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## U.S. Sen. Joni Ernst’s Efforts to Boost Small Business Access to Pentagon Contracts

WASHINGTON ÔÇö U.S. Sen. Joni Ernst, a key player in federal defense policy, is focusing on increasing opportunities for small businesses in securing vendor contracts procured by the Pentagon. Her initiative aims to ensure a more open and accessible federal marketplace for small businesses. Ernst has secured a provision in the National Defense Authorization Act for fiscal 2024 to address barriers that small businesses may face in engaging with the federal government.

The proposed provision would compel the Department of Defense to conduct a comprehensive study of the contracting process for small businesses. This move comes as Ernst’s office reported a significant decline in the number of Iowa small businesses participating in federal contracting. From 945 in 2009, the number has dwindled to 336 in 2022, representing nearly a 65% loss.

To address this issue, Ernst emphasized the critical role of Iowa in contributing to the nation’s defense and expressed pride in including her work in streamlining and increasing competition for defense contracts in the defense bill. As the ranking member of the Senate Committee on Small Business and Entrepreneurship, Ernst’s aim is to unlock more opportunities for Iowans in the defense contracting landscape.

## The Shrinking Universe of Defense Contractors

The U.S. Defense Industrial Base, encompassing a wide range of entities from large firms to universities, has witnessed a reduction in the number of contractors engaged with the Department of Defense. This trend has been ongoing since the early post-Cold War era. Ernst has critiqued this development, emphasizing the need to reform the contracting landscape to promote job creation and ensure national security is supported by a diverse range of American businesses.

Pentagon officials, on the other hand, have emphasized their efforts to build a robust and innovative defense industrial and technological base to support the National Defense Strategy. Despite the department’s assurance, the trend of shrinking and consolidating contractors raises concerns about dependence on a limited number of major developers and manufacturers.

## Small Business Focus in the Defense Landscape

Defense Secretary Lloyd Austin has underscored the vital role of small businesses in keeping military forces combat-ready and strengthening defense supply chains. The Department’s Small Business Strategy report released in January also emphasized the imperative for the department to focus on small businesses.

It is crucial for the Department to prioritize small businesses, as they constitute over 70% of the companies engaged in business with the Department. However, despite their majority presence, they receive a minority of the department’s contract obligations, according to department figures.

In light of these findings, the provision secured by Ernst requires Secretary Austin to submit findings concerning barriers to small businesses to Congress within 180 days of the NDAA’s enactment. The NDAA, with a massive $884 billion budget, was passed by Congress on Dec. 14, and awaits President Joe Biden’s signature. Ernst’s efforts to enhance small business access to federal contracting reflect her commitment to this critical issue.

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