Military Defense Aersospace
Transcript of Military Defense Aersospace
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MILITARY DEFENSE AEROSPACEAn Industry Overview
Presented by: Tracy Lea
ASU Entrepreneurship & Innovation Group
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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.
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Agenda
• Arizona Landscape• Small Business• Government Contracting and Procurement• Timing and Payment• Additional Government Opportunities• Competitive Advantages• Best Practices
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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
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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.
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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
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AZ Regional Focus
DoD Contracts, 2010• Tucson– $ 5.2 billion
• Phoenix– $ 4.4 billion
Source: ACA, USASpending.gov
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Products
Product Lines, 2010
OtherGuided MisslesGeneral Health CareMissiles/SpaceGuided Missiles/Sub-systemsAircraft Rotary Wing
Source: USASpending.gov
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Areas of Focus
• Defense Missile & Space Systems• Guided Missiles• Rotary Wing Aircraft• Gas Turbines• Defense Electronics/Communications Systems• Maintenance
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Additional Areas
• Support for the F 35’s at Luke AFB• UAS• Radar• Personal Armor• Cyber-security
Extensive opportunities within the value chain
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Air Transport Industry Value Chain*
* Sources: ACA, Oxford Economics
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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.
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Small Business
Small Business Contracting Targets• Overall 23%– WOB 5%– Disadvantaged 5%– HUBZone 3%– SDVOB 3%
• VA– VOSB 7%
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Getting Started
Do your research!!Know the industryKey players-end users***Proper etiquetteSeek legal advice
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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
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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
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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
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Procurement Types/Methods
www.acquisition.gov
www.FedBizOpps.gov >$25,000
Micro-purchase• <$3,000• Do not require bids
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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
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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
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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
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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
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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
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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
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Competitive Advantage
Market your business to win business!
Keep a clean recordPPIRS-Past Performance Information Retrieval System
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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