Department of Defense
Northeast Regional Council Meeting
DISTRIBUTION STATEMENT A.
Approved for public release;
Distribution is unlimited.
18 Oct 06
Mr. Robert V. Sever
Deputy Director
MDA Office Of Small Business Programs
Missile Defense Agency
Approved for Public Release
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Agenda
• Defining A Small Business
• Political Issues
• Business Issues
• Potential Frameworks For The Future
• A Few Thoughts
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Missile Defense Agency Mission
• Develop an integrated Ballistic Missile Defense
System (BMDS)
- To defend the United States, its deployed forces,
friends and allies
- From ballistic missiles of all ranges
- Capable of engaging them in all phases of flight
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Integrated Ballistic Missile Defense System
Sensors
Defense Support Space Tracking And
Program
Surveillance System
Boost Defense
Segment
Sea-Based Radars
Forward-Based Radar
With Adjunct Sensor
Midcourse Defense Segment
Midcourse
X-Band Radar
Early Warning
Radar
Terminal Defense
Segment
Airborne Laser
Kinetic Energy
Interceptor
Command,
Control, Battle
Management &
Communications
Aegis Ballistic
Missile Defense
/ Standard
Missile-3
Multiple Kill Vehicle
Ground-Based
Midcourse
Defense
Terminal
High Altitude
Area Defense
Patriot
Advanced
Capability-3
NMCC USSTRATCOM USNORTHCOM USPACOM EUCOM CENTCOM
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OSBP Mission / Vision
• The Mission of the Office of Small Business Programs (OSBP) is
to enable the Missile Defense Agency to gain access to the
efficiency, innovation, and creativity offered by small businesses
• OSBP has a Vision to remain an integral player and value added
advisor in the development of MDA acquisition strategies to
ensure compliance with laws, directives, goals, and objectives
related to small business initiatives; to serve as a facilitator for
accessing untapped small business resources; and to serve as an
advocate for small business in MDA procurements
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DAS Core Processes
• SB office administration
• SBIR / STTR program management
• Targeted outreach
• Small business database
• MDA program support
• Interface with OSD, Services, other
defense agencies and SBA
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DAS Organization / Functions
MDA Office Of Small
Business Programs
HBCU / Mentor
Protégé Programs
• Manage and execute HBCU / MI
and mentor-protégé programs
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Outreach Program
• Manage / execute MDA SB
outreach program
• Provide advisory and assistance
services to MDA programs / offices
• Provide oversight to MDA LB
prime contractor SB
subcontracting efforts
• Plan, manage and direct MDA
Small Business Program
• Liaison with SBA, DOD, and
other Services and Agencies
• Provide representation on
MDA ASP / KCB
• Prepare reports to DoD
• Answer external inquiries
(GAO, IG, etc.)
SBIR / STTR Program
• Manage / execute MDA SBIR /
STTR Program
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What Is A Small Business ?
• A business entity
- Relatively smaller than other competitors in the same field
- May fit “traditional” paradigm of a small company with
driven leadership but limited resources; or
- May actually be a large company with substantial resources
- It can all depend on the NAICS code
- Question: Are you really “small” when your company has
950 employees ?
• A political entity
- Substantial socioeconomic support from Congress and the
“public”
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Defining A Small Business
• Selection of a NAICS code
- Is done carefully; we realize the impact
- Reflects the type of work anticipated to be performed on the
contract
– No “games” are played to include specific contractors or
vendors
– If two or more NAICS codes overlap, MDA will choose
the code which enables the widest amount of competition
to meet the requirement
– Size status is based on current staffing or earnings, not
determinations made years ago
– May be limited by NAICS code definitions even though
they appear to be unrealistic
The MDA Goal: Fair Competition
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Political Issues
• How much of the pie should go to SB ?
- Congressional oversight / expectations
- OSD oversight / expectations
- Internal agency oversight / expectations
– Senior leadership
– Small business office
- Program manager expectations / concerns
• The equation is often “zero sum”
• How can the equation be changed ?
- Externally
- Internally
• What is really reasonable ? Achievable ?
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Business Issues
• There are three types of competition
- Small business versus large business
- Small business versus small business
- Challenger versus incumbent (“why change ?”)
– This is often the most important !
– Critical choice during acquisition strategy
• What does small business bring to the game that’s
advantageous ?
- Initiative ?
- Resourcefulness ?
- Cheaper overhead / cost of doing business ?
- There must be good, definable advantages
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Business Issues
• Four blocks of program management
- Technical performance
- Cost
- Schedule
- Risk
• Past performance is most important
- Provides confidence level for Program Manager
- Performance versus promises
- Includes subcontract performance
– May be key to making transition to prime
– Even better if on “MDA” prime contracts
- MDA source selection directive makes past performance
the most important criterion
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Business Issues
• Risk
- The salient factor in acquisition strategy
- Most program managers are risk-averse
– Especially if incumbent has performed well
– Especially if PM fears SB challenger will have limited
resources, expertise, experience
- Is failure affordable ?
• Incumbent perspective
- Good performance shouldn’t equal a loss of business to
satisfy a political agenda
• Small business perspective
- Unless the small business can offer better performance !
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What Does The Future Hold ?
• More emphasis on SB strategizing
- Particularly in the service arena
– SETA support
– Infrastructure support
- More emphasis in individual elements
– At agency level for oversight
- Global BMDS support contracts ?
