Hostname: page-component-cd9895bd7-dzt6s Total loading time: 0 Render date: 2024-12-29T09:53:48.218Z Has data issue: false hasContentIssue false

US and European Public Procurement Policies for Small and Medium-Sized Enterprises (SME): A Comparative Perspective

Published online by Cambridge University Press:  20 January 2017

Max V. Kidalov
Affiliation:
Naval Postgraduate School
Keith F. Snider
Affiliation:
Naval Postgraduate School

Abstract

This paper provides a comparative perspective of public procurement policies for small and medium-sized enterprises (SME) in the United States and Europe. Public procurement is increasingly recognized as a strategic function of public administration because of the huge amount of resources it consumes, as well as the important policy objectives it seeks to promote, including SME-related objectives. Progress towards meeting SME procurement participation goals, however, remains elusive on both sides of the Atlantic. Policy makers and administrators have little comparative research upon which to draw regarding the effectiveness of various policy approaches, a shortcoming this paper seeks to address. An institutional perspective is adopted which helps explain similarities and differences in U.S. and European SME policies.

Type
Research Article
Copyright
Copyright © V.K. Aggarwal 2011 and published under exclusive license to Cambridge University Press 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Anglund, Sandra. 1999. “Policy Feedback: The Comparison Effect and Small Business Procurement Policy.” Policy Studies Journal 27 (1): 1127.Google Scholar
Army Materiel Command (AMC). 2008. Small Business Program Guide for Government and Industry. Available at: http://www.amc.army.mil/pa/SMALLBUSINESS.asp.Google Scholar
Arrowsmith, Sue. 1995. “Public Procurement as an Instrument of Public Policy and the Impact of Market Liberalisation.” Law Quarterly Review 111 (April): 235284.Google Scholar
Arrowsmith, Sue and Hartley, Keith eds. 2002. Public Procurement (Volumes 1 & 2). Northampton, MA: Elgar.Google Scholar
Bartha, James and Snider, Keith. 2010. “U.S. Army Corps of Engineers (USACE) Recovery Project Presented at International Workshop.” Army AL&T (July-September): 8487.Google Scholar
Beaver, Graham and Prince, Christopher. 2004. “Management, Strategy and Policy in the UK Small Business Sector: A Critical Review.” Journal of Small Business and Enterprise Development 11 (1): 3449.Google Scholar
Bolton, Phoebe. 2006. “Government Procurement as a Policy Tool in South Africa.” Journal of Public Procurement 6 (3): 193217.Google Scholar
Bowman, Dan, Reed, Timothy, Hudgens, Bryan, and Searle, David. 2006. “DoD is Not IBM: The Challenges of Implementing Strategic Sourcing in Defense Acquisition.” In Proceedings of the Third Annual Acquisition Research Symposium. Available at: http://www.acquisitionresearch.net/_files/FY2006/NPS-FM-06-060.pdf.Google Scholar
Carter, James E. 1978. Executive Order 12073, Federal Procurement in Labor Surplus Areas. Washington, D.C.: National Archives and Records Administration.Google Scholar
Carter, Rosalyn and Grimm, Rick. 2001. “Journal of Public Procurement Under the FAU-NIGP Partnership.” Journal of Public Procurement 1 (1): 38.Google Scholar
Code of Federal Regulations (CFR). 2010. Title 13, Part 121, Small Business Size Regulations. Washington, D.C.: U.S. Government Printing Office. 2011. Title 13, Part 125.5, Certificate of Competency Program. Washington, D.C.: U.S. Government Printing Office.Google Scholar
Connell, David. 2009. “Using Government Procurement to Help Grow New Science and Technology Companies: Lessons from the US Small Business Innovation Research (SBIR) Programme.” Innovation: Management, Policy & Practice 11 (1): 127134.Google Scholar
