DOD Should Weigh Reforms for Small Contractors: Panel

A pair of government contracting experts told the U.S. House of Representatives' Armed Services Committee on Monday that without reforms, small companies will have an increasingly difficult time doing business with the Pentagon as its budget shrinks.
Joel Johnson, director of the defense consulting firm Teal Group Corp., and Allan Burman, president of the contractor Jefferson Solutions, told the committee that the U.S. Department of Defense would benefit by creating new incentives for small business contracts.

Johnson and Burman testified before the committee as part of an ongoing set of hearings called "Doing Business with the DOD." It is the second hearing this year that has touched on contracting obstacles for small businesses.

According to Johnson, shrinking research and development budgets will cause major contractors to stop subcontracting with smaller counterparts, likely forcing small businesses to make painful workplace reductions.

"Smaller companies currently not doing defense work will be skeptical that this is an area to pursue, particularly if the civil economy is beginning to show signs of life," Johnson said. "This makes it all the more important that the government is not seen by potential innovators in the private sector as being an unattractive customer, partner or investor."