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Defence industries

Defense Logistics Agency Exceeds Small Business Contracting Goal for Eighth Consecutive Year

Strategic Insights

— 2 min read

The Defense Logistics Agency (DLA) has demonstrated its commitment to supporting small businesses and the US economy by exceeding its small business contracting goal for the eighth consecutive year. In fiscal 2020, DLA awarded over 40% of its annual contract dollars to small businesses, surpassing the Defense Department's mandated goal of 32.36% of eligible contracting dollars. This achievement is particularly noteworthy during a time when the nation was responding to the COVID-19 pandemic, with DLA's engagement with small businesses playing a crucial role in meeting the urgent demands for personal protective equipment and other essential supplies.

Key Takeaways:

  • DLA exceeded its small business contracting goal for the eighth consecutive year, awarding over 40% of its annual contract dollars to small businesses in fiscal 2020.
  • The agency's engagement with small businesses in fiscal 2020 was largely driven by the nation's response to the COVID-19 pandemic, with DLA awarding contracts worth $2.04 billion to support the COVID-19 relief effort.
  • 81% of the COVID-19-related contracts, or $1.66 billion, were awarded to small businesses, with a significant portion going to woman-owned and small disadvantaged businesses.
  • DLA's Office of Small Business Programs worked closely with small businesses to ensure they could deliver on time and at the right price, which allowed the agency to provide optimum support to the warfighter and its whole-of-government partners.
  • The agency's Procurement Technical Assistance Program (PTAP) played a critical role in assisting small businesses in competing for contracts, generating new suppliers for DoD, and building a stronger industrial base.
  • PTAP operates 94 centers, called PTACs, assisting businesses in 49 states, Washington, D.C., Puerto Rico, Guam, the Commonwealth of the Northern Marianas, and in regions established by the Indian Affairs bureau of the U.S. Department of the Interior.
  • DLA small business specialists are reaching out to small business owners in fiscal 2021 to increase their knowledge of the agency's mission and share contracting opportunities.

Statistics:

  • 40%: The percentage of DLA's annual contract dollars awarded to small businesses in fiscal 2020.
  • $2.04 billion: The total value of contracts awarded by DLA to support the COVID-19 relief effort.
  • 81%: The percentage of COVID-19-related contracts awarded to small businesses.
  • $1.66 billion: The amount of COVID-19-related contracts awarded to small businesses.
  • 14: The number of prime contractors awarded contracts worth $280 million for disposable and reusable isolation gowns, with 13 of them being small businesses.
  • $120 million: The amount of contract dollars awarded to woman-owned small businesses for disposable and reusable isolation gowns.
  • $90 million: The amount of contract dollars awarded to small disadvantaged businesses for disposable and reusable isolation gowns.

Sources:

  • Defense Logistics Agency. (2020). DLA Exceeds Small Business Contracting Goal for Eighth Consecutive Year.
  • Dwight Deneal, Director of DLA's Office of Small Business Programs, quoted in Defense Logistics Agency. (2020). DLA Exceeds Small Business Contracting Goal for Eighth Consecutive Year.
  • Mike McCall, Associate Director of Small Business Programs at DLA Troop Support, quoted in Defense Logistics Agency. (2020). DLA Exceeds Small Business Contracting Goal for Eighth Consecutive Year.
  • Sherry Savage, PTAP Program Manager, quoted in Defense Logistics Agency. (2020). DLA Exceeds Small Business Contracting Goal for Eighth Consecutive Year.

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