Cooper, Phillip. 1988. Public Law and Public Administration. Upper Saddle River, New Jersey: Prentice Hall.Google Scholar
Dannreuther, Charles. 2007. “A Zeal for a Zeal? SME Policy and the Political Economy of the EU.” Comparative European Politics 5 (4): 377399.Google Scholar
1999. “Discrete Dialogues and the Legitimation of EU SME Policy.” Journal of European Public Policy 6 (3): 436455.Google Scholar
EIM Business & Policy Research and Austrian Institute for SME Research (EIM). 2004. Final Report: The Access of SMEs to Public Procurement Contracts. Available at: http://ec.europa.eu/enterprise/newsroom/cf/document.cfm?action=display&doc_id=3687&userservice_id=1&request.id=0.Google Scholar
European Commission (EC). 1990. Promoting SME Participation in Public Procurement in the Community. Communication COM (90) 166 final. Brussels: EC.Google Scholar
European Commission (EC). 2003. Concerning Micro, Small, and Medium-Sized Enterprises. Recommendation 2003/361/EC, O.J. (L 124/36) 36-41. Brussels: EC.Google Scholar
European Commission (EC). 2004. On the Coordination of Procedures for the Award of Public Works Contracts, Public Supply Contracts, and Public Service Contracts. Directive 2004/18/EC, 2004 O.J. (L 134/114). Brussels: EU.Google Scholar
European Commission (EC). 2008a. European Code of Best Practices Facilitating Access of SMEs to Public Procurement Contracts. SEC(2008) 2193. Brussels: EC.Google Scholar
European Commission (EC). 2008b. Think Small First: A Small Business Act for Europe. Communication COM(2008) 394. Brussels: EC.Google Scholar
European Commission (EC). 2009. On the Coordination of Procedures for the Award of Certain Works Contracts, Supply Contracts, and Service Contracts by Contracting Authorities or Entities in the Fields of Defense and Security, and Amending Directives 2004/17/EC and 2004/18/EC. Directive 2009/81/EC, 2009 O.J. (L 216/76). Brussels: EU.Google Scholar
European Commission (EC). 2010. Europe 2020 Flagship Initiative: Innovation Union. Available at: http://ec.europa.eu/enterprise/policies/innovation/policy/innovationunion/communication/iu_en.pdf.Google Scholar
European Commission, Enterprise and Industry Directorate General (EC EIDG). 2004. Innovation Policy in Europe 2004. Available at: http://www.euroqualityfiles.net/cecistnet/FP6-FP7-portals/IST-ICT/Report/Innovation_policy_europe_2004.pdf.Google Scholar
European Commission, Enterprise and Industry Directorate General (EC EIDG). 2005. The New SME Definition: User Guide and Model Declaration. Available at: http://ec.europa.eu/enterprise/policies/sme/files/sme_definition/sme_user_guide_en.pdf.Google Scholar
European Commission, Enterprise and Industry Directorate General (EC EIDG). 2009. Industrial Innovation: Linking Innovation and Public Procurement. Available at: http://ec.europa.eu/enterprise/policies/innovation/policy/lead-marketinitiative/pp_workshop_en.htm.Google Scholar
European Commission, Enterprise and Industry Directorate General (EC EIDG). 2010. Small and Medium-Sized Enterprises: SME Envoy. Available at: http://ec.europa.eu/enterprise/entrepreneurship/sme_envoy.htm.Google Scholar
European Court of Justice (ECJ). 2000. European Commission v. The French Republic (Nord Pas de Calais), Case C-225-98, 2000 E.C.R. I-07445. Luxembourg: ECJ.Google Scholar
European Defense Agency (EDA). 2006. Code of Best Practices in the Supply Chain. Available at: http://www.eda.europa.eu/genericitem.aspx?area=organisation&id=159.Google Scholar
European Defense Agency (EDA). 2009. Organization: Industry and Market. Available at: http://www.eda.europa.eu/genericitem.aspx?area=Organisation&id=116.Google Scholar
