SBA Selling to the Federal Government

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SBA Programs and Government Contracting
SELLING TO THE FEDERAL GOVERNMENT
U.S. Small Business Administration
www.sba.gov/mo

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Government Procurement
FY 2016 Federal Government spent
$409.1B
on prime contracts
The Small Business Act requires that the Federal
Government set aside 23% contract dollars for small
business.

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Government Procurement
$94 Billion
 5%, $4.7B - Small Disadvantaged Business, 8(a)
 5%, $4.7B Women Owned Business and EDVOSB
 3%, $2.8B HUBZone -Historically Underutilized Business Zone
 3%, $2.8B Service Disabled Veteran Owned Business

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Getting Started:
Does Your Business Qualify for Small Business
Government Contracts?
Four questions:
• Does the Government buy what you are selling
• Are you a small business
• What is the size standard for my business
• Do you fall under a specific certification

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Small Business Programs
– SBA Certification Programs
– 8(a) Business Development Certification
– HUBZone Certification
– Women Owned Small Business (WOSB)
– Economically Disadvantaged Woman Owned Small
Business (EDWOSB)

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SBA 8(a) Business Development Program
Purpose:
– To assist eligible small disadvantaged businesses to compete in the
American economy through business development.
– To provide federal contract preferences to qualified small
businesses
8 (a) Program Benefits:
– 9 year program to help the small business grow and develop
– Participants can receive sole-source contracts, up to a ceiling of $4
million for goods and services and $7 million for manufacturing.
– 8(a) firms are also able to form joint ventures to bid on contracts.
– 8(a) firms may participate in the mentor/protégé program.
– Training workshops

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Who is socially disadvantaged?
Social disadvantage must stem from circumstances
beyond ones control
– Subject to racial or ethnic prejudice
– Cultural bias within American society
– Members of a designated group:
Black Americans; Hispanic Americans; Native Americans
Asian Pacific Americans, Subcontinent Asian Americans
– Other disadvantaged individuals will be required to provide a narrative
regarding social disadvantage 13CFR124.103(c)
– preponderance of evidence

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Who is economically disadvantaged?
• Individuals whose ability to compete in the free enterprise system
has been impaired
• Everyone applying for 8(a) must complete a narrative on economic
disadvantage
• Federal Regulation Citation: 13CFR124.104
SBA Will Consider:
1. Personal Financial Condition/net worth
2. Excluding the individual’s equity in the firm, equity in the primary
residence, and retirement funds that are not accessible without
significant penalties.
3. Personal Income for 3-yrs average must not exceed $250,000
($350,000)
4. Total Assets must not exceed $4M ($6M)

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Other Requirements
• Be a US citizen
• Must be small according to SBA’s size standards
• At least 51% unconditional ownership by the
disadvantaged person(s).
• Must be controlled, managed and operated full-
time by the disadvantaged person(s).

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Other Requirements
Good Character
• Violations of any SBA regulations
• Debarred or suspended individuals or firms
• Any firm or any of its principals that fail to pay financial
obligations to the Federal Government
• Evidence that the firm knowingly submitted false
information during the application process
• Applicant firms and principals that lack business integrity
as shown by an indictment, guilty plea or civil judgment
• Any principal who is incarcerated or on parole or
probation

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Other Requirements
• Potential for Success: must be in business in its primary
NAICS code for at least two full years immediately prior to the
date of its 8(a) application.
• Proof of two years operation is verified by revenues reported in
business tax returns.
• Exception (13CFR124.107)
• Financial capability: sufficient capitalization, financial
performance, bonding capacity, manageable debts.
• Managerial and Technical capability: performance on
previous contracts, firm has the necessary personnel, licenses,
certifications, and facilities.

