Army Small Business Programs Presented to: TSU Pentagon to the People 14 April 2016 Ms. Pamela Callicutt Deputy Director, Office of Small Business Programs Office of the Secretary of The Army

Department of the Army Office of Small Business Programs The Army Office of Small Business Programs provides oversight and guidance each of the five Heads of Contracting Activity on small business utilization: AMC USACE MEDCOM NGB INSCOM And to over 200 small business specialists located at Army installations around the country. The office also manages eight socioeconomic programs for the Army: Small Business VO/SDVOSB MPP SDB/8a WOSB HUBZone HBCU/MI Subcontracting

Army! Small business big business is in the Department of the Army leads the federal government in small business contracting. Of the $88.71 billion in federal contracts awarded to small businesses in FY2015, $17.48 billion or 19.70 percent came out of Army, more than any other federal agency or military service. That $17.48 billion made up 31.60 percent of total Army contracts. This percentage has grown steadily over the last few years, up from 18.37 percent in FY2008. FY2014 marked the first time that Army surpassed all of its socioeconomic goals. Although the numbers have not yet been finalized, we are on track surpass them again in FY2015. 3

Mission and Vision Mission Advise the Secretary of the Army and the Army leadership on small business related matters. Spearhead innovative initiatives that contribute to expanding the small business industrial base relevant to the Army mission priorities. Leverage the use of minority serving educational institutions in support of Army Science and Technology Programs. Vision To be the premier advocacy organization committed to maximizing small business utilization in support of rapidly fielding a trained, ready, responsive and capable force that can prevent conflict, shape the environment and win the Nation's wars. The success of the Army Small Business Program has been a product of consistent dedication to our mission.

Former Secretary of the Army on Small Business “A critical component of our industrial base is formed by our small business partners, whose contributions drive innovation in the production of goods and services the Army uses. The Army has a strong record of small business partnership that consistently exceeds goals within the Department of Defense.” Former U.S. Secretary of the Army John McHugh letter to former Small Business Administrator Karen Mills Another key factor in our success has been the commitment from senior Army leadership

OSBP Priority Areas Mission Compliance Outreach Training We are always looking for ways to improve Army small business utilization. Our foundations are: mission, compliance, outreach, and training. Our mission was discussed earlier. Our focus on compliance means we are committed to meeting all of the Army’s statutory and regulatory obligations as they relate to small business utilization. Outreach and training are tools that we use accomplish our mission and compliance objectives Some examples are: Outreach Small Business Seminar at the AUSA Annual Meeting Serving as speakers and meeting one-on-one with small businesses at events across the country The Army OSBP website Training Ensure a professionally trained and effective small business workforce The Taylor Building classroom 6

Statutory Requirements: ARMY Small Business Program Advice, Market Research, Training ADVICE 15 U.S.C. §644(k) Acquisition Planning 15 U.S.C. §644(k)(12) Market Research 15 U.S.C. §644(k)(12) Program Review Set Aside Advice 15 U.S.C. §644(k)(10) & 15 U.S.C. §644(a) Assist SB to Obtain Late Payments 15 U.S.C. §644(k)(6) Document the Advice Consolidation Advice to ASA(ALT) and Senior Procurement Execs 15 U.S.C. §644(k)(12) MARKET RESEARCH 15 U.S.C. §644(k)(12) FAR 10.002 SB Specialist conducts Contracting Officer SBA Procurement Center Rep Helps identify capability Guided by SBA regulation FAR Program Office Engagement Learn the client’s business Be involved in the planning stages Qualitatively Good Market Research is thorough SB and CO need to know the business Informs decisions High quality and reliable TRAINING 15 U.S.C. §644(k)(13) Internal Small Business Specialist Program Manager SES/GO/SL Training External Acquisition Training Interagency Small Business Administration For Small Businesses

