Over the past few years, the federal government has come under fire for not meeting its goals when it comes to contracting with small businesses, despite laws in place that are supposed to require it to do so. However, this seems not to have been the case this year with the U.S. Department of Defense.
In the 2014 fiscal year, 23 percent of all contracts with the DoD were granted to small businesses, providing about $53 billion worth of work to those companies, surpassing goals set by the department at the start of the year, according to a report from DoD News, Defense Media Activity. Meanwhile, it also granted more than its goal of 3 percent of deals to small companies owned by veterans who were disabled during their service to the country, leading to about $9 billion in contract value.
“This year, the Department of Defense not only exceeded its goal, but it also is on course to exceed the federal-wide goal,” Andre Gudger, director of the DoD’s office of small business programs, told the news agency. “That’s significant – that’s historical, in fact. The department is very interested in technology innovation capability, and traditionally, small business is the hub for innovation in technology. Small companies are typically very agile and nimble. They are very responsive to new and emerging threats, new and emerging technologies and new and emerging capabilities, so being more agile and nimble, they can bring and deliver products to the market faster.”
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However, it should be noted that the small business office at the DoD oversees more than $100 billion in spending, including contracts for the latest in equipment, the report said. Gudger added that one type of nuclear sub contracted by the government is developed or built as much as 70 percent by small businesses specifically, – as prime contracts, rather than sub-contracting out the work themselves. In addition to that kind of work, small businesses also contract with the department to make everything from combat clothing to aircraft.
Owners who want to ensure that their independent enterprises are poised for success might want to consider the ways in which they currently spend money. By taking the time to find more affordable small business insurance policies, such as those for liability insurance, they might be able to save thousands of dollars annually to make themselves just a little sleeker.