Examines difficulties faced by small business defense contractors.

The Panel found that small and midsize businesses face particular challenges in contracting with the DOD. In recent years, the DOD has been unable to meet its small business federal procurement goals. Furthermore, the Panel found that DOD lacks the ability to track small business participation at the lower subcontract tiers. The Panel also found that DOD lacks a culture that fosters small business participation where appropriate. In its work, the Panel concluded that the defense acquisition workforce has struggled to manage and execute programs in the midst of challenges in acquiring and retaining a professionally certified and competent defense acquisition workforce. Many described the defense acquisition workforce as part of a 'risk-averse' culture where program managers, in particular, have difficulty in balancing risks in managing cost, schedule and performance of acquisition programs. DOD has, in some cases, outsourced program management and divested itself of critical skills that are difficult to develop -- contracting officials, cost estimators, and systems engineers. This reliance on private contractors can create a potential conflict of interest and blur the lines between what work must be performed by federal employees and what work is permitted to be performed by private contractors. In addition, the Panel found that constantly changing regulations leads to unnecessary complexity, confusion, and poor execution, only furthering challenges for the acquisition workforce.