Selling to the Military 

The Department of Defense spends a lot of money on logistics and packaging to ship supplies to thousands of soldiers deployed around the world. There is ample opportunity for progressive pallet companies to provide logistics and packaging solutions to the agency, although many government contracts are awarded on a long-term basis.

According to Timothy Keller at the Defense Supply Center in Philadelphia, the Defense Depot Command is the biggest military user of wooden pallets. The Army and Navy buy GMA pallets for a majority of their supply transport.

Contracts to purchase pallets tend to be awarded primarily based on merit, production history, and plant capacity, according to Tim.

“Because of our recurring requirements, we try to place commodities such as pallets on Long Term Contracts (LTCs),” Keller said. “Before a LTC is awarded there is an in-depth review of all the responders' packages submitted to our solicitation. The solicitation will state our criteria and the weight given to each category.” Criteria for supplying companies include past performance, pallet knowledge and experience, plant capabilities, surge availability, small business mentoring and price.

GMA pallets consist of the majority of Defense pallets, but Tim added that a military Joint Working on Pallet Standardization is attempting to set standards for a non-wood pallet. The project is still in its infancy.

An estimated 98% of Defense purchases are for less than $100,000. This leaves plenty of opportunity for small businesses by targeting this ever-persistent and often overlooked market.

The Defense Department recognizes that small businesses are routinely overlooked and has made adjustments in its contracting practices to accommodate every type of business. Most contracts for less than $100,000 are reserved for small businesses.

The agency also encourages its contractors to work with small businesses. Most purchases below $100,000 are made locally and not stockpiled at one particular location.

The Defense Office of Small Business Programs offers a 10-step guide to selling to the military. Potential vendors must know their federal supply class codes as well as North American Industry Class Classification system codes for their products.

In order to become a contractor for the federal government, a company must first obtain a DUNS (Data Universal Number System) number, which must be acquired from Dun and Bradstreet at http://www.dnb.com/us/duns_update/index.html?link=duns. Then a business can register with the Central Contract Registration (CCR); this can be done online at http://www.ccr.gov, where users also can find handbooks that will guide them through the process.

After registering, companies can choose their target markets within particular branches of the military and identify procurement opportunities.

All necessary information is available online at http://www.acq.osd.mil/osbp/doing_business/DoD_Contracting_Guide.htm.

To contact the Central Contract Registration Center, call (888) 227-2423.