WASHINGTON, D.C. - Chairman Roger Williams (R-TX) and Ranking Member Nydia Velázquez (D-NY) of the House Committee on Small Business, along with Representatives Nick LaLota (R-NY) and Hillary Scholten (D-MI), have written a letter to Secretary of Defense Lloyd Austin, urging the Department of Defense (DOD) to enhance the integration of small businesses into the defense industrial base. The committee members expressed concern over the decline in small business participation in government contracting and emphasized the crucial role that small businesses play in promoting innovation, competition, and boosting military readiness.
Chairman Williams highlighted the importance of small businesses in both the economy and national defense, stating, "Our nation's small businesses play a vital role in our economy, but they also play a critical role in the defense of our nation." He further expressed his eagerness to work together with Secretary Austin to address this issue.
Ranking Member Velázquez echoed Chairman Williams' sentiments, emphasizing that small businesses are essential in the defense industrial base. She raised concerns about the increasing dominance of larger companies in government contracts, leaving small contractors on the sidelines. She stressed the need for robust participation by small firms in the defense industry, especially in light of rapid technological advancements that are changing the nature of American defense.
In their letter to Secretary Austin, the committee members highlighted the decline in the number of small businesses in the defense industrial base over the past decade, which poses a significant national security and economic risk. They pointed out that the 21st century presents new challenges that require agile production lines and rapid innovation, making the participation of small businesses crucial. They also emphasized that the private sector drives most technological development and that a stronger connection between the DOD and small entities is vital to keeping up with technological advancements.
The committee acknowledged the efforts made by the DOD to address barriers to entry for small businesses, such as the implementation of the Small Business Strategy and existing programs like the Small Business Innovation Research (SBIR) program and the Army R&D marketplace. However, they expressed concern about the continued decline in small business participation and sought input from the DOD on how to better integrate small businesses into the defense industrial base.
Specifically, the committee requested an update from the DOD on its actions to address issues identified in the Small Business Strategy, including contract bundling and consolidation, subcontracting plan accountability, and revisions to size standards for North American Industry Classification System codes. They also requested information on the DOD's progress in creating additional market synergies and market intelligence tools and any regulations or policies that may be burdensome to small businesses.
The letter, signed by Chairman Roger Williams, Ranking Member Nydia Velázquez, Representative Nick LaLota, and Representative Hillary Scholten, aims to highlight the importance of small businesses in the defense industry and seek collaborative solutions to ensure their continued participation.
The integration of small businesses into the defense landscape is crucial for fostering innovation, competition, and military readiness. By addressing the decline in small business participation, the Department of Defense can tap into the ingenuity and capabilities of small entities, promoting national security and economic growth.
To find out more, go to this link: https://smallbusiness.house.gov/news/documentsingle.aspx?DocumentID=405825
