Congress recognized in the Small Business Mobilization Act of 1942 that small business did not have "economies of scale" necessary to compete with large companies and that a price differential might be required to keep such companies mobilized in support of war efforts. The Armed Services Procurement Act of 1947 established "…a fair proportion of total Federal purchases and contracts be placed with small business concerns" in peacetime and wartime. The 82nd Congress in 1951 determined in the early years of World War II that 100 large corporations received 67% of Federal prime contracts while 1/6th of Nation's small businesses closed their doors. Congress declared this mistake must not be repeated and that our mobilization program must extend down to small businesses because they are the major source of our productive strength. The Small Business Act of 1953 created the Small Business Administration (SBA). It was later revised in 1978 to establish Federal prime contract and subcontracting goals.
Federal Acquisition Regulation (FAR) 19.201 – The Government's (Department of the Navy's) policy is to provide "maximum practicable" prime and subcontract opportunities to small business. Goals & targets are assigned in various small business categories to ensure this policy is fulfilled.
The Department of the Navy's Office of Small Business Programs actively supports the Secretary of the Navy's objective to "identify and develop small business concerns that support the Navy-Marine Corps force for tomorrow" through outreach, training and counseling. Special emphasis is placed on assisting small businesses that have been historically underutilized or have had difficulty participating in our procurement process. It is our intent to bring faster, more efficient information on Navy forecasted procurement opportunities, thereby providing the business community adequate time to develop business strategies. Navy buying activities are working diligently to accomplish our small business program goals. Our Mission is to ensure that every small business that wishes to do business with the Navy has the necessary knowledge about the program and tools to successfully participate either as a prime contractor or a subcontractor. Please utilize the information on this website to help you navigate how to do business with the Navy.