Doing Business with the Government | Doing Business in DC | SBA

SBA’s
Business Development
and
Contracting Programs
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.”


Federal Procurement

U.S.
Government: Federal
Contracts =
The World’s
$500 Billion +
Largest per year
Customer


Federal Procurement
PROCUREMENT TARGETS:

Small Businesses: 23%
Service-Disabled Vets: 3%
SDB: 5% $500 Billion +
Women-owned: 5% per year
HUBZone: 3%


U.S. Small Business Administration
Washington Metropolitan Area District
• District of Columbia
• Montgomery County, MD
• Prince George’s County, MD
• Fairfax County, VA
• Loudoun County, VA
• Arlington County, VA
• City of Fairfax, VA
• City of Alexandria, VA


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


procurement?
2. Counseling and Training:

Procurement training and matchmaking events.

Resource Partners help business owners find and bid
on procurement opportunities.

Resource Partners include: SCORE, SBDC, WBC.


procurement?
3. Certification
SBA-Certified:
HUBZone Empowerment Contracting Program
8(a) Business Development Program
Self-Certified:
Small Disadvantaged Business
Service Disabled Veteran-Owned Business
Women-Owned Small Business


HUBZone Empowerment
Contracting Program

Designed to stimulate economic development and
create jobs in urban and rural communities.

HUBZone = Historically Underutilized Business Zone


HUBZone Empowerment
Contracting Program
HUBZone contracts are awarded to a qualified
HUBZone Small Business Contractor (SBC) through
any of the following means:
Set-aside awards based on competition restricted to
qualified HUBZone SBCs.
Awards to qualified HUBZone firms through full and open
competition after a price evaluation preference in favor of
qualified HUBZone SBCs.


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



Helps eligible small socially and
economically disadvantaged businesses grow
and become sustainable.

Training in business management & marketing
Opportunities to team with other companies



Program enrollment = 9 years

Program participation divided into 2 stages:
Year 1 – 4 Developmental
Year 5 - 9 Transitional

Must maintain eligibility throughout
enrollment


Completion of Program Term

A concern may leave the program by:

 Expiration of the program term (Nine years)
 Voluntary withdrawal or voluntary early graduation
 Graduation (13 CFR 124.302)
 Early graduation (13 CFR 124.302 and 304)
 Termination (13 CFR 124.303 and 304)


New Suspension Rule –
For Military Service
If the disadvantaged individual owner(s) of the 8(a)
firm are called to active military status, SBA will
no longer terminate the firm.(13 CFR 124.305)
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) assumes control of the firm


8(a) Eligibility
 United 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


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 they are
socially disadvantaged and their ability to compete in
the free enterprise system has been impaired due to
diminished access to capital and credit.


Determining Economic
Disadvantage
SBA will examine:
 Personal income for the past three years
 Personal net worth
 Fair market value of all assets
 Spouse’s financial condition, in certain
circumstances


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.


Joint Ventures: Structure
Requirements 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.


Joint Ventures:
Generally may not be awarded more than three
contracts over a two year period, starting from the
date of the award of the first contract, without the
partners to the JV being deemed affiliated for all
purposes. (13 CFR 121.103)

Same entities may create additional JVs and each
new joint venture entity may be awarded up to 3
contracts.


Reporting on
Performance of Work Requirements
Annual 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


Mentor Protégé Program
 Non-profits can be Mentors
 Mentor can have up to 3 protégés at one time
 A firm cannot be both a Protégé and a Mentor at the
same time
 Protégé 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 plan
 SBA prohibited from approving a new Mentor/Protégé
relationship within six months of the end of an 8(a)
Participant’s program term


Mentor Protégé Program
 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 8(a) or non-8(a) contracts, the agreement must
comply with all 8(a) JV requirements
 SBA approved Mentor/Protégé joint ventures are small
for federal contracts
 Contracting benefits derived from Mentor/Protégé
relationship end once the protégé leaves the 8(a)
program


Failure to Provide Assistance
Consequences if Mentor does not provide agreed-to
assistance:
 SBA may terminate the Mentor/Protégé Agreement
 Mentor is ineligible to participate for 2 years
 SBA 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


Self-Certified
Contracting Programs
Small Disadvantaged Businesses (SDB)

Service-Disabled Veteran-Owned Businesses
(SDVOB)

Women-Owned Small Businesses (WOSB)


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


SDB Eligibility Criteria
Similar to 8(a), except higher allowable Net Worth

After 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 residence
less 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.


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


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 veterans
Status: Owner(s) must have Form DD-214 indicating
honorable discharge


Women-Owned Small Business
(WOSB)Program
Program Started 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)


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


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 (preceding 3 year
average)
Total Assets < $6,000,000 (including primary residence
and business)


WOSB Program: Set-asides
I. 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

WOSB Program: Certification
Self-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 has approved several third-party certifiers.


For More Information
Contact your
Washington Metropolitan Area District Office:
www.sba.gov/dc
or
202-272-0345


Doing Business with the Government | Doing Business in DC | SBA

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (12)

En vedette

En vedette (20)

Similaire à Doing Business with the Government | Doing Business in DC | SBA

Similaire à Doing Business with the Government | Doing Business in DC | SBA (20)

Plus de Washington, DC Economic Partnership

Plus de Washington, DC Economic Partnership (20)

Dernier

Dernier (20)

Doing Business with the Government | Doing Business in DC | SBA

Notes de l'éditeur