-
The Front Line of Innovation
1
DoD Office of Small and Disadvantaged Business Utilization
Small Business Contributions to theTransformational Goals of the U.S.
Military
NDIA National Small BusinessConference, July 21, 2004
Frank Ramos, DirectorDoD Office of Small and Disadvantaged
Business Utilization
-
2The Front Line of Innovation
Outline
� DoD Small Business Performance
� DoD & AT&L Goals
� Small Business Innovation Research (SBIR) Program,Small Business Technology Transfer (STTR) Program,DoD Mentor-Protégé Program
� HBCU/MI
� Congressional Issues
-
3The Front Line of Innovation
Department of DefensePrime Contract Awards
(Dollars in Billions)
% ofTotal
SDVOSBAwards
% ofTotal
HUBZoneAwards
% ofTotal
WOSBAwards
% ofTotal
SDBAwards
% oftotal
SBAwards
TotalAwards
Fiscalyear
**NA0.4$0.52.1$2.65.7$7.021.9$26.9$122.42000
0.1$0.10.8$1.12.2$3.05.7$7.820.8$28.3$135.82001
0.1$0.21.1$1.72.6$4.15.8$9.121.2$33.3$157.12002
0.2$0.31.6$2.92.5$4.76.311.822.4$42.0$187.52003
SB= Small Business, WOSB=Women-Owned Small Business, SDVOSB=Service-Disabled Veteran-OwnedSmall Business, SDB=Small Disadvantaged Business, HUBZone=Historically Underutilized Business Zone
** Data not available
-
4The Front Line of Innovation
Defense Small Business MetricsPerformance FY 2002-2003
Percent of Small Business to all Business
0%5%
10%15%20%25%30%35%40%45%
Aircraft Missle andSpace
Systems
Ships Other MajorHard Goods
Services Other
FY2002FY2003DoD Prime Contract Awards to all Business(in Billions)
$0
$10
$20
$30
$40
$50
$60
$70
$80
Ships Missile andSpace
Systems
Major HardGoods
Aircraft Services Other
�Small Business Focus Area: Manufacturing & Technology
(Ships, Aircraft, Missiles, Space Systems, & Other Major Hard Goods)21.2$33.3$157.12002
22.4$42.0$187.52003
% of totalDoD SmallBusinessAwards
DoD TotalAwards
Fiscal Year
-
5The Front Line of Innovation
Department of Defense Product MixFiscal Year 2003
Missile and Space Systems7% 10%
Ships5% 12%
Other Major Hard Goods, 15% 17%
Services25% 25%
Other26% 39%
Aircraft22% 6%
Black=Total Percent DoD Prime Contract AwardsRed=Percent Awarded to Small Business
Petroleum
Commercial Items
Construction
Summarized
Purchases of$25,000 or Less
Civil Functions
-
6The Front Line of Innovation
USD (AT&L) Seven Goals�Acquisition Excellence with
Integrity�Logistics: Integrated and
Efficient�Systems Integration &
Engineering for MissionSuccess
�Technology Dominance�Resources Rationalized� Industrial Base Strengthened�Motivated, Agile Workforce
Leadership and Goal Alignment
SECDEF Top 10 Priorities• Successfully Pursue the Global War on Terrorism• Strengthen Combined/Joint Warfighting Capabilities• Transform the Joint Force• Optimize Intelligence Capabilities• Counter Proliferation of WMD• Improve Force Manning• New Concepts of Global Engagement• Homeland Security• Streamline DoD Processes• Reorganize DoD and USG to Deal with Pre-War
Opportunities and Post-War Responsibilities
Goa
l Alig
nmen
t
Leadership Alignment
-
7The Front Line of Innovation
Goals and Objectives: ACloser Look
• Acquisition Excellence with Integrity
• Logistics: Integrated and Efficient
• Systems Integration & Engineering for MissionSuccess
• Technology Dominance
• Resources Rationalized
• Industrial Base Strengthened
• Motivated, Agile Workforce
-
8The Front Line of Innovation
= Army
= Navy
= Air Force
= DoD
Key:
Mapping to Proposed JWCA/JCIDSFunctional Architectures
Comanche
AAAV
MIDS-LVT
JTRS
C-17LPD17Land