Statutory Requirements: ARMY Small Business Program Compliance, Policy, Reporting COMPLIANCE 15 U.S.C. §644(k)(4) Bundling 15 U.S.C. §644(k)(5) Consolidation Determinations 15 U.S.C. §644(k)(12) Procurement Forecast Subcontracting Plans FPDS-NG Fair Share Assessment 15 U.S.C. §644(k)(4) & 15 U.S.C. §644(k)(a) The Program Rearview measures Goals SES Performance Dashboard Education & Outreach POLICY 15 U.S.C. §644(k)(4) Policy Development ARs FAR/ DFARS/ DoDD/AFARS Interaction with SBA/ OSD Partnering/Meetings ASA(ALT), DASA(P), HQDA/OGC Army, Navy, 4th Estate OSD/ OSBP OSDBU SBA Guides Procurement Guides SB Handbook Training Guide Unsolicited Proposals Guide SBIR Mentor-Protégé Other Documents DD 2579 REPORTING 15 U.S.C. §644(k)(16) External Reporting Goaling Reports SBA Reporting Other Reporting GAO OMB OFPP OSD Internal Reporting Periodic/Weekly Reports SB Specialist Reports High Level Reporting Compliance Other Short Notice Taskers Newsletter Leadership Messaging

AGENCY/ OFFICE OPERATIONS Statutory Requirements: ARMY Small Business Program Advocacy &Liaison, Agency/ Office Operations ADVOCACY & LIAISON 15 U.S.C. §644(k)(4) Outreach Conferences Industry Days Website Materials/ Information Tie with Market Research Understand Agency Requirements & SB Capabilities Inreach Pentagon Leadership Commands ASARC AOIPT Attendance Procurement Planning Meetings Dashboard Communication Assign SB Technical Adviser – to each SBA Procurement Center Representative Office 15 U.S.C. §644(k)(7) Consult & Cooperate with SBA on duties – in Sections 8 and 15 of the SB Act 15 U.S.C. §644(k)(9) Unsolicited Proposal Processing 15 U.S.C. §644(k)(14) AGENCY/ OFFICE OPERATIONS Supervisory Authority over Agency SB Personnel 15 U.S.C. §644(k)(7) Budget SB Contractor to Civilian Conversions 15 U.S.C. §644(k)(11) Equipment & Supplies Schedule, Intake, Tracking People “Stuff” Functional Community Leadership

FY16 Focus Small Business(SB) participation in Major Systems Programs Army Systems Acquisition Review Council (ASARC) Promote greater involvement of SBs in Army contracts for services Senior Leader Small Business performance elements Support of HBCUs & MIs in the acquisition process Subcontracting plan development and enforcement SB participation in OCONUS contracts Staffing of small business offices and development of SB personnel Maximize use of set-aside authority under multiple award contracts Educate small businesses and institutions about opportunities in the SBIR/STTR programs 10

OSBP Update Mission/Compliance Outreach (3rd QTR FY16) Training Army FY16 socioeconomic goals Outreach (3rd QTR FY16) Pentagon to the People at TN State U, 13-14 April 2016 Access to Capitol, Falls Church VA 4/28/16 SBIR/STTR Annual Conf in DC, 23-25 May 2016 Mentor-Protégé Conf in Atlanta, 30May-2June 2016 Veteran Entrepreneur Symposium in Norfolk, VA, 20-23 June 2016 Training and Simulation Industry Symposium 15-16 June 2016 (location TBD) Reston Chamber of Commerce B2G Matchmaking, 5/5/16 Category Goal Current Status* SB 26.00% 23.84% SDB 11.00% 11.52% WOSB 4.80% 4.56% SDVOSB 3.50% 3.10% HUBZone 3.00% 1.80% Service Portfolio 43.52% 36.83% SAT 68.00% 77.24% Training DoD SBT/SBIR Annual in May Mentor Protégé Program in May Army Small Business in June SBIR/STTR Training for Industry 27 April Concerns/Challenges Inclusion of Overseas Spend for FY16 HASC PSMs inquiry of GSA Oasis contract vehicle impact on SBs Fiscal uncertainty Strategic Sourcing Subcontracting plan enforcement

