I think we need to remember that the reason for thinking about this is that small firms create a disproportionate share of jobs in Canada and they are increasingly being involved in innovation and exporting.
Yes, it is more burdensome for government to let contracts to a whole bunch of small firms instead of one big firm. It's less efficient. I think the idea is that that's more than made up for by the growth that's generated by the small firms and the impetus to growth that the contracting provides.