European Free Trade Association (EFTA) Consultative Committee. 2008. Opinion on a Single Market for the 21st Century, Ref. 1081190. Available at: http://www.efta.int/∼/media/Documents/advisory-bodies/consultativecommittee/cc-opinions/cc-opinon-internalmarket-june08.ashx.Google Scholar
European Space Agency (ESA). 2009a. Procurement Policy on Fair Access for SMEs—The C1-C4 Clauses. Available at: http://www.esa.int/SPECIALS/Business_Opportunities/SEMECJ0CYTE_0.html.Google Scholar
European Space Agency (ESA). 2009b. Small and Medium Enterprises: Background. Available at: http://www.esa.int/SPECIALS/SME/SEMQKI0CYTE_0.html.Google Scholar
European Space Agency (ESA). 2009c. SME Policy Office. Available at: http://www.esa.int/SPECIALS/SME/SEMZSYY7QQE_0.html.Google Scholar
Federal Acquisition Regulation (FAR). 2011. Washington, DC: Government Printing Office.Google Scholar
Federal Republic of Germany (FRG). 1998. German Act Against Restraints on Competition, § 97(3). Cologne: Federal Gazette I at 2546.Google Scholar
Fee, Ruth, Erridge, Andrew, and Hennigan, Sean. 2002. “SMEs and Government Purchasing in Northern Ireland: Problems and Opportunities.” European Business Review 14 (5): 326334.Google Scholar
Feira European Council (FEC). (2000). The European Charter for Small Enterprises. Available at: http://ec.europa.eu/enterprise/enterprise_policy/charter/index_en.htm.Google Scholar
General Accounting Office. 1987. Pacific Sky Supply. Comptroller General's Decision B-228049. Washington, D.C.: General Accounting Office.Google Scholar
General Accounting Office. 2001. Phoenix Scientific Corporation. Comptroller General's Decision B-286817. Washington, D.C.: General Accounting Office.Google Scholar
GHK. 2010. Evaluation of SMEsAccess to Public Procurement Markets in the EU. Director General Enterprise and Industry. Available at: http://ec.europa.eu/enterprise/policies/sme/business-environment/files/smes_access_to_public_procurement_final_report2010_en.pdf Google Scholar
Glover, Jere. 2009. Statement on Behalf of the Small Business Technology Council Before the US Senate Committee on Small Business and Entrepreneurship: Roundtable on Small Business Research and Development. Available at: http://www.nsba.biz/docs/09_smallbusinessr_d_testimony.pdf.Google Scholar
Gordon, Stephen, Zemansky, Stanley, and Sekwat, Alex. 2000. “The Public Purchasing Profession Revisited.” Journal of Public Budgeting, Accounting & Financial Management 12 (2): 248271.Google Scholar
Government Accountability Office (GAO). 2004. Contract Management: Impact of Strategy to Mitigate Effects of Contract Bundling on Small Businesses in Uncertain. GAO-04-454. Washington, D.C.: GAO.Google Scholar
Government Accountability Office (GAO). 2005. Department of Energy: Improved Oversight Could Better Ensure Opportunities for Small Business Subcontracting. GAO-05-459. Washington, D.C.: GAO.Google Scholar
Hordell, Michael. (2005). Federal Mentor-Protégé Programs. Available at: http://www.pepperlaw.com/publications_update.aspx?ArticleKey=509.Google Scholar
Huntington, Samuel. 1969. Political Order in Changing Societies. New Haven: Yale University Press.Google Scholar
Interagency Task Force on Federal Contracting Opportunities for Small Business (ITF). 2010. Report on Small Business Federal Contracting Opportunities. Available at: http://www.sba.gov/idc/groups/public/documents/sba_homepage/contracting_task_force_report.pdf.Google Scholar
International Trade Center of the United Nations Conference on Trade and Development and the World Trade Organization (ITC). 2002. SME & Export-Lead Growth: Are There Roles For Public Procurement Programmes? Available at: http://www.wto.org/english/tratop_e/gproc_e/wkshop_tanz_jan03/itcdemo3_e.pdf.Google Scholar
