This thesis examines small business' perception of utilizing Electronic Data Interchange (EDI) as a means to conduct business. The general concept and history of EDI is discussed along with a synopsis of current Government EDI systems in use. The results of two surveys are analyzed to provide an insight on the effect the Federal Acquisition Streamlining Act is having on small business' opportunity to obtain Government Contracts. Additionally, interviews were conducted with several Government personnel to get their opinions on the progress of EDI in the workplace. The major conclusion drawn is that the majority of small businesses are willing to utilize EDI as a means to conduct business. But in its current form (i.e. FACNET) small businesses find it difficult to use and too expensive. The need to use a simpler and more cost-effective means is necessary to ensure that all small businesses have the opportunity to compete for Government contracts without cutting into their profit margins.