2. AGENDA
Part 1- Introduction to Small Business Program
Part 2- The Small Business Liaison Officer
Part 3- Subcontracting Plans
Part 4- Program Review
Part 5- ISR/SSR Reporting
Part 6- Other Socio-economic Programs
Part 7- Resources (SAM, DSBS, DIR)
3. PART 1 - SMALL BUSINESS PROGRAM
Why Small Business (SB) Programs?
Government recognized that small business is the
backbone of our economy, fueling jobs and
economic growth. Other small business sub-
classifications were identified and added over the
years reflecting socio-economic conditions and
areas of underutilization.
4. SMALL BUSINESS FACTS
**Innovation and Flexibility:
• Small businesses garner 13 times more patents per employee than large.
• Patents from small businesses are twice as likely than those from large firms to
be among the one percent most cited.
• Small businesses tend to have fewer layers of bureaucracy, which often allows
them to be more responsive to market forces and able to more easily adopt
innovations in technology.
• 99.7 percent of U.S. employer firms
• 64 percent of net new private-sector
jobs
• 49.2 percent of private-sector
employment
• 42.9 percent of private-sector payroll
*Economic Development
Small businesses represent:
• 46 percent of private-sector output
• 43 percent of high-tech employment
• 98 percent of firms exporting goods
• 33 percent of exporting value
*Source: U.S. Census Bureau, SUSB, CPS; International Trade Administration; Bureau of Labor Statistics, BED; Advocacy-
funded research, Small Business GDP: Update 2002-2010, www.sba.gov/advocacy/7540/42371
**Source: SBA Office of Advocacy website: http://www.sba.gov/advo
6. SMALL BUSINESS LEGISLATION
Act
Targeted
Classification Purpose
SB Mobilization Act of 1942 Small Business
- Develop economic scale to help SBs compete (war
effort only)
SB Act of 1953 Small Business - Established the Small Business Administration
- Est. guaranteed loans, technical and administrative
assistance for SB concerns in order to compete for
Gov’t Contracts
Revision to the SB Act of 1973 SDB
- Minority redefined as Small Disadvantaged Business
(SDB)
- Required Federal Agencies to develop goals
- Est. Office of Small and Disadvantaged Business
Utilization (OSBDU)
Public Law 99-661 (1987) SDB - Est. 5% goal
HBCU/MI
- Emphasized contracting with Historically Black
Colleges/Universities & Minority Institutions (HBCU/MI)
Federal Acquisition Streamlining Act 1994 WOSB - Est. Woman Owned SB goal of 5%
(P/L 103-355)
HUBZone Empowerment (P/L 103-135) HUBZone SB - Escalated Goal from 1% to current 3%
(Included in SB Reauthorization Act 1997)
Veteran’s Entrepreneurship and SB
Development Act of 1999 Veteran SB - Est. goal of 3% to Veteran Owned SB
(P/L 106-50)
- Must be certified by VA as VOSB or SDVOSB to
contract with the VA
7. SMALL BUSINESS PROGRAM
What is a Small Business
Definitions in FAR Part 2 and 19.001
North American Industry Classification System
(NAICS) codes
Developed for use in classifying the type of industry in
which a company is engaged in-products or services
Products-typically size based on number of employees
Construction or service-standard based on average sales for
past 3-years
8. SMALL BUSINESS SIZE STANDARDS
The SBA’s small business size standards are usually expressed in number
of employees over the past year or average annual receipts over the past
three years, depending on the industry.
Small Business Size Standards Define the Maximum Size of a Firm
(Refer to SBA’s Small Business Size Regulations (13 CFR §121) or the Table of Small Business Size
Standards (13 CFR §121.201) for more information.
e.g., 500 employees for most
manufacturing and mining industries
e.g., $7M average annual receipts for
most non-manufacturing industries
Medtronic eLearning
9. SMALL BUSINESS PROGRAM
Definitions
Ownership-No less than 51% Ownership and control
by one or more Women, Veterans or Disadvantaged
individuals.
HUBZone-Principle location in a HUBZone and no
less than 35% of the employees reside in a
HUBZone.
Socially Disadvantaged-those who have been
subject to ethnic prejudice or cultural bias as a
member of a group.
