NMTC HUB-IT Initiative

National Minority Technology Council

A 21ST CENTURY

ANSWER

TO

URBAN ECONOMIC DEVELOPMENT

FEDERAL CONTRACT PROCUREMENT

AND PROVEN

STEM TALENT

Visit our HUB

http://hubit.nmtcouncil.orghttp://hubit.nmtcouncil.orghttp://hubit.nmtcouncil.orghttp://hubit.nmtcouncil.org

National Minority Technology CouncilHUB-IT

A 21ST CENTURY

URBAN ECONOMIC DEVELOPMENT

LEVERAGING

CONTRACT PROCUREMENT

AND PROVEN SUSTAINABLE

TALENT PIPELINE METHODOLOGIE

Visit our HUB-IT Initiative website:


National Minority Technology Council IT Initiative

CONTRACT PROCUREMENT

SUSTAINABLE

PIPELINE METHODOLOGIES

IT Initiative website:


National Minority Technology Council HUB-IT Initiative

Chairman’s Message

Driving US Job Creation

This is an important time in American history. Our country’s prosperity has never before so uniquely relied on our ability to rally together to transform how we approach the very definition of the “American Dream”. The National Minority Technology Council is poised as a vital connector to small businesses, federal procurement, urban economic development and jobs. We must push the limits of cooperation and experience to build trusted partners that illuminate the capacity born through innovation and skill. Our HUB-IT Initiative promises to create the vital link between our public and private stakeholders. We stand ready to build capacity in our local urban neighborhoods. Ready to create awareness and advocate a new distribution of wealth to our needy communities through partnerships that put small business owners in the driver’s creating tens of thousands of jobs in areas where unemployment is at an all time high. This initiative may be led by our over 350 qualified and ready HUBZone Certified minority technology companies located across our 40 Districts, but it is inclusive of every HUBZone IT company and large federal partner companies who stand ready to help facilitate some of the largest opportunities every presented to small businesses. We strive to increase HUBZone set-asides by $1 Billion per year!$1 Billion per year!$1 Billion per year!$1 Billion per year! This will employ over 25,000 people in our hardest to employ neighborhoods and create local prosperity, ignite our economy, and provide a new framework for federal contracting officers to “Buy Small Business”. Our HUB-IT Initiative builds in a proven sustainable talent pipeline methodology to ensure that we engage those hardest to employ. We will marry this program with our leadership in STEM (Science, Technology, Engineering, and Math) education. NMTC’s HUB-IT Initiative is an opportunity to inspire our youth to employment or ownership. Our plan includes the involvement of many stakeholders including government (Federal, State, and Local), Education (University, Community College, K-12), Business, Non-Profits, and the Faith Based Community. I thank our HUB--IT Committee Chair Tynesia Boyea-Robinson, CEO, Reliance Methods, for her insight and vision. Her nationally recognized commitment has already been recognized by President Obama, many Fortune 50 companies, and large federal contractors. It is with great trust and assurance I say this Council initiative cannot fail. We owe it to future generations to take the reins of our economic future and hand them over to the many small business owners who pay taxes, buy, lease or own property local, and represent the largest employers in America. I challenge each reader to believe in the vision and help us achieve this Billion Dollar HUBZone set-aside goal. With great excitement, Karl Cureton Chairman, National Minority Technology Council


NMTC HUB-

A 21st Century Answer to Urban Economic

Development Leveraging Federal Contract

Procurements and Proven Sustainabl

Pipeline Methodologies

Executive Executive Executive Executive SummarySummarySummarySummary by by by by HUBHUBHUBHUB--------IT Committee Chair Tynesia BoyeaIT Committee Chair Tynesia BoyeaIT Committee Chair Tynesia BoyeaIT Committee Chair Tynesia Boyea

When you look at the headlines, there is growing concern about the United States and its

standing in the world. From education to economics, other countries seem to be mo

ahead more rapidly than our country. Traditionally, the vast majority of Americans built

their wealth through equity in their homes, but with the decline of the housing market, this

puts mobility even farther out of reach. The other path to wealth,

the backbone of our country. Yet, for every business that launches only a small percentage

actually succeeds

and sustains long

term outcomes.

