SmallBusinessContractingProgramsJackieRobinson-Burnette,SES

Jackie.RobinsonBurnette@sba.gov

SBAMission

• TheU.S.SmallBusinessAdministration(SBA)wascreatedin1953asanindependentagencyofthefederalgovernmenttoaid,counsel,assistandprotecttheinterestsofsmallbusinessconcerns,topreserve freecompetitiveenterpriseandtomaintainandstrengthentheoveralleconomyofournation.Werecognizethatsmallbusinessiscriticaltooureconomicrecoveryandstrength,tobuildingAmerica'sfuture,andtohelpingtheUnitedStatescompeteintoday'sglobalmarketplace.AlthoughSBAhasgrownandevolvedintheyearssinceitwasestablishedin1953,thebottomlinemissionremainsthesame.

• TheSBAhelpsAmericansstart,buildandgrowbusinesses.Throughanextensivenetworkoffieldofficesandpartnershipswithpublicandprivateorganizations,SBAdeliversitsservices topeoplethroughouttheUnitedStates,PuertoRico,theU.S.VirginIslandsandGuam.

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ThePresident• “Smallbusinessesaretheheartofthe• Americaneconomy.They'reresponsiblefor

halfofallprivatesectorjobs–- andtheycreateroughly70percentofallnewjobsinthepastdecade.Sosmallbusinessesarenotonlyjobgenerators,they'realsoattheheartoftheAmericanDream.Afterall,thesearebusinessesborninfamilymeetingsaroundkitchentables.They'rebornwhenaworkertakesachanceonherdesiretobeherownboss.They'rebornwhenapart-timeinventorbecomesafull-timeentrepreneur,orwhensomebodyseesaproductthatcouldbebetteroraservicethatcouldbesmarter,andtheythink,…Well,whynotme?Letmetryit.Letmetakemyshot.”

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GovernmentContractsOverviewforSmallBusinesses

TheU.S.federalgovernmentcontractsrepresentatremendoussalesandrevenueopportunityforsmallbusinessesbecause:

•TheU.S.Governmentistheworld’slargestcustomer•Itbuysalltypesofproductsandservicesinbothlargeandsmallquantities•Itisrequiredbylawtoprovideopportunitiesforsmallbusinesses

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GovernmentContractingObjectives

• Competitionisfairandopen.Theprocessofrequestingproposals,evaluatingbids,andmakingawardsshouldtakeplaceonalevelplayingfieldwithfullvisibility.Anybusinessthatisqualifiedtobidshouldbeconsidered.

• Productsandservicesarecompetitivelypriced.Thegovernmentseekspricingthatiscommensuratewithitsformidablebuyingpower.

• Thegovernmentgetswhatitpaysfor.Thegovernmentprotectsitselfbycarefullydefiningrequirements,termsandconditionsforallpurchases.Contractorsmustdocumentthattheyhavefulfilledallrequirementsandmetalltermsinordertobepaid.

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TypesofGovernmentContractors

PrimeContractor

• Primecontractorsbidonandwincontractsdirectlyfromgovernmentagencies.Afteraward,theprimecontractorcompanyistheentitythatislegallyresponsibleforallaspectsoffulfillingthecontract,suchasinteractingwiththegovernmentcustomer,recruitingstaff,organizingandmanagingteamsofsubcontractors,andmeetingalldeliveryrequirements.

• Bothlargeandsmallbusinessescanserveasprimecontractors.

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TypesofGovernmentContractors

Subcontractor• Subcontractorsjoinprimecontractors’teams,usuallytoprovidea

specificcapabilityorproduct.Subcontractingisanexcellentwaytoenterthegovernmentcontractingmarketandtoparticipateinlarger-scaleopportunities.You’llberesponsibleonlyforyourareaofexpertise,notmanagingtheentirecontract.

• Youcangainvaluableexperience(called“pastperformance”)thatwillqualifyyouforfuturecontracts.Butnotethatyou’llbeservingtwocustomers:Yourprimecontractorwilldeterminewhatpercentageoftheworkandwhichassignmentsyouwillreceive.Youmayormaynotworkdirectlywiththegovernment,atthediscretionofyourprime.

