From Nellis Air Force Base and the Nevada Test Site to the Naval Air Station Fallon, federal institutions continue to help Nevada’s economy grow by contracting with Nevada small businesses at record numbers to assist with federal procurement projects.
“The relationship Nellis has with the local business community is invaluable,” said Major Stephen G. Wood, Air Warfare Center commander, the military’s top commander at Nellis. “Our local contractors are an integral part of our team of dedicated professionals helping us accomplish our mission everyday.”
Commanding officer Capt. Scott Ryder of the Naval Air Station Fallon (NASF) agreed.”With the quality support that NAS Fallon receives from local contractors, our military and government-service civilians can focus on the job of training naval aviators to go into harm’s way. Over a third of my workforce is contract personnel, and the base couldn’t operate without them.”
“Contracting with local businesses is an effective way to obtain support for the Air Force mission,” said George Salton, director of business operations at Nellis, “and it fosters good community relations through day-to-day contact with local firms and business people.”
According to Zip Upham, public affairs officer at NASF, increased federal procurement stems from a more-active U.S. military overseas. He said the U.S.-led war on terrorism creates a need for additional military training. The desert southwest, including New Mexico, Arizona and Nevada, provides great locations without disrupting commercial flights and local residents.
“Those areas are ideal for training because of their lack of nearby population,” Upham said. “And with additional training comes an additional emphasis on procurement on the bases, as well as ongoing maintenance of the facilities.”
For Nevada, both federal and military procurement helps small businesses gain valuable experience with the federal government and creates jobs to improve the economy.
“As a small business owner, one of the areas where I have seen a remarkable increase is federal procurement,” said Jeanne Jones, president and CEO at ALPHA Services, a personnel company specializing in administrative support, training, information systems and security management. “It’s helping create economic development and jobs for the area and keeping the money in Nevada. The (procurement) opportunities are out there for small businesses,” she said. “Even teaming and joint-venture arrangements offer small businesses a chance to get a piece of those Nevada procurement dollars.”
Naval Air Station Fallon
Created as part of the Western Defense Program – initiated to repel an expected Japanese attack on the West Coast in the 1940s – the Naval Air Station at Fallon was a training arena for pilots during wartime efforts before becoming a major command center in 1972. Today, it serves as a complete airfield facility.
For installations like Fallon, deployment of military personnel to war zones creates a void in several key areas, requiring outside support from local businesses. NASF’s Upham said he estimated total contracting services accounted for $44.7 million in 2000. “Technology and training are required (when personnel relocate),” Upham said. “As the military deploys personnel, we still need maintenance of naval aircraft and other projects to be completed.”
Upham said more than 55,000 military personnel visit NASF per year for training, which impacts local lodging, restaurants and recreation – a fiscal statistic that is difficult to quantify. NASF has approximately 1,600 active-duty military personnel on site along with 500-plus civilian government employees, said Upham, who estimated around 1,000 public-sector contractors also have base access through federal procurement projects.
“They perform a variety of support and maintenance functions for the NASF,” he said. “And, (the rate of outside personnel contracting to help us) is growing about five percent a year.”
Nellis Air Force Base
Located just eight miles from downtown Las Vegas and covering more than 11,000 acres, Nellis Air Force Base (NAFB) was created in 1941 to train aerial gunners to qualify for combat duty. Today, NAFB houses the Air Warfare Center and provides extensive combat training for fighter pilots.
With nearly 8,000 service men and women and more than 2,500 civilians working at NAFB, the military depends on local businesses to help with contracted projects like landscaping, runway repairs and various other construction projects.
“Nellis Air Force Base relies a great deal on local contractors to provide goods and services and construction to support Nellis to carry its assigned mission,” said Salton. “Nellis is always looking for additional contractors, especially local contractors to participate in Nellis procurements to improve the competitive market.”