10. SMALL BUSINESS PROGRAM
SDB Individuals-Black Americans, Hispanic
Americans, Native Americans (American
Indians, Eskimos, Aleuts or Native Hawaiians),
Asian Pacific Americans, Subcontinent Asian
Americans or other groups designated from
time-to-time by the SBA
11. PART 2 - SMALL BUSINESS LIAISON OFFICER
Appointed by letter by appropriate level of
authority
In organization influencing all subcontracting
activities
Should report to CEO or senior level management
When new SBLO is appointed, cognizant DCMA
Office should be notified
12. SMALL BUSINESS LIAISON OFFICER
Duties
Responsible for the entire program for the
organization
Defined in the Small Business Subcontracting Plan
Direct influence in development of the SB Plan
Develop and oversee local procedures
Develop source lists as an aid to identify suppliers
CCR, PTACs, DCMA, Supplier Portal, etc
Ensure supply base is being updated
Continuous efforts to identify new SB concerns
13. SMALL BUSINESS LIAISON OFFICER
More Duties
Attend and sponsor procurement conferences
Update management on SB program status
Conduct SB training for all individuals involved in
subcontracting effort
Completion of annual/semi-annual ISRs and SSRs
Ensure Maximum Practicable Opportunities for SBs
whenever possible
Network with Industry SBLOs, PTACs, SBA, DCMA,
etc
14. PART 3 – SUBCONTRACTING PLANS
Individual Subcontracting Plan (FAR 19.704(a))
A separate Plan for each contract >$650,000 or
$1,500,000 for construction
Master Subcontracting Plan (FAR 19.704(b))
Plant or Division wide basis
Requires all Plan elements, except goals
Goals are submitted for each contract where Master Plan
is used.
3-year period approved by Administrative
Contracting Officer
15. SUBCONTRACTING PLANS
Commercial Subcontracting Plan
(FAR 19.704(d))
Used by subcontractors supplying commercial items
Submitted to 1st awarded Contracting Officer in the
contractor’s fiscal year
In effect for all Gov’t contracts in effect during that
period
16. SUBCONTRACTING PLANS
Comprehensive Subcontracting Plan
(DFARs 219.702(a))
In extended period as a test program
Corporate, division or plant-wide basis
Large business concerns at the major corporate
level (Boeing, Lockheed-Martin, etc)
Performing under at least 3 DoD contracts
Negotiated on annual basis
Incorporated in all DoD contracts requiring a plan
17. SUBCONTRACTING PLANS
Plan Elements
Goals, expressed in terms of percentages of total
planned subcontracting dollars for use of:
Small Businesses, veteran-owned SB, service-disabled
veteran owned SB, Small Disadvantaged Business,
HUBZone SB and woman-owned SB
Statement of total dollars to be subcontracted
For each individual plan, or
Annually for a commercial plan
18. SUBCONTRACTING PLANS
Elements
Description of the principal types of supplies and
services to be subcontracted
Identified by sub-classification
Description of the method used to develop goals
Description of methods used to identify potential
sources for solicitation purposes
DSBS, SAM, SBA, PTACs, catalogs, outreach, etc
Statement as to whether or not indirect spend is
used in establishing subcontracting goals
19. SUBCONTRACTING PLANS
The name of the individual employed by the
offeror who will administer the subcontracting
program.
Description of the efforts the offeror will make
to assure that SBs have an equitable
opportunity to compete for opportunities.
Assurance that the offeror will flow down
52.219-8 Utilization of Small Business
Concerns in their subcontracts
20. SUBCONTRACTING PLANS
Assurances that the offeror will-
Cooperate in any studies or surveys as required
Submit periodic reports so that the Gov’t can
determine the extent of compliance to the
submitted plan
Submit ISRs and SSRs as required
Assure that subcontractors will submit ISRs & SSRs
Where applicable*
21. SUBCONTRACTING PLANS
Description of records that will be maintained
concerning the SB Program
Source lists and other data identifying SB concerns
Organizations contacted in an attempt to locate SB
concerns
Records of solicitations >$150k and the efforts to
source with SB concerns
List of outreach efforts
Records of workshops, training, etc
22. PART 4 – AGENCY REVIEW
Agency (i.e. DCMA, SBA) to perform surveillance review
of Contractor’s Subcontracting Program (not an audit)
Using DCMA Form 640 or equivalent as an outline
Contractor should use as prep guideline
Often provided by reviewing agency in advance
Annually or periodically
Exit briefing with CEO or managing leadership
Program rating will be assigned as a result
Unsatisfactory
More than 3 deficiencies
Not meeting contractual requirements
Kept until deficiencies are corrected
Verified in follow-up review
23. AGENCY REVIEW
Review Ratings
Marginal
Between one and three deficiencies
Kept until corrected
Acceptable
Meeting contractual requirements
Meets or exceeds goals
Complied with reporting requirements
Highly Successful
Acceptable plus extra efforts in promoting SB participation
Outstanding
Highly Successful plus exceptional efforts to promote program
24. PART 5 – ISR/SSR REPORTING
Utilization of eSRS is required for the semi-annual and
annual reporting requirements
ISRs
Used for those reporting Individual and Master Plans
Semi-annually
Cumulative data during the life of the program
One ISR for each contract with a submitted plan
SSRs
Used by those reporting on a Comprehensive Plan & Commercial
Plan
Annually (based on government fiscal year)
Individual and Master Plans
Semi-annually covering entire SB Program
One SSR per reporting agency (DoD, VA, DOE, etc.)