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SmallBusinessSet-Asides

• Smallbusinessset-asidesareapowerfultoolforhelpingsmallbusinessescompeteforandwinfederalcontracts.Everyyear,thefederalgovernmentpurchasesapproximately$400billioningoodsandservicesfromtheprivatesector.Whenmarketresearchconcludesthatsmallbusinessesareavailableandabletoperformtheworkorprovidetheproductsbeingprocuredbythegovernment,thoseopportunitiesare“set-aside”exclusivelyforsmallbusinessconcerns.

• Therearemanydifferenttypesofset-asides.Someareopentoallsmallbusinesses;othersareopenonlytosmallbusinesseswithcertaindesignations.

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FederalPurchasesbetween$3,500- $150,000

• Everyfederalgovernmentpurchasewithananticipatedvalueabovethemicro-purchasethresholdof$3,500,anduptotheSimplifiedAcquisitionThreshold(SAT)of$150,000,isrequiredtobeautomaticallyandexclusivelyset-asideforsmallbusinesses.Theremustbeatleasttwoormore(RuleofTwo)responsiblesmallbusinessconcernsthatarecompetitiveintermsofmarketprices,quality,anddeliveryforanautomaticset-asidetooccur.

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FederalPurchasesover$150,000

• ContractopportunitiesabovetheSATof$150,000shallalsobesetasideiftheRuleofTwoismet.

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Women-OwnedSmallBusinesses(WOSB)FederalContractingProgram

• TheWOSBFederalContractProgramwasimplementedinFebruary2011withthegoalofexpandingthenumberofindustrieswhereWOSBwereabletocompeteforbusinesswiththefederalgovernment.ThisprogramenablesEconomicallyDisadvantagedWOSBs(EDWOSBs)tocompeteforfederalcontractsthatareset-asideforEDWOSBsinindustrieswherewomen-ownedsmallbusinessesareunderrepresented.Italsoallowsset-asidesforWOSBsinindustrieswherewomen-ownedsmallbusinessesaresubstantiallyunderrepresented.SBAhasdesignatedtwosetsofindustriesaccordingtoNorthAmericanIndustryClassificationSystem(NAICS).ThelinkbelowwilltakeyoutothecurrentlistofNAICScodesdesignatedforuseunderthisprogram.

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Women-OwnedSmallBusinesses(WOSB)FederalContractingProgram

NEWWOSBPortal!Certify.SBA.GOV

• TheU.S.SmallBusinessAdministration(SBA)haspostedPowerPointpresentationstoassistyouwiththeWOSBFederalContractProgramrepositoryprocess.Inthisnewportal,WOSBbusinessownerswillbeabletomanagetheirdocuments,completeapplicationformsonline,andreceivenoticesofupcomingdeadlines.Note,asself-certificationisstillpermittedwhileSBAdevelopsnewcriteria,thismodernizedsitesupportsthosedecisions.Fortechnicalquestionsemailcertify@sba.gov

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New!!ResultsofDepartmentofCommerceWOSBFederalContractProgramStudy

• AttherequestoftheSBAin2015,theOfficeoftheChiefEconomist,attheU.S.DepartmentofCommerce,conductedanewstudyontheWomen-OwnedSmallBusiness(WOSB)FederalContractingProgram.ThestudyreevaluatedtheNorthAmericanIndustryClassificationSystem(NAICS)industrygroupsinwhichWOSBsareunderrepresentedandsubstantiallyunderrepresentedinFederalcontracting.Asaresultofthestudy,theSBAhasdeterminedchangeswillbeimplementedtotheWOSBFederalContractingProgram. AssetforthintheFederalRegisternotice,theSBAhasauthorizedtheuseof113newNAICSIndustrygroupsforWOSBandEDWOSBsetasides.WOSBswillnowbeeligibleforcontractparticipationin92NAICSindustrygroups.

