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SBA Programs and Government Contracting

SELLING TO THE FEDERAL GOVERNMENT

U.S. Small Business Administration

www.sba.gov/az

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Overview

1. Introduction to Federal Government Contracting

2. SBA Certification Programs

3. Self Certification Programs

4. Getting Certified

5. Contact information

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Government Procurement

The Small Business Act (s.15(g)(1)&(2)) requires that

the Federal Government set aside (23%) of all

contract dollars for small business

– 8(a)/SDB (5%)

– WOSB and EDWOSB (5%)

– SDVOSB (3%)

– HUBZone (3%)

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Getting Certified for Small Business Programs

• You must register on Central Contractor Registry

• You must complete ORCA

• CCR is based on a search engine that recognizes products & services, business size and capabilities.

– Register online at: www.ccr.gov

– Registration will require a DUNS number (Free)

– Registration will require a CAGE code

– Registration will require NAICS codes

– Registration will require Information about you, your business and your contract history

– Register in ORCA

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Small Business Programs

– SBA Certification Programs

– 8(a) Certification

– HUBZone Certification

– Self-Certification Programs

– Women Owned – WOSB & EDWOSB

– Small Business

– Small disadvantaged business

– Native Owned

– Veteran Owned

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SBA 8(a) Business Development Program

Purpose:

– To assist eligible small disadvantaged businesses (SDB) compete in the Federal Market Place and to assist in Business Development.

8 (a) Program Benefits:

– Federal Agencies recognize 8(a) firms VIA CCR

– They have the ability to sole source contracts up to $4M for service, $6.5M for manufacturing

– It is a 9 year program

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8(a) Requirements– NAICS Code determines industry and size

(13CFR121.201)

– Socially disadvantaged individuals may apply

(13CFR124.103)

– Economically disadvantaged may apply

– (13CFR 124.104)

– 51% of the business must meet this criteria

– AZ is a Community Property State

• Transmutation Agreement is required

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Who is socially disadvantaged?

Social disadvantage – circumstances beyond ones control (13CFR124.103)

– Race and/or ethnicity

– Cultural bias

– Social disadvantage• preponderance of evidence

– Socially Disadvantaged individuals will be required to provide a narrative regarding:

• Cause of their social disadvantage

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Who is economically disadvantaged?

• Ability to compete for federal contracts is impaired– Available LOC

– Bonding Capacity

– Ownership vs. Renting Equipment

• Everyone applying must complete a narrative on economic disadvantage (13CFR124.104)

1. Personal Financial Condition

2. Personal Income for 3-yrs must not exceed an average of $250,000

3. Total Assets must not exceed $4.1M

4. Character

5. Business History (profitable)

6. 2-years in Business (or Waiver 13CFR124.107)

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8(a) Regulations• Change in regulations effective March 14, 2011

• Economic Disadvantage eligibility changes*

– Adjusted Net Worth must not exceed $250,000

1) exclude equity in home (community property = ½)

2) exclude equity in business

3) exclude IRA (if qualified)*

4) personal Income must not exceed $250,000*

5) total assets must not exceed $4M*

– $250K become $750K and $4M becomes 6.5M upon approval

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8(a) Business Development Program www.sba.gov/8abd

– Applicant must meet 8(a) Certification requirements

– Applicant must be US citizen

– Applicant must meet a net worth threshold $250,000

– Applicant must submit narrative on economic disadvantage (13CFR124.104

– “individuals not members of designated groups” must submit a narrative on social disadvantage (13CFR124.103).

– Applicant must be able to verify that he/she has been in business for 2-years (Waiver 13CFR124.107)

8(a) Application Submission: Main Page

• Two tabs are available to the user from the Application Main Page: Overview and Instructions

• Overview tab contains all of the application forms and allows applicant to track progress towards completion

• Instructions tab provides additional information on the requirements and purpose of the 8a/SDB program (still under construction)

8(a) Application Submission: Overview Tab

• 8aSDB Application Status allows user to track overall progress of application; constrains a user to complete steps of the application process in a particular order.

• Individual Forms Status (see below; down center of page) provides detailed progress of each application form

• For quick reference, My SBA Forms also indicates which required application forms have been completed.

• Preview Application Forms enables users to view individual forms as PDF files populated with the information that has been entered online.

8(a) Application Submission: A 6-Step Process

1. Submit Notarized Authorization Form

• Download and print the 'Certification for the Receipt of Electronic

8(a)/SDB Information from Individual Applicants' form

• Sign form, get it notarized, and include in final packet mailed to

SBA

2. Complete Required Application Forms

• Complete each form by answering the questions therein

3. Assemble Supporting Documentation

• Applicants must include certain Supporting Documents with their

application—a checklist is provided to help with organization

• View and print checklist

• Sign checklist upon completion and include in final packet

mailed to SBA

4. Submit On-Line Input

5. Download, Print and Sign Completed Application

• Review completed application and verify that all the information

is correct

• Print it out, sign, and date all forms in the appropriate signature

blocks, including the attachment pages.

