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The Department of Defense’s Office of Local Defense Community Cooperation released its Fiscal Year 2023 Defense Spending by State report to help states and communities better understand how Defense procurement, personnel, and grant spending impact their economies.

The report’s graphs, maps, and tables present a range of findings, such as total spending figures, categories of contracted goods and services, major defense vendors, numbers and types of defense personnel, and grants awarded by the Department of Defense (DOD).  This snapshot provides public and private leaders with a starting place to assess how defense investments across installations, communities, and the private sector can be optimized by supporting regional innovation, industrial capability and capacity, supply chain resilience, and cultivating a skilled workforce.

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Contractors are a critical force-multiplier during any disaster response. The U.S. Army Corps of Engineers (USACE) relies heavily on these partners in industry to help meet mission requirements quickly, efficiently, and effectively. To facilitate rapid engagement with the industrial base, USACE maintains an inventory of already awarded contract tools, pre-positioned to support major emergency response missions.  These contracts are part of the USACE Advanced Contracting Initiative (ACI), a program developed and implemented specifically for emergency and disaster scenarios. This suite of targeted contract tools provides USACE with a rapid response capability to support a wide range of mission requests, to include needs such as bottled water, packaged ice, debris removal, and temporary roofing. All companies doing business with USACE must be registered in the System for Award Management (SAM) and their registration must be in an active status.

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The FY2023 data in eSRS indicates that, for categories where a goal was established, 64% of the goals for small business on completed contracts were met or exceeded, and between 40 and 55% of the five socioeconomic small business goals were met or exceeded. The aggregate dollars lost by all small business categories when contractors fail to achieve their goals is substantial. If contractors had met their subcontracting plan goals on completed contracts, small businesses would have received $1.5 billion more in subcontracts, SDBs would have received $857 million more, and SDVOSBs would have received $383 million more.

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The Defense Department will be starting a new program for “commercial tool demonstrations” to help small businesses learn about and strengthen cybersecurity measures “within the next year,” a department official said Aug. 8. In fiscal year 2023, Congress required DoD by 2027 “to establish a new program where we actually do commercial tool demonstrations for small businesses to help them to understand what their risks are when it comes to foreign control and influence,” Farooq Mitha, director of the DoD Office of Small Business Programs said. The strategy was designed to make it easier for small business to “do business with us, reduce barriers to entry, create some more alignment between our small business programs and provide more resources to small companies that are looking to do business with us,” Mitha said.

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The Department of Defense is executing a warfighter-centric innovation strategy to meet the urgent needs of the National Defense Strategy. Recognizing there is no silver bullet that can solve all the challenges DoD faces, DoD’s innovation initiatives span every stage of capability development and every process step, from policy to acquisition.

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In 2022, Secretary of Defense Lloyd J. Austin III directed the creation of a “tiger team” to look into ways the Defense Department could make the Foreign Military Sales system less foreboding for partner nations interested in purchasing U.S. military hardware. The team wrapped up operations in the spring and transitioned into a Continuous Process Improvement Board, or CPIB, meant to implement solutions recommended by the tiger team and to also be on the lookout going forward for new and novel ways of their own to improve the FMS system. Since then, the department scored wins by implementing four tiger team recommendations: establishment of the CPIB, creation of the Defense Security Cooperation Service, standing up of the Security Cooperation Execution Focus Forum, and the development of an acquisition and sustainment tool kit.

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The Office of Strategic Capital (OSC) announced the release of a Federal Register Notice and accompanying Request for Information (RFI) open for public comment. OSC seeks public input as it prepares to issue loans and loan guarantees for critical technology and supply chain components in support of the office’s mission to attract and scale private capital for national security. OSC invites public comment on the RFI from companies and financial institutions, including their representatives and industry associations, regarding contemporary market activity, capital requirements, and where OSC-provided loans and loan guarantees can support investment in critical technologies. OSC is particularly interested in responses from companies and lenders working in the 31 component areas identified as promising critical technologies and assets in Section 903 of the FY24 NDAA (The National Defense Authorization Act of 2024).

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Fincantieri Marinette Marine is looking to take the pressure off the bodies of its workers. Building massive military-grade ships takes a lot of hard work. In a field that can take a toll on the human body, Fincantieri Marinette Marine is testing out a wearable exoskeleton device with some of its welders and painters. The device, a Comau MATE-XT Exoskeleton, is worn like a backpack and is designed to provide support to the arms and shoulders, as well as improve posture. The trial is in its third week and will continue through next week.

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The Department of Defense (DoD) today published the National Defense Industrial Strategy (NDIS) Interim Implementation Report, detailing the progress that DoD is making toward implementing the actions laid out in the NDIS.

The NDIS, released in January by the Office of the Assistant Secretary of Defense for Industrial Base Policy (OASD(IBP)), offers a strategic vision, and identifies four strategic priorities for modernizing the defense industrial ecosystem. The Interim Implementation Report outlines initiatives from across DoD, showcasing how efforts to build a resilient industrial base are an ongoing, DoD-wide priority. DoD will be sharing further details on NDIS implementation later this summer.

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The federal government spent $14.9 billion on advertising contracts over the last 10 fiscal years to inform the public about programs and services, among other things. The government provides contract opportunities to businesses owned by minorities, women, and other socially or economically disadvantaged groups.

It was found that contracts with these businesses represented about 14% of total federal advertising spending, or $2.1 billion, during FYs 2014-2023. Additionally, federal agencies spent about $1.1 billion for COVID-related advertising contracts, and 3.5 percent, or about $37 million, was awarded to these businesses.

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