DOD CONTRACTS FOR SMALL BUSINESS

COMPLETE GUIDE FOR WINNING BUSINESS WITH DEPARTMENT OF DEFENSE

This article is part of the ScaleUP USA educational portfolio. ScaleUP USA is a Washington DC metro region-based Federal Business Accelerator focused on growing businesses in the US by helping them win and execute federal government opportunities in the $10T US federal marketplace. 


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TABLE OF CONTENT:

 

THE PROBLEM OF WINNING FEDERAL OPPORTUNITIES

THE SOLUTION FOR WINNING FEDERAL OPPORTUNITIES

ABOUT THE DEPARTMENT OF DEFENSE (DOD)

THE TOP 10 DEPARTMENTS OF DOD

INNOVATION IN DOD

TOP 5 DOD SMALL BUSINESS PROGRAMS

HOW TO GET DOD CONTRACTS

MAJOR REGULATIONS AND CONTRACT VEHICLES DOD USES

WHO ARE THE TOP 10 DOD CONTRACTORS? 

TOP DEFENSIVE INDUSTRIAL COMPLEX LOCATIONS IN THE US

 

THE PROBLEM OF WINNING FEDERAL OPPORTUNITIES:

 

The US federal government is the world’s largest marketplace. In 2021, the US federal government spent around $7.5 trillion on grants and fixed charges and an additional $1.1 trillion on contracts and supplies. The federal government also directly or indirectly employs over 9 million federal employees, contractors, and others - nationwide. Yet, unfortunately, for those who do or plan to do business with the government, there is no formal learning process to vision, strategize, plan, implement, and continuously improve their federal business growth and execution strategy. Many therefore muddle their way and lead by trial and error and often fail. Therefore, the winners keep winning and the losers keep losing. 

 

THE SOLUTION FOR WINNING FEDERAL OPPORTUNITIES:

 

ScaleUP USA therefore, designed the Federal Business Accelerator Program after significant research, brainstorming, pilots, and interviews with government and industry professionals. The program is delivered digitally to desktop or mobile devices, is always on, highly scalable, low investment, very affordable, requires no equity dilution, and operates across America and even globally. This program trains startups, home, and small businesses, as well as company executives and employees on the best practices, processes, procedures, and methods on how to do business with the federal government. Here are the areas ScaleUP USA aims to cover in these most comprehensive programs:
 

Here are the areas ScaleUP USA aims to cover in these most comprehensive programs:

 

ScaleUP USA designed the 4-stage Federal Business Accelerator Program. The program starts with the free 90 minutes workshop to help businesses decide if the federal marketplace is a good fit for them. Next, the foundational bundled program consists of 10+ video-based targeted courses plus practicums covering the above-bulleted topics and much more. They also have advanced consultative programs like the Federal Partnership Marketplace and the Industry Powered Learning programs for increased growth. 

 

ABOUT THE DEPARTMENT OF DEFENSE (DOD):

 

The Department of Defense (DOD) is a federal government agency responsible for coordinating and supervising all agencies and functions of the government relating directly to national security and the military. The DOD is one of the largest employers in the world, with over 1.3 million active-duty personnel and over 800,000 civilian employees. Besides being one of the largest employers in the world, its large contracting budget allows for many DOD contracts for small businesses.

 

The DOD is headed by the Secretary of Defense, who is appointed by the President and confirmed by the Senate. The Secretary is assisted by the Deputy Secretary of Defense and the Under Secretary of Defense for Personnel and Readiness.

 

The primary mission of the DOD is to protect the United States and its interests from threats at home and abroad. This includes defending the country against military attacks, conducting military operations overseas, and providing support to other government agencies and international organizations. The DOD also plays a key role in the development and maintenance of the nation's military technology and capabilities, as well as in the training and education of military personnel.
 

 

DOD CONTRACTS FOR SMALL BUSINESSFY2022 Summary | Data Thru 9/2022 | Source: USAspending.gov website.


THE TOP 10 DEPARTMENTS OF DOD:

 

The DOD has three main components: the Department of the Army, the Department of the Navy, and the Department of the Air Force. These agencies are responsible for the administration and management of the military forces of the United States. The DOD also has several other agencies and organizations, including the Joint Chiefs of Staff, the Defense Intelligence Agency, and the National Security Agency. Here is a list of some of the major departments within the DOD, along with a brief description of their functions:

 

  • Department of the Army: responsible for land-based military operations and the management of the Army's personnel, equipment, and resources.

