The Rhode Island Manufacturing Association is creating a list of small businesses
that are certified to do work for defense contracts, according to the association’s
Executive Director John Grady.
“Companies like Raytheon and Electric Boat are always looking for vendors to contract out work, but right now, there is no real mechanism for them to find any,” Grady said.
The two companies, and others in the state, continuously procure contracts for work from the Department of Defense, like Raytheon Electronics System’s $5.5 million award on March 17 for the development and testing of a missile launching system.
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The defense department requires “prime” contract recipients to subcontract work to small businesses as much as possible, according to department information.
In fiscal year 2003, Rhode Island ranked 41st in United States defense contract awards, totaling $489,037,514 – up one spot from number 42 in 2002 when the state received $364,615,329, according to the Department of Defense.
In the United States, $62.7 billion in prime contracts was awarded to small businesses in 2003.
“When a military department, like the Navy, needs something built, it submits a request for proposals either on its Web site, in newspapers, newsletters, or on the Federal Register,” said Pentagon spokesman Glenn Flood. “It’s an open-bidding system, just like anything else, where companies have to bid for a contract and the department chooses which one it wants.”
The market for defense contracts is active in the state and can mean enormous revenue for a small business, according to Rhode Island Small Business Development Center Program Manager Don Cotham. But, the contracts can also hold problems, he said.
“It’s a competitive market, and the contract demands can be hard to fill. Some of these contracts can actually cause problems for small businesses if taken on and can’t be completed on time. If a company is late on delivery more than once, it won’t be first on the list for future contracts,” Cotham said. “Also, if you aren’t producing the best quality on time, you could be delaying military deployments and compromising troops. It isn’t like making cupcakes.”
Businesses have to prove competency and become certified to procure defense contracts or subcontracts. They are then assigned a “Data Universal Numbering System” used by the government to identify contractors and their locations.
The Small Business Administration also developed a business matchmaking initiative last year where owners can schedule one-on-one meetings with buyers from federal, state and local governments to “cut through the red tape” that often surrounds federal contracting, which can be elusive.
The Rhode Island Manufacturing Association’s list, “Rhode Island First,” will allow members to look up other certified contractors on its Web site, www.rimanufacturers.com.
The Rhode Island Procurement Technical Assistance Center and the Rhode Island Economic Development Corporation also have a Web site, www.federaldollars.com, that links businesses to register for a computerized bid-matching service.
The Small Business Development Center of Bryant College holds seminars and helps small businesses find and apply for the contracts, as does the Rhode Island Economic Development Center.
