Doing Business with the Department of Defense (DoD) – A Small Business Checklist

Doing

business with one of the largest purchasers of goods and services in the world

- the U.S.

Department of Defense (DoD) - can seem like a daunting business strategy for

many small business owners. Many often mistakenly believe that only the "big

guns" can really compete for DoD business.

The

truth is that the government designates a significant amount of procurement

contracts to small businesses each year. For example, in fiscal year 2009

(ending Sept 30, 2009) the Department of Defense set aside over 22% of its

prime contracts to small business and over 37% of its sub-contracting

opportunities (source).

This doesn't even take into account the set asides given to small businesses

owned by veterans, women, minorities and disadvantaged businesses.

That's

a large chunk of change!

But

whether you are selling a service, reselling a product, or marketing your own

proprietary product to the federal government, the procurement process can be

challenging for a small business to navigate.

Aside

from treating defense contracting as a long term business strategy, there are

many other considerations that you will need to navigate through and check off

on your way to securing your share of what can be a very profitable line of

business. Here are some resources from the government and small business expert

communities that can help you get started.

Understanding Federal Government

Contracting

Before

you delve into the world of defense contracting, it's worth getting an

understanding of government contracting in general. A good place to start is

the government's Business.gov

Web site for small businesses. Its Federal

Contracting Guide can guide you through how to become a

federal contractor, find business opportunities, and the rules and regulations

that federal contractors need to follow.

Another

excellent resource is this brief downloadable PDF from OPEN Forum - The Essentials: Securing a Share of Government Business - which summarizes best practices for selling to the

government plus how you can use government resources, such as the Small Business

Administration (SBA), to your

advantage.

The Ins and Outs of Defense

Contracting for Small Business

From

registering to do business with the DoD to finding your target market to

finding and securing contract opportunities, the DoD's Office

of Small Business Programs (DoD OSBP)

should be your one-stop source for everything you need to become a defense

contractor or sub-contractor.

Check out the Guide to DoD Contracting Opportunities - A Step-by-Step Approach to the DoD Marketplace for easy-to-read information on how to establish yourself as a defense contractor.

If

you know which defense agencies you wish to target, take advantage of the

numerous small business offices and comprehensive Web sites - such as www.sellingtoarmy.info - maintained by at least 15 DoD agencies to help small

businesses explore opportunities and resources.

Government Rules and Regulations that Impact

Defense Contracting

While

navigating the defense contracting maze presents its own challenges and

opportunities, depending on the nature of your business you may also encounter

regulatory practices that apply to the aerospace and defense industry.

For

example, if you wish to pursue contracting opportunities that involve overseas

deployments, such as Iraq or

Afghanistan, you will need

to familiarize yourself with the Defense Base Act, which provides workers'

compensation protection to civilian employees working outside the U.S on U.S. military bases or under a contract with the

U.S.

government for public works or for national defense.

There

are also restrictions on the sale of products grown or manufactured outside the

U.S. as stipulated by the

Berry Amendment.

More

on these and other laws and regulations that govern aerospace and defense

contracting here.

Security Clearances - Do I need One?

Whether

you are a defense contractor or sub-contractor, you don't necessarily need a security

clearance.  However, having one can certainly open up more

opportunities for your small business, including the option for working on a

variety of contracts, in particular ones that involve cutting-edge technology

programs and projects.

Read

up on security clearances for government contractors including "Getting a

Security in a Nutshell" on Business.gov here as well as this SBA information sheet: "Obtaining a security

clearance for your 8(a) company and/or employees".

Additional Resources

• Doing Business with the Department of Defense: The

  Basics (DoD Office of Small

  Business Programs)

• Five Tips for Finding Federal Contracting Opportunities (Allbusiness.com)

• SBA

  to Host 200 Events to Help Women, Veteran and Minority-owned Businesses Get Access to Informatio... (SBA Press Release)