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Tabitha Reeves, National Defense, July 9, 2025
While often touted as a source for innovation, most small defense contractors are involved in relatively mundane work for the military, a report released July 9 said.
And for small businesses that are involved in developing innovative technologies, there is a lack of evidence that they are effective, according to the “2025 Government Contracting Trends and Performance Index,” produced by the Greg and Camille Baroni Center for Government Contracting in the Costello College of Business at George Mason University.
Some small businesses do seek Small Business Innovation Research and Small Business Technology Transfer Research grants to produce innovative technology, but the preponderance of small business work is not in innovation, but related to facilities services — such as office furniture, electrical wiring, waste removal, etc. — as well as administrative services, wholesalers, nontechnical manufacturing and computer software installation services, said the report.
The 2025 index — which set out to better understand the $800 billion contracting industrial base that supports the federal government — is the Baroni Center’s first report of its kind.
Download the Baroni Center Report: 2025 Government Contracting Trends and Performance Index.