How to Become a Military Contractor

By Barbara Weltman January 13, 2005
Barbara Weltman In this wartime economy, you may be wondering how you can get a piece of the defense department’s pie. There is a special program designed to assist small businesses in qualifying for military contracts. The Mentor-Protégé Program of the U.S. Department of Defense (DoD) assists small disadvantaged businesses (SDBs) and women-owned small businesses to obtain prime contract and subcontract awards.

Who qualifies as a protégé?
You must be either a small disadvantaged business or a woman-owned small business (other eligible protégés include organizations hiring severely disabled workers and businesses run by Indian tribes or Native Hawaiians).

  • A small disadvantaged business - is a business that is at least 51% owned by one or more individuals who are both economically and socially disadvantaged (it is a company meeting the requirement of an 8(a) business set by the Small Business Administration). African-Americans, Hispanic Americans, Asian-Pacific Americans, Subcontinent Asian Americans and Native Americans are presumed to qualify. Others may qualify if they show by facts and circumstances that they have suffered prejudicial treatment over a long period of time. All must have a net worth of less than $750,000 (excluding equity in the business and a main home).

    Businesses must also meet the size standards for small businesses in their industry (based on the NAICS codes). You must apply for certification from the Small Business Administration (www.sba.gov/sdb/indexsdbapply.html). Your application must be accompanied by prior personal and business tax returns to demonstrate your economic disadvantage.

  • A woman-owned small business- is a business owned at least 51% by one or more women. There is no special certification process for this category – you can self-certify your eligibility.

    Finding a mentor
    After qualifying as a protégé, you must find a mentor firm to work with. No one sets you up with a mentor; you must choose a company that you think will be most helpful in your situation. Do you want to work with a small company? A large company? Industry type (e.g., technology) and location may be important factors to you in selecting a mentor.

    You can find a list of active mentors at www.acq.osd.mil/sadbu/mentor_protege/participants/index.htm.

    How the relationship works
    As a protégé, you can obtain various forms of assistance from a mentor. These include:

  • Technical assistance (from management to technology issues).
  • Financing (equity investments and/or loans).

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