Minority language planning in a growing metropolitan area Björn Sundell 10 December 2009.
Washington Metropolitan Area District Office Growing your Contracting Opportunities.
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Transcript of Washington Metropolitan Area District Office Growing your Contracting Opportunities.
Washington Metropolitan Area District Office
Small Business Act, 1953
“It is the Declared Policy of the Congress…to insure that a fair proportion of the total purchases and contracts or subcontracts for property and services for the Government be placed with small business enterprises.”
Washington Metropolitan Area District Office
Defined by number of firm’s employees
ORDefined by firm’s annual revenues
(Different for each industry, organized by NAICs code)
Criteria can be found at: www.sba.gov/size
What is a Small Business?
Washington Metropolitan Area District Office
Federal Procurement
$440 Billion +
per year(2009)
U.S. Government:
The World’s Largest
Customer
Federal Contracts =
Washington Metropolitan Area District Office
Small Businesses: 23%
Federal Procurement
PROCUREMENT TARGETS:
$440 Billion +
per year
Washington Metropolitan Area District Office
Federal Procurement
Small Businesses: 23%
Service-Disabled Vets: 3%
SDB: 5%
Women-owned: 5%
HUBZone: 3%
PROCUREMENT TARGETS:
$440 Billion +
per year
Washington Metropolitan Area District Office
• District of Columbia• Montgomery County,
MD• Prince George’s County, MD• Fairfax County, VA
• Loudoun County, VA• Arlington County, VA
• City of Alexandria, VA
• City of Fairfax, VA
U.S. Small Business AdministrationWashington Metropolitan Area
District
Washington Metropolitan Area District Office
FY 2010:
$73.7 billion in Federal contract dollars
for work in District
Federal contracting in the Washington Metropolitan Area
District
Washington Metropolitan Area District Office
What part does the SBA play in procurement?
1. Keeping Score:
SBA negotiates annual procurement goals with each Federal agency
Ensures that the combined goals > 23%
Reviews each agency’s results
Issues annual Small Business Procurement Scorecard for entire Federal Government
Washington Metropolitan Area District Office
2. Counseling and Training:
Procurement training and matchmaking events throughout region.
Resource Partners help business owners find and bid on procurement opportunities.
Small Business Jobs Act of 2010: Small Business Teaming Pilot Program
What part does the SBA play in procurement?
Washington Metropolitan Area District Office
3. Certification
SBA-Certified:
HUBZone Empowerment Contracting Program
8(a) Business Development Program
Self-Certified:
Small Disadvantaged Businesses
Service Disabled Veteran-Owned Businesses
Women-Owned Small Businesses
What part does the SBA play in procurement?
Washington Metropolitan Area District Office
Very Important:SBA certification only applies to Federal
Agencies in the Executive Branch.
State, County, and Municipal agencies as well as other branches of the U.S. Government may have
their own certification programs.
Certification by one of these authorities does not automatically confer certification by any others.
Washington Metropolitan Area District Office
HUBZone Empowerment Contracting Program
Designed to simulate economic development
and create jobs in urban and rural
communities.
HUBZone = Historically Underutilized Business
Zone
Washington Metropolitan Area District Office
HUBZone Empowerment Contracting Program
HUBZone contracts are contracts awarded to a qualified HUBZone Small Business Contractor (SBC) through any of the following:
Sole source awards
Set-aside awards based on competition restricted to qualified firms
Awards to qualified HUBZone business through full and open competition after a price evaluation preference in favor of qualified HUBZone SBCs.
Washington Metropolitan Area District Office
HUBZone Requirements
Must be a SMALL business
Concern must be owned and controlled only by US citizens
Principal office of the concern must be located in a HUBZone; and
At least 35% of the concern’s employees must reside in a HUBZone
Washington Metropolitan Area District Office
8(a) Business Development Program
Helps eligible small disadvantaged businesses grow and become sustainable.
