Transcript No Slide Title
Guam Oct 2010
Small Business Programs
Small Business Administration Office of Government Contracting
Presented by
Ms. Marichu Relativo Procurement Center Representative (PCR)
www.sba.gov
Basis for the Small Business Programs
Small Business Act
To aid, counsel, assist & protect the interests of small business concerns Goal of policy is to ensure that a fair proportion of purchases, contracts & subcontracts be placed with small businesses
“Level the Playing Field”
Guam Oct 2010
http://www.sba.gov/library/lawroom.html
www.sba.gov
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What is a Small Business?
Organized for profit Place of business in the U.S.
Operates primarily in the U.S. or makes significant contribution to the U.S. economy Taxes, U.S. products, materials or labor Cannot be dominant in its field on a national basis Self Certification in the Central Contractor Registration (CCR) database 3 Guam Oct 2010 www.sba.gov
Small Business is Determined by
Measured by its employment, business receipts, or business assets
Meet the numerical small business size standard for its industry
SBA Table of Size Standards North American Industry Classification System (NAICS) industries codes Size Table: http://www.sba.gov/size Guam Oct 2010 NAICS: http://www.osha.gov/oshstats www.sba.gov
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Small Business Programs & Government-wide Goals
23% - Small Business (SB) 5% - Small Disadvantaged Business (SDB) (includes 8(a) Business Development) 5% - Women-owned Small Business (WOSB) 5% - Service Disabled Veteran Owned SB (SDVOSB) 3% - HUBZone Small Business Guam Oct 2010
FAR Part 19, Public Laws, Code of Federal Regulations (13 CFR)
www.sba.gov
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Government-wide Goals & Score Cards
Goals negotiated between SBA and the President Goals are monitored & reported by SBA Prior to 2009 – Color codes/After 2009 – Letter grade Reports are published in the SBA website Government-wide overall grade for 2009 – “B” or 94.1
Dept of Defense overall grade for 2009 – “B” or 93.6
http://www.sba.gov/aboutsba/sbaprograms/goals/SCORECARD2009.html
Guam Oct 2010 www.sba.gov
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What are the Governing Regulations?
Title 13 of the Code of Federal Regulations (CFR) 121 -Small Business Size Regulations 124 -8(a) Business Development/SDB Programs 125 -Government Contracting Programs (including the SDVOSB Program) 126 -HUBZONE Program Federal Acquisition Regulation (FAR) FAR Part 19 DFARS, AFFARS, AFARS, EFARS, etc Guam Oct 2010
FAR Part 19, Public Laws, Code of Federal Regulations (13 CFR)
www.sba.gov
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Small Business Size Standards
Firms must be small based on their primary NAICS Code, including affiliates Size is determined either by: Average 3 years revenues Number of employees Manufacturers Dealers Wholesalers Source: 13 CFR 121 Size Regulations Website:
http://www.sba.gov/regulations/121/
www.sba.gov
Guam Oct 2010 8
Common Size Standards
500 employees – most manufacturer & mining industries 100 employees – all wholesales trade industries 500 employees – for federal prime contracts & subcontracts $6.5M – most retail & service industries $31M – most general & heavy construction industries $13M – all special trade contractors $0.75M – for most agricultural industries Source: 13 CFR § 121.104;13 CFR § 121.106; 13 CFR 121.201
Website:
http://www.sba.gov/regulations/121/
Guam Oct 2010 www.sba.gov
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Size Standards Update
Size Standard Final Rule issued October 6, 2010 Effective November 5, 2010 Last change July 2008 To Expand Opportunities for Small Businesses Keep up with the economy Keep up with federal contracting marketplace The upcoming changes: Sector 44-45, Retail Trade Sector 72, Accommodation and Food Services Sector 81, Other Services Guam Oct 2010 Source: Federal Register 61597, 61604, 61591 www.sba.gov
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Small Business Programs
What is the 8(a) Small Business Development Program?
Guam Oct 2010
FAR Part 19, Public Laws, Code of Federal Regulations (13 CFR)
www.sba.gov
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Who are Socially Disadvantaged Individuals?
Subjected to racial or ethnic prejudice or cultural bias because of their identity as members of a group Social disadvantage must stem from circumstances beyond their control In the absence of evidence, individuals who are members of the following designated groups are presumed to be socially disadvantaged: 13 CFR 124.103
www.sba.gov
Guam Oct 2010 12
Who are Socially Disadvantaged Individuals?
