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Military Defense Aersospace
 

Military Defense Aersospace

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    Military Defense Aersospace Military Defense Aersospace Presentation Transcript

    • MILITARY DEFENSE AEROSPACE An Industry Overview Presented by: Tracy Lea ASU Entrepreneurship & Innovation Group
    • The Arizona Landscape Discretionary 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 workers Indirect 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 2013 12.4 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 Other Guided Missles General Health Care Missiles/Space Guided Missiles/Subsystems Aircraft 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 employees www.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 industry Key players-end users*** Proper etiquette Seek 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 properly 2. Have a good track record* 3. Obtain a DUNS number 4. NAICS code 5. Certifications-self certify or 3rd party 6. 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 bidder Request 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 negotiation Multiple Awards • Items common among agencies – Computers, phones, office supplies • GSA-General Services Administration • Price competitive • Past performance, financial strength www.gsa.gov
    • Procurement Types Subcontracting • >$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 Centers Federal Business Opportunities Biz.gov – Federal Opportunities BidSource Central Contractor Registration ProcureAZ City of Phoenix SBA Office of Government Contracting Arizona 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 record PPIRS-Past Performance Information Retrieval System
    • Best Practices Document properly Know the rules-not knowing can hurt you Operate in good faith Manage cash flows Understand SOW/Metrics Develop relationships Don’t overstep your bounds Develop an audit plan Compliance