Army Small Business Performance FY13 – FY16 Data Source: FPDS-NG Small Business Achievements by Awarding Organization Report, 2016JAN19

Army Small Business Performance FY14 vs. FY15 Program  FY14 FY15 FY15 DoD-Assigned Army Goal Total Small Business Eligible Dollars* $60.63B* $55.61B*   Small Business $19.27B $17.56B 26.50% 31.79% 31.58% Small Disadvantaged Business $9.34B $8.62B 11.00% 15.40% 15.50% Women Owned Small Business $3.46B $3.25B 4.80% 5.71% 5.85% Certified HUBZone Small Business $2.11B $1.84B 3.00% 3.47% 3.32% Veteran Owned Small Business $3.44B $3.49B 5.67% 6.28% Service-Disabled Veteran-Owned Small Business $2.49B $2.64B 3.50% 4.11% 4.75% Data Source: FPDS-NG Small Business Achievements by Awarding Organization Report, 2016JAN19

Top 5 Small Business NAICS Codes by Command (FY15) U.S. Army Materiel Command SB Spend: $9.05B U.S. Army Corps of Engineers SB Spend: $5.81B Army National Guard Bureau SB Spend: $1.23B U.S. Army Medical Command SB Spend: $1.04B U.S. Army Intelligence & Security Command SB Spend: $177M 541712 Research and Dev. in the Physical, Eng., & Life Sciences (Except Biotechnology) $1.24B 236220 Commercial and Institutional Building Construction $2.59B $501M 622110 General Medical and Surgical Hospitals $133M 541930 Translation and Interpretation Services $38.1M 541330 Engineering Services $886M 237990 Other Heavy and Civil Engineering Construction $1.41B 541611 Administrative Mgmt & General Mgmt Consulting $78.1M 621111 Offices Of Physicians (Except Mental Health Specialists) $110M 541690 Other Scientific and Technical Consulting Services $24.7M 561210 Facilities Support Services $657M 562910 Remediation Services $652M 541810 Advertising Agencies $53.4M 621399 Offices Of All Other Miscellaneous Health Practitioners $73.6M 541519 Other Computer Related Services $13.4M $482M $212M $39.8M 561720 Janitorial Services $71.3M 541513 Computer Facilities Management Services $10.8M 336413 Other Aircraft Parts and Auxiliary Equipment Mfg. $382M $181M 624190 Other Individual and Family Services $35.0M 339113 Surgical Appliance and Supplies Manufacturing 561110 Office Administrative Services $9.04M Data Source: FPDS-NG Small Business Achievements by Awarding Organization Report, 2016JAN19

Army Construction Spend FY15 Portfolio TSBE$ SB$ SB% Conservation & Development Facilities $2.36B $0.82B 34.73% Restoration Activities $0.32B $0.13B 40.10% Structures & Facilities $4.10B $1.66B 40.58% Total Construction Services $6.77B $2.61B 38.52% In FY15, Army awarded almost seven billion dollars in construction services contracts. Thirty-eight percent of these dollars went to small business. Data Source: FPDS-NG Small Business Achievements by Awarding Organization Report, 2016JAN19

FY15 Army Small Business Spending by State Total: $17.56B ME $19M WA $395M SC $148M PA $456M NC $270M UT $185M NY $332M WY $5M AR $60M IL $179M TN $344M OR $51M CA $851M NV $102M ID $82M MT $31M CO $298M AZ $181M NM $186M Texas $940M ND $12M SD NE $75M KS $77M OK $485M MN $88M WI $132M IA $69M MI $294M MO $242M IN $85M KY MI $117M AL $1.96B GA $463M FL $809M OH $317M VA $2.95B WV $48M LA $326M NH-$39M VT $19M MA-$199M RI-$27M CT-$150M NJ-$612M DE-$30M MD-$1.27B DC-$116M AK $933M   $ 0-50 Million $ 50-100 Million $ 100-200 Million $ 200-400 Million $ 400-1 Billion $ 1 Billion + HI-$234M Data Source: FPDS-NG Small Business Achievements by Awarding Organization Report Adhoc with Vendor State, 2016JAN19