Given this backdrop,

it is no surprise that

the President has

pushed for an

enhanced focus on

small business

growth and job creation. Very few people would argue with those as goals, but that is

where the unity ends. Fortunately, the government already has an underutilized vehicle at

its disposal to achieve both- the HUBZone program. Histori


-IT Initiative

A 21st Century Answer to Urban Economic

Development Leveraging Federal Contract

Procurements and Proven Sustainable Talent

Pipeline Methodologies

IT Committee Chair Tynesia BoyeaIT Committee Chair Tynesia BoyeaIT Committee Chair Tynesia BoyeaIT Committee Chair Tynesia Boyea----Robinson, CEO, Reliance MethodsRobinson, CEO, Reliance MethodsRobinson, CEO, Reliance MethodsRobinson, CEO, Reliance Methods


standing in the world. From education to economics, other countries seem to be mo



puts mobility even farther out of reach. The other path to wealth, business ownership, is




the HUBZone program. Historically Underutilized Business


Robinson, CEO, Reliance MethodsRobinson, CEO, Reliance MethodsRobinson, CEO, Reliance MethodsRobinson, CEO, Reliance Methods


standing in the world. From education to economics, other countries seem to be moving



business ownership, is




cally Underutilized Business


Zones (HUBZone) are areas in the country that are traditionally high unemployment and

low income. While most people see these as liabilities, in reality, these are markets for

untapped talent.

The HUBZone program aligns economic incentives for the business community and

potential employees. If a business is HUBZone certified, it must locate in a HUBZone and

hire 35% of its employees from a HUBZone. Put simply, if you want to win a large contract,

you must understand how to build and develop talent from low income neighborhoods.

Unfortunately, this is easier said than done, which is why the government misses these

numbers by $3B annually. The SBA highlights the HUBZone and Veterans programs as its

number one priorities for the next several years.

Gratefully, the National

Minority Technology

Council is well

positioned to leverage

this backdrop to affect

change for its members,

and ultimately, the

nation. Through the

HUB-IT initiative the

Council will invest in the

educational awareness

and technical

assistance to support

the government to close

the $3B shortfall

significantly, translating

into new business and jobs for its member companies. Fundamentally, Council members

have a track record of excellence and results, without which we would be unable to move

the needle on what on the surface is an intractable problem. We are honored to provide

the resources and support to highlight and channel the efforts of our membership to

collectively solve one of the most pressing issues in our country.


What is a HUBZone

The Historically Underutilized Business Zones (HUBZone) program helps small businesses

in urban and rural communities gain preferential access to federal procurement

opportunities. These preferences

in part by employing staff who live in a HUBZone. The company

must also maintain a "principal office" in one of these specially

designated areas.

The HUBZone Empowerment Contracting program was enac

into law as part of the Small Business Reauthorization Act of

1997. The program falls under the auspices of the U.S. Small

Business Administration (SBA). SBA's HUBZone program is in line with the efforts of both

the Administration and Congress to promo

growth in distressed areas by providing access to more federal contracting opportunities.

The SBA is committed to helping small businesses grow and win federal contracts. The

SBA HUBZone program is designed to not on

economic prosperity to communities in need.

The SBA determines which businesses are eligible to receive HUBZone contracts and

maintains a listing of qualified HUBZone small businesses that federal agencies can use

locate qualified vendors. On October 1, 2011, the areas of the country designated as

HUBZones changed. These changes are based on census tracts and the 2010 census data

recently issued by the Commerce Department. SBA estimated that some 3,400 firms wer

de-certified. This list of vendors changes after every Census. The SBA adjudicates protest

of eligibility to receive HUBZone contracts and reports to the Congress on the program's

impact on employment and investment in HUBZone areas.

“The Federal government has pledged to do what it takes to get the economy on track. Federal

programs, coupled with the sustainable, slow recovery, will help keep the economy from

entering another recession in the short

Washington, DC Economic PartnershipWashington, DC Economic PartnershipWashington, DC Economic PartnershipWashington, DC Economic Partnership


What is a HUBZone



opportunities. These preferences go to small businesses that obtain HUBZone certification

in part by employing staff who live in a HUBZone. The company

must also maintain a "principal office" in one of these specially

The HUBZone Empowerment Contracting program was enacted

into law as part of the Small Business Reauthorization Act of

1997. The program falls under the auspices of the U.S. Small


the Administration and Congress to promote economic development and employment


elping small businesses grow and win federal contracts. The

SBA HUBZone program is designed to not only help small businesses grow but to bring

economic prosperity to communities in need.


