Washington, D.C. -- The National Association of Government Contractors (NAGC) conducted a survey of members to learn more about the state of government procurement and the U.S. economy. The results show dramatic cuts in employment and little effect from the American Recovery and Reinvestment Act (ARRA) on job creation. Over 30% of members plan further job cuts in 2010 after 61% cut jobs in 2009. Only 5% responded that they created jobs as a result of ARRA.

Members are also concerned about government healthcare mandates, with 74% reporting that mandates may make them less competitive. Democrats should be concerned about the numbers as only 18% of members reported that they would vote for a Democratic Party candidate if an election were held today.

The following survey was conducted February 23, 2010. Respondents are members of the National Association of Government Contractors who are currently engaged in the procurement process. 3,489 respondents participated in the survey.

How many positions did you eliminate in 2009?

38% reported 0 positions eliminated
40% reported 1-5
14% reported 6-10
04% reported 11-20
03% reported more than 20

Do you plan to eliminate positions in 2010? If so, how many?

69% reported No, 0 positions planned
25% reported Yes, 1-5
02% reported Yes, 6-10
02% reported Yes, 11-20
01% reported Yes, more than 20

Do you support repealing the 3 percent tax withholding requirement for companies using independent contractors set to go into effect in 2012?

84% reported Yes
16% reported No

Has your business been impacted by the Administration's decision to bar those companies owing back taxes from receiving new government contracts?

13% reported Yes
87% reported No

Has your business been subject to the Administration's "dual bidding" process, which requires a business to bid using union and nonunion laborers?

16% reported Yes
84% reported No

Has the "dual bidding" process described above had a negative impact on your business?

16% reported Yes
84% reported No

Are you concerned that additional health care mandates will make your business less competitive when bidding on contracts?

76% reported Yes
24% reported No

The American Recovery and Reinvestment Act contained about $140 billion in construction spending. While some projects will be directly funded by federal agencies, much of the money has been distributed to state governments to be spent. Is your business a contractor or subcontractor on a project funding by the ARRA?

16% reported Yes
84% reported No

Has your business created jobs as a result of ARRA (described above)?

05% reported Yes
95% reported No

Which of the following is the greatest challenge in competing for government contracts?

29% reported Access to financial resources
21% reported Regulatory hurdles
43% reported Reporting requirements and burdensome paperwork
08% reported Other

If an election were held today, would you vote for the Republican Party candidate or the Democratic Party candidate, or neither?

55% reported Republican Party
18% reported Democratic Party
21% reported Neither/Other Party
07% reported Would not vote


ABOUT NAGC: Since 1957, the National Association of Government Contractors (NAGC) has been the nation's premier trade association for government contractors, representing the interests of 120,000 businesses across America. For more information, visit GovernmentContractors.org.