25. ISR/SSR REPORTING
Timeliness and accuracy are critical
Reports are contractual deliverables
SDB Supplemental Reports due at Year End
Amount of subcontract dollars by NAICS code
Ensure that SDB total from SSR(s) = dollars
reported in Supplement Report
26. PART 6 – OTHER SOCIO-ECONOMIC PROGRAMS
Mentor Protégé Program (DFARS 219.71)
Public Law 101-510-National Defense Authorization
Act of 1991
Incentive program for Prime Contractors to assist SB
concerns in order to enhance their capabilities
Reimbursable or Credit (dollars for reporting) programs
Mentors need to have DoD approved Mentor application
Mentors need to have at least 1 contract with a SB Plan
Create formal agreement for up to 3-years
27. OTHER SOCIO-ECONOMIC PROGRAMS
Historically Black Colleges and Universities and
Minority Institutions (DFARS 252.219-7003)
Accredited HBCUs established prior to 1964
http://www.edonline.com/cq/hbcu/alphabet.htm
http://www2.ed.gov/about/offices/list/ocr/edlite-
minorityinst.html
MIs identify institutions having significant minority
enrollment
Dollars spent are reportable on ISRs and SSRs
28. OTHER SOCIO-ECONOMIC PROGRAMS
Indian Incentive Program (FAR 26.101 &
52.226-1)
Incentives to Primes that use Indian Organizations
and Indian-owned Economic Enterprises
Equal to 5% of the amount paid to the subcontractor
Organization means the governing body of any Indian
Tribe or entity
51% owned and controlled
29. OTHER SOCIO-ECONOMIC PROGRAMS
All Indian Tribal Companies or Native Alaskan
Companies, can be counted a SDB regardless
of size
Must be 51% owned and controlled by
Tribal/Alaskan organization
30. RESOURCES
SBA.gov
Local SBA Commercial Market Representatives
PTAC, http://www.aptac-us.org/new/
MNPTAC, http://mnptac.org/
Metropolitan Economic Development Assn (MEDA),
http://www.meda.net
Midwest Minority Supplier Development Council (mmsdc.org)
Midwest SBLO Group
Industry driven with strong PTAC and Agency support
www.wingov.com
Meets quarterly with webcasts
SBLO Handbook
http://www.sba.gov/content/small-business-liaison-officer-handbook
31. SMALL BUSINESS DATABASES
SBA Dynamic Small Business Search (DSBS)
http://web.sba.gov/pro-net/search/dsp_dsbs.cfm
Generally a self-certifying database. Certifications are now only for 8(a) Business
Development and HUBZone.
System for Award Management (SAM.gov)
https://www.sam.gov/portal/public/SAM/
replaces 9 government including CCR, ORCA
• United States Dept. of Veterans Affairs VetBiz.gov – Vendor Information Pages
Federal government web portal and database of verified veteran owned businesses
FedVendor – https://fedvendor.com/
• government vendor supplier database that contains registered
suppliers contact information and diversity status, revenue and other useful data.
32. OTHER SEARCH OPTIONS
Advocacy/ Membership Groups:
• Diversity Information Resources,
http://www.diversityinforesources.com/ Supplier diversity not-for profit
that offers supplier databases, diversity classification, web portal, and
seminars that support supplier diversity programs.
• National Minority Supplier Development Council (NMSDC),
nmsdc.org NMSDC MBISYS - national on-line database of more than
15,000 of America's top minority-owned firms.
• Women's Business Enterprise National Council (WBENC)
http://wbenc.org/
• Women's Business Development Center (WBDC), wbdc.org
regional affiliate of WBENC
• Chambers of Commerce (national and regional)
33.
34.
35. To save list in Excel:
- Increase Max number of firms to
be returned (i.e.100)
- Edit columns displayed as desired
- Run Search
- Save as .xls in file name
36.
37. HOW TO SAVE DSBS SEARCH RESULTS IN
SPREADSHEET FORM
38.
39.
40.
41.
42. VetBiz.gov – Vendor Information Pages
Federal government
web portal for veteran
owned businesses
http://www.vetbiz.gov/
43. Supplier Registration and Validation
Branded Registration Portal / Database
Shown: DIR / SupplierGATEWAY Data Management System
44. Users can also upload
certificates as attachments.
Supplier Registration
Pre-Identified certification
categories are available for the
user to choose (configurable to
certifications your organization
recognizes).
Acquire basic
organizational information.