According to Nellis’ Economic Resources Impact Statement for the fiscal year 2002, annual contracts totaled more than $96 million for nearly 1,400 projects. Of Nellis’ service personnel, about 6,000 live off base and account for more than $230 million in payroll.
This large group’s expendable income helps the local economy, as these individuals live, dine and are entertained by local businesses. “They certainly impact the local economy,” said Upham.
Nevada Test Site
Located just 65 miles from Las Vegas and serving as a massive outdoor laboratory and national experimental center, the Nevada Test Site (NTS) covers more than 1,300 square miles of restricted remote land surrounded by thousands of additional acres, which have been withdrawn from public domain as a protected wildlife range and military gunnery range.
Part of the federal Department of Energy, the National Nuclear Security Administration (NNSA) oversees the NTS. Once used for nuclear-weapons testing, the NTS is now a haven for hazardous chemical spill testing, emergency response training, waste management and conventional weapons testing.
Kevin Rohr, spokesperson for the NTS, said classified and security-based establishments were off-limits for civilians for years. Today, the NTS welcomes contractors from local Nevada businesses to handle a majority of the test site’s projects. “We’ve made great efforts to include local contractors over the last several decades to engage small businesses,” Rohr said. “It’s a win for us and for the local business community.”
Increase Seen In Federal Procurement
Federal procurement is increasing in Nevada, according to the U.S. Small Business Administration (SBA). The SBA reports contracts awarded to 8A-certified Nevada companies grew from just over $17 million in 2001 to $40.6 million in 2003.
“This past fiscal year, we contracted over $13 million for runway repair and pavement projects, landscape, physical fitness facilities, asbestos removal and projects to strengthen the security of the Nellis entry gates,” Salton said.
Several Nevada business experts said they agree it’s difficult to measure the exact amount benefiting Nevada businesses, since contracting statistics combine both in-state and out-of-state companies. Although the work is being done in Nevada, sometimes California, Arizona or Utah companies, for example, are contracted. On the flip side, Nevada companies like ALPHA Services obtain numerous contracts outside the state.
“We opened in 1993 serving commercial clients exclusively, and now nearly 50 percent of our business comes from federal procurement,” said Jones, whose company is headquartered in Las Vegas with offices in Colorado and Virginia. “Federal procurement continues to grow from a business standpoint for us.”
But for high-tech contracting requiring specialized training, many disadvantaged business enterprises (DBEs) are too small and do not meet the contracting requirements. As a result, the contracts are awarded elsewhere.
The news is not necessarily all positive for some Nevada businesses, said Michael Graham, deputy state director at the Nevada Small Business Development Center. “While government contracting is economically beneficial to the state, it can be much more beneficial if the agencies are contracting with Nevada-owned businesses,” Graham said. “Currently that number is not as high as it should and can be, especially for disadvantaged business enterprises.”
From a pool of nearly $8.5 million in federal discretionary contract funds, the Regional Transportation Commission (RTC) reported for the fiscal year of 2002-3 just 2 percent of those discretionary dollars – less than $170,000 – was awarded to Nevada minority-owned businesses. In addition, just $140,807 in contracts was awarded to women-owned businesses.
Help is on the way, according to the SBA, as federal agencies continue to press the issue by offering more contracts to disadvantaged business enterprises like small, disadvantaged and women-owned businesses.
Salton said Nellis now has ongoing procurement projects with two Las Vegas-area DBEs. “We currently have two indefinite delivery-type construction contracts with local women-owned small business firms worth $8.2 million yearly,” he said. “Additionally, we have numerous service orders and contracts with local small business firms worth approximately $8 million annually, $1 million of which were awarded to women-owned firms.”
With Nevada military resources needing help from non-military entities, several types of Nevada businesses and staffing services are contracted by the federal government every year for support.
Who Is Benefiting?