• Include signed forms in final packet mailed to SBA

6. Mail Application, Supporting Documentation & Checklist to SBA

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HUBZone Program, www.sba.gov/hubzone

Historically Underutilized Business Zone

– Established in 1997 by Public Law 105-135;

– Purpose of the program:– To help distressed communities reverse a sluggish economy;

– To provide federal contract opportunities to qualified SB’s

– What qualifies as a HUBZone? – An depressed area that can be as small as a city block or as large as

a city or county;

– Federally recognized Native American Reservations, ANC’s and Native Hawaiians as described in 13CFR124.3

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HUBZone RequirementsQualifying for HUBZone:

– Principal Office must be in a HUBZone*;

– Worksite or branch offices can be anywhere;

– Must qualify as a Small Business by Primary NAICS;

– 51% ownership must be a US Citizen (or citizens);

– At least 35% of its employees must reside in any

designated HUBZone area

• Definition of full time employee 40-hrs/month

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Self Certification Programs

WOSB• Currently self-certify in CCR/ORCA

• Add documents to repository, www.sba.gov/wosb

– Verification of US citizenship

– Copy of JV agreement if applicable

– Copy of WOSB/EDWOSB Certification (OMB form)

– DBA certificate

– Corporate information relating to verifying ownership by a woman or women

EDWOSB• All of above and SBA Form 413, Personal Financial Statement for

each woman claiming economic disadvantage

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WOSB

Women Owned Small Businesses - WOSB

(www.sba.gov/wosb)• Meet SBA GC size standard (NAICS) for under represented

industries;

• Business must be owned 100% by U.S. Citizens;

• Qualifying participant(s) (51% minimum) must be the highest

ranking and highest paid employees

• WOSB must self certify by uploading their data to a

repository;

• Registering in CCR and ORCA

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EDWOSB

Economically Disadvantaged WOSB - EDWOSB

All WOSB criteria PLUS

– Personal net worth of less than $750,000

• EXCLUDES: ownership in business and primary residence

• EXCLUDES: income reinvested or used to pay business taxes

• EXCLUDES: funds reinvested in official IRA account

• EXCLUDES: transferred assets within two years if to or on behalf of

immediate family member for specific purpose\

– Adjusted gross yearly income = to or less than $350,000

– Fair market value of all her assets is less than $6 million

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Contracting Set Asides for ProgramWoman Owned Economically Disadvantaged

Woman Owned

NAICS Codes

WOSB are substantially

underrepresented

(38 4-digit codes)

NAICS Codes

EDWOSB are

underrepresented

(45 4-digit codes)

2 or more WOSBs submit

offers

The same

Award price does not exceed

$4M for services

$6.5M for manufacturing

The same

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Self Certification Programs

Service Disabled Veteran Owned Business (SDVOB)

• On 12/11/04, Public Law established 3% set aside

for SDVOB

– VA has established a Self Certification Program that is

reviewed and approved by VA (www.vetbiz.gov)

• 51% owned by one or more SDVOB

• NAICS Code SB Size Standards apply

• DD Form 214 and VA Certified Letter as to disability

• Register in CCR and ORCA

Self Certification

• Small Business– 51% owned by qualifying participant

– Register in CCR

– Register in ORCA

• Understand the regulations: Federal Acquisition Regulations (FAR Sub-Part 19– Teaming/Joint Ventures/Mentor Protégé

– GSA Schedules

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Useful Websites

• U.S. Small Business Administration– www.sba.gov

– www.sba.gov/az

• 8(a) Program– www.sba.gov/8abd

• Hubzone– www.sba.gov/hubzone

• Woman Owned/EDWOSB – www.sba.gov/wosb

• Central Contractor Registry– www.ccr.gov

• Federal Business Opportunities– www.fbo.gov

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Resource Partners for Assistance

• Small Business Development Centers

www.azsbdc.net

SCORE – 602-745-7250

• Native American Procurement Technical Assistance Center (PTAC)

– Venessa Gleich 480-699-9529

• SBDC PTAC Network

Daniel Ayala, Manager 623-84504705

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Questions?

Anita L. Gibson

602.745.7229 or anita.gibson@sba.gov

Fernanda Pedraza

602.745.7208 or fernanda.pedraza@sba.gov

PLEASE TURN IN YOUR EVALUATION FORMS