things to know about 8a – cdc - Georgia Tech Procurement

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Transcript things to know about 8a – cdc - Georgia Tech Procurement

Georgia District Office – Region IV
233 Peachtree Street, Harris Tower Bldg.
Suite 1900
Atlanta, Georgia 30303
8(a) Division
Office Telephone
Carolyn Griffin, Supervisory Business Opportunity Specialist
Uneeda Collins, Business Opportunity Specialist
JoAnn Braxton, Business Opportunity Specialist
Paula Watts, Business Opportunity Specialist
Tanzee Hall-Jones, Business Opportunity Specialist
Brian Murden, Business Opportunity Specialist
Lillian Martin, Business Opportunity Specialist
(404) 331-0100
8(a) Eligibility
• Objective: “to promote the business development of small business
concerns owned and controlled by socially and economically
disadvantaged individuals… promote the competitive viability of
such concerns and to clarify and expand the program for procurement
by the United States.
• Term – 9yrs. Years 1-4 = Developmental / Years 5-9 = Transitional
Continuation in the program is dependent on the firm’s continuing eligibility
as a socially and economically disadvantaged owned/operated firm and
continued compliance with the 8(a)BD participation agreement.
Disadvantaged (with different thresholds), Unconditionally Owned, Controlled
and Managed by disadvantage individual(s), Small, U.S. Citizen, Good Character
• Social Disadvantage – preponderance of evidence
Black American
Asian Pacific American
Hispanic American (includes individuals of Spanish & Portuguese descent).
Native American
Subcontinent Asian American
• Economic Disadvantage
(Net Worth, Personal Income, Total Assets)
Net worth - After excluding the individual’s equity in the firm and equity in the
primary residence, net worth may not exceed:
$250,000 for 8(a) OR $750,000 for Continuing Eligibility
Personal Income cannot exceed an average of $250,000 over the previous three
years and $350,000 for continuing eligibility
Total Assets cannot exceed $4 million and $6 million for continuing eligibility
At least 51% unconditional ownership by the disadvantaged individual(s).
Upon entrance into program, applicant must be small based on its primary
NAICS Code, including affiliates.
Size is determined either by: average 3 years revenues OR # of employees
Proof of two years operation in the firm’s primary industry as verified by
revenues reported in business tax returns. SBA will consider those who
meet WAIVER RULE requirements.
Ineligible businesses: brokers * ; debarred or suspended persons or
concerns; nonprofit organizations. Franchises may be allowed contingent
upon SBA review of the franchise agreement.
Change of ownership must be approved by SBA
§ 121.101 What are SBA size standards?
SBA's size standards define whether a business entity is small and, thus, eligible for
Government programs and preferences reserved for “small business” concerns.
In order for a concern to remain eligible for 8(a) BD program participation, it must continue
to meet all eligibility criteria contained in § 124.101 through § 124.108. Any concern that
fails to meet the eligibility requirements after being admitted to the program will be subject
to termination or early graduation under §§ 124.302 through 124.304, as appropriate.
§ 121.601 What is a small business for purposes of admission to SBA's 8(a) Business
Development program?
An applicant must not exceed the size standard corresponding to its primary industry
classification in order to qualify for admission to SBA's 8(a) Business Development Program.
§ 124.2 What length of time may a business participate in the 8(a) BD
• A Participant receives a program term of nine years from the date of
SBA's approval letter certifying the concern's admission to the
program. The Participant must maintain its program eligibility
during its tenure in the program and must inform SBA of any changes
that would adversely affect its program eligibility. The nine year
program term may be shortened only by termination, early
graduation (including voluntary early graduation) or voluntary
withdrawal as provided for in this subpart.
Contract awards can be made up eligible firm’s graduation date. Options must be priced and all signatures are
applicable to this date.
124.301 A concern participating in the 8(a) BD program may leave the
program by any of the following means:
(a) Expiration of the program term established pursuant to § 124.2;
(b) Voluntary withdrawal or voluntary early graduation;
(c) Graduation pursuant to § 124.302;
(d) Early graduation pursuant to the provisions of §§ 124.302 and
• (e) Termination pursuant to the provisions of §§ 124.303 and
• No Longer Small
§ 124.506 At what dollar threshold must an 8(a) procurement be
competed among eligible Participants?
• Simplified Acquisition Procedures – purchase less than $150,000
• Sole Source – purchase greater than $150,000 but not to exceed
$6,500,000 for manufacturing and $4,000,000 for all others
• Competitive thresholds. (1) The Federal Acquisition Regulatory Council
(FAR Council) has the responsibility of adjusting each acquisitionrelated dollar threshold on October 1, of each year that is evenly
divisible by five.
• The anticipated award price of the contract, including options, will
exceed $6,500,000 for contracts assigned manufacturing NAICS codes
and $4,000,000 for all other contracts.
• 13 CFR Section 121.201 provides a full table of small business size
standards matched to the U.S. NAICS industry codes. A full table
matching a size standard with each NAICS Industry or U.S. Industry
code is also published annually by SBA in the Federal Register.