FY14 Army Small Business Spending by State Total: $19.27B ME $54M WA $516M SC $158M PA $516M NC $272M UT $155M NY $393M WY $8M AR $88M IL $214M TN $310M OR $66M CA $1.05B NV $114M ID $84M MT $45M CO $402M AZ $276M NM $236M Texas $1.12B ND $2M SD $12M NE $49M KS $77M OK $531M MN $110M WI $200M IA $69M MI $442M MO $261M IN $94M KY $208M MI $143M AL $1.87B GA $547M FL $900M OH $315M VA $3.11B WV $39M LA $355M NH-$57M VT $21M MA-$232M RI-$24M CT-$113M NJ-$596M DE-$15M MD-$1.21B DC-$112M AK $1.08B   $ 0-50 Million $ 50-100 Million $ 100-200 Million $ 200-400 Million $ 400-1 Billion $ 1 Billion + HI-$350M Data Source: FPDS-NG Small Business Achievements by Awarding Organization Report Adhoc with Vendor State, 2015JUN12

Tennessee Small Business Spending **As of 10 April 2016

Tennessee Small Business Spending YTD spending FY15: 19.1% FY 16: 49.4% **As of 10 April 2016

Tennessee HUBZone and 8(a) Small Business Spending **As of 10 April 2016

Tennessee NAICS Spending Summary Top 5 Small Business NAICS FY11-FY15 237990 – Other Heavy and Civil Engineering Construction 236220 – Commercial and Institutional Building Construction 325998 - Misc. Chemical Product and Preparation Manufacturing 561210 – Facilities Support Services 332993 – Ammunition (except Small Arms) Manufacturing FY15 238320 – Painting and Wall Covering Contractors 238910 – Site Preparation Contractors FY16YTD 315210 – Cut and Sew Apparel Manufacturing 561720 – Janitorial Services **As of 10 April 2016

Tennessee Small Business Spending, 5 Year Summary Tennessee Spending Breakdown by Business Size, FY11 – FY16YTD FY11 FY12 FY13 FY14 FY15 FY16YTD Total $ Percent OTHER THAN SMALL BUSINESS $467.7 M 79.5% $529.0 M 77.1% $264.3 M 67.7% $282.4 M $380.0 M 73.2% $60.0 M 50.6% SMALL BUSINESS $120.7 M 20.5% $157.4 M 22.9% $126.0 M 32.3% $134.7 M $138.9 M 26.8% $58.7 M 49.4% **As of 10 April 2016

Army Services Portfolio & Socioeconomic Goals FY15 Socioeconomic Goals FY16 YTD Socioeconomic Goals Category Goal Tennessee SB 26.50% 27.07% SDB 11.00% 7.76% WOSB 4.80% 7.14% SDVOSB 3.50% 9.03% HUBZone 3.00% 3.96% Service Portfolio 34.00% 61.00% SAT 70.00% 73.19% Category Goal Tennessee SB 26.00% 49.44% SDB 11.00% 11.16% WOSB 4.80% 2.35% SDVOSB 3.50% 1.66% HUBZone 3.00% 7.43% Service Portfolio 43.52% 34.15% SAT 68.00% 69.38% FY15 Service Portfolio Goals FY16 YTD Service Portfolio Goals Portfolio Total SB FY15 FY15 Goal SB% KBS $9,951,201 38.81% 62.05% FRS $48,678,325 58.97% 62.72% ECS $1,419,032 40.61% 29.62% Portfolio Total SB FY16 YTD FY16 Goal SB% KBS $1,232,674 38.81% 16.02% FRS $14,339,094 58.97% 41.87% ECS $18,404 40.61% 0.50% **As of 10 April 2016 9

