Small Business in Today's World of Government Contracting

Department of the Navy Office of Small Business Programs

Small Business Brief to Prince William County

Seán F. Crean Director

8 March 2013

http://smallbusiness.navy.mil

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The Small Business Mission

The Small Business Program promotes acquisition opportunities where small business can best support the needs of our Sailors and Marines. Through policy, advocacy and training we foster industry innovation, technology development and the acquisition of quality products, services and solutions from small business providers.

Small Business – The First Option


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https://smallbusiness.navy.mil




3% DoD Goal

Total DON Spend - $83.89B




> $1 Billion Over $300 M

$200-299 M $100-199 M $50-99 M

Less than $50 M

CO$67

RI-$135

SC$569

UT$9

National Impact of DON FY-12 Small Business Awards ($13.3B)

($

IL$110

MA-$169

TX$372

NM$13

AZ$85

NV$53

OK$46

WA$620

OR$37

MT$10

ID$3 WY

$0.24

ND$2

SD$13

NE$7

KS$3

MN$12

IA$8

MO$73

AR$2

LA$149

TN $72

MS$56

AL$122

GA$195

WI$26 MI

$58

CA$2.2B

FL$898

ME$60

VT $8

NH-$52

AK$147

HI-$560

NY$217

WV$17

NC$556

VA$2.5B

PA$584

DE-$8

NJ-$182

DC-$479

IN$140

OH$88

KY$27

CO$62

PUERTO RICO-$28M

CT-$149

MD-$1B

DON Prime Contract Awards impact hundreds of thousands of SB Jobs!

GUAM - $292M




Prince William, Stafford, & Spotsylvania Co.& Fredericksburg CityTop 10 PSC Spends

Source: FPDS-NG validated FY2012 data as of 14 Jan 2013.

PSC Description SB Spend Total Spend

1680 MISCELLANEOUS AIRCRAFT ACCESSORIES AND COMPONENTS -$248,334 $280,000,040

R408 SUPPORT- PROFESSIONAL: PROGRAM MANAGEMENT/SUPPORT $63,985,882 $229,078,542

R425 SUPPORT- PROFESSIONAL: ENGINEERING/TECHNICAL $84,305,899 $222,694,543

1287 FIRE CONTROL SONAR EQUIPMENT $0 $178,398,789R499 SUPPORT- PROFESSIONAL: OTHER $32,160,945 $166,560,357D302 IT AND TELECOM- SYSTEMS DEVELOPMENT $7,445,929 $94,841,604

D399 IT AND TELECOM- OTHER IT AND TELECOMMUNICATIONS $30,884,170 $84,097,312

Y1CZ CONSTRUCTION OF OTHER EDUCATIONAL BUILDINGS $0 $80,548,000

H225 EQUIPMENT AND MATERIALS TESTING- VEHICULAR EQUIPMENT COMPONENTS $1,003,285 $61,563,476

Y1JZ CONSTRUCTION OF MISCELLANEOUS BUILDINGS $2,567,138 $59,542,190

$0




Prince William, Stafford, & Spotsylvania Co.& Fredericksburg City

Top 10 Small Business PSC Spends


Also Top 10 PSC

PSC Description SB Spend Total SpendR425 SUPPORT- PROFESSIONAL: ENGINEERING/TECHNICAL $84,305,899 $222,694,543