How Does SBA Verify a North American Industrial Classification System
(NAICS) code Assigned to the Requirement?
• As part of the acceptance process, SBA will verify the appropriateness
of the NAICS code assigned by the procuring activity. In general, SBA
will accept the NAICS code assigned as long as it is reasonable, even
though other NAICS codes may also be reasonable. If SBA and the
procuring activity disagree over the NAICS code assigned, the District
Office should make every effort to resolve the matter through
discussion with the procuring activity.
• If negotiations fail, SBA may reject the requirement, appeal the
designation to the head of the procuring agency pursuant to 13 CFR
124.505, or appeal the NAICS code assigned to the Office of Hearings
and Appeals (OHA): See 13 CFR l24.503(b).
Reminder: Request for eligibility review is
required prior to award of contract to lowest
bidder on a competitive 8(a) set-aside.
• Through the Partnership Agreement SBA delegates to the US Department
of Defense SBA contract execution functions. The Procuring Activity shall
adhere to contractual assistance and retains responsibility for compliance
with the limitations on subcontracting requirement and all applicable
provisions of FAR 52.219-14
52.219-14 -- Limitations on Subcontracting (Nov 2011)
• This clause does not apply to the unrestricted portion of a partial set-aside.
• (b) Applicability. This clause applies only to--
(1) Contracts that have been set aside or reserved for small business concerns or 8(a)
(2) Part or parts of a multiple-award contract that have been set aside for small
business concerns or 8(a) concerns; and
(3) Orders set aside for small business or 8(a) concerns under multiple-award
contracts as described in 8.405-5 and 16.505(b)(2)(i)(F).
(c) By submission of an offer and execution of a contract, the Offeror/Contractor
agrees that in performance of the contract in the case of a contract for –
(1) Services (except construction). At least 50 percent of the cost of contract
performance incurred for personnel shall be expended for employees of the concern.
(2) Supplies (other than procurement from a non-manufacturer of such
supplies). The concern shall perform work for at least 50 percent of the cost
of manufacturing the supplies, not including the cost of materials.
(3) General construction. The concern will perform at least 15 percent of the
cost of the contract, not including the cost of materials, with its own
(4) Construction by special trade contractors. The concern will perform at
least 25 percent of the cost of the contract, not including the cost of
materials, with its own employees.
Performance Problems
First point of contact for 8(a) contract performance concerns is the SBA Servicing
Office and the Business Opportunity Specialist assigned to that business.
• 13 CFR 124.513 and SBA’s Standard Operating Procedures (SOPs) 80 05
3, Chapter 8 governs 8(a) Joint Venture
a) General - If approved by SBA, a Participant may enter into a joint venture agreement with
one or more other small business concerns, whether or not 8(a).
*Mentor(s) are included in this regard
• (1) Participants, for the purpose of performing one or more specific 8(a)
• (2) A joint venture agreement is permissible only where an 8(a) concern
lacks the necessary capacity to perform the contract on its own, and the
agreement is fair and equitable and will be of substantial benefit to the
8(a) concern.
(b) Size of concerns to an 8(a) joint venture.
(1) A joint venture of at least one 8(a) Participant and one or more other business
concerns may submit an offer as a small business for a competitive 8(a) procurement so
long as each concern is small under the size standard corresponding to the NAICS code
assigned to the contract
(2) For sole source and competitive 8(a) procurements that do not exceed the dollar
thresholds - The combined annual receipts or employees of the concerns entering into
the joint venture must meet the size standard for the NAICS code assigned to the 8(a)
(c) Performance of work - For any 8(a) contract, including those between mentors and
protégés authorized by § 124.520, the joint venture must perform the applicable
percentage of work required by § 124.510.
13 CFR 124.520 The Mentor Protégé Program is designed to encourage
approved mentors to provide various forms of business development
assistance to protégé firms.
A) Management
B) Technical
C) Financial in the form of equity investment and/or loans
D) Subcontracts, Joint Venture Arrangements
D) Bonding
• Mentors are encouraged to provide assistance relating to the performance
of non-8(a) contracts so that protégé firms may more fully develop their
• Purpose of the program is relationship is to enhance the capabilities of the
protégé, assist with meeting goals in business plan, and improve ability to
successfully compete for contracts.
• Mentor
i) Commitment / ability to assist developing of Protégé
ii) Good Character
iii) Favorable Financial Health
iv) Not Debarred or Suspended on Federal List
v) Impart Value by Lessons Learned and Experience
vi) One Protégé unless otherwise approved by SBA
vii) Annual Certification
• Protege
• i) Developmental Stage or no 8(a) contracts
• ii) Size – less than half the size standard corresponding its
primary NAICS
• iii) Good Standing
• iv) One Protégé unless approved by SBA
• v) Cannot become Mentor while being a Protégé
• vi) Yearly approval for another year of participation
• vii) At least 6 months remaining in 8(a) BD Program
SBA Georgia District Office – 10:00a.m. – noon
May 8
June 12
July 10
August 14
September 11
October 9
November 13
December 11
Registration – Required at – TRAININGS / WORKSHOPS