The Boeing challenge

John Blacknall is blunt about how smallbusinesses should go about partnering withBoeing Co."Just by registering on [our] Web site, thechances are slim" that a small business willget a call to participate in Boeing's $7.3 billionworth of federalcontracts, saidBlacknall, senior managerof supplier diversityat Boeing's SharedServices Group.The challenges areprofound for smallcompanies that wantto team with big contractors,he said. Thelarge players buy bigger things from fewersuppliers.Nevertheless, Boeing is always looking fornew suppliers, especially among small businesses."They are very innovative, flexibleand cost-effective compared to a big corporation,"he said.Once he identifies potential partners,Blacknall tries to match the small company'scapabilities with Boeing's needs. "I havemore than 200 firms now that I'd like to findwork [for] within Boeing," he said.The company monitors an array of governmentsolicitations for opportunities thatcan involve small-business partners.Boeing is considering about 80 potentialprojects right now, Blacknall said.With a database of more than 2,000 companiesand a roster of 22 mentor/protégérelationships, Boeing has a clear commitmentto working with small businesses.Its Shared Services Group manages thosepartnerships and provides business infrastructurefor the whole company. The groupincludes Boeing's commercial airliner manufacturingand maintenance units and theIntegrated Defense Systems group, whichhandles defense and intelligence projects.IDS has about 70,000 employees, and itsFuture Combat Systems group has hugecomputing and network communicationsrequirements, Blacknall said.The Shared Services Group is the entrypoint for subcontractors seeking an opportunityto work on commercial and governmentprojects.Although online registration is the onlyway to get onto Boeing's roster, Blacknallsaid small businesses should also scour thecompany's project listings to identify individualsand business units they can contactdirectly.Blacknall said he looks for prospectivepartners with technology that applies to aproblem Boeing is working on.The company's needs include softwaredevelopment, especially software embeddedin products. However, such projects usuallyrequire subcontractors to become involvedearly in the procurement process ? typicallyduring the proposal phase. Once Boeingsuccessfully partners with a company onone project, it frequently turns to that companyfor future endeavors.Blacknall recently concluded that Boeinghas the hardest time recruiting small businessesowned by service-disabled veterans."There are not enough people in thekinds of business we subcontract to," hesaid. "It's our hardest target," especiallygiven Boeing's need for new products.The company spent more than $2 billionwith minority- and woman-owned firms in2006. It was inducted earlier this year intothe Billion Dollar Roundtable, an organizationthat recognizes public companiesthat spend more than $1 billion withminority- and woman-owned businesses.Boeing has several long-term relationshipswith small businesses. One partner isWildwood Electronics Inc., a small,woman-owned business in Madison, Ala.,that provided electronic components, cableharness fabrication, environmental testingand quality assurance for the Arrow,Avenger and Ground-based MidcourseDefense systems and the Surface-Launched Advanced Medium-Range Airto-Air Missile system.Another partner, Phacil Inc., of Camden,N.J., is working with Boeing on the FutureCombat Systems program. And WorldWide Technology Inc. started its relationshipwith Boeing as a small, disadvantagedbusiness reselling Dell computers.Despite those long-term relationships,Blacknall and his team continue to scoutfor new partners. Boeing employeesattended 14 conferences last year for businessesowned by service-disabled veteransand sponsored about half of them. Thecompany is also active on the NationalMinority Supplier Development Counciland the Women's Business EnterpriseNational Council, Blacknall said. "We tryto have a list of people we can use."