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TALKING POINTS

DOD AND DLA BUNDLING INITIATIVE: 

JEOPARDIZING SMALL AEROSPACE BUSINESSES

WHAT’S HAPPENING

  • The USDOD and the Defense Logistics Agency (DLA) are developing a Bundling Initiative to award 10-year multi-billion-dollar contracts to megalithic companies (OEMS) like Lockheed Martin, Boeing, Northrop Grumman, and General Dynamics.

  • They are attempting to make people believe this bundling initiative is necessary and justified by statute and regulations. 

  • These statements are also often coupled with promises to small businesses that these big companies will be encouraged to incorporate their current small business suppliers.

  • However, they add the caveat that the OEMs only have to do this ‘to the greatest extent possible’, followed by the statement that it is ultimately up to them how to build their supplier base, including subcontracts with lower tiered suppliers.

THE REALITY

  • None of the above has been demonstrated as necessary, and many SBs have repeatedly sought clarification, justification, and applied for OEM approved supplier status without success.

  • We believe the bundling initiative is deeply flawed and potentially damaging to the 5000+ small businesses currently supplying competitively priced spare parts to the USDOD and DLA.

END RESULT

  • This initiative may be unlawful and will increase costs to the end users (the government) which the taxpayer will pay for.

  • The DLA is bundling up 1000s of part numbers into gigantic packages and doling those out to larger companies, so that smaller companies can’t compete.

  • These mega companies can unwind the bundles however they want, even to other countries.

  • These companies have no competition and add a huge admin cost to the process, forcing the government to pay for it.

PATH FORWARD

  • The SMALL BUSINESS AEROSPACE INDUSTRY COALITION (SBAIC) will serve as the facilitator to identify the demand and then coordinate an appropriate response to this problem.

  • We need as many small manufacturing businesses to sign on to support these efforts as possible to save companies and save jobs!

“THE PATH TO SUCCESS IS TO TAKE MASSIVE, DETERMINED ACTION.” -Tony Robbins

We need your help now if we’re going to make a difference and save

the future of small aerospace businesses.