The Department of Defense and Its Use of Small Businesses: An Economic and Industry Analysis

The Department of Defense and Its Use of Small Businesses: An Economic and Industry Analysis

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Congress has directed that 23 percent of direct federal purchases come from small businesses. As the largest purchaser in the federal government, the Department of Defense (DoD) is key to achieving this policy objective. To help suggest industries that DoD could target for outreach to small firms, this briefing compares DoD procurement from small businesses with non-DoD federal procurement from small businesses, and it documents the prevalence of small businesses in industries DoD relies upon.