The Front Line of Innovation

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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

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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

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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

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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

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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

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= 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

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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

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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

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Congressional Issues

�Small Business Size Standards

�Contract Bundling

�Service-Disabled Veteran-OwnedSmall Businesses

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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.

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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