Small businesses: showered with praise, but not shown much love.

• Author: Erwin, Sandra I.
• Position: Defense Watch

At almost every public appearance in front of an industry crowd, government officials give the mandatory shout-out to small businesses. The standard rhetorical fare includes promises that the Pentagon will increase small business participation in defense contracting, lower barriers to attract new suppliers, open up the market to innovative firms, etcetera, etcetera.

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This may sound like music to the ears of many entrepreneurs, particularly those with advanced technological expertise, who typically have shunned government contracting for its notorious red tape and creativity-stifling tendencies.

To the chagrin of many cash-strapped small businesses, words have not turned into action. In fact, the barriers to entry keep getting higher. While Pentagon higher-ups and politicians shower praise on small businesses, in the muddy trenches of government contracting, it can be ugly. According to industry accounts, the entire procurement process is a path strewn with obstacles.

Military procurement leaders who work with the private sector have recognized the problem.

"We put small businesses in a really tough position," said Brig. Gen. Frank L. Kelley, commander of Marine Corps Systems Command.

"Getting small businesses involved in defense is a pet peeve of mine," he told contractors at an industry conference. Small firms today can only get their foot in the door by "partnering up with a big guy," said Kelley.

Over the course of an extensive career managing military projects, Kelley noticed that the only interaction he ever had with industry involved large prime contractors. "I had zero access to smaller companies on behalf of the government," he said. "It irritated me. I'm sure it irritates small businesses," he added. "I don't know how we fix it. ... We have to find some ways for government to get to the small business guys."

Small business executives could not agree more.

"As a small company, it gets harder every day to do business with the Defense Department," said Lance Criscuolo, president of Zyvex Technologies, a manufacturer of lightweight boats in Columbus, Ohio.

"The barriers to entry go up, not down," he said in an interview. It starts with the amount of paperwork and bureaucracy, which makes it cost-prohibitive for most small companies to even try to compete. Suppliers may have products that the military seeks, but once they take a close look at the bidding process, they get a rude awakening. "You need an army of...