HUBZone small businesses that federal agencies can use

On October 1, 2011, the areas of the country designated as


recently issued by the Commerce Department. SBA estimated that some 3,400 firms wer

This list of vendors changes after every Census. The SBA adjudicates protest


impact on employment and investment in HUBZone areas.

The Federal government has pledged to do what it takes to get the economy on track. Federal


entering another recession in the short-run.”

Washington, DC Economic PartnershipWashington, DC Economic PartnershipWashington, DC Economic PartnershipWashington, DC Economic Partnership




go to small businesses that obtain HUBZone certification


te economic development and employment


elping small businesses grow and win federal contracts. The

ly help small businesses grow but to bring


HUBZone small businesses that federal agencies can use to

On October 1, 2011, the areas of the country designated as


recently issued by the Commerce Department. SBA estimated that some 3,400 firms were

This list of vendors changes after every Census. The SBA adjudicates protest


The Federal government has pledged to do what it takes to get the economy on track. Federal



There are many benefits for HUBZone-certified companies. HUBZone Certified small

businesses bid on both competitive and sole source contracting. There is a 10% price

evaluation preference in full and open contract competitions, as well as subcontracting

opportunities. The federal government has a set-aside goal of

awarding 3% of all dollars for federal prime contracts to HUBZone-

certified small business concerns.

One very important change in the HUBZone program was the

change in the definition of an employee. Prior to May 3, 2010 an

employee was the traditional W2 40 hour per week definition of

an employee. Now employee means all individuals employed on a

full-time, part-time, or other basis, so long as that individual works a minimum of 40 hours

per month. This includes employees obtained from a temporary employee agency, leasing

concern, or through a union agreement or co-employed pursuant to a professional

employer organization agreement. SBA will consider the totality of the circumstances,

including criteria used by the IRS for Federal income tax purposes and those set forth in

SBA’s Size Policy Statement No. 1, in determining whether individuals are employees of a

concern. Volunteers (i.e., individuals who receive deferred compensation or no

compensation, including no in-kind compensation, for work performed) are not considered

employees. However, if an individual has an ownership interest in and works for the

HUBZone SBC a minimum of 40 hours per month, that owner

is considered an employee regardless of whether or not the

individual receives compensation.

Eligibility for the HUBZone is not complicated. To qualify for

the program, a business (except tribally-owned concerns) must meet the following criteria:

1. It must be a small business by SBA standards

2. It must be owned and controlled at least 51% by U.S. citizens, or a Community

Development Corporation, an agricultural cooperative, or an Indian tribe

3. Its principal office must be located within a “Historically Underutilized Business

Zone,” which includes lands considered “Indian Country” and military facilities closed

by the Base Realignment and Closure Act

4. At least 35% of its employees must reside in a HUBZone.


The HUBZone Opportunity: Some questions

Isn’t federal government spending forecasted to decrease?Isn’t federal government spending forecasted to decrease?Isn’t federal government spending forecasted to decrease?Isn’t federal government spending forecasted to decrease?

Not in certain targeted areas like IT. Specifically, spending on IT projects through

commercial contractors is forecasted to increase from $86B in 2010 to $110B in 2015

(~5% CAGR). This is due to a freeze on hiring and the cost-savings associated with

automation.

Even in the face of statutory goals, arenEven in the face of statutory goals, arenEven in the face of statutory goals, arenEven in the face of statutory goals, aren’’’’t larger companies positioned to win federal government contractst larger companies positioned to win federal government contractst larger companies positioned to win federal government contractst larger companies positioned to win federal government contracts

Large companies are required to subcontract with small businesses, including HUBZone

companies, as a stipulation of doing business with the government. Most comprehensive

IT contracts involve some portion of lower-skill, labor intensive IT contracts. Larger

companies tend to subcontract these projects to small businesses due to the lower

margins.

Federal Contractors that subcontract with HUBZone businesses help the federal

government meet its goals and as a result are better positioned for future procurement

dollars.

Given the reduced margins, why focus oGiven the reduced margins, why focus oGiven the reduced margins, why focus oGiven the reduced margins, why focus on lowern lowern lowern lower----skill, labor intensive skill, labor intensive skill, labor intensive skill, labor intensive contracts? contracts? contracts? contracts?

The biggest pressure on margins stems from challenges with developing and retaining a

cost-effective talent pipeline. Our HUB-IT Chair has developed a unique competitive

solution that creates a sustainable talent pipeline.


