Changing Evaluation Criteria Could Boost Small Business Success

With 35 percent of the spending at the U.S. Department of the Treasury going to small companies, Jose L. Arrieta, director, Office of Small and Disadvantaged Business Utilization (OSDBU), Department of the Treasury, wants to challenge the Small Business Act. Arrieta is not questioning the importance of using small businesses or their ability to create jobs and provide value with low overhead, but he contends that the criteria used in evaluating these companies need to change.

Evaluations are conducted on technical strengths and past performance, but the amount of money or time companies have invested in themselves should also be part of the criteria, Arrieta recommends. “A company’s past performance is not the best indicator of success,” he emphasizes. A better indicator is what the small business has already invested that will enable them to provide the desired solution. The system does not need to be changed as a whole, but the contracting community should factor in small business investments, and small companies should articulate how they are investing in their business, he explains.

As part of his talk to the AFCEA Small Business Committee on Tuesday, Arrieta emphasized a resounding theme that “good small companies can provide good value with less overhead.” However, he added that being forced to use a small business can bump up against the mission if the company doesn’t have the right strengths. The contracting side is concerned that small companies cannot always scale up fast enough, he says. But when a company has invested in itself and can show that it understands cost and understands how to scale up, then contracting officers are able to make a better decision.

Two upcoming pilot programs will test the concept of evaluating companies based on the strength or weakness in their own time and money investment. These pilots will help determine the value of the concept for both small businesses and for the contracting community.

Arrieta also talked about contracting opportunities coming up at the Department of the Treasury. The Portals contract, which currently has one contractor that is responsible for both software and infrastructure, will likely be two separate elements in a recompete, and the result would be multiple awards on the software portion with opportunities for small business.

Within the cyber area, there will be work on continuity diagnostic monitoring and SharePoint development targeted to support program officers.

Treasury will also be looking for capabilities that help identify transactional activity that could point to terrorism. “The current administration has used this tool to thwart terrorism more than any other,” he says, adding that “regardless of which political party is in control, this will be the future for fighting terrorism.”

Another potential opportunity involves helping to shorten the alcohol licensing process by using analytics to flag applications that need legal review. There will also be research and development programs, such as at the Bureau of Engraving and Printing, where research will take place to design the next set of currency, making U.S. money harder to counterfeit.

In the long term, Arrieta believes Treasury will be looking for assistance in creating more program formality and rigor.