L. A. SECTION ENTERPRISE CHAPTER

SMALL BUSINESS ACCESS TO AEROSPACE PRIME CONTRACTORS

Al Boldon is the Small Business Liaison Officer in the Space Technology Sector (mostly the former TRW) of Northrop-Grumman. He is a focal point within the corporation to ensure that Northrop-Grumman meets its obligations under government contracts to support small and disadvantaged businesses. He briefed various small business attendees at a meeting of the L. A. Section Enterprise Chapter on September 21, 2004 on how to gain access to aerospace prime contractors. Northrop-Grumman employs about 120,000 people in all 50 states. Annual sales volume is about $26-30 billion, serving 25 international markets. The company, with headquarters in Century City, consists of seven sectors. Bolton is a key player in the Space Technology Sector, which employs 12,000 people and does about $4 billion worth of business annually.

As a small businessman, it is important for your company to seek a long-term relationship with the prime. An important first step is to research the prime’s website to determine the prime’s mission and potential interest in the products/services that you offer. Next you must present proven evidence, via your own website, business card, and/or marketing brochures, of specific technical and management qualifications and special eligibility under 8(a)/SDB, WOSB, Native American and Veteran set-asides.

It is important to achieve inclusion in the prime’s data base. The prime wants to be sure that you are certified as a Small Disadvantaged Business (SDB), Woman Owned Small Business (WOSB) or other set-aside category through registry in the Department of Defense (DOD) Central Contract Registration (CCR) database at www.ccr.gov. He also wants your organization to provide current data relevant to his mission and interests, and to prepare a company-specific briefing explaining how you would add value to the prime’s activities and why the prime should use your services rather than those of competitors performing similar work.

Bolton’s search for help from a small business typically begins with a request for help by a program manager in the prime’s organization. It is essential that, as a small businessman, you meet the technical and purchasing personnel, plus other administrative personnel that you will be interfacing with. You should request a visit/survey of the prime contractor’s facility to bring about such face-to-face meetings, and an overview presentation by the prime covering current programs, outstanding proposals, and future markets. Your briefing should be specific with regard to capabilities and potential value you would add, and any special contract performance and competitive advantages the prime would stand to gain. Since the time spent by your audience is costly, do not overstay your welcome by losing focus or brevity. If your audience likes your briefing, they will hold you over.

Certain capabilities are more sought after than others. Currently there are many firms offering services in information technology, but capabilities in flight control are in short supply. An ISO9000 capability is favorable.

Bolton warns us not to expect too much from one meeting, and to offer follow-up dates to deal with questions for which immediate answers were not available. He considers it important for the small businessman to be prepared to participate in electronic data interchange (EDI) with the prime. He suggests networking through trade shows, business fairs, and seminars involving aerospace primes. He encourages teaming with other small businesses and partnering in certain occasions.

A program of special interest is the Mentor-Protégé program. The government provides the prime with a modest sum, typically about $1 million, to pay his people to help train small businesses to develop certain capabilities. If a company carves out a niche, indicates a desire to achieve a given capability and makes a good case for it, the prime can assign its people to help bring about that development. The small company must pay its people who are involved in the effort. The Mentor-Protégé program can sometimes be the key to rapid growth for a small business.

If you wish to view the PowerPoint slides presented by Mr. Bolton, log on to the AIAA Los Angeles Section Enterprise Network web site, www.aiaaenterprise.org, click on Archive of Speaker Presentations at Chapter Meetings and then click on the Download Slides package next to his name.

Richard Denison

Guido Frassinelli