Partners in defense: major contractors work together with the small firms

Small and underrepresented minority businesses can be valuable partners for the big corporations

Subcontractors fill important technical niches, like specialized hardware, sophisticated software, IT and consulting

By Robin Allen
Contributing Editor

Large defense contractors seldom go it alone when seeking contracts. Take the sheer scope of most defense work, add in government guidelines for bringing in small and underrepresented minority businesses, and the result is usually a need for many subcontractors, and often several more tiers of subcontractors below those.

Firms owned and operated by underrepresented minorities: MBEs, WBEs, VBEs and SDVBEs, as well as small disadvantaged business enterprises (SDBEs), HUBzone businesses and small businesses in general, have proved themselves to be valuable partners for giant clients, filling important technical niches. These partnerships tend to be the norm at companies that support the defense industry, where specialized hardware, sophisticated software, IT, consulting and many other specialties may be subbed out.

Harris Corp commits to supplier diversity
Harris Corp (Melbourne, FL), an international communications and technology firm, was listed by Industry Week as among the 2009 top fifty U.S. manufacturing companies. Harris is very serious about its commitment to supplier diversity. A formal supplier diversity program and a small-business office focus on boosting the subbing opportunities for small businesses. The small-business office is action-oriented and takes a hands-on approach to helping the smaller firms understand where they might fit in.

Harris’ supplier diversity program is supported by senior management and emphasizes a total company approach. The program includes monthly small business council meetings.

“This is a forum to measure performance against goals and objectives, discuss areas for improvement, undertake action plans where necessary and even present incentive awards
for excellence in small business utilization,” says small-business liaison officer Rhonda D. Sammon, certified professional contracts manager.

Award-winning programs
Harris has been recognized for superior supply-chain leadership by AMR Research; it was one of just six companies to receive the prestigious award. The company also pulled down the 2008 Champions of Veterans Enterprise award, recognizing federal contractors that have given business worth $1 million or more to small SDVBEs and exceeded a 3 percent SDVBE subcontracting goal.

Clearly, small business supply partners are a fundamental part of the Harris business model, based on technical capabilities, past performance and process maturity.

“We believe our suppliers contribute significantly to achieving satisfaction for our customers,” liaison Sammon declares. “We value suppliers who are willing to participate with us in the achievement of excellence. Small business is a key element of our supplier base, and we
focus on this community to provide us with an increasingly large number of suppliers.”

Mentoring Amertron
As an approved mentor in the Department of Defense (DOD) mentor-protégé program, Harris has a three-year agreement with Amertron (Melbourne, FL), a small disadvantaged business (SDB) and Harris-preferred supplier for cable assemblies. Amertron is also 8(a) certified.

Amertron specializes in high-reliability electronic products. Its capabilities include design, manufacture and testing of electronic subassemblies, chassis and cables suitable for harsh environment apps, using production engineering techniques to improve quality and performance and reduce production cost.

“We do contract manufacturing of Harris-designed products,” says James Harhi, Amertron’s owner and president.

An Hispanic-owned business, Amertron has fifty-three employees and has worked with Harris for more than twenty years. Harris recently honored the company with two awards: small disadvantaged business of the year, and best business utilizing the Harris Expo procurement tool.

“Large companies need small businesses because we are flexible,” explains Harhi. “Changing directions for a large company is like trying to turn a large ship, so they come to us for a quick turnaround. Small businesses help large companies be more agile, and many, like us, provide expertise in specific areas.”

“Harris focuses on engineering and designing, then comes to us to make those designs a reality,” Harhi concludes with pleasure.

Teaming on SeaLancet
Harris teamed with Reliable System Services (RSS, Melbourne, FL), an SDB, on the SeaLancet RT-1944/U Tactical Network Radio. SeaLancet is a highly successful DOD project in the small business innovation research (SBIR) program of the Naval Sea Systems Command. SBIR programs are mission-oriented federal government R&D initiatives which give small, high-tech companies a chance to use their innovative talents.

Emilio Power, president of RSS, explains that SeaLancet is an excellent example of a partnership between “small business, a prime contractor and government. We are excited to successfully demonstrate this example of netcentric littoral communications for the warfighter.”

BAE Systems puts supplier diversity advocacy in action
BAE Systems (Rockville, MD) is a global company engaged in development, delivery and support of advanced defense, security and aerospace systems
in the air, on land and at sea. In its supplier diversity efforts, the global corporation has a cadre of small business advocates who act as liaisons between their own parts of the company and the small business community.

“Our small business advocates serve as councilors to our program management staff as well as interested small businesses,” says Diane Dempsey, director of socioeconomic programs. She notes that the company’s small business web page is full of information on its small business program, including a list of events and conferences that the company’s small business advocates will attend.

