Capitalizing on the Air Force's Shift to Non-Traditional Suppliers: A How to for SMBs

The U.S. Department of the Air Force is embarking on a transformative journey in its procurement strategy, creating a wealth of opportunities for small and medium-sized businesses (SMBs) to secure contracts and grants. By turning to non-traditional suppliers for innovative technology, tools, and services, the Air Force is not only enhancing its capabilities but also fostering a more agile, responsive, and technologically advanced military force.

Decoding Non-Traditional Suppliers

Non-traditional suppliers are entities that haven't engaged in a full Cost Accounting Standards (CAS)-covered contract or subcontract within the past year. This category includes small businesses exempt from CAS requirements, firms operating under commercial procedures, and those working exclusively under firm-fixed-price (FFP) contracts with adequate price competition.

The Department of Defense (DoD) uses these terms to determine cost-sharing requirements for Other Transaction agreement awards. This shift towards non-traditional suppliers is a boon for SMBs, enabling them to bypass conventional procurement hurdles and directly contribute to defense innovation. Most small businesses will fall into the non-traditional category, making this a significant opportunity for SMBs to win contracts and grants with the Air Force.

Navigating the Air Force's R&D Landscape

The Air Force's R&D arms, including the Air Force Research Laboratory (AFRL), AFWERX, and the Defense Innovation Unit (DIU), are instrumental in this strategic shift. These entities are actively seeking innovative solutions from SMBs, with the DIU being the only DoD organization focused on accelerating the adoption of commercial technology at speed and scale.

AFRL is looking for ideas to keep the Air Force on the cutting-edge of new and innovative technologies. AFWERX, a Technology Directorate of AFRL, accelerates agile and affordable capability transitions by teaming innovative technology developers with Airman and Guardian talent. By understanding the objectives and processes of these entities, SMBs can better position themselves to win contracts and grants.

Targeting Key Technology Areas

The Air Force is particularly interested in technologies that can enhance its operational capabilities. For instance, the DIU's "rocket cargo" initiative seeks solutions for delivering cargo to, from, and through space using uncrewed space vehicles. This presents a unique opportunity for SMBs specializing in space technology and logistics.

Artificial Intelligence (AI) is another area of interest for the Air Force. SMBs with robust AI solutions for uncrewed aircraft and complex warfighting tasks stand a good chance of securing contracts and grants. However, it's crucial for these solutions to demonstrate reliability and effectiveness in high-consequence situations.

The APFIT Program: A Golden Opportunity for SMBs

The Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E)) recently announced the second set of projects to receive funding via the pilot program to Accelerate the Procurement and Fielding of Innovative Technologies (APFIT). The APFIT program aims to transition technologies from pilot programs, prototype projects, and research projects into production, with priority given to those developed by small businesses and/or non-traditional defense contractors. This program is an additional tool the DoD can use to propel innovative capabilities across the “Valley of Death” and into the hands of the warfighter.

What This Means For SMBs

The Air Force's shift towards non-traditional suppliers is a game-changer for SMBs. By aligning their innovative solutions with the Air Force's strategic objectives, SMBs can seize this opportunity to secure contracts and grants, contributing to the defense sector's technological advancement. This shift not only enhances the capabilities of the Air Force but also fosters a more agile, responsive, and technologically advanced military force.

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