21% fewer DOD vendors from 2011-2015

      The number of prime vendors winning contracts at the Defense Dept. shrunk by 21% from 2011 to 2015, during the period of defense cuts and sequestration, according to a new report.

      The study by the Center for Strategic and International Studies and the Aerospace Industries Association found that the number of prime contractors decreased from 78,500 to 61,700 during the period, a drop of 16,800.

      Obligations to DOD’s small vendors fell consistently, while those to medium-sized businesses initially rose, then fell, during the period.

      The decreases were blamed on reductions in defense contract spending, especially in research and development. “The enactment of sequestration and budget caps marked a severe market shock,” the study said.

More information: Read the study at: http://goo.gl/xu7ocw

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Washington Insider: