George Mason University’s Jerry McGinn and the Army’s Douglas Bush discussed the role of small businesses in defense innovation and efforts to improve contracting and collaboration between the Army and the private sector in a Sept. 10 fireside chat at George Mason University.
McGinn serves as executive director of the Greg and Camille Baroni Center for Government Contracting in the Costello College of Business at George Mason University, and Bush is the assistant secretary of the Army for Acquisition, Logistics and Technology.
Bush shared insights on the importance of small businesses in maintaining the U.S. Army’s competitive edge, especially in the face of global adversaries. He emphasized the need for stronger partnerships between the military and entrepreneurial ventures, reinforcing that small businesses have been critical to driving innovation within the defense sector.
He also acknowledged the value of academic institutions that focus on developing contracting expertise and noted the importance of practical contracting knowledge for both government and private sector success.
Bush shared some key figures illustrating the Army’s substantial investment in small businesses. This level of spending reflects the Army’s commitment to fostering innovation and providing economic opportunities for small firms. However, he also stressed that these large sums require ensuring that processes are followed and continuously improving how the government interacts with small businesses.
Bush discussed the administration’s efforts to streamline the Army’s contracting, highlighting programs like Small Business Innovation Research and Small Business Technology Transfer. Establishing a centralized SBIR contracting center reduced the timeline from six months to 30 days, making it easier for small businesses to compete in a fast-paced marketplace.
Later, Bush talked about the Army’s XTech program, which aims to simplify how small businesses enter contracts with the Army. It has held 36 competitions, awarded over $22 million in cash prizes and generated $190 million in follow-on contracts or successful transitions to the private sector. Over half of the XTech applicants are new to working with the Defense Department. The program has had success in attracting new talent.
“We want small businesses to grow into large businesses,” Bush said, explaining the Army’s goal is to help these companies transition into long-term, sustainable partnerships with the government. He also discussed initiatives like Project Vista, which incentivizes larger firms to partner with small, innovative businesses; and the Army Catalyst program, which aims to provide larger awards to help companies scale their innovations.
Bush explained the need to balance speed with accountability in contracting. He stressed the importance of protecting taxpayer dollars.
“We want industry to thrive and make a profit, but we also have a responsibility to ensure that we’re using these funds wisely,” he said.
Discussing the Army’s approach to software development, Bush expressed the importance of adapting to private sector practices while upholding government standards. He introduced the Army’s new software bill of materials policy, which aims to enhance transparency and security in software development by tracking the origin of the software components. An executive order mandates this initiative, which aims to balance speed with careful management of software supply chains.
Bush concluded with the importance of open communication between the Army and the defense industry. He encouraged program managers and acquisition officers to engage with industry leaders to ensure the Army remains informed about the latest innovations, while also ensuring interactions are fair and non-biased.
Overall, Bush’s remarks underscored the Army’s commitment to leveraging small businesses’ innovation to drive defense capabilities forward. While much progress has been made, he noted there is always room for improvement in how the Army engages with small businesses and the broader defense industry.