– By location
– Across locations
– May be mixture of LB and SB
• More emphasis on SB subcontracting
- Less emphasis on “corporate” plans
- More incentives in contracts
- Some RFPs may have SB subcontracting
requirement
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A Few Final Thoughts
• The barriers are not impenetrable
- No “entitlement” to small business
- Emphasis on performance vice promises
- If you have facts and a good argument, your chances
increase dramatically
- Increasing SB share = overcoming inertia
- Increasing SB share = overcoming fear
• For all program managers, mission is first in priority
• There is only so much “pie” available to be eaten; pick the
right slice !
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MDA Small Business Goals
FY06 Goals
• Small Business
7.8%
• Small And Disadvantaged Business
1.5%
• Woman-Owned Small Business
1.5%
• HUBZone Small Business
0.5%
• Service-Disabled Veteran-Owned
Small Business
1.0%
• HBCU / MI
5.0%
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FY06 Goals To Performance To Date (%)
FY06 Goals (%)
FY05 Actual (%)
FY06 Actual (%)
SB
7.8
7.8
8.4
HUBZone
0.5
0.0
0.0
SDB
1.5
0.5
0.9
WOSB
1.5
1.3
1.2
SDVOSB
1.0
0.0
0.6
HBCU / MI*
5.0
6.3
9.5
Business Category
(As of 18 SEP 06)
* Historically Black Colleges and Universities / Minority Institutions (HBCU / MI) percent of total dollars
awarded to Institutes of Higher Education
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FY06 Goals To Performance To Date ($)
Business Category
FY 06 Actual ($M)
Goals ($M)
FY05 Actual ($M)
SB
243.6
292.9
HUBZone
15.6
0.0
0.1
SDB
46.8
18.6
28.5
WOSB
46.8
37.7
36.2
SDVOSB
32.4
0.4
17.7
(+432%)
HBCU / MI*
0.8
1.1
1.5
(+36%)
(As of 18 SEP 06)
261.8
(- 10.6%)
(+0%)
(+53%)
(- 4%)
* Historically Black Colleges and Universities / Minority Institutions (HBCU / MI) percent of total dollars
awarded to Institutes of Higher Education
Note: As of 18 SEP 06, MDA has spent 18% less overall in FY06 compared to FY05 due to budget cuts
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MDA OSBP Points Of Contact
Lee R. Rosenberg
Director
Office of Small Business Programs
703-553-3400
lee.rosenberg@mda.mil
Robert Sever
Deputy Director
Office of Small Business Programs
703-553-3400
robert.sever@mda.mil
Mike Zammit
Program Manager SBIR and
STTR Programs
703-553-3408
michael.zammit@mda.mil
Dr. Pravat Choudhury
Program Manager for MentorProtégé and HBCU/MI Programs
703-553-3402
pravat.choudhury@mda.mil
Kristin McDonald
Admin Asst
703-553-3400
kristin.mcdonald.ctr@mda.mil
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Acquisition Strategy
(Market Research / Sources Sought)
Market Research Findings
Yes / No
• MR techniques used
- Sources sought
- Industry Days
- Internet
- Other
• Commercially available
• Modify commercial item
• Non-Development item
• Modify user requirements
• Market environment
- Government leverage
- Std commercial practices
Sources Sought Information
Industry Interest
Number Of
Responses
# Acceptable
-0-
-0-
• Small Business
• Small Disadvantage
- 8A
- Native American
• Women Owned
• Service Disabled Vet
• HUBZone SB
• Large
Total
• Partnering
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Acquisition Strategy
(Panels)
• Chaired by the Director or the Deputy Director for
Acquisition Management
• Approves acquisition and contracting plans of MDA
program and staff offices for the acquisition of goods and
services to support the BMDS and MDA
• Voting membership includes the Director for Contracts
and the Director for Small Business Programs
Bottom Line…
The Small Business Community Has A Seat At The Table
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Competitive Acquisition Milestones
Identify Need
Final ASP
Industry Day
Identify
MDA IPT
DA
Approval
Brief SSAC On
Solicitation
Release
Brief SSAC on
Competitive
Range
Competitive
Range
Established
SSAC Brief
SSA Decision /
MDA Post
Clearances
Conduct
Market
Research
Develop
Requirements
Release Synopsis
Solicitation
Approval
MDA Pre
Clearances
Purchase
Request
Intro ASP
Acquisition
Planning
Draft Solicitation
Draft Source
Selection Plan
Draft Solicitation
To
Industry
Solicitation
Release
PRAG Info
Received
Proposals
Received
Discussions
Final Proposals
Final Proposals
Received
DD350
Congressional
Notification
Contract Award
Debrief
Unsuccessful
Offerors
Legal Review
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Sole Source Acquisition Milestones
Acquisition
Planning
Synopsis
Identify Need
Identify
MDA IPT
Develop
Requirements
Draft Solicitation
Conduct
Market
Research
Requirements
Package
Incentivization
Draft AP
J&A
RFP Review
Intro ASP
DA
Approval
Final ASP
Draft RFP
Release
AP Approval
MDA / Prime IPT
Team Meeting
J&A Approval
Final RFP
MDA Pre
Clearances
Alpha
Negotiations
DD350
MDA Post
Clearances
Congressional
Notification
Contract Award
Synopsis
Legal Review
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BSSP Process
Identify Need
Intro ASP
Identify
MDA IPT
Final ASP
Develop
Requirements
DA
Approval
Conduct
Market
Research
Acquisition
Planning
Requirements
Package
Synopsis
Evaluation of
Capability
Statements
Draft RFP
Release
Requirements
Oral
Presentations
Final RFP
Release
Proposal
Evaluations
Negotiations
Discussions
Final Proposals
Award Decision
DD350
MDA Post
Clearances
Congressional
Notification
Contract Award
Synopsis
Legal Review
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