BAE Systems is now the second largest global defense company, and proactive in its efforts to connect with small businesses. Employees serve on boards and committees in organizations that advocate for minority and women-owned small businesses and support national, regional and local outreach conferences. “We exhibit in and participate in matchmaker appointments and serve on panels,” says Dempsey.

“Most of our subcontracting opportunities are based on our customers’ requirements, in line with government requests for proposals (RFPs),” explains Dempsey. “Each line of business
and business area tracks and responds to RFPs. In the process we vet the small businesses
to identify which will best contribute to our contract win.”

Keeping a database
As it prepares to respond to a defense opportunity, the BAE Systems procurement organization has a wealth of databases and source lists to look over. It uses databases from affiliates of the National Minority Supplier Development Council (NMSDC), the Women’s Business Enterprise National Council (WBENC), the Armed Forces Electronics & Communications Association (AFECA), National Defense Industrial Association (NDIA), the Dynamic Small Business Search Center for Veterans Enterprise and the VA Economic Bridge, Dempsey reports.

BAE Systems also relies on outreach events, internal vendor forums and matchmakers to identify well-qualified small businesses with the skills, customer focus and past performance
to make them potential sources.

“Our approach is team-oriented,” explains Dempsey. “We focus on meeting our minority- and woman-owned, HUBzone and veteran-owned small business goals. We are interested in long-term partnerships, and every program has small business utilization requirements.”

In June, BAE Systems was recognized by the Department of Justice for its performance in awarding subcontracts to small, small-disadvantaged and women-owned small businesses.

Aqiwo is a BAE Systems protégée
Aqiwo (Arlington, VA) is a Native American owned and managed information services firm. It offers a full range of IT and program management support to customers in intelligence, defense and civilian government agencies.

BAE Systems has selected Aqiwo as one of its two protégées through the Treasury Mentor-Protégé Agreement. Stephen Mills, Aqiwo’s founder, notes that the company made the 2009 Inc. 5000 list of fastest-growing private companies in America. “Aqiwo,” he says, “distinguishes itself in the federal sector by knowing and supporting its clients’ mission and vision.” Aqiwo works on many high-security contracts and holds a top secret facility clearance. “Our employee base is highly cleared,” says Mills. “That’s essential to support the mission-critical work we do for clients like BAE Systems.”

SAIC expands supplier diversity
SAIC (San Diego, CA) is a Fortune 500 scientific, engineering and technology applications company. It uses its deep knowledge to solve problems in national security, energy and the environment, critical infrastructure and health.

Babak Nouri, SAIC’s deputy director of small business programs, notes that the company avoids the term “supplier diversity” because it doesn’t fully reflect the company’s goal to create widespread partnering agreements with minority and woman-owned small businesses.

“Our small business program has more of a business development flavor as opposed to one strictly based on compliance,” Nouri says. “Given the entrepreneurial orientation of our company, we find it highly effective to have firms meet with SAIC personnel to discuss how
we can win business together and mutually grow.”

Subcontracting $700 million
In the most recent government fiscal year, SAIC subcontracted some $700 million, nearly 7 percent of its revenue, to MBEs and WBEs. Company initiatives include no-cost training in business and proposal development, pricing and program management.

The company also offers internal awards and incentive programs. “Our incentives program
was specifically designed to recognize SAIC organizations and employees that maximize opportunities for small businesses,” says Nouri.

From cybersecurity to energy
SAIC’s 45,000 employees serve customers in the DOD, the intelligence community, the Department of Homeland Security, other U.S. government civil agencies and some commercial markets. “We seek out firms that can support us in these critical markets with skills and expertise to solve the challenges our customers face,” says Nouri.

“We have many contracts where minority- and women-owned businesses are playing key roles, sometimes serving as task or project leads in cyber security, health, energy and national security.”

SAIC looks for small businesses with skills that match its areas of work and demonstrate past performance and customer knowledge. Geographic location, technical certification and financial stability are also important identifiers. And of course certification from NMSDC, WBENC or another such organization is the last piece of the puzzle.

DB and outreach programs lead to contracts
SAIC identifies potential partners through its small business database. Any interested firm
can register – SAIC has other ways of reaching out, as well. For example, Wednesdays are established as “small business days” to meet with firms, assess their capabilities and determine their fit with various business lines.

“We host business development forums where small businesses have the opportunity to meet with key SAIC decision makers and discuss teaming and subcontracting opportunities,” says Nouri. “We also attend conferences hosted by government customers and trade associations, and interact with small businesses there as well.”

D/C

Robin Allen is a freelance business writer based in Atlanta, GA.

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