One such resource benefiting from federal procurement in Nevada is a partnership between two companies – Bechtel Nevada Corporation and Lockheed Martin Nevada Technologies, Inc. Managing operations at the Nevada Test Site and its related facilities and laboratories, Bechtel Nevada employs more than 3,000 Nevadans – most living in Las Vegas area or at the NTS.
Kirsten Kellogg, public relations specialist for Bechtel Nevada, said of the 1,500 active suppliers at Bechtel, 500 are Nevada businesses. “We cover a variety of areas including IT, general supplies, engineering and construction projects,” said Kellogg, whose company also subcontracts work occasionally to other smaller Nevada business like ALPHA Services.
Bechtel Nevada has handled projects as the primary contractor for the Nevada Test Site since 1996, said Kellogg. From October 2002 through March 2004, Kellogg reported the company awarded $81.7 million in contracting projects to local Nevada businesses.
Kellogg said the bidding and awarding process for businesses interested in procurement contracts is simple. “Businesses interested in federal procurement opportunities register through (Bechtel Nevada) as a supplier,” she said. “And, then we match services with the project’s needs.”
A statewide business assistance outreach program, Nevada Small Business Development Center (NSBDC), helps provide free and low-cost information, assistance, counseling and training for Nevada businesses. Partially funded by the SBA, the NSBDC strives to enhance economic growth in Nevada through business development.
NSBDC’s Graham said he believes there is a need for more administrative contracting at military facilities. “I believe the possibility of contracting out many (military) administrative duties will increase,” he said.
A Continuing Trend
With the U.S.-led war on terrorism expected to heat up in the next 18 months, several industry and business experts said they believe more and more federal procurement projects will be outsourced to Nevada businesses. “Everything I have seen and heard indicates that the contracting opportunities for business in Nevada will continue to grow,” said Graham.
“The trend is upward and we will continue to contract with local business,” Nevada Test Site spokesperson Rohr said. “We want make sure we are good stewards to the community.”
“Based on the lack of maintenance areas available for training (around the country), we expect (procurement) to keep growing (in Nevada) based on military requirements overseas,” NASF’s Upham said. “The more the military is called upon to defend the country and fight terrorism, the more military institutions like Fallon and Nellis are going to require help from Nevada businesses.”
SIDEBAR:
How to Get Involved:
It’s Not a Secret Handshake
With millions of contracting dollars available from federal institutions, how can Nevada businesses get involved in the bidding process?
“It’s really simple,” said Michael Graham, deputy state director for the Nevada Small Business Development Center (NSBDC). “Contractors or subcontractors interested in procurement with military, state, federal or other agencies should go straight to the Internet and get on resource lists from the entities, so their company is alerted of potential projects that meet their criteria.”
Roc Stacey, contract compliance manager at the Nevada Department of Transportation (DOT), said becoming certified as a Disadvantaged Business Enterprise (DBE) is a great avenue for companies to be proactive in their attempts to garner procurement contracts. “Gaining certification as a DBE is a best way to get involved,” Stacey said. “Once accepted, the company is certified throughout the state for various contracting possibilities.” As they pass review and are certified, they become part of the state’s Unified Certification Program, allowing them to bid on federally funded projects, including highway construction, school and airport contracts.
Previous procurement experience plays an important role in being awarded contracts. “Teaming with companies already established in the procurement area is a great way to get involved,” said Jeanne Jones, president and CEO at ALPHA Services. “It’s perfect for getting your company’s foot in the door.”
Websites, including www.nevadadbe.com, www.expand2nevada.com and www.selltoairforce.com, are available for business owners to not only better educate themselves about the process, but to apply for contracts and list consideration. Nellis Air Force Base has an entire Web page devoted to procurement contracting.
Graham said the NSBDC is trying to bring to create a “one-stop-shopping” Website for all interested businesses to gain process information and bidding possibilities for procurement opportunities. “Right now, businesses have to go to multiple agencies and Websites to gather information,” he explained. “We believe this will be a major step forward to keeping the contract money in Nevada.”
