The Department of Defense (DoD) is one of the largest purchasers of products and services in the world. The DoD awards contracts valued at $5 million or more each business day (source: www.defenselink.mil )If you are a small business looking to capture government opportunities, the DoD is a good place to start.

Government contracting can seem like a intimidating business development strategy for many small businesses. Many often mistakenly believe that only the top prime contractors can really compete for DoD business. The old saying is always true, if you can’t beat them, join them. But, in this case, you can beat them and join them.

The reality is that the government designates a significant amount of procurement contracts to small businesses each year. In fiscal year 2009 (Oct 01, 2008 -Sep 30, 2009) the DoD set aside over 22% of its prime contracts to small business and over 37% of its sub-contracting opportunities (source: www.acq.osd.mil/osbp/statistics/goals.htm ). This doesn't include funds set aside for small businesses owned by veterans, women, minorities and disadvantaged businesses.

That's a BIG revenue opportunity! How do you get in on the action?

Whether you are selling a service or a product to the federal government, the procurement process can be challenging for a small business to navigate. Many times, the procurement process allows 30 days or less for the vendor to respond to the request for proposal and it may take the majority of that time for a small business to understand the requirements, terms and conditions.

Defense contracting can be a viable long term business strategy. However, there are many other considerations that you will need to work through on the way to getting your share of what can be a very profitable line of business. It is important that small businesses understand the overall government contracting process. Partnering with other prime and subcontractors can help ease the pain. Sign up for SubTeamPartners to find your DoD teaming opportunity govpartners.com

A sample or recent awards:

Raytheon is awarded a Navy Research Contract. Raytheon Co. won a $7 million follow-on contract from the Office of Naval Research to continue work on a project to develop a new semiconductor for the Defense Department. Raytheon Integrated Defense Systems is partnering with Raytheon Systems Limited, Glenrothes, Scotland; Soitec, Bernin, France; Teledyne Scientific Imaging Company, Thousand Oaks, Calif.; Massachusetts Institute of Technology, Cambridge, Mass.; Paradigm Research LLC, Windham, N.H.; IQE, Bethlehem, Pa.; and Silicon Valley Technology Center, San Jose, Calif.

Black Construction Corp., /MACE International Joint Venture, GMF Barrigada, Guam, is being awarded a $19,180,000 firm-fixed price contract for upgrades to the existing air ops water treatment plant and air ops wastewater treatment plant, and to construct a one-story warehouse and wharf utility improvements at Naval Support Facility, Diego Garcia, British Indian Ocean Territory. Work will be performed in Diego Garcia, and is expected to be completed by July 2011.

Ikhana/Choate -1 LLC, Mt. Pleasant, S.C., is being awarded a $13,385,855 firm-fixed price construction contract for the construction of two child development centers at Marine Corps Base Camp Lejeune. Work will be performed in Jacksonville, N.C., and is expected to be completed by June 2011.

Consigli Construction Co., Inc., Milford, Mass., is being awarded $9,039,438 for firm-fixed price task order for construction of a consolidated emergency control center at Portsmouth Naval Shipyard. The work to be performed provides for the construction of a three level, steel framed reinforced concrete facility with the ground level located below grade to directly support radiological emergency response as required. This facility will house the Portsmouth Naval Shipyard radiological emergency response organization and will serve as its command and control center during an emergency.

Head, Inc., Columbus, Ohio, is being awarded a $6,783,933 firm-fixed-price construction contract to repair Runways 13L/31R and repair taxiways at Naval Air Station Corpus Christi. Work will be performed in Corpus Christi, Texas, and is expected to be completed by August 2010.

Air BP a division of BP Products North America, Inc., Warrenville, Ill. is being awarded a maximum $112,125,808 fixed price with economic price adjustment, indefinite delivery and indefinite quantity contract for fuel. There are multiple locations of performance. Using service is the Defense Energy Support Center.
Frank Gargiulo & Son Inc., Hillside, N.J., is being awarded a maximum $13,050,000 fixed price with economic price adjustment, total set aside contract for full line fresh fruit and vegetable support.

Terex Corporation, Fredericksburg, Va., is being awarded a maximum $5,624,730 fixed price with economic price adjustment contract for rock crusher jaw plant. 

GovPartners News Brief: 31 Aug 2009: By Cynthia Karnik