Transcript SB Training for SAIC Procurement Training 2005

Federal Business
Small Business Liaison Officer (SBLO) 101 and
102 Training
DoD Western Regional Council for Small
Business Education and Advocacy
Raul Alvarado
SBLO – The Boeing Company
SMALL BUSINESS TRAINING
SBLO 101
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AGENDA
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Common Acronyms
Why?
Categories of Small
Businesses
Reporting Requirements
Small Business
Subcontracting Plans
SBLO 102
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AGENDA
Small Business
Subcontracting Plans
• Small Business Compliance
Reviews
• DLA 640
• SBA Preparation
Checklist
• Management
Commitment
• Training
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SMALL BUSINESS TRAINING
Common Acronyms
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NAICS
SIC
SB
LB
SDB
WOSB
HUBZONE
VOSB
SDVOSB
FAR
DFAR
SBA
ID/IQ
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SMALL BUSINESS TRAINING
WHY SMALL BUSINESS
• Amendment to SB Act (PL 95-507) - Passed in 1978
• Required Federal agencies to establish small business
goals and provide an explanation to Congress when goals
were not met.
• Established a OSDBU Office at each contracting agency
• Redefined minority firms as “Socially and Economically
Disadvantaged Small Business Concerns”
• Established subcontracting plan for large businesses
• Reserved all awards under $25,000 for small business
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SMALL BUSINESS TRAINING
WORLD OF SMALL BUSINESS
SMALL BUSINESS
SMALL
DISADVANTAGED
BUSINESS (SDB)
WOMAN
OWNED
HUBZone
SERVICE
DISABLED
VETERAN OWNED
BUSINESS
8(a) SMALL
BUSINESS
Historically Black Colleges &
Universities and Minority
Institutions (HBCU/MI)
VETERAN
OWNED
Javits-Wagner O’Day
(JWOD)
AbilityOne
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SMALL BUSINESS TRAINING
SMALL DISADVANTAGED (SDB)
DEFINITION - A SDB is small business firm that is 51% owned, operated and
managed on a daily basis by individuals who are socially and economically
disadvantaged.
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Socially Disadvantaged
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Presumed to be socially, racially, ethnically, or culturally
disadvantaged or subjected to racial or ethnic prejudice or cultural bias
• African Americans
• Hispanic Americans
• Native Americans
• Asian Pacific Americans
• Subcontinent Asian Americans
• Other minorities as defined by the SBA
13 CFR 124.1002
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Economically disadvantaged
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Individuals denied access to capital and credit opportunities because of
their identification as a member of a specific group
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Personal Net worth must be less than $750,000 excepting
• Ownership by the principal(s) in the firm
• Equity in the primary personal residence
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SMALL BUSINESS TRAINING
SMALL DISADVANTAGED BUSINESS
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To represent itself as a SDB
for Federal contracting, a
firm must have:
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Submitted application to
the SBA
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Received certification from
the SBA that it is a SDB
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For reporting purposes, a
firm may not self-certify as
a SDB -- if the SDB firm is
NOT in the SBA’s database
(http://dsbs.sba.gov/dsbs/
dsp_dsbs.cfm), then the
firm is not counted as SDB.
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SMALL BUSINESS TRAINING
SBA’s 8(a) BUSINESS DEVELOPMENT PROGRAM
Two-stage program:
• Developmental stage
• First 4 years
• Emphasis on sole source contracts
• Strengthen financial & managerial skills
• Improve access to markets
• Transitional stage
• Last 5 years
• Emphasis on competition
• Overcome remaining elements of economic disadvantage
• Prepare to graduate program
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SMALL BUSINESS TRAINING
WHO IS ELIGIBLE FOR THE 8(a) PROGRAM?
