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Equity in government contracting: Analyzing the performance of small disadvantaged businesses

By: Brunjes, Benjamin M. and Rodriguez-Plesa, Evelyn.
Material type: materialTypeLabelBookPublisher: Public Administration Review Description: 84(3), May-Jun, 2024: p.484-499.Subject(s): Set aside programs, Government equity programs, Disadvantaged businesses, Economic inclusion, Public contracting, Federal Procurement Data System, Contract performance, Best value procurement, Vendor comparison, Small business participation, Equity-efficiency tradeoff, Government revenue allocation, Empirical analysis, Procurement policy, United States government, Business representation, Public sector contracts, Comparative performance, Mutual benefits, Contract-level data In: Public Administration ReviewSummary: Set aside programs, which preference disadvantaged businesses, have long been among the largest government equity programs in the United States. Set asides ensure government revenues spur economic growth in firms and communities that have traditionally lacked representation in systems of power. However, there has been skepticism about whether set aside programs are compatible with the efficiency objectives of government contracting. Few empirical studies have assessed the comparative performance of small, disadvantaged businesses and other firms to determine if there are differences. Using contract level data from the Federal Procurement Data System: Next Generation, we test whether set aside contracts are associated with a reduction in the government's ability to secure “best value.” We find few performance differences between small, disadvantaged businesses, and other vendors across a range of goods and services, suggesting mutual benefits and no outsized risks when governments engage in contracts with disadvantaged firms.- Reproduced https://onlinelibrary.wiley.com/doi/10.1111/puar.13704
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Articles Articles Indian Institute of Public Administration
84(3), May-Jun, 2024: p.484-499 Available AR132371

Set aside programs, which preference disadvantaged businesses, have long been among the largest government equity programs in the United States. Set asides ensure government revenues spur economic growth in firms and communities that have traditionally lacked representation in systems of power. However, there has been skepticism about whether set aside programs are compatible with the efficiency objectives of government contracting. Few empirical studies have assessed the comparative performance of small, disadvantaged businesses and other firms to determine if there are differences. Using contract level data from the Federal Procurement Data System: Next Generation, we test whether set aside contracts are associated with a reduction in the government's ability to secure “best value.” We find few performance differences between small, disadvantaged businesses, and other vendors across a range of goods and services, suggesting mutual benefits and no outsized risks when governments engage in contracts with disadvantaged firms.- Reproduced

https://onlinelibrary.wiley.com/doi/10.1111/puar.13704

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