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Applying to the 8(a) Business Development Program
– www.sba.gov => Contracting => 8(a) Business Development
– How to Apply
– Steps to Applying to the 8(a) Program
– Before you Apply
– Additional Information Before you Apply
– 8(a) Application Checklist
The Division of Eligibility & Certification
San Francisco, CA

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Applying to the 8(a) Business Development Program
– SBA reviews application for completeness and notifies firm of
deficiencies within 15 days.
– If incomplete, applicant submits corrections within 15 days and a
determination of completeness is made by SBA within 10 days of
receipt of firm’s response.
– Applicant advised of outcome by the Associate Administrator
within 90 days from the date completed application was accepted.
– If declined, applicant advised of right to request reconsideration
within 45 days of date of decline. Should the concern not seek
reconsideration, there is a mandatory 12 month waiting period
before firm may reapply.
– If declined after reconsideration, there is a mandatory 12 month
waiting period before firm may reapply.

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HUBZone Program
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 preferences to qualified small
businesses.
– What is a HUBZone? – www.sba.gov HUBZone maps
– An area as small as a city block and as large as a county;
– Areas typically are located in distressed urban areas and rural
communities with low median household incomes and high
unemployment

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HUBZone Requirements
Qualifying for HUBZone:
– Principal Office must be in a HUBZone
• Principal office is the office with the most employees
– Worksite can be anywhere;
– At least 35% of its employees must reside in any
designated HUBZone area – at least 180 days
– NAICS Code determines size standards
• Must be a Small Business
– 51% of the ownership and control must be US Citizens;
• Definition of employee : 40hrs/month = full-time

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Benefits of the HUBZone Program
• 10% price evaluation preference in full and open
contract competitions, as well as subcontracting
opportunities.
• Competitive and sole source contracting
• The federal government has a goal of awarding 3% of all
dollars for federal prime contracts to HUBZone-certified
firms.

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How to Apply to the HUBZone Program
www.sba.gov » Contracting » Government Contracting Programs »
HUBZone Program » Applying for the HUBZone Program
You will see:
• The Application Process Before You Begin
• Application Process Steps
• Frequently Asked Questions

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Women Owned Small Businesses Programs
WOSB/EDWOSB
– Established February 4, 2011
• Makes it easier for women-owned companies to
compete for and win federal contracts.
• Provides agencies a tool to achieve WOSB contracting
goal (5% of its prime contracting dollars must be
awarded to WOSBs)

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• Meet small business size standard for primary NAICS code and
contract
• At least 51% unconditionally and directly owned by women who
are U.S. citizens
• The woman must manage the day-to-day operations
• The woman must make the long-term decisions for the business
• A woman must the hold highest officer position in the company
• This woman must work at business full-time during normal
working hours.
• No minimum amount of time for the business to be operational

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Economically Disadvantaged
Women Owned Small Businesses
All WOSB criteria PLUS
– Personal net worth of less than $750,000
• EXCLUDES: ownership in business and primary personal residence
• EXCLUDES: income reinvested or used to pay taxes of business
• EXCLUDES: funds reinvested in official retirement account
• EXCLUDES: transferred assets within two years if to or on behalf of
immediate family member for specific purpose
– Adjusted gross yearly income averaged over the three years
preceding the certification less than $350,000
– Fair market value of all assets are less than $6 million

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WOSB
• Currently self-certify/ or third party certifiers
• Add documents to repository, https://certify.sba.gov/
– Verification of US citizenship
– Corporate information relating to verifying ownership by a woman or women
EDWOSB
• Women claiming economic disadvantage
• Additional documents to repository:
– As required by the program

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For questions relating to the WOSB/EDWOSB program, please email
wosb@sba.gov
For questions relating to the certify.SBA.gov system, please email
certify@sba.gov
or you can always email - kenneth.surmeier@sba.gov
Questions ???

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Useful Websites
• U.S. Small Business Administration
– www.sba.gov
– www.sba.gov/mo
• 8(a) Program
– www.sba.gov/8abd
• Hubzone
– www.sba.gov/hubzone
• Woman Owned/EDWOSB
– www.sba.gov/wosb
• System for Award Management
– www.SAM.gov

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Resource Partners for Assistance
Willis Mushrush
417.256.2391
Bronwen Elizabeth Madden
417.255.7966

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For more information about these programs or SBA please contact
Ken Surmeier
816.426.4919
kenneth.surmeier@sba.gov
Thank you for attending

SBA Selling to the Federal Government

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