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Individuals who have been certified by the SBA as socially
disadvantaged (refer to the previous SDB statement) and,
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Economically disadvantaged
• Personal & business finances examined
• Access to capital/credit
• Entry level - less than $250,000 in personal net worth
• Rises as they progress in program
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SMALL BUSINESS TRAINING
WOMAN OWNED BUSINESS (WOSB)
DEFINITION - A WOSB is small business firm that is 51% owned, operated and
managed on a daily basis by individuals who are women.
• Congress has mandated that DoD award 5% of contract
dollars to WOSB.
• The Small Business Reauthorization Act of 2000 (P.L.
106-554) allows WOSB set-asides (permissive, but not
mandatory).
• Implementing regulatory guidance is currently being
examined by the SBA.
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SMALL BUSINESS TRAINING
Historically Under-Utilized Business Zones (HUBZone)
Four Requirements to be a qualified HUBZone :
1. Must be a registered small business
2. Concern must be owned and controlled only by US citizens
51% owned and controlled by US citizens
3. The principal office of the concern must be located in a
HUBZone; and
4. At least 35% of the concern’s employees must reside in a
HUBZone
The HUBZone Empowerment Contracting
Program is a community-based economic
development program designed to stimulate: Job
creation and Capital investment -- in distressed
areas
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SMALL BUSINESS TRAINING
VETERAN OWNED SMALL BUSINESS (VOSB)
DEFINITION - A VOSB is small business firm that is 51% owned, operated and
managed on a daily basis by one or more veterans. In the case of publicly
owned businesses, at least 51% of the stock must be owned by veterans.
• Veteran - A person who served in the active military,
naval, or air service, and was discharged or released
from service under conditions other than dishonorable.
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SMALL BUSINESS TRAINING
SERVICE DISABLED VETERAN OWNED SMALL BUSINESS (SDVOSB)
DEFINITION - A SDVOSB is small business firm that is 51% owned, operated and managed on a
daily basis by one or more service disabled veterans. In the case of publicly owned businesses, at
least 51% of the stock must be owned by service disabled veterans.
• Service Disabled Veteran - A veteran with a disability
that is service connected as defined in Title 38 U.S.C.
Section 101(16).
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SMALL BUSINESS TRAINING
HBCU/MIs
• Historically Black Colleges and Universities
(HBCUs):
Term used to identify accredited institutions of higher
education established prior to 1964 with a principal
mission of educating African-Americans.
• Minority Institutions (MIs):
Term used to identify institutions, in addition to HBCU,
having significant minority enrollments. Designated
minority groups include African-Americans, AsianAmericans, Alaskan Natives, Hispanic/Latino-Americans,
Native Americans, and Pacific Islander-Americans.
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SMALL BUSINESS TRAINING
NATIVE AMERICAN FIRM
DEFINITION – An Indian-owned enterprise is commercial industrial or business
activity established for profit with at least 51% Indian ownership
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Ownership can be:
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Individual – where the majority owner(s) are of Native American descent
Tribal - any Native American tribe, band, pueblo, or community, including native
villages and native groups as defined in the Alaska Native Claims Settlement.
Native American firms are not a SB category in the “standard” set of
categories to these firms
Native American includes American Indians, Eskimos, Aleuts, and Native
Hawaiians.
Thus Alaska Native Corporations (ANC), Native Hawaiian Organizations
(NHO), and Tribal Corporations (TC), are all considered Native American
Firms
There are nuances associated with Alaskan Native, Tribal-Owned and
Hawaiian Native Organizations that affect
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Eligibility rules
Procurement rules
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SMALL BUSINESS TRAINING
Reporting – SBLO 101
• ISR (SF294) – Report on Individual Contracts
• FAR 52.219-9 (d)(10)(iii)
• Semi-Annual
• To DCMA, SBA, Contracting Officer
• SSR (SF295) – Report on Agency Contracts
• FAR 52.219-9 (d)(10)(iii)
• Was Semi-Annual – ** New ** UPDATED in Federal
Register
• To DCMA, SBA, Washington, DC
October 1, 2008 – All Agencies on e-SRS
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SMALL BUSINESS TRAINING
Reporting – SBLO 101
• Opt312 – or equivalent – ** New ** UPDATED by FAR
Deviation
• Yearly with SSR (SF295)
• With Final ISR (SF294)
• Other
• As requested by Customer or Agency
• Semi-Annual Mentor-Protégé
• FAR 52.219-9(d)(10)(ii)
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SMALL BUSINESS TRAINING
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SMALL BUSINESS TRAINING
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SMALL BUSINESS TRAINING
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SMALL BUSINESS TRAINING
CCR
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SMALL BUSINESS TRAINING
CCR
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SMALL BUSINESS TRAINING
How Many DUNS Do You Have?