The National Minority Technology Council Ecosystem – Our trusted network creates job creation

The National Minority Technology Council is organized as a 501(c)6 non-stock Trade

Association. Our members enjoy a range of benefits not limited to our network of 40

Districts located across the US. The Council has some 9,000 registered members in our

database allowing us to create meaningful events and programs that facilitate

collaboration and access to opportunities and resources. Our mission is to organize the

Minority Technology Industry into a powerful and distributed network of vibrant and

connected technology businesses. In line with our goals the HUB-IT Initiative works enable

SBA HUBZone Certified Minority Technology Companies and our stakeholder partners to

robustly participate in active and large transactions and engagements creating jobs and

wealth in our communities.

This “Ecosystem” is enriched by trust. Our tag line Building Trusted NetworksBuilding Trusted NetworksBuilding Trusted NetworksBuilding Trusted Networks™ resonates

with not only our member minority technology companies but it is our guiding light, the

seed that directs our corporate governance. If we consider contracts the rain we consider

trust the dirt. One cannot exist without the other. Driving this initiative is the inspired push

of the small business owners who have made the corporate decision not only to reside

their corporate headquarters in areas that are determined to be “Historically Underutilized

Business Zones” they have also made the decision to employ from those areas where

economic development is most needed. The Council is poised to support and ensure small

business is promoted and contracts are steered towards the neighborhoods, cities,

reservations and even areas around closed bases, hardest hit by our recent recession.

In order to accomplish this task we must focus on the challenges as well as the

opportunities. It is critical we keep job creation as our number one goal. Our ability to

uncover and tap into the talent pool hidden in our communities of need rests on our God

given ability to lift up the expectations and hope of those who have not always seen

opportunity knock at their door.


STEM as our Sustainable Fuel

The National Minority Technology Council is the trade association that represents the

Minority Technology Industry. There are over 235,000 minority technology companies

located across the US. Over 65,000 of these companies are employers with over 500,000

employees. This $100 Billion industry works every day to solve our nation’s technology

problems. STEM (Education reform acronym for the building the capacity to deliver

students proficient in Science, Technology, Education, and Math) represents the pipeline

for our future owners and employees. STEM also represents a huge business opportunity

both within education reform in our urban communities and developing capacity by solving

the issues born from the Digital Divide. We see STEM and access to Broadband both in the

same light.

The Council has taken a systematic approach to solving the STEM talent shortage issue.

Central to our resolution is building relevance. With a registered member database of over

9,000 members located in 40 Districts across the US we are able to connect with our

urban communities providing unprecedented outcomes. Central to our solution is the

necessary critical thinking required to enroll

multiple community stakeholders into the new

world afforded by the benefits of our

technologically driven economy. It is not

enough to merely talk or show how technology

can transform we believe we need to put

change into practice.

Our goal is to create systematic change in how

urban school systems relate to STEM workforce

readiness, parent engagement and community

economic empowerment. The Council has

impacted the Capital City Program of Success Schools serving the students of Richmond

Public Schools, proving that mutual respect coupled with input from the Minority

Technology Industry enables a transformative spirit of cooperation and creativity. The

Council’s Richmond District Leadership is teaming with Educational Leaders to facilitate


measurable growth in STEM education. The Council’s ability to inspire and empower has

led one Principal to create a 9th Grade Coed STEM Academy.

The National Minority Technology Council considers STEM core to our stakeholder strategy.

It is our battle cry for change. We subscribe America needs a “Sputnik moment” to rally

around. We believe the universe of thinking big can be quantified into the balance

between transformational critical thinking and a change in how we regard individual value

regardless of race or socioeconomic status. We believe our country has the innate resolve

to regain our economic competitiveness by leveraging our will to innovate with our endless

ability to dream big and achieve feats never imagined. STEM is the code for the

emancipation of our urban

plight and the light we need to

capture and reclaim our

position in the global economy.

STEM means workforce

readiness and it is the

sustainable fuel for our HUB-IT

Initiative.

The NMTC STEM | Broadband

and HubZone IT Initiatives

provide opportunities for

educators to partner with

leading edge minority

technology companies capable of providing hands-on training, guest speaking as well as

experiential paid and unpaid opportunities to learn how to effectively utilize the ever

changing technologies to enhance the educational process. Educational institutions also

are afforded the opportunity to explore innovative revenue generating programs as viable

options to budget cuts and often unreliable grant funding.

Finally, unlike ever before, educational partners are able to serve as conduits for economic

development and job creation in the communities they serve.