Johnson, Clay III. 2006. Letter from Clay Johnson, III, Deputy Director for Management, White House Office of Management and Budget, to US Senator Olympia Snowe, Chair, US Senate Committee on Small Business and Entrepreneurship, on the Presidents Initiative Against Contract Bundling. Available at: http://www.sbc.senate.gov/republican/pdf/08.3.06%20Presidents%20Initiative.pdf.Google Scholar
Jourdain, Eric. 2007. SME Pact: General Overview. Turin Euro Latin-American Forum, October. Available at: www.forumtorino.org/download.php?fileID=315&lang=enf.Google Scholar
Kidalov, Max. 2011. “Small Business Contracting in the United States and Europe: A Comparative Assessment.” Public Contract Law Journal 40: 443509.Google Scholar
Knight, Louise, Caldwell, Nigel, Harland, Christine, and Telgren, Jan. 2003. Government Reform and Public Procurement. Academic report of the First Workshop, International Research Study of Public Procurement, Budapest, Hungary.Google Scholar
Loader, Kim. 2007. “The Challenge of Competitive Procurement: Value for Money Versus Small Business Support.” Public Money & Management 27 (5): 307314.Google Scholar
Lundvall, Bengt-Ake, Intarakumnerd, Patarapong, and Vang, Jan. 2006. “Asia's Innovation Systems in Transition: An Introduction.” In Asia's Innovation Systems in Transition, edited by Lundvall, B., Intarakumnerd, P., and Vang, J. Northampton, Mass.: Edward Elgar.Google Scholar
Manuel, Kate. 2010. Contract Bundling Under the Small Business Act: Existing Laws and Proposed Amendments. Washington, D.C.: Congressional Research Service.Google Scholar
March, James, and Olsen, Johan. 1989. Rediscovering Institutions: The Organizational Basis of Politics. New York: Free Press.Google Scholar
Matten, Dirk, and Moon, Jeremy. 2008. “Implicit and Explicit CSR: A Conceptual Framework for a Comparative Understanding of Corporate Social Responsibility.” Academy of Management Review 33: 404424.Google Scholar
McCrudden, Christopher. 2007. Buying Social Justice: Equality, Government Procurement, and Legal Change. New York: Oxford.Google Scholar
Office of Federal Procurement Policy (OFPP). 2002. Contract Bundling: A Strategy for Increasing Federal Contracting Opportunities for Small Business. Report to the President. Available at: http://www.whitehouse.gov/sites/default/files/omb/assets/procurement/contract_bundling_oct2002.pdf.Google Scholar
Office of the Secretary of Defense (OSD). 2007. Benefit Analysis Guidebook: A Reference to Assist the Department of Defense Acquisition Strategy Teams in Performing a Benefit Analysis Before Consolidating or Bundling Contract Requirements. Available at: http://www.acq.osd.mil/osbp/news/Bundling%20Guidebook%20October%202007.pdf.Google Scholar
Pagell, Mark, Wu, Zhaohui, and Wasserman, Michael. 2010. “Thinking Differently About Purchasing Portfolios: An Assessment of Sustainable Sourcing.” Journal of Supply Chain Management 46 (1): 5773.Google Scholar
Parker, Rachel. 2002. “Coordination and Competition in Small Business Policy: A Comparative Analysis of Australia and Denmark.” Journal of Economic Issues 36 (4): 935952.Google Scholar
Petrou, Ioannis. 2008. “The European Space Agency's Procurement System: A Critical Assessment.” Public Contracts Law Journal 37: 141150, n. 48.Google Scholar
Reagan, Ronald. 1982. Remarks on Signing the Small Business Innovation Development Act of 1982. Available at: http://www.presidency.ucsb.edu/ws/index.php?pid=42777.Google Scholar
Reagan, Ronald. 1983. Minority Business Enterprise Development. Executive Order 12432. Washington, D.C.: National Archives and Records Administration.Google Scholar