 

  • Department of the Navy: responsible for naval operations and the management of the Navy's personnel, equipment, and resources.

 

  • Department of the Air Force: responsible for air-based military operations and the management of the Air Force's personnel, equipment, and resources.

 

  • Department of the Marine Corps: responsible for amphibious operations and the management of the Marine Corps' personnel, equipment, and resources.

 

  • Defense Advanced Research Projects Agency (DARPA): an agency that conducts research and development on behalf of the DOD, with a focus on advanced technologies.

 

  • Defense Logistics Agency (DLA): an agency that provides logistics support, including procurement, distribution, and maintenance, to the military.

 

  • Defense Intelligence Agency (DIA): an agency that collects, analyzes, and disseminates intelligence for the DOD.

 

  • National Security Agency (NSA): an agency that is responsible for signals intelligence and cybersecurity for the United States.

 

  • United States Special Operations Command (SOCOM): an organization that is responsible for coordinating the activities of the various special operations forces of the military.

 

  • Joint Chiefs of Staff: an organization that is responsible for providing military advice to the President and the Secretary of Defense.

 

 

DOD CONTRACTS FOR SMALL BUSINESSFY2022 Summary | Data Thru 9/2022 | Source: USAspending.gov website.

 

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INNOVATION IN DOD

 

Innovation is an important focus for the Department of Defense (DOD), as it seeks to develop new technologies and approaches to addressing the challenges facing the military. To support this goal, the DOD has established several innovation offices and initiatives listed below, such as the Defense Innovation Unit (DIU), the Strategic Capabilities Office (SCO), and the Defense Advanced Research Projects Agency (DARPA). These organizations work to bring new technologies to the military, foster collaboration with the private sector and support research and development efforts.

 

The DOD is also focused on fostering a culture of innovation within the military and has implemented several initiatives to encourage the development and adoption of new ideas. These efforts include the Defense Innovation Board (DIB), which advises the Secretary of Defense on innovation and technology, and the Defense Innovation Marketplace (DIM), an online platform that connects the military with innovative companies and technologies.

 

Overall, innovation is an important part of the DOD's efforts to stay ahead of potential threats and maintain its military capabilities. By embracing new technologies and approaches, the DOD can better defend the United States and its interests. 

 

 

  • Defense Innovation Unit (DIU): an organization that partners with the private sector to bring new technologies to the military.

 

  • Strategic Capabilities Office (SCO): an organization that focuses on developing innovative technologies and capabilities for the military.

 

  • Defense Innovation Board (DIB): an independent organization that advises the Secretary of Defense on innovation and technology.

 

  • Defense Advanced Research Projects Agency (DARPA): an agency that conducts research and development on behalf of the DOD, with a focus on advanced technologies.

 

  • Defense Innovation Unit Experimental (DIUx): an organization that fosters collaboration between the military and the tech industry, with a focus on emerging technologies.

 

  • Defense Innovation Marketplace (DIM): an online platform that connects the military with innovative companies and technologies.

 

  • Office of the Assistant Secretary of Defense for Research and Engineering (ASD-R&E): an organization that is responsible for overseeing the research and engineering efforts of the DOD.

 

  • Defense Science and Technology Enterprise (DSTE): an organization that is responsible for managing the DOD's science and technology programs.

 

DOD CONTRACTS FOR SMALL BUSINESSFY2022 Summary | Data Thru 9/2022 | Source: USAspending.gov website.

 

DOD Contracts Awarded thru 9/2022. Source: USAspending.gov website. 

 

TOP 5 DOD SMALL BUSINESS PROGRAMS:

 

The Department of Defense (DOD) supports small business growth in several ways. Here are a few examples:

  • Procurement opportunities: The DOD has a goal to award at least 23% of its contracting dollars to small businesses each year. To achieve this goal, the DOD actively seeks out small businesses to participate in procurement opportunities and aids small businesses to compete for contracts.

  • Mentorship and coaching: The DOD offers various mentorship and coaching programs to help small businesses grow and succeed. These programs often provide access to experienced business advisors and resources to help small businesses develop their skills and capabilities.

  • Funding and financing: The DOD provides a range of funding and financing options to help small businesses pursue R&D projects and other initiatives. These options may include grants, loans, and other forms of financial assistance.

  • Networking and partnership opportunities: The DOD actively encourages small businesses to build relationships and partnerships with larger companies and organizations. These partnerships can help small businesses access new markets, gain access to new technologies and resources, and build their overall capabilities.

