OEM Solution for Qualified Legacy Products / Services Set Aside for Small Business
A large OEM business, although a qualified source for overhauling aircraft components, lost significant revenue when the U.S. Government restricted bidders to Small Business. The government practice also increased the supplier base, sending the selling price so low that the OEM could not match it even if there were no restrictions.
FII’s strategic licensing agreement proved a Win-Win-Win for the OEM, the customer and FII. Once FII obtained the OEM’s technology through a licensing agreement, all subsequent U.S. Government Small Business solicitations were quoted by FII.
Although OEM product solicitations were set aside for Small Business:
- FII’s Small Business rating and aggressive pricing prevailed
- The OEM now receives sizeable royalties on sales of their components by FII
- The licensing agreement prevented lost revenue to the OEM