As per the claim of the small government, contracting out decreases the size of the government, as fewer people are on the payroll of the government. In 2002, 5 million contractors replaced 107 million civil servants and 105 million military positions. Contracting with the government has its pros and cons (Kennedy & Schultz, 2011). The benefits are Flexible work that means more flexibility over a type of work one can accept or reject, Competition can reduce cost, and they have access to a specialized expert. The cons are management skills which are preferred are of a different kind as there are many rules to follow, the competence level is lost, the cost can increase loses ability to continue primary responsibility.