1. Outlook on Department of Defense Contracts Native Hawaiian Organizations Association 2017 Business Summit Conference 23 August Presented by: Ms. Alice M. Williams Associate Director for Workforce Initiatives & Acquisition Strategies DoD Office of Small Business Programs 1

2. Office of Small Business Programs
Department of Defense
Office of Small Business Programs
Mission: We maximize opportunities for small businesses to contribute to national security by providing combat power for our troops and economic power for our nation.
Vision: We are a network of small business professionals with common values, shared information and regular communication who partner with acquisition professionals seeking small businesses to fulfill DoD procurement requirements

3. What Small Businesses sold to DoD in FY16 as Prime Contractors
$20.4B, NAICS 54
Professional, Scientific &Technical Services
35%
$15.1B, NAICS 31-33
Manufacturing
26%
$9.5B, NAICS 23
Construction
16%
$4.4B, NAICS 56
Admin & Support, Waste Mngt & Remediation 8%
85% of DoD procurement from small businesses is in 4 industry sectors.

4. Data Analysis
DoD Small Business Statistics & Analysis (as of 21 Aug 17)
To help manage an innovative and cost competitive small business industrial base, DoD has an array of small business offices across the department. Small business procurement ranges from over $17B by the Army to about $8M by the Defense Microelectronics Activity. Each small business office has similar objectives and functions. But they do vary based on the mission of the organization they support.

5. DoD Needs An Agile Industrial Base
Focus on Top Three Priorities:
Ensure our military is ready to fight (Lethality)
Strengthen our alliances and partnerships
Institute reforms throughout the Department
The DoD Office of Small Business Programs contributes to these priorities by working to create opportunities for you to bring innovative solutions to the department and improve your capacity as a member of the defense industrial base.
We focus on small businesses and work closely with large businesses, particularly in the areas of Subcontracting and special programs, like the Mentor Protégé Program (MPP), Small Business Innovation Research (SBIR) and the Rapid Innovation Fund Program (RIF).
DoD needs you to provide a strong industrial base for the department to face threats from China, Russia, Iran, North Korea and international terrorism. We're all aware of what's going on with North Korea and its ballistic missile program. US government intelligence agencies verified that Russia hacked into websites to disrupt our recent election and terrorists use commercially available information and communication technologies to plan and conduct attacks globally.
We live in a challenging time and need to use our national power – particularly our industrial base – to stay ahead of our adversaries.
To address these challenges, the Secretary of Defense directed the DoD to (refer to slide)

6. Subcontracting
SBA assigns subcontracting goals to each Federal Agency, taking into account subcontracting goals and achievements over previous 2-3 years
Subcontracting goals for remaining socioeconomic categories (SDB, WOSB, SDVOSB, HUBZone) are statutory
Subcontracting Achievements are based on $ reported in Summary Subcontract Report (SSR) submitted for
Individual Subcontract Plan: encompasses all subcontracting under prime contracts and subcontracts with the awarding agency, regardless of the dollar value of the subcontracts
Commercial Subcontract Plan: includes all subcontract awards under the commercial plan, based on total $ subcontracted for Federal government and non-Federal government
DoD Comprehensive Subcontract Plan: includes all subcontract awards under comprehensive plan
DoD Point of Contact: Ms. Janice Buffler;

7. DoD Mentor Protégé Program
The Department’s Mentor-Protégé Pilot Program was established November 5, 1990 (Public Law ) in an effort to respond to concerns, raised by DoD prime contractors, that many SDBs did not possess the technical capabilities to perform DoD subcontract requirements, making it difficult for these prime contractors to achieve their SDB subcontracting goals.
Current Status:
Reauthorized November 25, 2015 via National Defense Authorization Act (NDAA) 2016
Direct reimbursement of costs and credit towards subcontracting goals maybe incurred through September 30, *
* IAW Public Law , Section 861, subsection (j)(2)

