military defense aersospace
TRANSCRIPT
MILITARY DEFENSE AEROSPACEAn Industry Overview
Presented by: Tracy Lea
ASU Entrepreneurship & Innovation Group
The Arizona LandscapeDiscretionary Spending, 2010 $ 689 Billion
Discretionary Spending, 2015 $ 752 Billion
Total Defense Contracts, 2010 $ 372 Billion
Total Arizona Defense Contracts, 2010 $ 11 Billion
Sources: ACA, CBO, USASpending.gov
Tucson, Phoenix and Yuma serve as the primary hubs for defense related activities and employment-associated with military installations.
Agenda
• Arizona Landscape• Small Business• Government Contracting and Procurement• Timing and Payment• Additional Government Opportunities• Competitive Advantages• Best Practices
The Arizona Landscape
Military Installations:
Installation/Location Activity
Davis-Monthan AFB-Tucson Air Combat Command-355th Fighter Wing
Fort Huachuca-Sierra Vista Army Intelligence Center
Luke AFB-Glendale Air Combat Command-56th Fighter Wing-F 35 Training
Marine Corps Air Station-Yuma 3rd Marine Aircraft WIng
Economic Impact
Aerospace/Defense in AZ Direct Impact*• $300 million tax revenues, 2009• 39,400 workersIndirect Impact• 93,800 jobs• $8.8 billion gross product
*Source: “The Economic Impact of Aerospace and Defense Firms on the State of Arizona,” W.P. Carey School of Business, Arizona State University, September 2010.
Top Arizona Defense Contractors
2009 2010 2011 2012 201312.4 10.8 12.91 12.9 5.2
Total AZ DoD Contracts (in billions)Source: USASpending.gov
1. Raytheon 48%2. TriWest 11% ***3. Boeing 7.3%4. Honeywell 5.2%5. General Dynamics 4.6%
Source: ACA, USASpending.gov
AZ Regional Focus
DoD Contracts, 2010• Tucson– $ 5.2 billion
• Phoenix– $ 4.4 billion
Source: ACA, USASpending.gov
Products
Product Lines, 2010
OtherGuided MisslesGeneral Health CareMissiles/SpaceGuided Missiles/Sub-systemsAircraft Rotary Wing
Source: USASpending.gov
Areas of Focus
• Defense Missile & Space Systems• Guided Missiles• Rotary Wing Aircraft• Gas Turbines• Defense Electronics/Communications Systems• Maintenance
Additional Areas
• Support for the F 35’s at Luke AFB• UAS• Radar• Personal Armor• Cyber-security
Extensive opportunities within the value chain
Air Transport Industry Value Chain*
* Sources: ACA, Oxford Economics
Where Does Small Business Fit In?
$ 100 billion in US spending Small Business
Small Business typically defined <500 employeeswww.sba.gov/size - check to verify for your industry
Q. Why is this important?A. Federal law stipulates a small business contracting goal.
Small Business
Small Business Contracting Targets• Overall 23%– WOB 5%– Disadvantaged 5%– HUBZone 3%– SDVOB 3%
• VA– VOSB 7%
Getting Started
Do your research!!Know the industryKey players-end users***Proper etiquetteSeek legal advice
Government Contracting & Procurement
Key Terms:• COTS-Commercial Off the Shelf• FAR-Federal Acquisition Regulation-www.acquisition.gov/far/ • CFR-Code of Federal Regulations• CO-Contracting Officer• NAICS-North American Industry Classification System
– www.census.gov/epcd/www/naics.html • FSC-Federal Supply Class
– www.logisticsinformationservice.dla.mil/H2/search.aspx • D-U-N-S Data Universal Numbering System
– https://iupdate.dnb.com/iUpdate/companylookup.htm • SAM-System for Award Management- www.sam.gov
Government Contracting
FREE Tech and Marketing assistance in the realm of government contracting to:
• Small business owners• HUBZone companies• Women/Minority owned small business• Veteran/Service Disabled Veteran
Checklist
1. Be sure your business is organized properly2. Have a good track record*3. Obtain a DUNS number4. NAICS code5. Certifications-self certify or 3rd party6. Register with SAM
Procurement Types/Methods
www.acquisition.gov
www.FedBizOpps.gov >$25,000
Micro-purchase• <$3,000• Do not require bids
Procurement Types
Sealed Bidding• Specific requirements• ID potential bidders• IFB-Invitation for Bid• Lowest bidderRequest for Proposal• Looking for solution via objective• Contractors propose solution• Generally more complex in nature• Subject to negotiation
Procurement Types
Sole Source/Set Aside• One vendor in mind• Open for a particular group• Patents, IP, unique scale, geography• Direct negotiationMultiple Awards• Items common among agencies
– Computers, phones, office supplies
• GSA-General Services Administration• Price competitive• Past performance, financial strengthwww.gsa.gov
Procurement TypesSubcontracting• >$650,000 require subcontracting to SB• Register with SAM to be searchable for subcontracting• http://web.sba.gov/subnet/ Teaming• Several companies “team” up
– 1 Prime– 1 Subcontractor
• Great opportunity for small business• Leverage relationships to bring larger company• Mutually beneficial
Caution: Get NDA and legal advice before entering into a Teaming contract
Procurement Links
Procurement Technical Assistance CentersFederal Business OpportunitiesBiz.gov – Federal Opportunities
BidSourceCentral Contractor Registration
ProcureAZCity of Phoenix
SBA Office of Government ContractingArizona State Procurement Office
Source: www.AZPTAC.com
Timing & Payment
• Know contract cycles– Government FY runs OCT 01-SEP 30
• Fiscally different than private sectors• When possible negotiate terms to incentivize timely
payment• Ensure paperwork is submitted correctly• Know the payment terms-plan cash flow accordingly• Commercial payment cards• EFT-Electronic Funds Transfer
Additional Government Opportunities
STTR-Small Business Technology Transfer– Commercializing technology through private sector– Pairs small business with non profit research institution
SBIR-Small Business Innovation Research– Develops ideas– Federal agencies specify topics for solicitation
Competitive Advantage
Market your business to win business!
Keep a clean recordPPIRS-Past Performance Information Retrieval System
Best Practices
Document properlyKnow the rules-not knowing can hurt you
Operate in good faithManage cash flows
Understand SOW/MetricsDevelop relationships
Don’t overstep your boundsDevelop an audit plan
Compliance