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because multiple unfavorable characteristics could be identified by respondents. DoD bureaucracy and a burdensome solicitation process were clearly the two biggest issues, representing over half of the overall respondents (81 responses for 28% and 74 responses for 26%, respectively). Note that 45 contractors listed both as a reason (hinting at potential conceptual overlap), so their representation is slightly elevated in the overall counts, but regardless, and even without overlap, they remain the top two reasons. These responses indicate that DoD should focus on reducing internal bureaucracy and improving the solicitation process as these are the greatest unfavorable characteristics expressed by contractors that have exited the DIB. The next two most notable reasons for exit are newly created categories: (a) practical issues and policy issues related to small businesses (34 responses for 12% of the sample); and (b) statements that working with DoD was generally “not worth it” or was an unprofitable venture (28 responses for 10% of the sample). Both categories of response reinforce the perception that DoD might be a poor customer. Other items like payment-related issues and staff-specific issues are also potential areas of improvement, even though they were ranked lower as contractor concerns (eight respondents for 3% and five respondents for 2%, respectively). All of these are issues likely to be within DoD’s direct ability to influence. A couple of other responses are worth highlighting. If profit, financing, and payment issues are combined since those issues are likely to be practicably related to one another, they would cumulatively represent 29 respondents (10% of the sample), constituting a mid-level concern to be potentially addressed by DoD. Interestingly, Cybersecurity and Intellectual Property issues did not rate highly in the results. Cybersecurity requirements remained a middle-of-the-pack concern, represented by only 18 respondents (6% of the sample); and Intellectual Property issues appear to be practically nonexistent as a concern for contractors that exited, as evidenced by the sole response. This is intriguing given the amount of attention these issues appear to generate in policy circles and the press. If anything, the results indicate that these may be issues that are more relevant for contractors that intend to remain in the DIB or for potential new entrants, than for contractors contemplating exiting the DIB.
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Defense ARJ, Summer 2025, Vol. 32 No. 2: 194—223
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