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SMALL BUSINESS TRAINING
www.esrs.gov
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SMALL BUSINESS TRAINING
New Acronyms
• DRT = Draft
• PEN = Pending
• REJ = Rejected
• ISR = Individual Subcontract
Report (FKA SF294)
• SSR = Summary Subcontractor
Report (FKA SF295)
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SMALL BUSINESS TRAINING
Plans – SBLO 101
• Small Business Subcontracting
Plans
• Types
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Comprehensive
Commercial
Master
Individual
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SMALL BUSINESS TRAINING
Plans – SBLO 101
• Comprehensive
• Test Program through 2014
• Negotiated annually
• Commercial
• Products sold to general public or industry
at established catalog or market prices
• Contractor’s fiscal year
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SMALL BUSINESS TRAINING
Plans – SBLO 101
• Master Plan
• Contains all required elements of an individual
plan except goals
• Must be approved by
• Corporate Administrative Contracting Officer
(CACO)
• Company Authorized Signature
• Covers a period of 1 to 3 years
• Individual Subcontracting Plan
• In conjunction with a Master Plan
• Specific to a contract – covers entire POP
• Has goals based on Offeror’s planned subk
effort
• Prorated allocation of indirect cost allowed (if
applicable)
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Federal Business
SBLO 102
SMALL BUSINESS TRAINING
• Why do we have these plans?
• What is a subcontracting plan?
• What are the required elements of a
plan?
• Developing the Subcontracting Plan – the
Process, tips
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SMALL BUSINESS TRAINING
Why do we have these plans?
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“It is the policy of the United States that SB, SDB, WOSB, VOSB,
SDVOSB, HUBZONE concerns have the maximum practicable
opportunity to participate in the performance of contracts awarded by
any federal agency. Other-than-small business (OTSB) contractors are
legally obligated to carry out this policy when awarding subcontracts
to the fullest extent consistent with the efficient performance of their
contracts.” SBA Handbook for Small Business Liaison Officers
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FAR 19.702 and 19.702(1)
• Any solicitation over $650k requires a clause for subcontracting plans.
• If a negotiated award value (including options) is anticipated to be over
$550k, any large business being considered for award, is required to
submit a subcontracting plan as part of their proposal.
• $1 million for construction
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The Small Business Act (added by P.L. 95-507)
Implementation is in FAR 19.700
Clause is in FAR 52.219-9
Additional implementation and clauses in FAR Sups
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SMALL BUSINESS TRAINING
Exceptions to this requirement for plans?
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FAR 19.702(2)(b)
• Small Businesses
• Contracts being performed entirely outside of the U.S.
(including U.S. possessions – meaning it’s states or
territories. Washington, DC and Puerto Rico are
INCLUDED)
• Modifications to contracts which do not contain clause
52.219-8
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SMALL BUSINESS TRAINING
What is a subcontracting plan?
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“A subcontracting plan is a document setting forth
how a contractor will provide SB, SDB, WOSB,
VOSB, SDVOSB, and HUBZONE SB concerns with
the maximum practicable opportunity to
participate in the performance of a contract or
subcontract.” SBA Handbook for Small Business
Liaison Officers
• A document submitted by a prime contractor
which details what they will subcontract on large
prime contracts. Specifically, what will be
subcontracted to SB, SDB, WOSB, HUBZSB VOSB,
& SDVOSB.
