2. The Arizona Landscape
Discretionary Spending, 2010 $ 689 Billion
Discretionary Spending, 2015 $ 752 Billion
Total Defense Contracts, 2010 $ 372 Billion
Total Arizona Defense Contracts, 2010 $ 11 Billion
Sources: ACA, CBO, USASpending.gov
Tucson, Phoenix and Yuma serve as the primary hubs for defense related activities
and employment-associated with military installations.
3. Agenda
• Arizona Landscape
• Small Business
• Government Contracting and Procurement
• Timing and Payment
• Additional Government Opportunities
• Competitive Advantages
• Best Practices
4. The Arizona Landscape
Military Installations:
Installation/Location Activity
Davis-Monthan AFB-Tucson Air Combat Command-355th
Fighter Wing
Fort Huachuca-Sierra Vista Army Intelligence Center
Luke AFB-Glendale Air Combat Command-56th
Fighter Wing-F 35 Training
Marine Corps Air Station-Yuma 3rd Marine Aircraft WIng
5. Economic Impact
Aerospace/Defense in AZ Direct Impact*
• $300 million tax revenues, 2009
• 39,400 workers
Indirect Impact
• 93,800 jobs
• $8.8 billion gross product
*Source: “The Economic Impact of Aerospace and Defense Firms on the State of Arizona,”
W.P. Carey School of Business, Arizona State University, September 2010.
6. Top Arizona Defense Contractors
2009 2010 2011 2012 2013
12.4 10.8 12.91 12.9 5.2
Total AZ DoD Contracts (in billions)
Source: USASpending.gov
1. Raytheon 48%
2. TriWest 11% ***
3. Boeing 7.3%
4. Honeywell 5.2%
5. General Dynamics 4.6%
Source: ACA, USASpending.gov
9. Areas of Focus
• Defense Missile & Space Systems
• Guided Missiles
• Rotary Wing Aircraft
• Gas Turbines
• Defense Electronics/Communications Systems
• Maintenance
10. Additional Areas
• Support for the F 35’s at Luke AFB
• UAS
• Radar
• Personal Armor
• Cyber-security
Extensive opportunities within the value chain
12. Where Does Small Business Fit In?
$ 100 billion in US spending Small Business
Small Business typically defined <500 employees
www.sba.gov/size - check to verify for your industry
Q. Why is this important?
A. Federal law stipulates a small business contracting goal.
13. Small Business
Small Business Contracting Targets
• Overall 23%
– WOB 5%
– Disadvantaged 5%
– HUBZone 3%
– SDVOB 3%
• VA
– VOSB 7%
14. Getting Started
Do your research!!
Know the industry
Key players-end users***
Proper etiquette
Seek legal advice
15. Government Contracting &
Procurement
Key Terms:
• COTS-Commercial Off the Shelf
• FAR-Federal Acquisition Regulation-www.acquisition.gov/far/
• CFR-Code of Federal Regulations
• CO-Contracting Officer
• NAICS-North American Industry Classification System
– www.census.gov/epcd/www/naics.html
• FSC-Federal Supply Class
– www.logisticsinformationservice.dla.mil/H2/search.aspx
• D-U-N-S Data Universal Numbering System
– https://iupdate.dnb.com/iUpdate/companylookup.htm
• SAM-System for Award Management- www.sam.gov
16. Government Contracting
FREE Tech and Marketing assistance in the
realm of government contracting to:
• Small business owners
• HUBZone companies
• Women/Minority owned small business
• Veteran/Service Disabled Veteran
17. Checklist
1. Be sure your business is organized properly
2. Have a good track record*
3. Obtain a DUNS number
4. NAICS code
5. Certifications-self certify or 3rd party
6. Register with SAM
19. Procurement Types
Sealed Bidding
• Specific requirements
• ID potential bidders
• IFB-Invitation for Bid
• Lowest bidder
Request for Proposal
• Looking for solution via objective
• Contractors propose solution
• Generally more complex in nature
• Subject to negotiation
20. Procurement Types
Sole Source/Set Aside
• One vendor in mind
• Open for a particular group
• Patents, IP, unique scale, geography
• Direct negotiation
Multiple Awards
• Items common among agencies
– Computers, phones, office supplies
• GSA-General Services Administration
• Price competitive
• Past performance, financial strength
www.gsa.gov
21. Procurement Types
Subcontracting
• >$650,000 require subcontracting to SB
• Register with SAM to be searchable for subcontracting
• http://web.sba.gov/subnet/
Teaming
• Several companies “team” up
– 1 Prime
– 1 Subcontractor
• Great opportunity for small business
• Leverage relationships to bring larger company
• Mutually beneficial
Caution: Get NDA and legal advice before entering into a Teaming contract
22. Procurement Links
Procurement Technical Assistance Centers
Federal Business Opportunities
Biz.gov – Federal Opportunities
BidSource
Central Contractor Registration
ProcureAZ
City of Phoenix
SBA Office of Government Contracting
Arizona State Procurement Office
Source: www.AZPTAC.com
23. Timing & Payment
• Know contract cycles
– Government FY runs OCT 01-SEP 30
• Fiscally different than private sectors
• When possible negotiate terms to incentivize
timely payment
• Ensure paperwork is submitted correctly
• Know the payment terms-plan cash flow
accordingly
• Commercial payment cards
• EFT-Electronic Funds Transfer
24. Additional Government Opportunities
STTR-Small Business Technology Transfer
– Commercializing technology through private sector
– Pairs small business with non profit research
institution
SBIR-Small Business Innovation Research
– Develops ideas
– Federal agencies specify topics for solicitation
26. Best Practices
Document properly
Know the rules-not knowing can hurt you
Operate in good faith
Manage cash flows
Understand SOW/Metrics
Develop relationships
Don’t overstep your bounds
Develop an audit plan
Compliance