A New Lease on Life
A Kansas City-based incubator helps service-disabled veterans navigate the federal procurement waters.

By Rep. Dennis Moore
 
U.S. military personnel serve our nation with honor by working to preserve our freedoms. Many also are choosing to serve their communities in another way—by contributing to the strength of our economy as small business owners.

In fact, there are 320,000 service-disabled veteran-owned businesses operating in the United States, according to the Census Bureau. To provide these veteran entrepreneurs with support tailored to meet their unique needs, a business right here in Kansas City, Kan., has opened the nation’s first—and only—Service-Disabled Veteran-Owned Small Business (SDVOSB) incubator.

It all started when the owners at Industrial Supply Inc. attended a Small Business Administration conference, where they were challenged to help emerging veteran businesses succeed in the federal procurement arena. With their largest customer being the U.S. Department of Veterans Affairs, and having several veterans on staff, the incubator was a natural fit for Industrial Supply.

“Industrial Supply decided to give back to the military personnel who have given so much to us,” said Ron Woods, president of Industrial Supply. “Our veterans’ contributions to our country and their courage are admirable.”

Woods, who started Industrial Supply in his kitchen, knows firsthand the kinds of challenges new small businesses face. Since December 2004, the incubator has helped entrepreneurs tackle challenges by guiding veterans as they form businesses, obtain federal certifications and secure tax identification numbers. There are currently five SDVOSB companies participating in this innovative program. These companies offer an array of services, including custodial, grounds maintenance, facility maintenance, pest control, temporary staffing and mechanical maintenance.

 “Our incubator allows truly emerging businesses to compete in the federal procurement arena,” said Dan Faulkner, vice president of federal service contracts for Industrial Supply, and a retired veteran. “The concept is that you pair an established contractor with a new business so they can take advantage of the benefits of experience.”

When Industrial Supply began negotiations with Indian Springs Mall for additional space to expand their business, they reserved 2,600 square feet for the incubator. They have since invested about $90,000 in the incubator, a sign the owners say proves how much they believe in helping service-disabled veterans.

The incubator gives these fledgling businesses office space, as well as access to a secretary, computers, receptionist, fax machines and other office equipment. It also provides direction on navigating the procurement process, walking business owners through a step-by-step process in what it takes to conduct business with the federal government.

The waiting list for the incubator is growing as the success stories accumulate. For example, a 27-year-old veteran who launched his custodial business in October recently signed a $1.5 million contract with the Veteran Administration’s Consolidated Mail Outpatient Pharmacy in Leavenworth. Faulkner credits Rick Lemmon, VA supervisory procurement analyst, and Bruce Johnson, VA contracting officer, not only for securing the first major contract, but also for their steadfast efforts to create future and continued successes.

An executive order by President Bush in October 2004, which encouraged all federal agencies to implement the SDVOSB contracting preference enacted in the Veterans Benefit Act of 2003, led to the creation of Industrial Supply’s incubator. In recognition of the service of the country’s veterans, the government set a goal of not less than 3 percent participation by service-disabled veteran businesses in federal contracting opportunities.

The incubator is not waiting for businesses to come to them, however; they are reaching out to service-disabled veterans and letting them know that the incubator is there to help them. Although they formally only have space for a handful of companies at a time, they continually answer questions and provide help for business owners from all parts of the country, as well as Kansas City.

Industrial Supply is working hard to assist veteran business owners—particularly service-disabled veterans—in earning their piece of the American dream. For more information about the Service-disabled Veteran-Owned Small Business incubator, contact Industrial Supply at (913) 287-3100.

Rep. Dennis Moore represents Kansas' Third U.S. Congressional District, which includes Johnson, Wyandotte and Douglas counties. Rep. Moore has offices in Overland Park, Kansas City, Lawrence and Washington, D.C. His Web site is www.house.gov/moore, and you can reach his office at (913) 383-2013.