• FAR 19.704
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SMALL BUSINESS TRAINING
Sample Subcontracting Plan
Sample Subcontracting Plan
SMALL BUSINESS, SMALL DISADVANTAGED BUSINESS, HUBZONE SMALL BUSINESS, AND
WOMEN-OWNED SMALL BUSINESS
SUBCONTRACTING PLAN
DATE:_________
CONTRACTOR:_______________________________________________
SBA Handbook
for Small
Business Liaison
Officers
- Appendix C –
also has a
Sample
Subcontracting
Plan
ADDRESS:__________________________________________________
SOLICITATION OR CONTRACT NUMBER:__________________________
ITEM/SERVICE:_____________________________________________
The following, together with any attachments, is hereby submitted as a Subcontracting Plan to
satisfy the applicable requirements of Public Law 95-507 as implemented by OFPP Policy Letter
80-2 and detailed in current version of FAR 52.219-9.
1. (a) The following percentage goals (expressed in terms of a percentage of total planned
subcontracting dollars) are applicable to the contract cited above or to the contract awarded
under the solicitation cited.
NOTE: If the solicitation contains options, the contractor must provide separate statements
and goals for all option quantities and or years to comply with FAR 19.704(c).
(i) Small Business concerns:______% of total planned subcontracting dollars under this
contract will go to subcontractors who are small business concerns.
(ii) HUBZone small business concerns:_______% of total planned subcontracting dollars under
this contract will go to subcontractors who are HUBZone small business concerns. This
percentage is included in the percentage shown under 1.(a)(i) above, as a subset.
(iii) Small Disadvantaged Business Concerns:______% of total planned subcontracting dollars
under this contract will go to subcontractors who are small business concerns owned and
controlled by socially and economically disadvantaged individuals. This percentage is
included in the percentage shown under 1.(a)(i), above, as a subset.
(iv) Women-owned small Business Concerns:________% of total planned subcontracting dollars
under this contract will go to subcontractors who are women-owned small business concerns.
This percentage is included in the percentage shown under 1.(a)(i) above, as a subset.
(b) The following dollar values correspond to the percentage goals shown in (a) above.
(i) Total dollars planned to be subcontracted to small business concerns: $_____________.
(ii) Total dollars planned to be subcontracted to HUBZone small business concerns:
$_____________. This dollar amount is included in the amount shown under 1.(b)(i), above, as
a subset.
(iii) Total dollars planned to be subcontracted to small disadvantaged business concerns:
$___________. This dollar amount is included in the amount shown under 1. (b)(i), above, as a
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SMALL BUSINESS TRAINING
Major elements of a subcontracting plan…
• FAR 52-219-9 (d)(1) thru (11)
• Goals must be expressed as percentages of total
planned subcontracting dollars
• A statement of total dollars planned to be subcontracted
to:
SB
VOSB
SDB
SDVOSB
WOSB
HUBZone
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SMALL BUSINESS TRAINING
Major elements of a subcontracting plan…
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Description of the principal supplies and services to be
subcontracted, and
• Identify the SB, SDB, WOSB, HUBZSB, VOSB, & SDVOSB’s
that the products and services will be subcontracted to.
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A description of the method used to develop the
subcontracting goals.
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A description of the method/process used to identify potential
sources for solicitation
• Source lists, SBA Dynamic Small Business Database (FKA
ProNet), Trade Associations, etc.
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A description of the efforts you will make to assure that SB,
SDB, WOSB, HUBZSB, VOSB & SDVOSB have an equitable
opportunity to compete for subcontracts.
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SMALL BUSINESS TRAINING
Major elements of a subcontracting plan…
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Assurance that you will:
• Include the clause “Utilization of Small Business
Concerns” in all subcontracts that offer subcontracting
opportunities and require all subcontractors (except SB)
who receive subcontracts in excess of $650k ($1.5 M
construction) to adopt a plan that is in compliance with
the FAR.
