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Last post 19 years ago by CWFoster. 4 replies replies.
Hey Bloody??
usahog Offline
#1 Posted:
Joined: 12-06-1999
Posts: 22,691
I seen in one of the posts awhile back where you had discussed something simular to this as it was affecting your business...

when I found this link I was thinking about your posting awhile back and how it affected your business thought I would post it here to you..

Hog

http://www.defenselink.mil/releases/2004/nr20040730-1073.html
DoD Releases Annual Report on "Procurement From Small and other Business Firms"
bloody spaniard Offline
#2 Posted:
Joined: 03-14-2003
Posts: 43,802
Per Hog's article: "Prime contract awards during fiscal 2003 to U.S. small business concerns totaled $42.0 billion, compared with $33.3 billion for 2002. Defense awards to all U.S. business firms totaled $187.5 billion during 2003, compared with $157.1 billion during 2002. Of the $187.5 billion awarded by the DoD to all U.S. business concerns during 2003, 22.4% of the awards were made to small business concerns, versus 21.2% in fiscal 2002. The increase is attributed to greater small business participation in acquisitions related to ships, services, construction, commercial items, and other major hard goods."


Thanks for the link, Hog.
Problem with this, is that the % of $$$ awards may be increasing (although I don't understand how, if budgets are being cut to the bone almost everywhere) but the number of small business subcontractors are DECREASING. Thus, resulting in a theoretically larger pie with fewer particpants.

In regards to DoD contractors, most of the Top 500 only have 1 or 2 vendors (small businesses) that can supply a particular commodity. In the past, LARGE numbers of vendors would bid for the opportunity to participate--no more. Corporations have supposedly streamlined the open market system by selecting only a few vendors in order to save money. This is the corporate "template" that dubya is trying to model the Government after. Problem is that government buyers are now paying 40-70% MORE than they did before, when bidding was open to all. Despite what brother DCCRENS(?) says, the mentoring program is also nominal or non-existant with most corporations.

What this means, Hog, is that there may be more paper profits but fewer small businesses partaking of these supposed moneys/contracts.

blood

usahog Offline
#3 Posted:
Joined: 12-06-1999
Posts: 22,691
I understand that totally... and I understand where you are at with your business area also...

glad this came of some assistance!!!

Hog
dccrens Offline
#4 Posted:
Joined: 04-04-2004
Posts: 721
BS,

Just curious... Aside from my 20 years experience and 10 years in the DOD contractor world, I have posted statistics to back up what I believe to be true. While you may believe the statistics I have posted may not be true or may be "slanted" by the govt I don't believe that to be the case. Hog's post also backs up what I am saying. I understand from where you are seating things are not so great and I can understand that you might disagree with my thoughts based on your personal experience. However, I would respectfully ask you to post any facts or statistics that you have that back up what you state. Particulary about the number of SBs. I an honestly interested.

Peace and Cheers
CWFoster Offline
#5 Posted:
Joined: 12-12-2003
Posts: 5,414
I understand where everyone is coming from, but to play devils advocate for a moment, while they DoD is trying to boost small business ventures, there is another problem that occaisionally crops up. In the aftermath of Hurricane Alicia (in 1982, I beleive) the contract to clean up the piles of fallen tree branches in the City of Houston was awarded to a young man for $1 million, or $10 million, (it was over 20 years ago, I'm just fuzzy on where the decimal point goes) and after a month people were complaining that piles of deadfall branches stacked dutifully by the curbs still hadn't been picked up! When the city investigated, they found out that the young man in question was working hard on it, but he was only using one helper, and one pickup truck! I suppose government agengies try to balance the desire to assist small business concerns with staying with proven performers, this unfortunatly leads to the old "how to prove performance if you can't get your foot in the door" Catch 22! Just a thought. Good luck to you all!

P.S. I have NOTHING to do with the procurement process, and am only speculating here.
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