In May 2013, the Maritime Administration released its report on the economic importance of the shipbuilding industry. The report looks at the economic impact of the 117 shipyards in the United States, spread across 26 states, that are classified as active shipbuilders.
“In 2011, the U.S. private shipbuilding and repairing industry directly provided 107,240 jobs, $7.9 billion in labor income, and $9.8 billion in gross domestic product, or GDP, to the national economy. Including direct, indirect and induced impacts, on a nationwide basis, total economic activity associated with the industry reached 402,010 jobs, $23.9 billion of labor income, and $36.0 billion in GDP in 2011.”
“The industry impact by state varies based on the level of direct activity and the share of the supply chain included in the state. The states with the highest levels of overall direct, indirect, and induced employment associated with the industry are Virginia, California, Louisiana, Texas, Mississippi, Connecticut, and Florida Considering the indirect and induced impacts, each direct job in the shipbuilding and repairing industry is associated with another 2.7 jobs in other parts of the US economy; each dollar of direct labor income and GDP is associated with another $2.03 in labor income and $2.66 in GDP, respectively, outside of the shipbuilding and repairing industry.”
Gary Peterson of TRIDEC reports that the Small Business Administration (SBA) is requiring the Department of Energy to asume direct accountability for its small business contract awards.
“The new initiative for the Department of Energy to now contract directly with small businesses presents a challenge of not only impacting sustained performance but increasing cost. This will result in an impact to both the agency from an administrative perspective and small businesses competing in an already complex government procurement process.
Due to the complexity of cleanup scope, history has shown that the DOE direct procurement process will be lengthy with as much as a 9 – 18 month window for awarding a contract, excluding any protests. As available federal funding continues to be reduced, increasing responsibilities for government procurement specialists is not practical. Prime contractors currently perform this small business procurement role. The government should focus on the performance of its few prime contractors and not increase management and administrative demands required to manage and provide oversight to multiple small business contracts.
Total value allocation and the number of small business awards may also be impacted. For example, when the government releases a procurement it is usually fairly large due to the number of required regulations and complexity in scope.”
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