The Evidence: A Shrinking Industrial Base

The procedural changes outlined in the Deviation Doctrine are not theoretical. They have created a measurable crisis in federal procurement. Since 2008, America has lost nearly half of its small business federal suppliers—a decline of over 70,000 vendors during a period when the number of small businesses in the U.S. grew significantly. This is not a market trend; it is the direct result of policy.

The Four Key Impacts

The data reveals a clear pattern of damage across four key areas:

  1. Less Competition: With fewer businesses competing for federal contracts, the government becomes a captive customer of a few large prime contractors, leading to vendor lock-in and reduced negotiating power.
  2. Higher Costs for Taxpayers: Robust competition is proven to lower costs. The dramatic decline in the number of suppliers directly correlates with less competitive pricing for government goods and services.
  3. A Weaker Industrial Base: National security depends on a diverse and resilient supply chain. Relying on a small number of massive contractors creates single points of failure and stifles the innovation that smaller, more agile firms provide.
  4. Harm to Local Economies: Federal contracts awarded to local small businesses stay in the community, supporting local jobs and families. When these opportunities vanish, it represents a direct transfer of wealth away from communities and into the hands of a few large corporations.

Explore the Data

The following tools allow you to explore the data and see the impact on both the national level and in your own community.