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UnderstandingtheHUBZone Program

• TheHistoricallyUnderutilizedBusinessZones(HUBZone)programwasenactedintolawaspartoftheSmallBusinessReauthorizationActof1997DownloadAdobeReadertoreadthislinkcontent.TheprogramfallsundertheauspicesoftheU.S.SmallBusinessAdministration.Theprogramencourageseconomicdevelopmentinhistoricallyunderutilizedbusinesszones- "HUBZones"- throughtheestablishmentofpreferences.

• SBA'sHUBZone programisinlinewiththeeffortsofboththeAdministrationandCongresstopromoteeconomicdevelopmentandemploymentgrowthindistressedareasbyprovidingaccesstomorefederalcontractingopportunities.

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HowtheHUBZone ProgramWorks

TheSBAregulatesandimplementstheHUBZone program.SBAdoesthefollowing:

• DetermineswhichbusinessesareeligibletoreceiveHUBZonecontracts

• MaintainsalistingofqualifiedHUBZone smallbusinessesthatfederalagenciescanusetolocatevendors

• AdjudicatesprotestsofeligibilitytoreceiveHUBZone contracts• ReportstotheCongressontheprogram'simpactonemployment

andinvestmentinHUBZone areas.

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BenefitsoftheHUBZone Program

• Theprogram’sbenefitsforHUBZone-certifiedcompaniesinclude:• Competitiveandsolesourcecontracting• 10%priceevaluationpreferenceinfullandopencontract

competitions,aswellassubcontractingopportunities.

• Thefederalgovernmenthasagoalofawarding3%ofalldollarsforfederalprimecontractstoHUBZone-certifiedsmallbusinessconcerns.OntheSBAwebsite,there’salinkthatshowsthebiggestindustries,bycontractingdollaramount,forHUBZonecompaniesandsmallbusinesses.

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Service-DisabledVeteran-OwnedSmallBusinessConcerns

• OnDecember16,2003,theVeteransBenefitsActof2003waspassedbyCongress.Section308oftheAct(PublicLaw108-183)establishedaprocurementprogramforService-DisabledVeteran-OwnedSmallBusinessConcerns(SDVOSBC).ThisprocurementprogramprovidesthatfederalcontractingofficersmayrestrictcompetitiontoSDVOSBCsandawardasolesourceorset-asidecontractwherecertaincriteriaaremet.

• TheprogramofferscompetitiveSDVOSBcontractsandsubcontracts.ContractingOfficersmaysolesource,ifthereisnoreasonableexpectationthatatleasttworesponsibleSDVOSBCswillsubmitoffers.

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EligibilityforSDVOSB

• TheServiceDisabledVeteranmusthaveaservice-connecteddisabilitydeterminedbytheDepartmentofVeteransAffairsorDepartmentofDefense.

• TheSDVOSBmustbesmallundertheNAICScodeassignedtotheprocurement.

• TheSDVmustunconditionallyown51%oftheSDVOSB.

• TheSDVOmustcontrolthemanagementanddailyoperationsoftheSDVOSB. www.sba.gov 18

EasySelf-Certify!Veteranscaneasilyandquicklyself

certifyforallfederalagencyprocurements (excepttheVA)

Whatisthe8(a)BusinessDevelopmentProgram?

• The8(a)BusinessDevelopmentProgramisabusinessassistanceprogramforsmalldisadvantagedbusinesses.The8(a)Programoffersabroadscopeofassistancetofirmsthatareownedandcontrolledatleast51%bysociallyandeconomicallydisadvantagedindividuals.o ContractOpportunitieso Capitalo Counselingo 8(a)MentorProtégéProgram

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Whatisthe8(a)BusinessDevelopmentProgram?

• The8(a)ProgramisanessentialinstrumentforhelpingsociallyandeconomicallydisadvantagedentrepreneursgainaccesstotheeconomicmainstreamofAmericansociety.Theprogramhelpsthousandsofaspiringentrepreneurstogainafootholdingovernmentcontracting.Participationintheprogramisnineyears.

• Participantscanreceivesole-sourcecontracts,uptoaceilingof$4millionforgoodsandservicesand$6.5millionformanufacturing.

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SpreadtheWord….Streamlined8(a)applicationprocess!