R408 SUPPORT- PROFESSIONAL: PROGRAM MANAGEMENT/SUPPORT $63,985,882 $229,078,542

Y1CA CONSTRUCTION OF SCHOOLS $42,297,000 $42,297,000R499 SUPPORT- PROFESSIONAL: OTHER $32,160,945 $166,560,357

D399 IT AND TELECOM- OTHER IT AND TELECOMMUNICATIONS $30,884,170 $84,097,312

Z2JZ REPAIR OR ALTERATION OF MISC BUILDINGS $26,191,568 $26,390,6031904 SUBMARINES $22,619,708 $24,721,012

AD92 R&D- DEFENSE OTHER: OTHER (APPLIED RESEARCH/EXPLORATORY DEVELOPMENT) $18,563,380 $18,563,380

AD94 R&D- DEFENSE OTHER: OTHER (ENGINEERING DEVELOPMENT) $14,800,000 $14,800,000

AC34 R&D- DEFENSE SYSTEM: SHIPS (ENGINEERING DEVELOPMENT) $13,142,178 $13,142,178





FY2012 MajCom Spending Breakdown

Major Command SB Spend Total Small Business %MCSC $229,951,058 $851,449,746 27.01%

NAVSEA $92,790,221 $369,399,086 25.12%NAVFAC $133,526,299 $346,535,973 38.53%NAVSUP $23,220,434 $313,605,603 7.40%

HQMC,I&L $58,125,497 $221,406,881 26.25%SPAWAR $18,423,239 $33,681,402 54.70%NAVAIR $9,053,868 $30,995,108 29.21%

ONR $11,221,398 $12,292,911 91.28%MSC $29,537 $29,537 100.00%Total $576,341,551 $2,179,396,247 26.45%





Place of Performance % FY12 Virginia SB % FY12 Virginia TotalPrince William County 21.44% 17.53%

Stafford County 1.22% 0.98%Spotsylvania County 0.67% 0.25%Fredericksburg City 0.02% 0.00%

Place of Performance FY12 SB Spend FY12 Total Spend FY12 SB %Prince William County $529,325,349 $2,036,066,375 26.00%

Stafford County $30,141,326 $113,480,995 26.56%Spotsylvania County $16,495,801 $29,465,847 55.98%Fredericksburg City $379,075 $383,030 98.97%

Virginia Total $2,469,123,220 $11,618,077,575 21.25%


FY2012 Spending Breakdown






Top 10 Small Business Vendors

Source: FPDS-NG validated FY2012 data as of 14 Jan 2013. SB vendor spends based on spends associated with vendor DUNS Number and NOT Global DUNS Number.




FY 13 DoD Assigned Small Business Goals

Small Business 16.5% Small Disadvantaged 5% Service-connected Disabled Veterans 3% (1.75% DON Goal) Women-owned 2.7% HUBZone 1.6%

Simplified Acquisition Threshold (Sweetspot) 86%

Services Improvement 39% Combined (10pt improvement over FY10 Baseline)

Knowledge Based Electronics & Telecom Facility Related




FY 13 Strategic Focus on 1 Oct 12

Program Execution RD&A Memo on Improving Small Business

Executive Performance measured on dollars awarded vice fluctuating % (numerator) SAT Flow down of 86% Maximum use of set-aside authority under Multiple Award Contracts (Sec. 1331) Improvements in Service contracts & Contract Service Court Reviews

Improve Dashboards I include market analysis support and contract level view

Improve Program Reviews better measure command implementation of SB practices

Implemented Senior Executive accountability Developed Web enabled Performance Metric Dashboards SB Policy Memos issued by RD&A

USN reviews SB performance monthly




Impact of Sequestration & Year Long CR

80% of Navy SB Spend is in three (3) areas Ship/Aviation/Equipment Maintenance ~ $1B Construction ~ $3B Professional Services ~ $5-7B

DON announced immediate impacts 3rd & 4th Qtr availability- cancel Hold on MILCON Reduce Service Contracts Furloughs/cancel travel – impacts outreach

Less money to spend – Goals remain the same




FY 13 Spend Rates CR/SEQ Impact

FY13 SB spend is 9% behind FY12

$ B

illio

ns

~ 80% Total Growth~52% SB Growth

~ 14% Total Growth~23% SB growth

~ 7% Growth~17% SB Growth

Significant slow down in spend over 1st Qtr

~$2.9B current~$3.2B in Fy12




DISCUSSION




Documents

Small Business in Today's World of Government Contracting