May 2026 Volume 8

OPERATIONS & MANAGEMENT

DOING BUSINESS WITH THE GOVERNMENT By Felipe Reyes

T he U.S. Federal Government is the largest buyer of goods and services in the world. They purchase everything from batteries to food, to nuts and bolts. And the largest buyer within the federal government is the Department of Defense (DoD). In late 2025 Congress authorized a defense budget of $900 billion for fiscal year 2026 under the National Defense Authorization Act (NDAA). This is a 1.9% increase from the previous fiscal year. The NDAA specifically identifies castings and forgings as vital components. NDAA Sec. 126 (d)(3) Covered Components Defined, Castings, forgings and tank structures. Congress set the spending ceiling for the DoD via the NDAA. Individual expenditures are allocated through appropriations. In FY2025 the DoD set a small business goal of 23.17% for prime contracts and 30% for subcontracting; that’s $208 billion and $270 billion respectively. Small business is defined by the Small Business Administration based on NAICS codes, but can range from $7.5 million to over $45 million in average annual receipts. Having a portion of your business in government contracting makes sense. It could add a profitable revenue channel for your business and potentially be a buffer during an economic downturn.

SAM.gov The System of Award Management (SAM.gov) is the place to start. This is where you register your business (for profit, nonprofit, etc.) with the federal government. If you are an established business, you already have everything that’s required, like your Employer Identification Number (EIN), NAICS Codes, physical address, etc. Once approved you receive a CAGE Code and a Unique Entity ID, these are your unique identifiers for government contracting. You can also add multiple Doing-Business-As (DBA) entities in SAM as long as they are legally registered with your state. You must renew your SAM.gov registration every 365 days to keep it active. SAM is also where you search for solicitations using NAICS, key words, or other search criteria. SAM also provides an API so you can have solicitations that match your criteria automatically sent to your inbox. DLA The Defense Logistics Agency (DLA) is the procurement department for the DoD. They operate 6 supply chains that “Drive and sustain Warfighter readiness by delivering unmatched global support as the Nation’s Logistics Combat Support Agency.” The DLA Weapons Support Command in Columbus, OH and Richmond, VA manages the supply chain for ground-based, maritime, and aviation systems repair parts, which is where the forging industry operates.

An Army M1A3 Abrams tank fires during a multinational, joint training exercise at Pabradė Training Area, Lithuania, Dec. 2, 2025. The live-fire exercise focused on developing individual crews, target-engagement skills and multinational interoperability. - Photo Credit: Army Sgt. Terron Williams. DIBBS The DLA operates DIBBS, the DLA Internet Bid Board System, a web-based application that provides the capability to search for, view, and submit secure quotes on Requests for Quotations (RFQs) for DLA items of supply. DIBBS is a specialized procurement system used exclusively by the DLA for purchasing parts and supplies. SAM serves as the overarching vendor database, while DIBBS functions as a bidding portal for smaller, fast-turnaround defense contracts.

An F/A-18F Super Hornet aircraft lands on the flight deck of the USS Gerald R. Ford in support of Operation Epic Fury in the eastern Mediterranean Sea, March 2, 2026. - Photo Credit: U.S. Navy. Getting Started Government contracting is a complex, often burdensome task. Even experience government contractors find it challenging to navigate this complex world. The following are highlights of what is required for government contracting. This is not all inclusive, but it does provide a high-level view of the landscape with links for learn more.

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