 

Overall, the DOD's efforts to support small business growth are designed to foster innovation, create jobs, and drive economic growth. Below are some of the interesting opportunities provided by the DOD for startups as well as home and small businesses. It is, however, critical that you are signing up for these programs at the “appropriate” maturity level of your company, or else you will spend a lot and yet not be able to take full advantage of these programs. For a more detailed discussion on the topic, join the Federal Business Accelerator: 

 

  • Small Business Innovation Research (SBIR) program: The SBIR program is a competitive awards-based program that encourages small businesses to engage in federal research and development (R&D) with the potential for commercialization. The program is administered by the Small Business Administration (SBA) and is open to small businesses in all industries.

 

  • Small Business Technology Transfer (STTR) program: The STTR program is similar to the SBIR program, but it requires small businesses to partner with a research institution to be eligible. The STTR program is also administered by the SBA and is designed to facilitate technology transfer and commercialization of innovative technologies.

 

  • 8(a) Business Development program: The 8(a) Business Development program is a business development program for small, disadvantaged businesses that are owned and controlled by socially and economically disadvantaged individuals. The program is administered by the SBA and provides a range of assistance to participating businesses, including access to government contracts and business development resources.

 

  • HUBZone program: The HUBZone program is designed to help small businesses located in historically underutilized business zones (HUB Zones) gain preferential access to federal procurement opportunities. The program is administered by the SBA and is open to small businesses that meet certain requirements related to their ownership, location, and employment.

 

  • Service-Disabled Veteran-Owned Small Business (SDVOSB) program: The SDVOSB program is a procurement program that aims to provide greater access to federal procurement opportunities for small businesses owned and controlled by service-disabled veterans. The program is administered by the Department of Veterans Affairs and is open to small businesses that meet certain eligibility requirements related to ownership and control by service-disabled veterans.

 

HOW TO GET DOD CONTRACTS:

 

Winning contracts with the US Department of Defense (DOD) can be a competitive process, as the DOD typically receives many bids for each procurement opportunity. However, below are several basic strategies that companies can use to increase their chances of success. If you need more advanced strategies check out the Federal Business Accelerator:

 

  • Understand the solicitation: Carefully read and understand the solicitation document to ensure that your company can meet all of the requirements and that you are submitting a complete and accurate bid.

 

  • Tailor your proposal to the solicitation: Customize your proposal to address the specific needs and requirements of the procurement. This may include highlighting your company's relevant experience, capabilities, and past performance.

 

  • Emphasize your past performance: The DOD places a high value on a contractor's past performance, so be sure to highlight your company's successes and demonstrate your ability to deliver high-quality products or services on time and within budget.

 

  • Build relationships: Developing relationships with key decision-makers within the DOD and other government agencies can help win contracts. This can be done through networking events, conferences, and other opportunities to connect with government officials.
     
     
  • Understand the procurement process: Familiarize yourself with the procurement process, including the rules and regulations that govern the acquisition of goods and services by the government. This will help you navigate the process more effectively and increase your chances of success.

 

It's also important to keep in mind that the DOD is committed to ensuring that its procurement process is fair and transparent. Therefore, companies must follow all applicable laws and regulations and adhere to the highest ethical standards when bidding on DOD contracts. For more expert and advanced guidance on winning government contracts, refer to the Federal Business Accelerator.

 

MAJOR REGULATIONS AND CONTRACT VEHICLES DOD USES:

 

There are several major contract vehicles used by the US Department of Defense (DOD) to procure goods and services. These contract vehicles are designed to streamline the procurement process and allow the DOD to obtain the products and services quickly and efficiently it needs to fulfill its mission.

Some of the major contract vehicles used by the DOD include:

 

  • Defense Federal Acquisition Regulation Supplement (DFARS): This is a set of regulations that govern the acquisition of goods and services for the DOD. It covers all aspects of the procurement process, from solicitation, to award, to contract administration.

 

  • General Services Administration (GSA) Schedule: The GSA Schedule is a pre-approved list of contractors who have been vetted and are deemed capable of providing a wide range of goods and services to the federal government.

 

  • Indefinite Delivery Indefinite Quantity (IDIQ) contracts: IDIQ contracts allow the DOD to place orders for goods and services on an as-needed basis. The contract includes a ceiling value, which represents the maximum amount that can be spent under the contract, but there is no minimum requirement for orders.

 

  • Multiple Award Contracts (MACs): MACs allow the DOD to award contracts to multiple contractors for a specific product or service. This allows the DOD to have more than one source for a particular product or service, increasing competition and potentially resulting in lower prices.