Training in business management & marketing
Opportunities to team with other companies
Support when competing for Federal contracts
Washington Metropolitan Area District Office
First comprehensive revisions to 8(a) program in more than 10 years: effective 3/14/2011
Technical and Substantive changesRegulations now more consistent with
existing and recent legislationReduce potential waste, fraud and
abuseEnsure program benefits flow to
intended beneficiaries
Washington Metropolitan Area District Office
Program enrollment = 9 years
Program participation divided into 2 stages:
Year 1 – 4 Developmental Year 5 - 9 Transitional
Must maintain eligibility throughout enrollment
8(a) Business Development Program
Washington Metropolitan Area District Office
Completion of Program Term
A concern may leave the program by:
Expiration of the program term (Nine years)Voluntary withdrawal or voluntary early
graduationGraduation (§ 124.302)Early graduation (§§ 124.302 and 124.304)Termination (§§ 124.303 and 124.304)
Washington Metropolitan Area District Office
New Suspension Rule –
If the disadvantaged individual owner(s) of the 8(a) firm are called to active military status, SBA will no longer terminate the firm.
Firm may elect to: be suspended from program participation until
original owner returns from duty (nine-year clock stops during suspension, resumes from that point), or
continue participation if another disadvantaged individual(s) assume control of the firm
For Military Service
Washington Metropolitan Area District Office
8(a) EligibilityUnited States citizen
Socially & economically disadvantaged
Own unconditionally at least 51% of concern
Control & manage concern on full-time basis
Good character - not debarred, suspended, parole or probation
Registered in Central Contractor Registration (CCR) database
Two (2) years business history in primary industry classification, as shown with tax returns (may sometimes be waived)
Business must be small per SBA’s size standards
Washington Metropolitan Area District Office
Who is Socially and Economically
Disadvantaged? Socially disadvantaged persons have been subjected to racial or ethnic prejudice or cultural bias because of their identities as members of groups.
People are economically disadvantaged if their ability to compete in the free enterprise system has been impaired due to diminished access to capital and credit.
Washington Metropolitan Area District Office
SBA will examine:Personal income for the past three yearsPersonal net worthFair market value of all assetsSpouse’s financial condition, in certain
circumstances
Determining Economic Disadvantage
Washington Metropolitan Area District Office
Size for Primary NAICS Code
Firm must generally remain small. SBA may graduate a participant prior to the expiration of its program term if firm does not remain small, as adjusted, for three successive program years.
Washington Metropolitan Area District Office
Joint Ventures: StructureRequirements tightened for joint ventures
(JV) so that non-disadvantaged firms do not unduly benefit from the 8(a) program
JV agreement may be informal or formal (separate business structure) but must be in writing
Can be unpopulated or populated (JV employs separate employees). Rules are different for each.
Washington Metropolitan Area District Office
Joint Ventures: Awards vs. Contracts
Change from no more than 3 awards over a 2 year period to no more than 3 contracts over a 2 year period without a finding of general affiliation
Same two entities may form additional JVs and each may be awarded 3 contracts over 2 years
Washington Metropolitan Area District Office
Reporting on Performance of Work
RequirementsAnnual Review: Participant must demonstrate
how it is meeting the performance of work requirements for each 8(a) contract that it is performing as part of a JV
8(a) Contract: At the completion of every 8(a) contract awarded to a JV, the Participant must explain how Performance of Work Requirements were met
Washington Metropolitan Area District Office
Mentor Protégé Program
Non-profits can be Mentors Mentor can have up to 3 protégés at one timeA firm cannot be both a Protégé and a Mentor at
the same timeProtégé can have second Mentor, corresponding
to an unrelated, secondary NAICS code Assistance provided by the Mentor must be tied
to the Protégé’s SBA-approved business planSBA prohibited from approving a new
Mentor/Protégé relationship within six months of the end of an 8(a) Participant’s program term
Washington Metropolitan Area District Office
Mentor/Protégé Agreement must be approved by SBA before the firms can submit a JV offer on a procurement as a small business
