Boeing, the company trying to sell billions worth of commercial airliners to Iran, is one of the largest beneficiaries of U.S. taxpayer-funded government contracts and federal loan guarantees.
The U.S. government is the only force standing between Boeing and a deal to sell roughly 100 aircraft to Iran’s state-owned Iran Air, which would bring as much as $25 billion to the Chicago-based aircraft manufacturer. If the deal goes through, Boeing would become the first large American company to take advantage of the removal of U.S. sanctions on Iran as a result of the nuclear accord finalized one year ago.
The deal is being challenged by congressional lawmakers, who last week approved two measures aimed at preventing Boeing from selling airliners to Iran.
Boeing has received tens of billions from Defense Department contracts over the years, and has consistently been one of the top beneficiaries of U.S. taxpayer dollars. The Boeing Company received $16.6 billion in federal government contracts within the last fiscal year, making it the nation’s second-largest contractor after Lockheed Martin, according to federal procurement data.
Over the past five years Boeing has received over $108 billion from federal contracts. Read Full Article
Most small businesses feel intimidated when competing with larger businesses. If you review the Top 100 Government Prime Contractors List, published by Washington Technology.com, majority of the companies are large businesses. If you are a small business reviewing a government solicitation, you may come to the conclusion that the requirement is tailored for a large business. You may ask yourself, why bid? In most cases, you would not bid. The truth is, the government encourages large and small business participation. The small business set-aside programs are not only used for small businesses to respond, but the subcontracting plans that mandate large businesses to respond to a solicitation also require a planned percentage to be subcontracted or set-aside for small businesses. This seems to be fair for the small businesses, but the question is, is it fair to large businesses? Why are they required to share a piece of their pie with small businesses?
The federal government has an overall goal of setting aside 23% of prime contracts flowing to small businesses. Every federal government purchase anticipated to be valued from $2500 to $100,000 is automatically set-aside for small businesses as long as there are at least 2 companies that can provide the product/service. Contracts over $100,000 can be set aside if enough small businesses are qualified to do the work. Contracts over $500,000 have to include a small business subcontracting plan ensuring small businesses an opportunity to obtain work under these large contracts.
Without these set-aside programs, large companies would continue to dominate the federal market and the small businesses would go out of business, never get off the ground, or never be created due to the lack of projected demand. For years, Lockheed Martin, Northrop Grumman, Raytheon, Boeing, and other prime contractors continued to capitalize on the federal marketplace. Without the small businesses set-aside programs, the small businesses would not be able to participate, gain financial stability, or grow into a medium to large size business. If the government had to choose between a Top 100 prime contractor and a small business, they would most likely pick the large prime. The set-aside programs ensure that the government gives the little guy a chance. This also benefits the government in the long run because the small guy is enabled and expanded to become a contender for other contract vehicles. This promotes efficient and effective competition. It also provides the government with competitive and responsible buying options.
The 8(a) program is a good example of a fair set-aside program, when properly executed. There is a certain time allotted for the small business to take advantage of set-aside contracts, learn the ropes, gain financial stability, capture commercial business to off-set the government revenue, and grow into a medium to large size company. This opens up a new slot for another small business, and enables your company to subcontract and help other small businesses. I guess you could call this the government’s small business circle of life. If rules are followed, it works for all parties involved.
Contact GovPartners to find out how your organization can join the government's circle of life.
Department of Homeland Security Enterprise Solutions Office - EAGLE (Enterprise Acquisition Gateway for Leading Edge Solutions) contract – worth $22 billion. The EAGLE II solicitation will include two separate source selections – one unrestricted, and one specifically set aside for small businesses. The RFP for this contact is expected to come out during the first quarter of fiscal-year 2011.
The National Institutes of Health (NIH) - Chief Information Office Solutions and Partners 3 (CIO-SP3) - worth $20 billion. The RFP for this contract is expected to come out during the first quarter of fiscal-year 2011.
US Army – Program Manager, Defense Communications and Army Transmission Systems (PM DCATS) – worth $19.5 billion. The RFP for this contract is expected to come out during the third quarter of fiscal-year 2011.
U.S. Coast Guard – Technical, Acquisition and Business Support Services (TABSS) – worth $11 billion. The RFP for this contract is expected to come out during the first quarter of fiscal-year 2011.
US Army - Computer, Hardware, Enterprise Software and Solutions (CHESS) – worth $5 billion, with a percentage designated as small business set-asides. The RFP for this contract is expected to come out during the third quarter of fiscal-year 2011.
The dollar value of some of these opportunities may be daunting. That’s where teaming comes in. As a small business in the government contracting world, some of your best opportunities will be through teaming arrangements.
Department taps 35 small businesses to provide professional services. The Homeland Security Department has named 35 winners of its $1.5 billion small-business set-aside contract for professional services that was announced a year ago. Competition was limited to businesses owned by service-disabled veterans.
The Program Management, Administrative, Clerical and Technical Services (PACTS) contract is designed to provide a broad range of professional support services, except information technology services. The indefinite-delivery, indefinite-quantity contract has a maximum value of $1.5 billion.
Future task orders under the PACTS contract might be among the first to be subjected to the mandatory reviews announced May 28 by Secretary Janet Napolitano, said Jeremy Potter, a senior analyst at Input Inc., a market research firm in Reston, Va.
Napolitano said officials will review all new professional services contracts worth $1 million or more to determine if the work was inherently governmental or involved core functions that government employees should perform. PACTS is one of the largest professional services contracts expected to generate task orders in the coming months, Potter said.
On June 19, DHS published a list of “apparently successful” offerers that responded to a solicitation issued in June 2008. The 35 winners include eight companies in Functional Category 1-Program Management, 10 companies in Functional Category 2-Administrative, seven companies in Functional Category 3-Clerical and 10 companies in Functional Category 4-Technical Services.
The winning companies in the four categories are:
Category 1-Program Management
Category 4-Technical Services