DoD Section 809 Panel - Lack of Balance

Many of our Industry's top thought-leaders have posted articles on their respective websites or on LinkedIn about the negative impact of the 809 Panel to the small business community.

At some point, the small business community must coalesce on this issue. When Steven Koprince initially wrote his article, I responded on LinkedIn with the following comments.

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"Bloody brilliant article Steve. Bloody. Brilliant. Thought-leadership at its finest. Thank you!

Several Years Ago

I tried to spearhead a push to facilitate a "greater level of balance" on the direction of strategic sourcing and category management. I spoke with members of Congress but their focus (last couple years) has been protecting their positions and not rocking the boat. It is very difficult to articulate to, let a alone convince a Senator or Representative that the impact of "streamlined" operations, which are awesome for the taxpayer, can lack the balance in protecting the small business community, especially the companies run by their constituents, the community that drives the nation's economy.

When GSA briefed Congress on the Federal Strategic Sourcing Initiative, and said, "Hey! Look how much we're streamlining and saving taxpayer dollars. . ." they used similar half-truths, similar to the 809 Panel, about small business utilization. They said, "The small business community has nothing to worry about. We are still focused on small business and we'll take care of them. 23% of procurements will still go to small business." But similar to this panel, GSA was communicating and positioning to thwart those that would attack or reject their findings.

For example, for the purposes of this discussion, let's assume DoD buys $1,000,000 worth of that product or service. If $230,000 goes to small business, they meet their small business requirement.

Now. . . let's assume there are 600 companies that sell that product or service. Through strategic sourcing and now the 809 Panel's recommendations, the small business community becomes decimated and instead of 600 companies, there are only 25. This is a byproduct of strategic sourcing and category management. That $1,000,000 will still be procured but the government, without any doubt, will politically tell the congressional committee, "We feel for all these small businesses. We understand their points. But check this out! We are consolidating these products or services. Guess what? 23% went to small business! You see? We're protecting the taxpayer and still meeting our small business requirements!"

Forget for a moment that 90% of small business contractors were forced out of the market and in five to ten years, DoD will wonder why there is less innovation and why the private sector continues to accelerate beyond public sector capability and does not want to spend the time, money, and energy to help the government.

Lack of Balance

This is the lack of balance between government financial decisions and the needs of the country and small business community. It's myopic. It's a future train-wreck. What Steve Koprince outlined in his article is what I refer to as the necessity for requiring more of a "balance between both sides of the government's supply chain."

What the panel recommended in Volume III fails to recognize that the decision is much more than simply a financial formula.

Small Business Community Fails To Mobilize

In 2016, when I and several others attempted to mobilize the small business community, it was a complete and total failure. Fairly depressing at that. I wasn't alone. Our team consisted of economics professors and other industry leaders. What we found was what the government both anticipated and took advantage of -- that small businesses are focused on cash-flow and have a fairly tactical vision and approach to the market.

Are there small businesses and industry leaders that are willing to take up the cause? Yes, of course there are. Steve Koprince, Joshua Frank, Guy Timberlake, June Marshal, Gloria Larin, hundreds of our colleagues and business owners.

But that's not enough to sway congressional oversight. It will take a swell of the general small business population, which the 809 Panel knows full well is highly unlikely to happen. In this scenario, I strongly doubt that the SBA can or will successfully protect the small business community without a swell of the small business community.

We Need To Work Together

Finally, I do not believe this is a lost cause. The small business community needs to coalesce and start thinking more strategically. There are a group of us, about a dozen, that provide a level of "thought-leadership" within our industry. I think it's time for us to formally come together. The 809 panel is just one of dozens of similar committees and programs taking place right now.

Writing articles about the results of strategic sourcing or the results of the 809 panel are important. But none of these articles, including this one, will make a single ounce of difference unless we come together.

I'm chewing on the concept but it will take all of us to successfully influence this. The government expects us to complain piecemeal. This is our failure and our albatross. Whether it is strategic sourcing, category management, streamlining, or whatever term you want to use... we are already late to the party.

I'm ready to engage. How do we facilitate the rest of the community? Perhaps it starts with us coming together, building a coalition. Saying you want to join a coalition is easy. Willing to step-up and play a leading role takes time and desire.

I don't have all the answers. But I KNOW we must work together.

Not that I have an opinion.

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Award-winning business coach, professional speaker, and #1 bestselling author, Mr. Frank is a nationally recognized authority on government sales and business acceleration. With 28 years in the government market, he speaks nationally on small business strategy. He specializes in the development and implementation of techniques and strategies required to differentiate, position for, and win government contracts. Mr. Frank’s coaching has helped companies win more than $2 Billion in government contracts. 

His training, with hundreds of testimonials, is consistently rated as being real-world, highly educational, and brutally honest.

Managing Partner at RSM Federal, Mr. Frank is author of The Government Sales Manual and the #1 bestseller An Insider's Guide To Winning Government Contracts – Real World Strategies, Lessons, and Recommendations. Mr. Frank serves as Chairman of the Board for the Midwest Veterans Advocacy Foundation (VAF) / Veterans Business Resource Center (VBRC). Mr. Frank also supports the SBA's Emerging Leaders Program and judges applications for Arch Grants providing startup funding for entrepreneurs.