In order to receive the exclusion from affiliation on any non-8(a) contracts, the agreement must comply with all 8(a) JV requirements
SBA approved Mentor/Protégé joint ventures are small for federal subcontracts (DOE)
Contracting benefits derived from Mentor/Protégé relationship end once the protégé leaves the 8(a) program
Mentor Protégé Program
Washington Metropolitan Area District Office
Failure to Provide AssistanceConsequences if Mentor does not provide agreed-to
assistance:SBA may terminate the Mentor/Protégé AgreementMentor is ineligible to participate for 2 yearsSBA may recommend a stop work order for each
contract the Mentor and Protégé are performing as a JV and where they have received the exclusion from affiliation
SBA may authorize substitution of protégé firm for the JV
May constitute grounds for Government-wide suspension or debarment
Washington Metropolitan Area District Office
Self-Certified Contracting Programs
Small Disadvantaged Businesses (SDB)
Service-Disabled Veteran-Owned Businesses(SDVOB)
Women-Owned Small Businesses (WOSB)
Washington Metropolitan Area District Office
Small Disadvantaged Business (SDB) Program
Self-certifying program as of October 2008
Subcontracting opportunities
SDBs are eligible for special bidding benefits
Prime contractors get credit towards
small business goals for using SDBs as subs
Washington Metropolitan Area District Office
SDB Eligibility CriteriaSimilar to 8(a), except higher allowable Net
WorthAfter excluding the individual’s equity in the firm and equity in the primary residence, net worth may not exceed $750,000.*
Net Worth
less equity in primary residenceless equity in business equals adjusted net worth (which must not exceed $750,000 )
*when married, separate statements from each spouse to show each individual’s joint or community property shares and separate property.
Washington Metropolitan Area District Office
Service-Disabled Veteran-Owned Business (SDVOB) Program
Self-certifying program
SDVOBs are eligible to bid on set-aside contracts
Subcontracting opportunities
Prime contractors get credit towards
small business goals for using SDVOBs as subs
Washington Metropolitan Area District Office
SDVOB Program: Who is Eligible?
Size: Must be small according to SBA size standards Ownership: Must be at least 51% directly and
unconditionally owned and controlled by one or more service-disabled veteransDocumentation: Owner(s) must have rating letter from VA stating that they are rated as a service- related disabled veteran
Status: Owner(s) must have Form DD-214 indicating honorable discharge
Washington Metropolitan Area District Office
Women-Owned Small Business (WOSB)Program
Final Rule Published October 2010Program Start February 2011
Firms self-certify as Women-Owned Small Businesses
(WOSB), or Economically-Disadvantaged Women-
Owned Small Businesses (EDWOSB)For 83 target industries where WOSBs are under-
represented, contract officers may set-aside contracts for WOSBs or EDWOSBs only (under
specific circumstances)
Washington Metropolitan Area District Office
WOSB Program: Who is eligible?
Size: Must be small according to SBA size standards
Ownership: Must be at least 51% directly and unconditionally owned by a woman or women
Citizenship: Majority owner or owners must be U.S. citizens
Management: Control and day-to-day management must be in hands of a woman or women
Washington Metropolitan Area District Office
WOSB Program: EDWOSB
An Economicallly-Disadvantaged Woman-Owned Small Business (EDWOSB) is a WOSB which is owned by a woman or women whose:
Personal Net Worth < $750,000
Average Annual Income < $350,000
Total Assets < $6,000,000 (including primary residence and business)
Washington Metropolitan Area District Office
WOSB Program: Set-asidesI. RAND Study = 83 NAICS Codes:
45 NAICS Codes = Women-owned businesses “under-represented” Competition may be restricted to certified EDWOSBs
38 NAICS Codes = Women-owned businesses “substantially under-represented” Competition may be restricted to ALL CERTIFIED WOSBs
II. Award < $3 million ($5 million for manufacturing)
III. “Reasonable expectation” of two or more WOSBs or EDWOSBs bidding
IV. “Fair and reasonable” price
Washington Metropolitan Area District Office
WOSB Program: CertificationSelf-Certification:• Register in CCR (Central Contractor Registration)
http://www.ccr.gov
• Enter data in ORCA (Online Representations and Certifications Application)
http://orca.bpn.gov
• Submit documents to SBA’s WOSB Program Repository See http://www.sba.gov/wosb for details
Third Party Certification:SBA is evaluating possible third-party certifiers. There are no third parties authorized to certify WOSBs at this time.