Army Service Portfolio By Socioeconomic Category FY15 Small Business Small Disadvantaged Business Woman Owned SB Service Disabled Veteran Owned SB HUBZone SB KBS $9,951,201.14 $1,587,982.58 $1,444,667.68 $1,639,792.11 $1,256,811.12 FRS $48,678,325.02 $1,674,247.17 $3,225,264.55 $7,479,222.13 $13,695,463.74 ECS $1,419,031.66 $7,474.66 $838,033.27 $0.00 Total $60,048,557.82 $3,269,704.41 $5,507,965.50 $9,126,488.90 $14,952,274.86 FY16 YTD Small Business Small Disadvantaged Business Woman Owned SB Service Disabled Veteran Owned SB HUBZone SB KBS $1,232,673.54 -$66,133.91 $555,445.35 $898,633.88 $26,459.66 FRS $14,339,093.66 $1,261,930.84 $489,727.19 $422,307.59 $1,010,533.90 ECS $18,404.39 $0.00 $2,500.00 Total $15,590,171.59 $1,195,796.93 $1,047,672.54 $1,320,941.47 $1,036,993.56 **As of 10 April 2016

Opportunities for HBCU/MIs Small Business Innovation Research (SBIR)/Small Business Technology Transfer (STTR) contracts The Army Mentor-Protégé Program Army Material Command (AMC) Historically Black Colleges, Universities and Minority Institutions Program 1.SBIR/STTR Programs -Congress established the Small Business Innovation Research (SBIR) program in 1982 to fund research and development (R&D) by U.S. owned and operated businesses of less than 500 employees. The SBIR Program is the nation's largest source of early-stage technology financing. -Congress established the Small Business Technology Transfer (STTR) program in 1992. Similar in structure to SBIR, STTR provides up to $850,000 in early-stage R&D funding directly to small companies working cooperatively with researchers at universities and other research institutions. 2.The purpose of the Mentor-Protégé Program is to provide incentives for DoD contractors to assist protege firms in enhancing their capabilities and to increase participation of such firms in Government and commercial contracts. The Army Mentor-Protégé Program seeks mentors that have an active involvement of HBCUs/MIs with a minimum subcontracting goal of 5%. Additional consideration will be given to proposals that demonstrate the mentor significantly exceeding the HBCU/MI 5% subcontracting goal. 3. Army Material Command (AMC) Historically Black Colleges, Universities and Minority Institutions Program has a new direction and new support. This culturally diverse program seeks to inform and inspire the Army acquisition or requirements community to always consider the capabilities of HBCUs/MIs in all higher education acquisitions. The program also assists HBCUs/MIs to develop their faculties and students’ business, engineering and science talents.

Figures are in millions DoD SBIR/STTR Budget DoD SBIR/STTR Budget SBIR is 3.0% of RDT&E in FY16 STTR is .45% of RDT&E in FY16 DoD is >50% of Federal SBIR Budget DoD Budget FY15 SBIR: $940M STTR: $130M ($M) SBIR STTR Army $150 $21 Navy $254 $35 AF $284 $39 MD A $79 $11 DARPA $75 $10 OSD $50 $7 DTRA $8.4 1.2 SOCOM $12.6 $1.75 CBD $13 $1.8 DLA/DMEA $5 $.7 NGA $0.5 DHP $50 $7 Department of Defense (DoD) has awarded over $31 billion in SBIR/STTR contracts since the beginning of the programs. Army has budgeted $150 million FY16 for SBIR contracts and $21 million for STTR contracts FY16. As you can see, the Army has a significant budget dedicated to these contracts. These are dollars that you as institutions have access to and gives you monies in addition to grants. Figures are in millions