Rendon, Rene. 2005. “Commodity Sourcing Strategies: Processes, Best Practices, and Defense Initiatives.” Journal of Contract Management 3 (1): 722.Google Scholar
Republic of Ireland, Department of Enterprise, Trade and Employment (ROI DETE). 2009. Using Public Procurement to Stimulate Innovation and SME Access to Public Contracts: Report of the Procurement Innovation Group. Available at: www.deti.ie/publications/trade/2009/procurementinnovationgroup.pdf.Google Scholar
Salisbury, Robert and Heinz, John. 1970. “A Theory of Policy Analysis and Some Preliminary Applications.” In Policy Analysis in Political Science, edited by Sharkansky, Ira. Chicago: Markham, pp. 3960.Google Scholar
Saltonstall, Leverett. (1957). Small Business and National Security. Lecture at the Industrial College of the Armed Forces, Publication No. L57-102. Washington, D.C.: Industrial College of the Armed Forces.Google Scholar
Sarkozy, Nicolas. 2007. President of the French Republic, Speech at His Meeting with the Members of the French-American Business Council during His Official Visit to the United States. Available at: http://www.ambafranceuk.org/President-Sarkozy-s-speech-to-US.html.Google Scholar
Schiavo-Campo, Salvatore and Sundaram, Pachampet. 2000. To Serve and Preserve: Improving Public Administration in a Competitive World. Manila: Asian Development Bank.Google Scholar
Small Business Administration (SBA). 2006. Small Business Size Regulations; Size for Purposes of Government-Wide Acquisition Contracts, Multiple Award Schedule Contracts and Other Long-Term Contracts; 8(a) Business Development/Small Disadvantaged Business; Business Status Determinations. Federal Register, Vol. 71, pp. 6643466444. Washington, D.C.: U.S. Government Printing Office.Google Scholar
Small Business Administration (SBA). 2009a. SBA Size Standards Methodology. April. Available at: www.sba.gov/sites/default/files/size_standards_methodology.pdf2009b.Google Scholar
Small Business Administration (SBA). 2010. Goaling Program: Small Business Prime Contracting Achievement and Small Business Procurement Scorecards. Available at: http://www.sba.gov/aboutsba/sbaprograms/goals/index.html.Google Scholar
Small Business Administration (SBA). 2011. About SBA. Available at http://www.sba.gov/about-sbaservices/the-sba-website.Google Scholar
Snider, Keith. 2006. “Procurement Leadership: From Means to Ends.” Journal of Public Procurement 6 (3): 274295.Google Scholar
Snider, Keith and Rendon, Rene. 2008. “Public Procurement Policy: Implications for Theory and Practice.” Journal of Public Procurement 8 (3): 310333.Google Scholar
Storey, D.J. 2003. “Entrepreneurship, Small and Medium-Sized Enterprises, and Public Policies.” In Handbook of Entrepreneurship Research: An Interdisciplinary Survey and Introduction edited by Acs, Zoltan and Audretsch, David. Dordrecht, The Netherlands: Kluwer Academic Publishing, p. 477.Google Scholar
Thai, Khi. 2001. “Public Procurement Reexamined.” Journal of Public Procurement 1 (1): 950.Google Scholar
Tödtling, Franz and Trippl, Michaela. 2005. “One Size Fits All?: Towards a Differentiated Regional Innovation Policy Approach.” Research Policy 34 (8): 12031219.Google Scholar
UK Department of Business, Innovation, and Skills (UK DBIS). 2009a. Information for Small Business Owners and Entrepreneurs. Available at: http://www.berr.gov.uk/whatwedo/enterprise/enterprisesmes/infobusiness-owners/index.html.Google Scholar
UK Department of Business, Innovation, and Skills (UK DBIS). 2009b. Procurement: Open for Business With Small Firms. Available at: http://www.berr.gov.uk/aboutus/procurement/index.html.Google Scholar
