U.S. Government: Supplier Diversity

Derco shows its customers day-after-day it adds value to the products and services it provides. Part of the reason for such superior performance is the quality and reliable vendors and subcontractors, who are part of the Derco team. Derco has found dealing with small businesses, with the necessary quality systems and a can-do attitude, materially helps the U.S. Government customer by providing better quality products with shorter lead times at reasonable prices. 

Derco oversees the introduction of new vendors to its approved vendor database through its government-approved Supplier Diversity Program. A Defense Contract Management Area (DCMA) Small Business Specialist monitors the program. 

Supplier Diversity Program Policy Statement

"I believe a positive working relationship between small and large businesses is critical to the development of healthy, vibrant communities. By working together, small and large companies can learn from each other, benefit from each other, and provide the economic growth needed for communities to flourish. It is for this reason that I fully support the Derco Supplier Diversity Program and expect all Derco employees to support it also.

A major initiative in our Business Plan is to cultivate a world-class supplier base. Developing a reliable supplier base is central to quality control, cost containment, and on-time deliveries. Derco requires a fast, cost-effective response to rapidly changing shifts in supply and demand and targeted service to individual customers. Small business vendors, including minority or disadvantaged businesses, women-owned businesses, veteran-owned or disabled veteran-owned businesses, and small businesses operating from "HUBZone" or high unemployment areas are a vital part of our commitment to world-class customer response, and will be provided a maximum practicable opportunity to compete for Derco business consistent with efficient performance. As a result, Derco, its customers, and its small business suppliers will all benefit."

Mr. Mark Hoehnen, President

Becoming an approved vendor for Derco requires review and approval by the assigned commodity procurement specialist or OEM buyer, the Derco Quality Assurance department, and Finance department. 

The first step in this process is to complete the Web-based Vendor Registration and Business Size Survey. This form, when submitted, is reviewed by the Derco Small Business Liaison Officer (SBLO) and forwarded to the appropriate procurement specialist or buyer with comments and attached line card or capabilities statement.  The vendor will be contacted if Derco requirements match the vendors’ capabilities. 

Derco also uses the Business Size Survey data to comply with U.S. government contracting regulations. The U.S. government requires Derco to track the business size of its suppliers. Prospective vendors must complete the short online vendor application in order to be considered as a potential supplier to Derco Aerospace.

The NAICS portion of the U.S. Census Bureau web site provides helpful information about the North American Industry Classification system (NAICS). In order to determine the "size" of a vendor or supplier, e.g, "large" or "small", the commodity or service being purchased must be identified by NAICS code. Business size varies from one NAICS code to another.  Logistics Management Consulting Services falls under NAICS code 541614. Aircraft Manufacturing falls under NAICS code 336411. Download the NAICS Breakout here.

One part of the Vendor Registration and Business Size Survey is the identification of the appropriate North American Industry Classification System or “NAICS” codes.  The following breakout of data provides some guidance on business size based on NAICS codes.

For more information, contact the Derco Small Business Liaison Officer at p.bail@dercoaerospace.com

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