Department of War Initiates a $1 Billion Direct Investment for Small Business Growth

The recent announcement from the Department of War regarding a $1 billion direct investment to suppliers is generating buzz in the small business community. With this fiscal boost aimed at enhancing supply chain reliability, it’s a tremendous opportunity for small and medium-sized businesses (SMBs) to engage with the government sector. If you’re an SMB interested in entering or expanding your footprint in government contracting, this post dives into what this means for you and how we can assist in your pursuit of opportunities within the public procurement landscape.

The investment is structured as a $1 billion convertible preferred equity investment in L3Harris’s Missile Solutions business, which the company plans to spin off into a separate, publicly traded company in the second half of 2026. The government will hold a minority stake, and the deal is intended to ensure a steady and reliable supply of solid rocket motors for various missile programs. 

Key Facts:

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This move is part of the Pentagon’s new strategy to negotiate and invest directly with critical suppliers to bolster the defense industrial base and increase production speed and resilience.

For SMBs, many of which are family-owned or operated, this presents an excellent opportunity to think about how your services or products can align with the needs of the government. If you’re considering getting started but haven’t yet registered for the System for Award Management (SAM) or the General Services Administration (GSA), this could be the push you need to take those steps.

Benefits of Government Contracts

Engaging with government contracts can afford you several advantages:

1. Stability: Government contracts often come with multi-year agreements, providing a steady revenue stream.

2. Less Competition: Many government contracts are set aside for specific groups, including veteran-owned small businesses (VOSB), Women-Owned small businesses (WOSB), and HUBZone businesses, which can reduce competition.

3. Credibility: Partnering with the government can enhance your business’s credibility, making it easier to attract other buyers.

Getting Started with Government Contracts

If you’re new to the world of government contracting, there are several steps to consider:

1. Register with SAM: This is the first step to be eligible for government contracts. This system is a requirement for getting paid on federal contracts.

2. Identify Your Niche: Think about the products or services that your business specializes in and how they can potentially meet the needs of government agencies. Visit our Annual Report for insights.

3. Explore Set-Asides: As mentioned earlier, certain contracts are set aside for specific groups. Being classified as a VOSB, WOSB, or HUBZone can offer significant advantages. Check out our qualifications page to see if you qualify.

4. Attend Networking Events: Getting out there and meeting representatives from various agencies can be invaluable.

5. Consider Teaming Agreements: Sometimes teaming up with another business can offer a better chance at winning contracts.

6. Stay Informed on Federal Opportunities: Follow updates to keep track of new opportunities. Get pre-vetted bid opportunities with our Select GCR PRO app.

7. Consult an Expert: If you feel overwhelmed or unsure about the process, it’s always a good idea to consult with experts who specialize in government contracts. We can help with strategies tailored to your business model and goals. Our consultation services can offer insights tailored to your specific situation.

Why Choose Us?

At Select GCR, we pride ourselves on being a trusted ally for SMBs navigating the challenges of government contracting. Not only do we provide the resources needed to understand the complexities of government procurement, but we also strive to empower businesses by offering tailored solutions that resonate with your unique needs. Our experience in working with veteran-owned businesses, minority-owned firms, and small enterprises enables us to understand the challenges you face and the opportunities available to you.

Government Programs Supporting You

The government has numerous initiatives designed to support small businesses, especially those that are minority-owned, women-owned, or serve veterans. Agencies often reserve contracts specifically aimed at promoting diversity in government contracting. We encourage you to take advantage of these programs. Check out this resource on government programs for small business and see if there are programs that fit your business.

Conclusion

The recent announcement of a $1 billion investment by the Department of War is a clear signal of the government’s intent to bolster its supply chains. For SMBs, this presents a unique chance to step into government contracting and gain a foothold in this lucrative market. While navigating this terrain may seem daunting, with the right tools, guidance, and support, your small business can successfully bid on and secure government contracts.

Consider getting started with your SAM and GSA registrations, and reach out to us for assistance tailored to government contracting. By taking these proactive steps, you set the stage for growth and opportunity. Let’s work together to ensure that your business thrives in this evolving landscape.

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Sources:
* Department of War – Announces $1 Billion Direct-to-Supplier Investment to Secure the U.S. Solid Rocket Motor Supply Chain

By utilizing these resources and connecting with experts, you’ll be well on your way to leveraging the opportunities that the government contracting landscape has to offer. Don’t wait, take action today and start paving the path for your business’s success in government contracting.