Opportunities

  • Chapter Four

    Subcontracting in Professional Services and Research and Development

  • Chapter Five

    Obstacles to Technology Transition in the SBIR Program

  • Chapter Six

    The Mentor-Protégé Program

  • Chapter Seven

    The Effect of Electronic Payment Systems on Small Businesses

  • Chapter Eight

    Prospects for Small-Business “Graduation”

  • Chapter Nine

    Conclusions and Implications

  • Appendix

    Data Availability and Quality Issues

The research described in this report was prepared for the Office of the Secretary of Defense (OSD). The research was conducted in the RAND National Defense Research Institute, a federally funded research and development center sponsored by the OSD, the Joint Staff, the Unified Combatant Commands, the Department of the Navy, the Marine Corps, the defense agencies, and the defense Intelligence Community.

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