UK House of Commons (UK HOC), All-Party Parliamentary Small Business Group. 2009. Report on SME Access to Public Procurement. Available at: http://www.oxfordinstitute.org/pubs/about/public_affairs/unit/business_groups/inquiries/report.pdf.Google Scholar
UK House of Commons (UK HOC), Committee of Public Accounts. 2007. Supporting Small Business. Eleventh Report of Session 2006–2007, HC 262. Available at: http://www.publications.parliament.uk/pa/cm200607/cmselect/cmpubacc/262/262.pdf Google Scholar
UK Office of the Deputy Prime Minister (UK DPM). 2005. Small Business Concordat: Good Practice Guide. Available at: http://www.communities.gov.uk/documents/localgovernment/pdf/135262.pdf.Google Scholar
UK Office of Government Commerce (UK OGC). 2006. Social Issues in Purchasing. Available at: http://www.ogc.gov.uk/documents/Social_Issues_in_Purchasing.pdf.Google Scholar
UK Office of Government Commerce (UK OGC). 2009a. About OGC. Available at: http://www.ogc.gov.uk/about_OGC.asp.Google Scholar
UK Office of Government Commerce (UK OGC). 2009b. Aggregation: Is Bigger Always Better? Available at: http://www.ogc.gov.uk/documents/CP0072_Aggregation-is_bigger_always_better.pdf.Google Scholar
UK Office of Government Commerce (UK OGC). 2010. Policy on Small and Medium-Sized Enterprises. Available at: http://www.ogc.gov.uk/documents/SMEs%281%29.pdf.Google Scholar
UK Small Business Service and Office of Government Commerce (UK SBS and OGC). 2004. Tendering for Government Contracts: A Guide for Small Business, 3rd edition. Available at: http://compete.croydonenterprise.com/documents/Supplying_Government_-_a_guide.pdf.Google Scholar
U.S. Code (USC). 2010. The Small Business Act, Public Law No. 83-163, 67 Stat. 232 (July 30, 1953), currently codified as amended in United States Code Title 15 §§ 631657. Washington, D.C.: Government Printing Office.Google Scholar
U.S. Government (USG). 1982. Small Business Innovation Development Act, Public Law 97-219. Washington, D.C.: Government Printing Office.Google Scholar
U.S. Government (USG). 1984. The Competition in Contracting Act of 1984, Public Law 98-369. Washington, D.C.: Government Printing Office.Google Scholar
U.S. Government (USG). 1988. The Business Opportunity Development Reform Act of 1988, Public Law 100-656. Washington, D.C.: Government Printing Office.Google Scholar
U.S. Government (USG). 1992. The Small Business Technology Transfer Act of 1992, Public Law 102-564. Washington, D.C.: Government Printing Office.Google Scholar
U.S. Government (USG). 1994. The Federal Acquisition Streamlining Act of 1994, Public Law 103-355. Washington, D.C.: Government Printing Office.Google Scholar
U.S. Government (USG). 1997. Small Business Reauthorization Act of 1997, Public Law 105-135. Washington, D.C.: Government Printing Office.Google Scholar
U.S. Government (USG). 2010. The Small Business Jobs Act of 2010, Public Law 111-240. Washington, D.C.: Government Printing Office.Google Scholar
U.S. House of Representatives (U.S. House), Committee on Small Business, Subcommittee on Minority Enterprise, Finance, and Urban Development. 1993. Hearing on SBA's Efforts to Streamline Size Standards. 103rd Congress, 1st Session, 25 May 1993. Washington, D.C.: Government Printing Office.Google Scholar
U.S. House Small Business Committee, Subcommittee on Antitrust, Consumers, and Employment and the Subcommittee on Energy, Environment, Safety, and Research, and Senate Select Committee on Small Business (U.S. House and Senate). 1978. Small Business and Innovation: Joint Hearings on Underutilization of Small Business in the Nation‘s Efforts to Encourage Industrial Innovation. 95th Cong. 2d. Session (9 and 10 August 1978). Washington, D.C.: Government Printing Office.Google Scholar