DOD ACQUISITIONS MANAGEMENT - Week 8.docx - Running head...

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Running head: DOD ACQUISITIONS MANAGEMENT AND SMALL BUSINESS 1 Name School DEFM 531 Date
DOD ACQUISITIONS MANAGEMENT AND SMALL BUSINESS Abstract The purpose of this research is to look at the Department of Defense Acquisition program and how it uses Small Businesses to acquire products and services. The Small Business Act and it’s subsequent amendments created the Small Business Administration as well as the requirement that large companies use small business in contracts over a threshold amount. The creation of the small business set-aside goals ensured that small businesses have the opportunity to compete for federal contracts. The Small Business Administration oversees the set-aside programs and reports to Congress whether or not the government is meeting the set-aside goals. The regulations that have been passed are intended to help foster a partnership with Department of Defense and small businesses. The use of small business in government acquisitions helps the economy and creates business innovation. 2
DOD ACQUISITIONS MANAGEMENT AND SMALL BUSINESS Introduction The Department of Defense (DoD) uses the Defense Acquisition System to procure goods and services and is governed by DoD Directive 5000.01. The Defense Acquisitions System consists of three processes, Acquisitions, Requirements and Funding to accomplish this goal. The policies contained in DoD Directive 5000.01 are in place to make sure that the acquisition system is flexible, responsive and innovative. ("DoDD 5000.01 11-02-2017", 2003) The Acquisitions process is used to procure goods and services, at a fair and reasonable price, which includes the planning and negotiating of contracts, analyzing the cost/price of contracts and administering the contracts. ("Acquisition Process Overview," 2018) Enclosure 1: Additional Policy, Section E1.1.24 of DoD Directive 5000.01 addresses Small Business Participation and states that “Acquisition strategies shall be structured to facilitate small business participation throughout a program’s lifecycle through direct participation or, where such participation is not available, through fostering teaming with small business concerns.” ("DoDD 5000.01 11-02-2017", 2003) It was mandated that small business participation shall be facilitated in the acquisition process and the DoD Office of Small Business Programs (OSBP) was created to give guidance to the different military and DoD agencies. OSBP ensures that opportunities for small businesses are created to meet mission requirements while ensuring funds are expended in a responsible manner. (“DoD Office of Small Business Programs (OSBP),” n.d.) In an attempt to ensure that small businesses are allowed to compete for contracts, small business goals are established every year, and the Small Business Administration (SBA) negotiates those goals with each government agency. Not only are small businesses governed by DoD Directive 5000.01 but they are also covered by the Federal Acquisitions Regulation (FAR), the Code of Federal Regulations and the Small Business Act (5 U.S.C.631 (“Purchasing & Small 3

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