Pentagon Seeks to Advance Category Management Practices Adoption to Meet Small Business Goals

1 min read

The Department of Defense’s office of the undersecretary for acquisition and sustainment has released a memorandum calling on DOD components to achieve small business objectives through the adoption of category management best practices.

According to the Friday-signed memo, category management practices and the implementation of the Tier 2 Spend Under Management credit could help encourage small disadvantaged businesses and other socioeconomic small businesses to take part in DOD procurement initiatives.

The Pentagon’s acquisition office stated that the use of best-in-class contracts should not hamper the ability of DOD components to meet socioeconomic small business goals.

The memo also informs DOD offices and agencies of their ability to secure an automatic Tier 2 SUM credit for all contract awards to socioeconomic small businesses.

The credit can be applied towards small business set aside contracts to increase small business participation, which is now tracked under a new Tier 2-Socioeconomic Small Business category,” the memo reads. “This facilitates pursuit of the best acquisition strategy to maximize awards to socioeconomic small businesses.”

Earlier this month, DOD unveiled a strategy outlining three objectives to expand the department’s partnerships with small businesses as part of efforts to harness the full potential of the small business industrial base.

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