Response to DOD strategy

      Industry groups recently weighed in on the Defense Dept.’s small business concerns and strategies with their own perspectives.

      Sparking the discussions was last month’s publication of the DOD Small Business Strategy. It highlighted a need to draw more small firms into the market, following a 42% drop in small DOD vendors from fiscal 2011 to 2020.

      On Feb. 8, Aerospace Industries Association President Eric Fanning told the House Armed Services Committee that while DOD leadership has acknowledged and tried to address challenges for small firms, new regulations are adding to the concerns.

      He pointed to the recent proposed rule to reduce the risk of climate change by requiring emissions disclosures for federal contracts over $7.5 million a year, saying it would put “significant strain on the supply chain including small and medium-sized businesses.”

      Fanning also warned that additional Cybersecurity Maturity Model Certification (CMMC) compliance requirements “create an additional layer of costs.”

      In addition, on Feb. 10, the National Defense Industrial Association (NDIA) published its “Vital Signs 2023” report on the health of the defense industrial base, including small businesses. The report also raised concerns about the emissions reporting proposal.

      The NDIA’s report identified five major areas of concern to the group:

• Fewer DOD workers;
• Fewer DOD contractors;
• DOD’s budget--while growing in dollars--is shrinking as a percentage of the U.S. Gross Domestic Product;
• Less predictability in DOD budgets;
• Less surge capacity.

      The report also claims DOD is too reliant on sole-source suppliers, including from foreign sources. It states that 42% of NDIA companies surveyed reported being the sole source in the U.S. for a defense related product.

More information:
Hearing testimonies: https://bit.ly/3IkssJi
NDIA report: https://bit.ly/3RXGVy1
DOD strategy: https://bit.ly/3IhJxmb

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