Establish
Primary contact
Information
Collect key
diversity,
demographic and
capabilities data
46. City and/or State Certifying Agencies
National Gay & Lesbian Chamber of Commerce www.nglcc.org
US Pan Asian American Chamber of Commerce www.uspacc.com
Canadian Aboriginal Minority Supplier Council www.camsc.ca
National Minority Supplier Development Council (NMSDC)
www.nmsdc.org
NMSDC Regional Councils www.nmsdc.org/locations/regional_councils.html
National Women Business Owners Corporation (NWBOC)
www.nwboc.org
Small Business Administration (SBA) www.sba.gov
SBA 8(a) Program www.sba.gov/8abd
SBA Small Disadvantaged Business (SDB) Program www.sba.gov/sdb
SBA HUBZone Business Program www.sba.gov/hubzone
Women's Business Enterprise National Council (WBENC)
www.wbenc.org
California Public Utilities Commission (CPUC) M/WBE
Clearinghouse www.cpuc.co.gov
DIR Validated Certifications
50. SBLO HANDBOOK
CHAPTER 1 SBA’S ROLE IN PRE-AWARD SUBCONTRACTING
PLAN REVIEWS 4 – 5
The Laws, The Rules, and The Regulations
Why Does The Government Require Subcontracting
Plans?
Federal Acquisition Regulation (FAR ) Part 19
Assistance Available from SBA
CHAPTER 2 THE SUBCONTRACTING PLAN 6 – 10
What Are The Required Elements of a Plan?
What Are The Types Of Subcontracting Plans?
What is Maximum Practicable Opportunity (MPO)?
What Actions Should Other-Than-Small Business
Contractors Take to Enhance MPO?
CHAPTER 3 SUBCONTRACTING FLOW-DOWN
REQUIREMENTS 11 - 12
What is a First–Tier Subcontractor?
What are Second-Tier, Third Tier, Fourth-Tier
Subcontractors, etc.?
How Far Does the Flow-Down Go?
CHAPTER 4 HOW TO REVIEW A SUBCONTRACTING PLAN
13 - 14
What are the Pre-award Responsibilities of an Other-
than-Small Business Prime Contractor or
Subcontractor?
Who Reviews the Subcontracting Plan?
How Should the Prime Contractor Review the
Subcontracting Plan?
What is an Acceptable Subcontracting Plan?
What Should the Prime Contractor Do with an
Unacceptable Plan?
CHAPTER 5 NAICS CODES, SIZE STANDARDS, AND
CERTIFICATIONS 15 - 18
What Is A NAICS Code?
What Are Size Standards?
What Is A Small Business?
What Is Affiliation? How Do NAICS Codes Affect Size
Status Self Certifications?
What Certifications Apply to Subcontractors?
What Is Self-Certification?
What Are Federal Certifications?
Who Can Challenge/Protest the Size Status of
A Subcontractor?
Who Can Challenge/Protest The
Disadvantaged Status Of
A Subcontractor?
51. CHAPTER 6 POST-AWARD SUBCONTRACTING
RESPONSIBILITIES 19 - 23
Who is Responsible for Enforcing the
Subcontracting Rules?
Individual Subcontract Report (ISR)
Subcontracting Report for Individual Contracts
Who Submits Reports? (Reporting Requirements
for 1st Tier Goals)
How Often is The ISR Submitted?
What Is Reported On The ISR?
Summary Subcontract Report (SSR)
Who Submits the SSR?
To Whom Is The SSR Submitted?
How Often Is The SSR Submitted?
What Is Reported On The SSR?
CHAPTER 7 HOW SBA MONITORS OTSB
CONTRACTORS 24 – 25
Subcontracting Program Compliance Reviews
Performance Reviews
Subcontracting Orientation and Assistance
Reviews (SOAR)
Follow-Up Reviews
CHAPTER 8 SUBCONTRACTING PROGRAM
AWARDS 26
Award Of Distinction
Dwight D. Eisenhower Award For Excellence
Francis Perkins Vanguard Award
Small Business Subcontractor of the Year
APPENDICES
A – Legislation Affecting Federal Prime and
Subcontracts
B – Subcontracting Assistance Program Fact
Sheet
C – Subcontracting Plan Format
D – Sample Documentation of Purchases over
$100,000 Form
E – Sample Flow-Down Letters
F – Subcontracting Plan Review Sheets
G – Small Business Federal Definitions
H – Sample Size Self-Certification Form
I – MOU with DCMA/SBA
J – SBA Small Business Program Compliance
Review Checklist
K – Websites
L – Frequently Asked Questions
SBLO Handbook:
SBLO Handbook, Cont’d
52. SBLO Handbook, Cont’d
Appendix D
Document small
business inclusion of
for orders exceeding
$150,000 (awarded to
large business)
