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NEWS | Nov. 3, 2020

Small Business Was Big Business for NSWC Port Hueneme Division in 2020

By Esmi Careaga NSWC Port Hueneme Division

Despite a pandemic impacting most of the nation’s economy, Naval Surface Warfare Center Port Hueneme Division (NSWC PHD) contributed substantially to the federal government’s vision of a diverse contractor base by significantly exceeding the Naval Sea Systems Command (NAVSEA) small business goals for the 2020 fiscal year.

NSWC PHD actively supports the Office of Small Business (OSB) programs by maximizing opportunities for small businesses that are contributing to national security in providing combat power to our troops and economic stability for our nation. 

The command partners with acquisition professionals seeking small businesses to fulfill the Department of Defense’s (DOD) procurement requirements while giving the workforce a competitive advantage.

According to the Small Business Administration (SBA), the country’s nearly 30 million small businesses represent 99.9% of all U.S. businesses.

The SBA defines a small business as having 500 employees or less, and they serve as the building blocks of the U.S.’s largest corporations. Many provide opportunities for all people, particularly women and minorities.

Small business at PHD

NSWC PHD Deputy for Small Business Dan Mahan has always had a soft spot for small business owners. 

Growing up in Punxsutawney, Pennsylvania, Mahan’s father worked for the railroads.

During slow seasons, Mahan’s father would make extra money with his small house-painting business. 

Mahan said his desire to help small businesses develop came from watching his father build a small company himself. 

“I’ve always longed to help small businesses succeed,” he said. “When the railroads were slow, my dad would reignite his house painting business.”

Small businesses are the engine that keeps America running, and these companies account for 48% of American jobs.

Today, Mahan oversees and is tasked with searching the country for contractors who can support PHD’s mission. 

The command’s small business program seeks a variety of skillsets. Mahan said he’s always looking for skilled laborers who can support positions in the command. 

“I have successfully found many contractors who previously had no footprint with PHD who are now interested in assisting our workforce,” he said. 

The types of small businesses the command mostly handles include professional, scientific and technical services most common to PHD, transportation and warehousing, utilities, construction, manufacturing and several other categories.

The DOD sets goals regarding small business programs that federal organizations should meet for the fiscal year which runs from Oct. 1 through Sept. 30.

In each category, PHD Exceeded the goals DOD set for NAVSEA, which are essentially PHD's goals.

According to Mahan, small business awards across the NAVSEA enterprise totaled an estimated $3.8 billion, PHD’s portion was $239 million.

Mahan said it takes a team effort at PHD to achieve and exceed the NAVSEA enterprise goal of 7.16%. Input comes from more than a dozen commands, including NSWC Corona, in California; Pearl Harbor Naval Shipyard in Hawaii; Naval Shipyard and Supervisor of Shipbuilding, Conversion and Repair (SUPSHIP) in Bath, Maine, among others.

Among the 10 warfare centers, NSWC PHD’s small business procurement percentage of 52% was the second highest, trailing just behind NSWC Panama City. Moreover, at $239 million, PHD’s small business procurement was the largest in the command’s history. 

“Small business procurement at PHD contributed significantly to NAVSEA meeting each of its five goals of Small Business, Small Disadvantaged Business, Service-Disabled Veteran-Owned Small Businesses, Women-Owned Small Businesses, and Underutilized Business Zones (HUBZone) procurement,” Mahan said.

HUBZone businesses

Historically Underutilized Business Zones (HUBZone) are found in economically distressed communities. 

The HUBZone quota assists in promoting job growth, stimulates investment in the zone and promotes economic development.

Meeting small business goals is an everyday process, Mahan said. Once a requirement is identified, market research begins.

“We can find small businesses capable of performing requirements and providing the supply that is needed,” he said. “I feel very satisfied that PHD helped NAVSEA achieve its fiscal year 2020 goals, but it’s a never-ending quest, as we now look forward to achieving the fiscal year 2021 goal,” Mahan said.

Disadvantaged businesses 

Another asset that helped contribute to the fiscal year's success of meeting the command's and NAVSEA's 2020 fiscal goal, Mahan said, was being able to support small disadvantaged businesses such as those owned by women, disabled veterans and located in a HUBZone.

According to the SBA, one out of every 10 American businesses today is owned by a veteran. The reason, according to the SBA, is most veterans are self-starters, risk-tolerant, loyal, disciplined and focused. Veterans are used to wearing many hats and managing stress. 

Senior Vice President of Operations for INDUS Technology, Inc. Steve Huber has worked for the service-disabled veteran-owned small business since 2011. 

Huber, a disabled veteran, served 33 years in the Navy with 10 of those years aboard ships.

He worked his way up from management analysis to program manager to now senior vice president. 

“I’m proud to go to work every day because we are helping the Sailors on the ships get ready to deploy,” he said. “We know that we have our fingerprint on the equipment, and we want to make sure it works the first time for the Sailors out at sea.”

The company, headquartered in San Diego, employs around 300 people across the U.S. and has locations in Port Hueneme; Norfolk, Virginia; Newport Rhode Island; Panama City Beach, Florida; Pearl Harbor, Hawaii, and in other countries.

President and Chief Executive Officer (CEO) Eric MacGregor helped establish the service-disabled veteran-owned small business.

“Nationwide, it’s been a struggle for some veterans to start businesses or find work,” Huber said.  

Having Mahan advocate for veteran-run organizations provides opportunities to compete on contracts set aside for those who served, he added.

Small business contracts are also allocated to women-owned or disadvantaged businesses, which Huber said results in creating a level playing field and allows these like-minded companies to compete equally. 

“This is where Dan and the command’s small business office hold contract authority and can set metrics to measure how well they are serving the underrepresented contractors,” Huber said. 

INDUS provides NSWC PHD with support services in both the air dominance and ship self-defense and expeditionary departments.

Since 2010, INDUS has held four contracts with NSWC PHD.

“NSWC PHD is doing a good job at creating opportunities for all small businesses to compete fairly,” Huber explained. “Small businesses in the defense industry are key to providing innovative and agile results.”

For more information on the NSWC PHD Small Business Program, visit: https://www.navsea.navy.mil/Home/Warfare-Centers/NSWC-Port-Hueneme/Partnerships/Small-Business/