 

  • Government-wide Acquisition Contracts (GWACs): GWACs are contracts that are available for use by all federal agencies, not just the DOD. They are used to purchase a wide range of products and services, and often include a variety of contract types, such as fixed-price, cost-reimbursement, and time-and-materials contracts.

 

It's important to note that these are just a few of the many contract vehicles used by the DOD and that the specific contract vehicles used will depend on the specific needs and requirements of the procurement. There are advanced teaming strategies that small businesses should be fully aware of and be able to execute to be successful in the DOD space. The teaming course in the Federal Business Accelerator covers such strategies.

 

WHO ARE THE TOP 10 DOD CONTRACTORS? 

 

The top 10 Department of Defense (DOD) contractors are typically large, multinational companies that provide a range of products and services to the DOD. Here is a list of the top 10 DOD contractors, along with a brief description of the products and services they provide:

 

  • Lockheed Martin: Lockheed Martin is a global aerospace, defense, and technology company that provides a range of products and services to the DOD, including aircraft, missiles, cybersecurity solutions, and logistics support.

 

  • Boeing: Boeing is a global aerospace and defense company that provides a range of products and services to the DOD, including aircraft, missiles, space systems, and cybersecurity solutions.

 

  • Raytheon Technologies: Raytheon Technologies is a global aerospace and defense company that provides a range of products and services to the DOD, including missiles, radar systems, cybersecurity solutions, and logistics support.

 

  • Northrop Grumman: Northrop Grumman is a global aerospace and defense company that provides a range of products and services to the DOD, including aircraft, missiles, cybersecurity solutions, and logistics support.

 

  • General Dynamics: General Dynamics is a global aerospace and defense company that provides a range of products and services to the DOD, including aircraft, missiles, cybersecurity solutions, and logistics support.

 

  • Leidos: Leidos is a global technology and engineering company that provides a range of products and services to the DOD, including cybersecurity solutions, logistics support, and technical consulting.

 

  • SAIC: SAIC is a global technology and engineering company that provides a range of products and services to the DOD, including cybersecurity solutions, logistics support, and technical consulting.

 

  • Booz Allen Hamilton: Booz Allen Hamilton is a global management and technology consulting firm that provides a range of products and services to the DOD, including cybersecurity solutions, logistics support, and technical consulting.

 

  • CACI: CACI is a global professional service and IT consulting firm that provides a range of products and services to the DOD, including cybersecurity solutions, logistics support, and technical consulting.

 

  • BAE Systems: BAE Systems is a global aerospace, defense, and security company that provides a range of products and services to the DOD, including aircraft, missiles, cybersecurity solutions, and logistics support.

 

Overall, these top 10 DOD contractors provide a wide range of products and services that support the operations and missions of the DOD.

 

TOP DEFENSE-INDUSTRIAL COMPLEX LOCATIONS IN THE US:

 

The top defense industrial complexes in the United States are typically large, geographically concentrated clusters of defense-related industries and organizations. These complexes often include companies that produce weapons and military equipment, as well as research and development facilities, test ranges, and other support infrastructure. Here are a few examples of top defense industrial complexes in the United States:

 

  • Washington, D.C. metropolitan area: The Washington, D.C. metropolitan area is home to many defense-related industries, including aerospace, cybersecurity, and logistics. Major defense contractors with a presence in the area include Lockheed Martin, Raytheon, and Booz Allen Hamilton.

 

  • Silicon Valley: Silicon Valley, located in the San Francisco Bay Area, is home to many of the world's leading technology and defense companies, including Lockheed Martin, Raytheon, and Northrop Grumman.

 

  • Greater Los Angeles Area: The Greater Los Angeles Area is home to several defense-related industries, including aerospace, cybersecurity, and logistics. Major defense contractors with a presence in the area include Boeing, Northrop Grumman, and Raytheon.

 

  • Huntsville, Alabama: Huntsville, Alabama is home to several defense-related industries, including aerospace and missile defense. Major defense contractors with a presence in the area include Lockheed Martin, Raytheon, and Boeing.

 

  • Tysons Corner, Virginia: Tysons Corner, Virginia is home to several defense-related industries, including cybersecurity and logistics. Major defense contractors with a presence in the area include Booz Allen Hamilton, CACI, and SAIC.

 

Overall, these defense industrial complexes play a key role in supporting the operations and missions of the U.S. military and national security agencies.



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