Department of Defense is and agency runs under the readership of Linda B. Oliver and a main influential goal of creating numerous links that small Business in the DoD can utilize to propel themselves to higher levels. The target is aimed at strengthening the economy of the country thereby improving the security and health among other aspects or vitality for the development of the country. The mission of this branch emphasis on the imperative role of the small business in the economy of the USA and the need to recognize them. DoD office of Small Business is involved in creating awareness of the Secretary of Defense, formulation and enforcement of laws and policies in accordance to the postulated guidelines.
Small business can be defined differently depending with the country. However, the factors that are used to gauge whether a business is small business of not include; employees working in the business, value of the business assets, profit realized by the business and the business mode of management. According to Small Business Administration(s), Small business is defined as one, which is independently initiate and managed. Small business like many other types of businesses target on profit making but varies with major business in that small business enterprises are not dominant in their arena.
The department of defense got an opportunity to venture in the small business when the Congress passed the policy under Armed Services Procurement Act in 1947. The policy postulated that, a fair share of entire federal purchase and contracts be embraced with the interest of focus on the small business. The congress went further and created the Small Business Administration (SBA) (1953). This body was mandated to give loans to small businesses, assist in the thriving move of the small business to skyrocket it profit and performance and the most touching part as far as the defense department is concern is that the government authorized SBA to initiate contracts with central agencies and the incorporation of subcontracting.
Small businesses play a major role in the economy of the USA and the world at large. The department of the defense has emerged as a key contractor of these businesses in the USA where among other bodies or agencies the minority group and disadvantaged people find refuge creating their own enterprises. There has been several policies and laws enacted by the Congress to reinforce the growth of this docket.
There is financial proof to indicate how the Defense department has greatly contributed to growth of the small business especially in the United State of America. In 2009, about 30% of the federal contractes were associated with the small business. Out of this 66% ($64 billions) was input of the defense department. The huge number of small companies under the Department of Defense management facilitated this. According to the Business.gov. , 20 percent of Department of Defense procurement contracts and 30 percent subcontracting are inclined to small business.
In the USA, the small businesses account for more than 60% jobs, which therefore reflect vitality in the support of the economy. In President Obama’s strategy to jump-start the revival of the dwindling economy, he has allocated $30 billion in lending to this docket to boost the rate of growth.
A major fact on how the department of defense has deep-rooted interest in the small businesses is how it has been honoring awardesses who are linked with commendable improvement in this field. For instance Service Disabled Veteran-owned Small Business were appreciated and awarded for their contribution in the in provision of valuable technology in Warfighter in 2007-2008. The Service disabled veteran owned small business received awards in respects to different contribution that they made in; outstanding enterprises expertise and achievement and it spirit in absorbing veterans and service disabled veterans.
Other awards that the Department of Defense has awarded in respect to the small business interest include; subcontracting award to recognize SDVOSB for maximizing subcontracting opportunities and Golden Talon Awards. The awards are among the strategies that the Department of Defense has laid in an attempt to improve it business coverage. With the changing world in respect to technology and economy, it is imperative to improve the business field to maintain a competitive edge in this arena.
The department of Defense in the United State of America has also invested heavily in the past years with a view to acquire contemporary means to manage the business. Government Accountability Offices is one of the agencies that have worked hand in hand with the Department of Defense. It has proposed 200 recommendations to DoD targeted at firming the operations and cutting down the risks associated with business improvement. Among the recommendations formulated by Government Accountability Office include; embracing business enterprise architecture and use of approved practices in importing information technology system and services. The DoD in attempt to improve the operations has indulge in the implementation of superior asset control e.g. Business Capability Lifecycle.
Department of Defense is subdivided in to functional categories that function together to bring success in it operation and trust among the small business groups. Small Disadvantage Businesses (SDB), is the frontline advocate that checks the standards of the contracts and subcontracts are worth. In conjunction with Small Business Administration they are working to strike a deal that will see DoD contracts directly to program participant.
Women-Owned Small Business is another target the DoD is targeting to increase it bounderies by acquiring 5% permission for contracts and subcontracts of those business that are owned and managed by women. Service Disabled Veteran Owned Small Business is another area that the DoD is tirelessly striving to upgrade. This is targeted at spotting small business that either are owned veterans or service disabled veterans. This is seen as one of the means to recognize and credit the veteran for their commendable import in the countries progress. Historically Underutilized business Zones Program which are managed over 50% American citizens. It has a main responsibility to kindle economy advancement through creation of jobs opportunities in the communities by availing federal contracting predilection eying the small business. The branches in the department are supposed to collaboration the realization of expanding the small businesses in the USA.
Department of Defense uses different methods of contracting. Depending with the dollar threshold. These methods includes micro purchase, which does not need incurring of loss in the advertisement, simplified acquisition is preferred for those contract that are worth over $3000. In this method of contracting, there is no need advertisement, and is mostly used for minor business. The formal contract calls for advertisement to attracts as many customers as possible.
Department of defense has set basics for contracting aimed at assuring of valuable contracts that are in terms with the military services. The regulations involved include
- Business gateway initiative
- Defence acquisition regulation supplement
This document provides DoD with information concerning the execution of the Federal Acquisition Regulation. In this regulation, policies of DoD, route to delegate FAR authorities and other regulations that are inclined to public health among others.
- Federal acquisition regulations
Is a set of rules which dictates how the government acquires goods and services. It has three step, planning for acquisition, formulating the contract terms and conditions, and the last step in implementation of the contract. Through this system, the workers or employees who can manage it are regulated to enhance efficiency and accountability. The part which is mostly concealed for to non participant of this is pricing.
- Integrated acquisition environment
This regulation serves the purpose of co-joining/integrating and enhancing smooth flow of government businesspersons. This smoothens the acquisition process to a point where by the involved agencies functions in a manner where they utilizes a common system
- Link to agency supplement regulations
- Small business training network.
Is an online based learning/training to empower individuals with specific skills and knowledge required in the management of their existing small business. The program requires any prospective or those running small business to sign up to the website and receive training in according to their weaknesses.
Another fact that reveals the involvement of Department of Defense in Small Business contracting in the postulated types of contract that the DoD use. They include, flat price contracts that do not give room for bargaining or agreement concerning the price stated, and cost recompense where negotiation are allowed between the two parties involved.