Warrior
MEADSABL
PAC-3
SBL
MTHEL
THAAD
AWACS(C4)
BradleyUpgrade
MH60-R/S
AWACSsensors
JSIMSMMA
sensors
C-130
BMDS
LCS
SDB
CH-47F
GCSS
AESA
MC2A (C4)GBS
C-5
Stryker
FMTV
CV-22
NTW
SM 2
E2CReproduction
GlobalHawk
MV-22
NAS
Force Application
EELV
GPS
F-22/35sensors
SBIRSHigh/Low
JLENS
ATIRCM/ CMWS
NPOESS
Longbowradar
BattlespaceAwareness
T-AOE(X)LHA MPF(F)
JDAM
FCSF-22
F-35
CSAR
Excalibur
AMRAAM F-18
JavelinDDG-51
Tomahawk
AIM-9X
ChemDemil
JSTARSsensors
ATIRCM
Protection
WIN-T
CEC
Adv EHF
FCS (C4ISR)
MMA(C4)
MUOS
Command &Control
MP RTIPsensors
MC2Asensors
FocusedLogistics
•All source intelligence•Environmental Data•Own Force Info•Predictive Analysis•Knowledge Management
•JBMC2•Communications& ComputerEnvironment
•Land, Maritime, Air,Space Operation• Joint Targeting•Conventional, nuclear,computer network,electronic attack•Psychological & specialOps•SEAD•Military Deception
•Personnel & InfrastructureProtection(OPSEC< missile defense,Electronic protection)•Computer NetworkDefense•Counter & Non-Proliferation•Consequencemanagement
•Deployment-•Distribution•Sustain•Medical•Mobility•Logistics C2
-
9The Front Line of Innovation
SBIR & Mentor-Protégé ProgramAlignment Initiative
Aligning the Mentor-Protégé program with the high-tech SBIR/STTRprogram will:
� Allow DoD to focus on selected innovative technology topics essential toDoD industrial transformation
� Apply resources to take qualifying SBIR/STTR small business firms fromconception to the end product through a Mentor-Protégé developmentplan
� Facilitate a fast-track return on investment to the DoD� Enhance synergy between the programs� Provide an industrial base tool that will complement the SBIR/STTR
program
-
10The Front Line of Innovation
HBCU/MI ProgramContribution to DoD
� A comprehensive DoD HBCU/MI Program is intended to enhancemission readiness by advancing institutions of higher education tobetter serve the Department of Defense through the utilization of:� Contracts
� Technical Capabilities� Mentor-Protégé Program� Leadership and Educational Training
� Grants� Basic and Applied Research
� Science infrastructure assistance� Laboratories� Equipment
� Workforce pipeline enhancement� ROTC� Cooperative Education� Internships
-
11The Front Line of Innovation
Congressional Issues
�Small Business Size Standards
�Contract Bundling
�Service-Disabled Veteran-OwnedSmall Businesses
-
12The Front Line of Innovation
Service-Disabled Veteran-OwnedSmall Business
� Veterans Entrepreneurship and Small Business Development Act of 1999(P.L. 106-50)
Established 3% contracting goal.
� Veterans Benefits Act of 2003 (P.L. 108- 183) - Section 308 -Establishes procurement program for service-disabled veteran-ownedsmall business (SDVOSB) concerns —
� Permits restricted competition (set-asides) if:� there is a reasonable expectation that two or more SDVOSBs would bid and
award could be made at a fair market price
� Permits sole source award when:� there is not a reasonable expectation that two or more SDVOSBs would bid
(but award must be at fair and reasonable price)� Up to $5M for manufacturing� Up to $3M for all other types of contracting opportunities
� SDVOSB set-aside not permitted if procurement would otherwise bemade from Federal Prison Industries or pursuant to the JWOD Act.
-
13The Front Line of Innovation
OSD Small Business Office
OSD Small Business OfficeOSD AT&L (SADBU)
(703) 588-8631DSN 425-8631
OrVisit our web site at
www.acq.osd.mil/sadbu