Headquarters U.S. Air ForceI n t e g r i t y - S e r v i c e - E x c e l l e n c e

Headquarters U.S. Air Force

Air Force Small BusinessOutlook

Mr. John CaporalD t Di tDeputy Director Small Business ProgramsSAF/SB

S o l u t i o n s o f C h o i c e

May 25, 2010

Agenda

Beyond Goals

Success Stories

Mentor Protégé

Small Business Data

Major Challenges

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SECAF

“…these traits make small businesses important to the Air Force. Our force thrives on innovation, to include areas like unmanned aircraft and cyber where it is increasingly difficult to keep pace with the breakneck speed of

h l i l d D h i i d f lltechnological advances. Due to their size and narrow focus, small businesses can help us stay ahead by quickly adjusting to changing requirements and technologies, oftentimes with a personal touch.”

Mi h l B D l S t f th Ai FMichael B. Donley, Secretary of the Air Force17 November 2009 Air Force Fall Training Conference

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Vision and Mission

Air Force Small Business VisionWe will reach Beyond Goals to make Small Business the solution of choice to meet the needs of the Air Force mission

Air Force Small Business Mission To create and deliver strategies that gbring innovative, agile and efficient Small Business solutions to the Air Force to fly, fight and win in air, space and cyberspace and it is exemplified through this Beyond Goals strategy

I ti A ilit Effi i E Di it !

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Innovation - Agility - Efficiency - Economy - Diversity!

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Air Force Small Business StrategyStrategy

Beyond Goals Brings innovation, agility andBrings innovation, agility and

efficiency of small businesses to mission of Air Force

Pushes beyond traditional method Pushes beyond traditional method of measuring success by percentages

Ensures Warfighters’ access to Ensures Warfighters’ access tocomprehensive set of capabilities

F S ll B i Ad tFrom Small Business Advocates… to Advocates for the mission…

met with small business solutions!

I n t e g r i t y - S e r v i c e - E x c e l l e n c eSmall Business Solutions of Choice!

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% Goals Aren’t Enough, They…They…

Are considered the “End” rather than a meansAre considered the End rather than a means Are a sole measure of merit – Award and forget Don’t consider meaningful workg Don’t consider performance after award May be unobtainable or not enough Inflate small business expectations/conflict Reduce incentive - meet the % = STOP

C t “ h k th bl k” i d t Create a “check-the-block” mindset Fragment small business industrial base

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Success Story

8(a) Small Business Provides Valuable S l ti t V i P blSolutions to Vexing Problems

Space & Missile System Center needed a new Electronic Data Interchange (EDI) g ( )system to provide government agencies improved insight into financial data.

Joint Synergy an 8(a) small business Joint Synergy, an 8(a) small business, provided an expert solution that prevented connectivity issues that were expected to last six months or more.

Their proactive and innovative solution saved significant costs and improved productivity

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productivity.

Small Business Haiti Support

Shortly following the earthquake that recently devastated Haiti, a small,Shortly following the earthquake that recently devastated Haiti, a small, disadvantaged, veteran-owned HUBZone-certified business delivered mission-essential supplies for Air Force relief efforts in record time.

Palmetto Procurement Company, LLC of Santee, SC, provided the Air Force with parts necessary for wheel loaders on Feb. 12, just three days after receiving the award.after receiving the award.

“Palmetto Procurement’s rapid response meant the critical repair parts could be shipped along with the loader and be delivered to Haiti on time”

Judith Croxton, Director of Business Operations, Shaw Air Force Base

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AF Mentor Protégé

Air Force released FY2010 Mentor Protégé Broad Agency A t (BAA) 7 M 2010Announcement (BAA) 7 May 2010

Air Force is focusing on agreements that have a strong g g gtechnical component or focus on innovative state of the art technology transfer in the domains of air, space, and cyberspacecyberspace

Air Force Small Mentor Protégé agreements will t t th Ai F P i it Aconcentrate on the Air Force Priority Areas

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Total Dollars Obligated by the Air ForceAir Force