Army Key Technology Areas Topics Army Key Technology Areas Advanced Materials & Manufacturing Microelectronics and Photonics Sensors and Information Processing Simulation and Modeling for Acquisition, Requirements, and Training (SMART) Engineering Sciences Advanced Propulsion Technologies Power and Directed Energy Biological, Chemical, and Nuclear Defense Life, Medical, and Behavioral Sciences Environmental and Geosciences Advanced Materials & Manufacturing -Intelligent visual inspection of manufacturing components -Developments in cooperative robotics Microelectronics and Photonics -Laser capture microdissection studies Sensors and Information Processing -Automated target recognition for the sensors directorate -Distributed wireless sensor networks Simulations and Modeling for Acquisition, Requirements, and Training (SMART) -Modeling and simulation of dynamic systems Engineering Sciences -Human robot interfaces -Wireless network security Advanced Propulsion Technologies -Jet propulsion technologies Power and Directed Energy -Research to create sustainable energy through agriculture -Hybrid energy systems Biological, Chemical, and Nuclear Defense -Biological control of fire ants -Agricultural bio-security Life, Medical, and Behavioral Sciences -Reducing cancer disparities among minorities in the Middle Tennessee region -Possible implications of Alzheimer’s disease Environmental and Geoscience -Methods for recycling solid wastes -Environmental biology -Maximizing turbine engine performance

Why Small Businesses Participate 1. Largest source of Federal R&D funds for small businesses 5. Follow-on Phase III awards can be sole sourced 2. SBIR invests more than VC community in pre-seed and early stage technology 6. Company may maintain ownership of equipment purchased under Phase I and II 7. Builds credibility of company’s research while learning government contracting processes to become a supplier 3. No dilution of equity 4. Company retains data rights for 4 years (5 years in DoD) 8. State economic development programs, angels, and VC use SBIR as a pre-qualifier for their investment

How DoD Benefits from SBIR/STTR Safe way to try out high-risk R&D Small businesses are often more cost effective and innovative than large primes (i.e., agile, niche) Test drive new companies while they establish a track record Allows Acquisition programs to establish 2nd source/method to augment ongoing programs (risk management)

Tennessee Summary From FY11 to FY15, Small Businesses in Tennessee were awarded 26.1% of obligations from the Army Over $677M awarded over the last 5 years In FY15, Small Businesses received 26.8% of obligations For FY16 YTD**, Small Businesses received 49.4% of obligations The top Contracting Offices for Small Businesses in Tennessee were: USA Joint Munitions CMD (Kingsport, TN or Milan, TN) USACE Nashville District USACE Memphis District USACE Louisville District USPFO Activity (Army National Guard) Most Common services provided by Small Businesses: Construction Chemical Manufacturing Facilities Support Ammunitions Manufacturing **As of 10 April 2016

Contact Army Office of Small Business Programs 703-697-2868 www.sellingtoarmy.com Twitter: @ArmySmallBiz Army Materiel Command (AMC) - Redstone Arsenal, AL Buys: Combat systems, Information systems, Intelligence security information systems Small Business AD: Ms. Nancy Small, 256-450-7953 Website: www.army.mil/amc Army Corps of Engineers (USACE) - Washington, DC Buys: Military/civil works construction projects, Environmental projects Small Business AD: Ms. Grace Fontana, 202-761-8789 Website: http://www.usace.army.mil Army Medical Command (MEDCOM) - Ft. Sam Houston, TX Buys: Medical supplies and health care equipment, Professional services Small Business AD: Mr. Pete Hunter, 210-295-4415 Website: http://www.armymedicine.army.mil National Guard Bureau (NGB) - Arlington, VA Buys: Base operations, Construction/environmental projects Small Business AD: Dr. Donna Peebles, 703-607-1001 Websites: http://www.arng.army.mil 32

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