Matt Jones, CEO of Sigma Defense, has warned that proprietary technologies developed by large defense contractors often prevent small and medium businesses, or SMBs, from participating in Department of Defense programs, such as the Combined Joint All-Domain Command and Control, also known as CJADC2. The executive said in an article posted on National Defense Magazine that preventing SMBs from participating in DOD programs stifles innovation and limits the tools available to warfighters.
How DOD Can Lower Barriers to Entry for SMBs
According to Jones, large defense contractors lock out competitors by creating closed-loop proprietary systems with the sole goal of protecting shareholder value. He added that there are hundreds of instances where proprietary systems are in use.
To address the problem, he provided three steps. The first is to prioritize or incentivize modular strategies that would ensure that major contracts are open to all, not just to large enterprises.
He also said the Pentagon should check that SMBs are performing meaningful work.
Moreover, Jones is urging defense leaders to allow more flexible interpretations of past performance, so that more providers can qualify for a project.
“Wholesale change in the Defense Federal Acquisition Regulation Supplement is not needed to achieve better outcomes for the most innovative small and medium-sized businesses,” he wrote. “They need some adjustments that give them a seat at the table.”