$61 3

$70

$48.8 $48.7

$52.9

$61.3 $58.9 $60.7

$50

$60

$40

Large BusinessBill

ions

$20

$30 Small Business

$7.6 $8.3 $8.8 $9.1 $9.4 $10.1

$0

$10

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Source: FPDS-NG May 2010

2004 2005 2006 2007 2008 2009

Air Force Small Business PerformancePerformance

23% 23%

25%Federal Goal

15 6%16.9% 16.6%

15 9%16.7%

23% 23%

20%

15.6%14.9%

15.9%

15%

5%

10%

0%

5%

2004 2005 2006 2007 2008 2009

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2004 2005 2006 2007 2008 2009

Source: FPDS-NG May 2010

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Number of Prime Contractors performing work for the Air Forceperforming work for the Air Force

25,000

20 45321,127

7,073 6,4266,530 6,524 6,25015 000

20,00020,453

19,782 19,147 18,769

,

10,000

15,000

Large BusinessSmall Business

14,054 14,027 13,252 12,623 12,5195,000

02005 2006 2007 2008 2009

The total dollars obligated by the Air Force has grown by 24 4% between FY 2005 and FY 2009 Meanwhile the

I n t e g r i t y - S e r v i c e - E x c e l l e n c eSource: FPDS-NG (Mar 2010) – Number of contractors determined by distinct DUNS Numbers receiving obligations.

The total dollars obligated by the Air Force has grown by 24.4% between FY 2005 and FY 2009. Meanwhile, the number of firms obligated dollars by the Air Force has declined by approximately 11.2% during the same period.

Subcontracted Dollars under the DoD Comprehensive Subcontracting Program p g g

$60

$40

$50

$ 43.06 B

$ 47.90 B

$30.40 B$35.67 B$30

Bill

ions

Large BusinessSmall Business

$12 66 B $12 23 B$10

$20

$12.66 B $12.23 B

$0FY 2008 FY 2009

Th t t l d ll b t t d b fi i th C h i S b t ti P i d b 11 2%

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Source: eSRS/DCMA CSP – 17 May 2010 FY09 data is not finalized

The total dollars subcontracted by firms in the Comprehensive Subcontracting Program increased by 11.2% between FY 08 and FY09, however, the amount subcontracted to Small Business actually declined.

FY09 Subcontract dollars awarded under Air Force Contracts (SSRs)( )

$2.0

$1.61 B

$1.4

$1.6

$1.8

$805 M

$1.07 B

$914 M$1.0

$1.2

Bill

ions

Small Business$805 M

$0.4

$0.6

$0.8 Large Business

$0.0

$0.2

$0.4

FY09 Mid Year SSR Reports FY09 Full Year SSR Reports

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Source: eSRS – 17 May 2010 - FY09 data not finalized

(Cumulative Dollars) (Cumulative Dollars)

FY09 is the first full year of SSR data in eSRS for contracts outside of the CSP

FY09 - Mid-Year SSR Reports FY09 - Full Year SSR Reports

Major Challenges

Small Business performance trend – percentages leveling off Perception that Small Business = high risk Perception that Small Business = high risk “Insourcing” causing a disproportional impact on Small Business Achieving maximum impact from the recently released Presidential

Executive Orders (26 April 2010)Executive Orders (26 April 2010) Subcontracting program is a “check-the-block” program Consolidation and bundling (under strategic sourcing): Inadequate market research Resource challenges force “simple” sourcing approaches: Single acquisitions take fewer resources than multipleSingle acquisitions take fewer resources than multiple

acquisitions Small Business Specialists are double and triple-hatted Nearest Task Order contract for consolidated efforts

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Nearest Task Order contract for consolidated effortsSmall Business Solutions of Choice!

www.AirForceSmallBiz.org

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Small Business—The Future!Future!

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Contact Us

Office of Small Business ProgramsOffice of Small Business Programs

SAF/SB

1060 Air Force Pentagon

Washington DC 20330-1060

703-696-1103

Swww.AirForceSmallBiz.org

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Back-up Slidesp

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Air Force Priorities

Continue to Strengthen the Nuclear EnterpriseContinue to Strengthen the Nuclear Enterprise

Partner with the Joint and Coalition Team to Win Today’s FightWin Today’s Fight

Develop and Care for Airmen and their Families

Modernize our Air and Space Inventories,Modernize our Air and Space Inventories, Organizations & Training

Recapture Acquisition Excellence

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Recapture Acquisition Excellence

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Interagency Task Force:Small BusinessSmall Business

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Interagency Task Force: Veterans Small Business DevelopmentVeterans Small Business Development

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