Headquarters U.S. Air Force Integrity - Service - Excellence
Small Business Outlook
Mr. John Caporal Deputy Director, Small Business Programs SAF/SB June 10, 2009
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POTUS
…small businesses don’t just provide jobs, they provide the innovations that help us lead in the global economy.”
“Small businesses are the heart of the American economy. They're responsible for half of all private sector jobs –- and they create roughly 70 percent of all new jobs in the past decade. So small businesses are not only job generators, they're also at the heart of the American Dream.”
President Obama Remarks 16 March 2009
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SECAF “Currently, our Air Force small business program is facing some challenges. Although many of our operational commands rely heavily on small businesses, the percentage of dollars that we award to small businesses is trending downward.” “The Air Force “Beyond Goals” small business strategy will assist the Air Force to reverse this trend.” “I would like you, as contracting officials, to become familiar with our small business strategy, and be certain that it informs your daily work. Your efforts are crucial for ensuring that the Air Force’s small business plan is successful.” Michael B. Donley, Secretary of the Air Force 21 October 2008 Keynote Address at Air Force Worldwide Contracting Conference Integrity - Service - Excellence
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CSAF “The Air Force Small Business Innovative Research program, along with the Small Business Technology Transfer program, provides an excellent example of the collaborative spirit I think we need to face future acquisition challenges. These programs leverage the inherent advantages of small business innovation in order to meet warfighter requirements.”
“We must continue to innovate our relationships with small business in order to capitalize on the very best ideas from industry.” General Norty Schwartz, Chief of Staff of the Air Force 4 March 2009 Forum Remarks at Systems Life Cycle Leadership
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The Foundation “It is the declared policy of the Congress that the Government should aid, counsel, assist, and protect, insofar as is possible, the interests of smallbusiness concerns in order to preserve free competitive enterprise…”
“The essence of the American economic system of private enterprise is free competition. Only through full and free competition can free markets, free entry into business and opportunities for the expression and growth of personal initiative and individual judgment be assured. The preservation and expansion of such competition is basic not only to the economic well-being but to the security of this nation.”
Small Business Act P.L 85-536 Integrity - Service - Excellence
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Vision and Mission ď Ž
Air Force Small Business Vision We will reach Beyond Goals to make Small Business the solution of choice to meet the needs of the Air Force mission
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Air Force Small Business Mission To create and deliver strategies that bring innovative, agile and efficient Small Business solutions to the Air Force to fly, fight and win in air, space and cyberspace and it is exemplified through this Beyond Goals strategy
Innovation - Agility - Efficiency - Economy - Diversity! Integrity - Service - Excellence
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Air Force Small Business Strategy Beyond Goals
Brings innovation, agility and efficiency of small businesses to mission of Air Force
Pushes beyond traditional method of measuring success by percentages
Ensures Warfighters’ access to comprehensive set of capabilities From Small Business Advocates… to Advocates for the mission… met with small business solutions!
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Air Force Small Business Strategy Beyond Goals
Is Reflected in a Small Business Strategic Plan that Carefully Aligns its Objectives with the overall Air Force Strategic Plan
Emphasis is on Value to the Warfighter, not on Numbers
Emphasizes Closer Organizational Ties with Technical Customers
Encourages Closer Communication and Collaborative Market Research
Avoids Fragmented, Stovepiped Bureaucracies.
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Air Force Small Business New Strategic Objectives
Deliver Solutions - tactical and strategic
Increase Leadership Awareness
Focus Small Business accomplishments/value to the mission
Create a Small Business Force
Establish Small Business Solution Center A market research/data analysis power house
Community of Practice (COP), Outreach, enterprise knowledge
Exceed 23%
Target strategies to strengthen the small business program
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Pilot Initiative SB Solution Center
Proactive market research to influence and shape acquisition strategies to promote small business solutions
Places small business focus on: Data analysis Training Strategic Sourcing analysis Market research and outreach Customer and industry outreach Strategy development
Provides Knowledge Sharing COP Collects data and lessons learned Disseminates to the field
Develops tools and implements processes to maximize utilization of small business Integrity - Service - Excellence
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Air Force Small Business FY04 – FY08
(Data Source: J001 for FY04-FY06, FPDS-NG for FY07-08; Goals from FY08 Air SAFSB Strategic Plan)
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Small Business Performance Air Force Small Business Programs FY03-FY08
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% Goals Aren’t Enough, They…
Are considered the “End” rather than a means Are a sole measure of merit - Award-and-forget Don’t consider meaningful work Don’t consider performance after award May be unobtainable or not enough Inflate small business expectations/conflict Reduce incentive - meet the % = STOP Create a “check-the-block” mindset Fragment small business industrial base
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Small Business Mission Impact Innovation Agility Efficiency Economy Diversity Single Digit G & A Integrity - Service - Excellence
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AF Small Business Success Specialized fire trucks at Vandenberg AFB needed refurbishment/upgrades.
Small Business solution provided customer-specific repairs that will add 10 years to a vehicle’s life.
“It’s exactly what we need and practical for Vandenberg.” Mark Farias, Chief, Fire and Emergency Services, Vandenberg AFB, Calif.
“(Fire department officials) made sure they looked at every aspect, weighed all their options and really did their homework.” Dee Perry, 30th Space Wing Small Business Specialist
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AF Small Business Success Small Business Falcon Program at McGuire AFB – 75% reduction in bird strikes Washington Post Story, Nov 3, AF Looking for Falcons to Help Reduce Bird strikes in Iraq “Even with the most advanced technology available today, an 80-ton U.S. Air Force aircraft still relies on a winged ally that weighs in at about 2 pounds.”
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Major Challenges
Small Business performance trend – FY06 - 16.6%, FY07 - 14.9%, FY08 – 15.9%
Consolidation and bundling of functions and requirements (under strategic sourcing):
Resource challenges force “simple” sourcing approaches:
Single acquisitions take fewer resources than multiple acquisitions Small Business Specialists are double and triple-hatted Nearest Task Order contract for consolidated efforts
Perception that SB = high risk:
Civil engineering, medical, IT and Contracting Perception vs. reality – work is too big for SB Does not consider impact to local business (economy/jobs/community) Inadequate market research
Sm Bus. Innovative Research (SBIR) Program challenges Subcontracting program is a “check-the-block” program
Recent Court and General Accounting Office (GAO) decisions Integrity - Service - Excellence
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IAT Concerns While No Longer a Regional Strategy, We Must Remain Vigilant That Small Business Market Share Remains Robust Under IAT and MAJCOM Strategic Sourcing Initiatives Need for Increased SB Specialist Presence at Strategic Sourcing Locales Unclear impact on supplier base Consolidation/bundling issues Integrity - Service - Excellence
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www.AirForceSmallBiz.org
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Contact Us Office of Small Business Programs SAF/SB 1060 Air Force Pentagon Washington DC 20330-1060 703-696-1103
www.AirForceSmallBiz.org
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