Create a table using a subset of another table to use in conditional drop down

I think I may have not been clear on my set up. I do not have filtered "Contacts" table on my "Companies" Table. When in my "Contacts" table, adding a new contact, I can select the appropriate company from a list. This is using Related Company. I have created a report that is "Managers Only"

I would love to have some help with this. Which information should I use?