Affiliation:
1. Daniel J. Evans School of Public Policy and Governance University of Washington Seattle Washington USA
2. Department of Public Administration North Carolina Central University Durham North Carolina USA
Abstract
AbstractSet 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.
Subject
Marketing,Public Administration,Sociology and Political Science
Cited by
1 articles.
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