Abstract
Annually, the United States adds to its nearly $20 trillion in debt by spending more money than it collects. These yearly expenditures include the acquisition of goods and services from private industry. The purpose of this quantitative study was to compare the costs the government incurs through contracting with small businesses with the costs the government incurs utilizing large businesses. Simultaneously, this study explored contracting officials’ perceptions of the quality of services provided by small and large businesses. The aim of this study was to create an evidence-based solution to the need to save money in the government acquisition process by exploring whether small businesses provide quality services to the government at a lower price than large businesses, thereby raising the possibility of policy makers increasing small business set-aside contracts. The researcher compared the labor rates large and small businesses charge the government for providing services associated with the same labor categories. Simultaneously, a survey asked contracting officials their perceptions of the quality of services provided by both large and small businesses. The results of the research showed small businesses charge the government a lower labor rate for employees performing work associated with specific labor categories than large businesses. The survey results reveal that contracting officials believe services provided by small businesses are as good as those provided by large businesses. The results of this research alone are not broad or conclusive enough to suggest change to government policy, but provide a foundation for encouraging government policy makers to study these issues more thoroughly to determine if an increase to government small business set-aside programs may be warranted.|Keywords: Small business, acquisitions, contracting