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Cooperate in studies and surveys as required
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Submit periodic reports to allow the government to
determine compliance with the plan
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Submit ISR (Individual at Prime Contract level) and SSR
(Summary at Agency level) Subcontracting Reports
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Ensure its subcontractors submit ISR and SSR
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SMALL BUSINESS TRAINING
Small Business Compliance Reviews – SBLO 102
• Prepare utilizing the DCMA Form 640
• Prepare utilizing the SBA Checklist
• May be joint audit by DCMA and SBA
• DCMA – DoD Contracts
• SBA – Non-DoD (NASA, DOE, EPA, etc.)
• Annually for “Acceptable” and “Highly Successful”; Bi-
Annually for “Outstanding”
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SMALL BUSINESS TRAINING
Small Business Compliance Reviews – SBLO 102
• Outstanding
• Highly Successful
• Acceptable
• Marginal
• Unsatisfactory
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SMALL BUSINESS TRAINING
Small Business Compliance Reviews – SBLO 102
• Common Issues
• Areas of weakness
• No documentation of assistance being provided to SB
firms
• Size certifications not being updated
– Should be done annually on all, not just new
• Policy & Procedures not updated to include new
programs
• Back-up for dollars reported on ISR/SSR
• Training
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SMALL BUSINESS TRAINING
Small Business Compliance Reviews – SBLO 102
• Management Commitment
• Policy Statement
• Issued by current senior management
• Disseminated throughout the company
• Indicate that Small Business subcontracting is a
company policy and is the responsibility of each person
in the company having procurement or requirement
responsibilities
• Outlines authority for implementing SB program
• Identify distribution and assure policy provides
objectives of National Small Business policy
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SMALL BUSINESS TRAINING
Small Business Compliance Reviews – SBLO 102
• Management Commitment
• Policy Letter
• SBLO Appointment
• Policy & Procedures
• Awareness of Small Business Programs
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SMALL BUSINESS TRAINING
Small Business Compliance Reviews – SBLO 102
• Training
• Procurement
• Contracts
• Program Office
• Proposal Teams
• Outreach
• Conferences
• Referrals
• Assistance to Small Businesses
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SMALL BUSINESS TRAINING
Small Business Compliance Reviews – SBLO 102
EXAMPLES OF OUTREACH
• National Veteran’s Conference
• SB Local or National Association Meetings
• SBA Week – April/May
• DoD Western Regional Council for SB Education &
Advocacy – 4 times per year
• Navy Gold Coast – August
• NMSDC – October
• MEDWeek
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Federal Business
REPORTING
SMALL BUSINESS TRAINING
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SMALL BUSINESS TRAINING
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SMALL BUSINESS TRAINING
http://www.esrs.gov/
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Federal Business
SPECIAL PROGRAMS
SMALL BUSINESS TRAINING
Purpose of the Mentor-Protégé Program
The Mentor-Protégé Program is designed to provide
incentives for Prime Contractors to assist Small
Disadvantaged and Woman-owned Businesses to
enhance their business and technical capabilities and to
increase their participation as subcontractors and
suppliers.
The program shall also foster the establishment of longterm, mutually beneficial business relationships
between protégé’s and mentors.
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SMALL BUSINESS TRAINING
Types of Mentor-Protégé Agreement
• Cost Reimbursable
• Credit
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SMALL BUSINESS TRAINING
Agencies that have Mentor-Protégé Programs:
• Army
• Navy
• Air Force
• DISA – Defense Information Systems Agency
• DLA - Defense Logistics Agency
• DOD
• Energy
• EPA – Environmental Protection Agency
• FAA
• Homeland Security
• NASA
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SMALL BUSINESS TRAINING
SBLO 101 and 102
THANK YOU
For your time and attention
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