8. Mentor Protégé Program Objectives
Provide incentives to major DoD contractors by:
Furnishing technical and business assistance to Small Disadvantaged Businesses (SDBs), firms that employ the severely disabled, Women-Owned Small Businesses (WOSB), Service-Disabled Veteran- Owned and Controlled Businesses (SDVOSB) and Qualified HUBZone Small Businesses
Enhancing their capabilities to satisfy DoD and other contract and sub-contract requirements
Increasing the overall participation of protégé firms to perform as subcontractors and suppliers under DoD, other Federal agency, and commercial contracts; Fostering the establishment of long-term business relationships which benefit DoD and the Defense Industrial Base (DIB)
Increasing DoD Protégé firms’ technical and business infrastructure capabilities to contract with DoD or other Federal agencies
Demonstrating benefits to the Warfighter through technology transfer
DoD Point of Contact: Mr. Shannon Jackson;

9. Small Business Innovation Research
Congressionally-mandated program started in 1982
Mission: to promote technological innovation and economic growth through Federal investment
Established to fund R&D at small businesses
Funds cooperative R&D between small businesses and research Institutions
Encourage participation by minorities and disadvantaged persons in technological innovation
Funded as a set-aside assessment of extramural R&D budget
DoD Point of Contact: Mr. David Sikora;

10. Rapid Innovation Fund
Established as the Rapid Innovation Program (RIP) in Section 1073 of the Fiscal Year 2011 National Defense Authorization Act (NDAA)
A competitive, merit-based program
Accelerate fielding of innovative technologies into military systems
Reauthorized in the FY 2016 NDAA until Sep 30, 2023
Re-designated as the Rapid Innovation Fund (RIF) within the Department of Defense (DoD)
DoD Point of Contact: Mr. Ted Bujewski;

11. Practice Cybersecurity
Categorize Information Systems
Select Security Controls
Implement Security Controls
Assess Security Controls
Authorize Information Systems
Monitor Security Controls
1. Comply with DFARS clause
2. Use the Risk Management
Framework (NIST Pub ).
Access Control
Media Protection
Awareness & Training
Personnel Security
Audit & Accountability
Physical Protection
Configuration Management
Risk Assessment
Identification & Authentication
Security Assessment
Incident Response
System & Com Protection
Maintenance
System & Info Integrity
DoD shares sensitive data with contractors. If compromised, the information in the wrong hands may threaten national security and put service members at risk. We’re all aware of numerous public and private sector breaches. All DoD contracts include a Defense Federal Acquisition Regulation Supplement (DFARS) clause to safeguard unclassified data. DoD cyber standards involve the Risk Mitigation Framework and break down cybersecurity into 14 areas, such as Access Control, Training and Auditing. Another area is incident response, which includes the requirement to report to dibnet.dod.mil – search defense industrial base cybersecurity – to report if your system was hacked. Learn about cybersecurity and make it a priority.
Under the interim rule issued in December 2015 (DFARS §  ), DoD contractors (including small businesses) must adhere to two basic cybersecurity requirements:
They must provide adequate security to protect information from unauthorized access and disclosure; and
They must rapidly report any potential breaches and cooperate with DoD to respond to these security incidents.
Small businesses can use the Risk Management Framework to divide the project into small, manageable chunks and work toward attaining compliance. Incurred costs may also be recoverable under a cost reimbursement contract pursuant to FAR
Contractors may use subcontractors and/or outsource information technology requirements. However, contractors are responsible for ensuring that the entities they use meet the cybersecurity standards. If they anticipate using cloud computing, they must disclose that to the contracting officer and adhere to the standards in the Cloud Computing Security Requirements Guide (SRG) produced by the Defense Information Systems Agency (DISA).
If there’s a breach, don’t’ panic, cybersecurity is a dynamic environment. Contact DoD immediately and report the incident to the dibnet.dod.mil website. Be helpful and transparent - preserve and protect all evidence and capture as much information about the incident as possible.
3. Implement NIST checks
and controls (Pub ).
4. Report incidents to