PUBLIC LAW 105–135—DEC. 2, 1997

A contract opportunity shallshallshallshall be awarded pursuant to this section on the basis of

competition restricted to qualified HUBZone small business concerns if the

contracting officer has a reasonable expectation that not less than 2 qualified

HUBZone small business concerns will submit offers and that the award can be

made at a fair market price

and

Not later than 5 days from the date the Administration is notified of a procurement

officer’s decision not to award a contract opportunity under this section to a

qualified HUBZone small business concern, the Administrator may notify the

contracting officer of the intent to appeal the contracting officer’s decision, and

within 15 days of such date the Administrator may file a written request for

reconsideration of the contracting officer’s decision with the Secretary of the

department or agency head.

Procurement Process – HUBZone Creates Mandated Set-Asides

The key to our HUB-IT program is the “teeth” provided for small business found in Public

Law 105-135-Dec.2, 1997. The law was passed with a very important word, “shall”.

This powerful word is used in federal procurements. Use the terms "shall" and "must" to

indicate an obligation to act. In the FAR "shall" and "must" have the same meaning. Hence

the Contracting Officer is obligated to make an initial determination if there is a

“reasonable expectation” that there are more than 2 HUBZone companies that can do the

work and they can do the work at a fair market price.

In order for this program to be effective the SBA needs to be a willing partner with small

business. The fact is the SBA is committed to helping small businesses grow and win


federal contracts. The SBA HUBZone program is designed to not only help small

businesses grow but to bring economic prosperity to communities in need.

The Council HUB-IT program adds an important step to ensure the process is effec

empowering for both the contracting officer and our targeted HUBZone IT companies. Our

initiative creates a feedback loop to both the Contracting Officers and the SBA to ensure

there is adequate information flow between all parties concerned. Fe

this process as there are time limits for maximum compliance and to ensure the agency

needs are not interrupted. Below is our HUB

It illuminates the workflow process requirements and t

to every qualifying Federal Agency.




IT program adds an important step to ensure the process is effec



there is adequate information flow between all parties concerned. Feedback is critical to


needs are not interrupted. Below is our HUB-IT Cross-Functional Flowchart for Contracting.

It illuminates the workflow process requirements and the need for effective communication

to every qualifying Federal Agency.




IT program adds an important step to ensure the process is effective and



edback is critical to


Functional Flowchart for Contracting.

he need for effective communication

HUB-IT Cross-

Functional

Flowchart –

Contracting

Roles and

Responsibilities

NMTC

Database

check for

company

capabilities vs.

Contract


NMTC HUB-IT Anchor Stakeholder Partnerships

Core to our HUB-IT Strategy is partnership. Our outreach program includes the following…

Visionary Federal AgenciesVisionary Federal AgenciesVisionary Federal AgenciesVisionary Federal Agencies

Vetted NMTC MembersVetted NMTC MembersVetted NMTC MembersVetted NMTC Members

Visionary District Level Executive BranchVisionary District Level Executive BranchVisionary District Level Executive BranchVisionary District Level Executive Branch

Vetted Talent ProvidersVetted Talent ProvidersVetted Talent ProvidersVetted Talent Providers

Visionary InvestorsVisionary InvestorsVisionary InvestorsVisionary Investors

Vetted Technical AssistanceVetted Technical AssistanceVetted Technical AssistanceVetted Technical Assistance

It is critical for each District to develop a stakeholder strategy that is inclusive and

collaborative. Our HUB-IT program is programed to introduce new relationships and

partnerships that enable inductive change and jobs from an increase in local contracts.

Although our focus is on Minority Technology Companies our goal is to revitalize the

communities we serve. Our ability to appropriately qualify and encourage participants will

improve the amount of contracts let to HUB Zone Certified companies and bring jobs and

an increased tax base to targeted Urban Cities and Communities across the US.


Contact Information

National Minority Technology Council 1616 Anderson Road McLean VA 22102

www.nmtcouncil.org

Karl Cureton, NMTC Chairman [email protected]

NMTC HUB-IT Chair and Executive Member Tynesia Boyea Robinson, CEO Reliance Methods 700 12th St NW, Suite 700 Washington, DC 20005

[email protected]

Visit our HUB-IT Initiative website: http://hubit.nmtcouncil.orghttp://hubit.nmtcouncil.orghttp://hubit.nmtcouncil.orghttp://hubit.nmtcouncil.org

2012 Copyright National Minority Technology Council

NMTC HUB-IT Initiative

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