One of the reasons I established this publication was to support the efforts of public and private sector entities that seek to contribute to the advancement of diverse communities through employment, procurement and educational opportunities.  In recent years, media outlets have focused on corporate efforts to utilize minority and women owned businesses.  However, most corporate efforts pale in comparison to the efforts of federal, state and local governments.  The public sector has a decisive lead when it comes to measuring key indicators such as participation goals, attainment levels, size of contracts and the employment of members of diverse communities.

Federal agencies have been charged by the U.S. Congress to seek opportunities to contract with small and disadvantaged businesses.  In 1985, Congress passed the Small Business Act (Public Law 85-536).  The bill states:

For nearly 20 years, the US Department of Transportation (DOT) and other departments and agencies of the Federal Government have sought to comply with Congress’ mandate to expand opportunities for small businesses. The Federal Aviation Administration (FAA) is one the agencies within the US Department of Transportation that is aggressively seeking to transact business with small companies.

Understanding the Role and Structure of the FAA

The FAA oversees the safety of civil aviation in the United States.  In fiscal year 2000, the FAA spent $2.4 billion with small businesses.  The following year, the FAA awarded $3.1 billion. The FAA’s current fiscal year ends in September, and the agency expects to report another $3 billion in expenditures with small businesses.

The FAA is a large agency with a complex organizational structure.  The agency is responsible for setting standards and regulating everything associated with flight in the United States.   For example, the FAA regulates the manufacture and operation of aircraft, ranging from small general aviation aircraft to commercial airliners, even space launch vehicles.  In addition, the agency rates and certifies airmen, and it oversees the operation of airports.  To ensure the safety of the National Airspace System, the FAA operates a network of airport towers, air route traffic control centers, and flight service stations.  The agency also develops air traffic rules, allocates the use of airspace, and provides for the security control of air traffic to meet national defense requirements.

Many of the FAA’s operating units are organized to support the agency’s mission in nine geographic regions.  (Click to see maps of FAA regions.)  Each region has an Administrator who coordinates the activities of the multiple operating units within the region.  In addition to the regional structure, FAA units are also organized into Lines of Business.  Most Lines of Business maintain their own hierarchical structures, which peak at FAA headquarters in Washington, DC.

Getting Down to Logistics

The Logistics Division of the FAA is one of the agency’s Lines of Business.  The Logistics Division falls under the FAA’s Acquisition Management System (AMS) and is charged with procuring goods and services needed to support the FAA’s mission within its nine operating regions.  The Logistics Division also oversees the construction and installation of visual and electronic aids within the nation’s air navigation system.  Working with small businesses is a key objective of the Logistics Division.  In fact, the Acquisition Management System espouses the following principle:

African Americans, Hispanics, Asian-Americans, Native Americans, women, and people with disabilities are among those who qualify as socially and economically disadvantaged individuals.  Other important group to the AMS are veterans and veterans with disabilities.

Veterans Make Promising Prospects in the Great Lakes Region 

The startup success rate of veteran owned businesses is higher than other business startups, which makes them attractive to federal agencies, such as the FAA.  Many veterans attribute their success to the skills and discipline that they developed while in the Armed Services.  Congress began funding programs to help Veterans find jobs and obtain education and business loans at the end of World War II, but there were no services specifically designed to help Service-Disabled Veterans enter and compete in the marketplace until 1999.  

The Logistics Division within the Great Lakes Region is at the forefront of agency efforts to ensure that the doors of economic opportunity remain open to businesses owned by service-disabled veterans. Of the approximately 80 million small businesses in this country, 4 million (about 5-percent) are veteran-owned.  “That’s more than one would expect, given the number of veterans in the total population,” said Don Russo, Small Business Advocate for the FAA’s Great Lakes Region.  Eight states make up the FAA’s Great Lakes Region.  They include Ohio, Michigan, Indiana, Illinois, Wisconsin, Minnesota, North Dakota and South Dakota. 

Connecting through a New Database

The FAA’s Great Lakes Logistics Division is currently developing a database for service disabled-owned businesses.  The division intends to use the database to solicit businesses whenever contracting opportunities become available.  To qualify, a business must be at least 51-percent owned and controlled by one or more service-disabled veterans.

The term ''service-disabled'' applies to men and women who incurred a disability in the line of duty while serving in the United States Armed Services.  Veterans must be certified as by the Veterans Administration.

“This database will help us share the many contracting opportunities generated each year by the FAA’s Great Lakes Region,” said Russo.  “Although the database is not ready for use at this time, FAA officials stated that it will be ready soon.  “You’ll have to keep checking our website to see when it goes active,” said Russo.  “Once it is activated, to register in our database, go to www.agl.faa.gov, and look for the heading Service-Disabled Veteran Owned Business Database Register.”

When the database becomes operational, vendors will be asked to supply the agency with the following information: Contact name, title, organization name, address, work phone, fax number, e-mail address, North American Industry Classification System (NAICS) codes (if known), type of business, Disabled Veteran status.  NAICS codes are available at www.census.gov/epcd/www/naics.html.

Small business owners are encouraged to become familiar with the FAA’s budget because it reveals where agency dollars are allocated during the fiscal year.  “The agency spends a lot of money each year, and opportunities abound for aggressive, capable businesses,” declared Russo.

While the agency expects Service-Disabled Veteran Owned Businesses to benefit from its outreach efforts, other small and disadvantaged businesses are also encouraged to contact the FAA regarding procurement opportunities.  A visit to the FAA’s web site will provide interested vendors with an opportunity to supply the agency with information about their service capabilities.  The FAA routinely notifies vendors that are in its database of appropriate procurement opportunities.  The FAA’s notification system provides vendors with an efficient way to learn about opportunities that can contribute to their growth.

The End
 

A Brief History of Federal Assistance to 

Service-Disabled Veteran Owned Businesses