• USCitizen• Size(byNAICS)• SocialDisadvantage• EconomicDisadvantage• Ownership• Control• PotentialforSuccess• Othereligibilitycriteria(character)

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We’vereturnedtothebasicsofprogram

eligibility.

Wewantmorebusinesses!

EntityOwned8(a)Firms…• Addressingthenegativeperceptionsthathaveledtoa

significantdeclineincontractsforAlaskanNativeCorporations(ANC),NativeHawaiianOrganizations(NHO),andTriballyOwnedfirms.

• Entityowned8(a)firmscanacceptsolesourcecontractswithnodollarlimitation.TherequirementforaJ&Adoesnotprohibitorlimittheauthoritytoexercisetheuseofthisvaluabletoolwhenitmakesgoodbusinesssense.

• ThefirmssupportU.S.citizensofthethatsufferfromsomeoftheworstpovertyinthecountry,andreportannuallyonthebenefitsgiventotheirrespectivemembersandcommunities.

Re-Shapingthe7(j)TrainingProgram

FreeTraining!

• Trainingisavailableinseveralareasoffederalcontracting.

• Programissignificantlyunderutilized.

• Currenttrainingtopicsinclude:• DCAAcostaccountingstandards• Strategizingforawinningprice• HowRFPelementsinfluencestrategy• Developingthetechproposal• Cybersecurity(comingsoon)• DevelopmentofHRsystems

Strengthening7(j)withmoreof….

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StrategiestoSecureSoleSourceContractsUnderstandingContractTypesintheFederal

GovernmentTheProcessofAwardingContracts/aftertheAwardAssistancefor8(a)firmsintheTransitionalStage/

Transitioningoutofthe8(a)ProgramSalestechniquesforFederalclientsQualityControlTrainingProgramManagementTrainingTrainingforimprovingcostestimatingEffectivebrandingandbenchmarkingFacilitysecurityclearancetraining

LeveragingInformationandNetworkstoAccessCapital(LINC)

• LINC– ConnectingBorrowstoLenders• Stepone - Answera fewquestions aboutyourbusiness• Steptwo- HearfromSBALenderswithin2businessdays• Stepthree- Receiveinformationonfreeandlow-costtraining

options

• StartYourApplication• LoginorRegisterto

findalendernow!

• https://www.sba.gov/tools/linc?from_mobile=truewww.sba.gov 25

Streamlining&ImprovingAccessibilitytoToolsandContracts

• Applications• ComplianceReviews• InformationTechnologySystems• TransparencyinProcesses• ContactInformationforSBAStaff• EVSimprovementstoattractthebestandbrightestpublicservants

• Settingthestandardfor#1customerservice!

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SB Leaders pushing

for regulatory

change with legal counsel .

PreparingtobeRanked#1inCustomerService

• TheSBAwillbeknownforprovidingthebestcustomerserviceintheentirefederalgovernment!

• Phonecallsandemailswillbeansweredtimely byresponsivetechnicallycompetentprofessionalstaff.

• TheSBAwillincreasetraininganddevelopmentofthestafftoimprovemorale andincreaseskills.

• OurReputationisatStake:Wewantourcustomerstochooseus,eveniftheyhadanotherchoice.WewanttobethetopbusinesspartnerofCHOICE!

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GCBDOrganizationChart

HonorableJohnShorakaAssociateAdministratorofGovernmentContracting

&BusinessDevelopment(AA/GCBD)

SeanCreanDirectorofGovernment

Contracting

MarianaPardoDirectorofHUBZone Program

KenDodds,EsqDirectorofPolicy

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Sean CreanSenior Executive

DirectorGovernment Contracting

J. Robinson-BurnetteSenior ExecutiveDeputy AA/GCBD

Ken Dodds, Esq.Senior ExecutiveDirector Policy

Mariana Pardo Senior Executive

DirectorHUBZone Program

J. Robinson-Burnette

Senior ExecutiveAssociate

Administrator of Business Development

JackieRobinson-Burnette,SESSBAHeadquarters,WashingtonDCJackie.RobinsonBurnette@sba.gov