NOVEMBER 20, 2024 – The Department of Defense (DoD) and the Department of Commerce’s Minority Business Development Agency (MBDA) signed a Memorandum of Understanding (MOU) aimed at increasing participation of minority business enterprises (MBEs) within the defense industrial base. This partnership reflects a shared commitment to increasing MBEs’ awareness of supply chain opportunities, fostering collaboration, capacity building, business development, and increasing awareness and engagement in defense-related procurement and development programs.
Under the agreement, the DoD and MBDA will leverage their networks, expertise, and resources to create pathways for MBEs to integrate into the defense supply chain. Key initiatives include providing access to specialized training, encouraging supplier diversity, and delivering capacity-building programs to enhance the capabilities of MBEs, and enable them to contribute more effectively to national security needs.
“This MOU represents a significant step in expanding access to defense contracts for minority business enterprises, ensuring that our supply chain is diverse, resilient, and capable of addressing the demands of our national defense,” said Dr. William LaPlante, Under Secretary of Defense for Acquisition and Sustainment. “By working with MBDA, we can tap into a broader talent base of underrepresented businesses that bring unique perspectives and solutions, which ultimately contribute to a more robust and innovative industrial base.”
The MOU will also support MBDA’s mission to promote the growth and global competitiveness of MBEs, emphasizing areas such as technical assistance, strategic growth planning, and access to financing. The partnership aims to not only enhance equitable opportunities for MBEs in high-growth industries related to defense but also facilitate connections with DoD programs such as APEX Accelerators, Rapid Integrated Scalable Enterprise, and the Mentor-Protégé Program.
“A close working relationship between MBDA and the DoD will not only benefit minority business enterprises seeking to enter or expand in the defense industry, but it will strengthen our national security,” said Deputy Under Secretary of Commerce for Minority Business Development Eric Morrissette. “By diversifying our defense sector with minority business enterprises, we establish a broader hedge against our adversaries and deepen the scope of American competitiveness.”
The MOU outlines a strategic approach to ensure MBEs have an equitable opportunity to participate in the defense sector, focusing on the following objectives:
- Supply Chain Engagement: Encourage greater participation from MBEs in defense sector supply chains through collaboration between MBDA and DoD programming and capacity-building efforts
- Collaboration on Programming: Develop workshops and seminars on defense procurement and contracting, offering expert insights and technical support for MBEs entering defense markets
- Information Sharing: Utilize data-driven insights to help MBEs understand market demands and capitalize on defense procurement opportunities
- Training and Development: Provide MBDA’s network of programs, including Business Centers, and DoD’s APEX Accelerators with resources and guidance to assist MBEs in navigating defense procurement processes
This MOU signifies a shared vision between the DoD and MBDA to foster an inclusive defense industry by broadening opportunities for MBEs to play a pivotal role in U.S. national security.