Takeaways

The DoD will establish a small business integration group within the Department to increase collaboration, reduce confusion and reduce barriers to entry for small businesses.
The DoD will leverage cutting-edge data tools to identify small business capabilities more efficiently and plans to involve small business professionals early in the acquisition process to guarantee that their skills and technologies are considered.
The DoD will enhance its outreach to small businesses and provide training and other resources to educate small businesses and enhance their ability to resist cyber threats, IP infringement and foreign ownership, control or influence.

Small businesses are not only vital to the American economy, but they also form the backbone of the defense industrial base. More than 70% of the companies doing business with the DoD are small businesses. Despite their importance, the number of small businesses participating in the defense industrial base has declined by more than 40% over the last decade due to various factors, including complex regulations, a convoluted entry process into the defense marketplace, fewer contracting opportunities and increased costs.

To reverse this worrying trend, the DoD has launched a new Small Business Strategy. This strategy aims to streamline efforts across the DoD to make it easier for small businesses to work with the DoD, align small business activities to sustain and expand the Department’s capabilities, and reduce barriers to entry. The Small Business Strategy is organized around three strategic objectives that are designed to unleash the full potential of small businesses in the defense industrial base.

Strategic Objective 1: Implement a Unified Management Approach for Small Business Programs and Activities
The programs, activities and workforce supporting small businesses in the DoD are spread out among various military services, defense agencies and field activities. While this approach may have some advantages, it can also create confusion among small businesses regarding the interconnections between programs, where to start and how to effectively leverage the different offerings to enhance their capabilities and expand the range of goods and services they offer to the DoD. To address this issue, the DoD plans to establish a consolidated management framework for small business programs and activities. This will ensure that these programs are integrated and mutually supportive and also involve the creation of a unified small business workforce that will be equipped with the necessary expertise to provide effective support to small businesses. Clear entry points to the defense marketplace will be identified, and small businesses will be given access to program managers, contracting officers and end users, as needed, to inform them about their emerging and established capabilities.

Strategic Objective 2: Ensure the Department’s Small Business Activities Align with National Security Priorities
The DoD is driven by a commitment to national security, which informs its military and defense objectives. To advance these objectives, the DoD will implement measures to ensure that small businesses can effectively contribute to national defense priorities. This will involve enhancing and expanding existing programs that enable small technology and manufacturing businesses to provide valuable capabilities to the warfighter. The DoD will also use data tools to gain insights into small business participation and spending, with a view to promoting a robust and resilient industrial base. Additionally, the DoD will increase the involvement of small business professionals and senior leaders in policy and process discussions related to small business matters to ensure that small business capabilities and technologies are considered at the earliest stages of the acquisition process.

Strategic Objective 3: Strengthen the Department’s Engagement and Support of Small Businesses
The DoD recognizes that strong relationships and effective communication are essential to support small businesses effectively. To achieve this goal, the DoD will enhance its outreach efforts to help small businesses understand and access the Department’s initiatives and policies. This will involve implementing targeted programs that clearly describe small business programs and contracting opportunities in ways that are easy to understand and navigate. In addition, the DoD will allocate additional resources for training small businesses. This will include increasing engagement and promoting defense contracting opportunities for small businesses, enhancing their ability to mitigate cybersecurity threats posed by foreign competitors and adversaries, and providing education on the risks associated with foreign ownership, control and influence.

Conclusion
In sum, the DoD acknowledges the importance of small businesses in the defense industrial base and the need to improve collaboration with them. To address this, the DoD has developed a new Small Business Strategy that aims to make it easier for small businesses to work with the Department. Successful implementation of this strategy should help reverse the trend of declining small business participation and unlock the full potential of America’s small businesses in the defense industrial base.

These and any accompanying materials are not legal advice, are not a complete summary of the subject matter, and are subject to the terms of use found at: https://www.pillsburylaw.com/en/terms-of-use.html. We recommend that you obtain separate legal advice.