Black Americans Hispanic Americans Native Americans (American Indians, Eskimos, Aleuts, and Native Hawaiians) Asian Pacific Americans (persons with origins from Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam , U.S. Trust Territory of the Pacific Islands [Republic of Palau], Commonwealth of the Northern Mariana Islands, Laos, Cambodia [Kampuchea], Taiwan; Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Republic of the Marshall Islands, Federated States of Micronesia, Macao, Hong Kong, Fiji, Tonga, Kiribati, Tuvalu, or Nauru; Subcontinent Asian Americans (persons with origins from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, the Maldives Islands or Nepal), and Members of other groups designated by the SBA Guam Oct 2010 www.sba.gov
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Small Disadvantaged Business (SDB)
At least 51% owned by one or more individuals who are both socially and economically disadvantaged Must be citizen of the United States Must manage and control daily business operations Have management or technical expertise directly related to the primary product or service of the business SBA-no longer certifies SDB as of Oct 08 Self certify in CCR & ORCA Guam Oct 2010 www.sba.gov
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8(a) Business Development Program
See definition as the Small Disadvantage Business (SDB) In business at least two years Certified and approved by SBA Program is for nine years First 4 years – Developmental Stage Last 5 years – Transitional Stage Monitored by SBA local district office Early graduation Government-wide goal: 5 % SDB & 8(a) goals combined 13 CFR 124.8 www.sba.gov
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8(a) Set-Aside
Sole source up to $3.5M / $5.5M for manufacturing NAICS Unlimited amount to Alaska Native Corp (ANC) firms Sole Source & Competitive 8(a) over $100K For competitive 8(a) – agency submits offer letter to the SBA district office serving the geographical area in which the procuring activity is located ; For competitive and open construction requirements – agency submits offer letter to the SBA district office serving the geographical area in which the work is to be performed For competitive 8(a) -
Rule of two
applies
13 CFR 124.8; FAR 19.8
www.sba.gov
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8(a) Set-Aside cont
For sole source 8(a): Sole source is not protest able Withdrawal from the 8(a) program – Submit request to SBA with justification/approval must be obtained prior to changing acquisition Competitive 8(a) can be restricted to a state or region Example: Alaska 8(a) firms only or Region 10 8(a) firms only (include restriction in the synopsis) 13 CFR 124.502 and FAR 19.8
www.sba.gov
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8(a) Set-Aside cont
Sole Source and competitive 8(a) under $100K For sole source – agency contacts SBA for firm’s eligibility prior to award For competitive – agency submits waiver request letter to SBA for approval Sole Source 8(a) – synopsis in FBO not required “8(a) stays 8(a)” Unless it is a new requirement (25% increase in scope from previous requirement) All construction requirements are considered new requirements Adverse impact
–
SBA‘s written determination that acceptance of the procurement for 8(a) award would have an adverse impact on small business (see 13 CFR 124.504(c)) www.sba.gov
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8(a) Business Development Application Process
Electronic Application on line: www.sba.gov
Hard copy application – mail to: Small Business Administration Division of Program Certification & Eligibility (DPCE) 455 Market Street, 6 th Floor San Francisco, CA 94105 Tel: (415-744-0328 13 CFR 124.8 www.sba.gov
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Small Business Programs
What is the HUBZone Program?
Guam Oct 2010
FAR Part 19, Public Laws, Code of Federal Regulations (13 CFR)
www.sba.gov
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HUBZONE
Must be owned & controlled at least 51% by U.S. Citizen, Community Development Corporation, an agricultural cooperative, or Indian tribe Principal office must be located within HUBZone Includes land in Indian Country/Reservation Includes military facilities closed by the BRAC Act Employees – 35% must reside in a HUBZone area Must be a small business by SBA standards Certification by SBA – no term limit Joint Venture (JV) only with another HUBZone firm Guam Oct 2010 Source: 13 CFR 126.607(b); FAR 19.1305(a) www.sba.gov
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HUBZONE Prime Contract Benefits
Competitive HUBZone Set-aside
Rule of Two –
Reasonable expectation for competition Fair market price Sole Source – only one source available Not exceed $5.5M – manufacturing NAICS code Not exceed $3.5M – all other NAICS codes Full/Open – 10% preference on price Government-wide goal - 3% HUBZone area: http://www.sba.gov/hubzone (search by address) On line Application:
https://eweb1.sba.gov/hubzone/internet
Website: http://www.sba.gov/hubzone Guam Oct 2010 www.sba.gov
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Small Business Programs
What is the Service Disabled Veteran-Owned Small Business Program (SDVOSB)?
Guam Oct 2010 •
FAR Part 19, Public Laws, Code of Federal Regulations (13 CFR)
www.sba.gov
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Service Disabled Veteran Owned Business
The Veterans Benefit Act of 2003 Procurement can be set aside or sole source
Rule of Two –
Reasonable expectation for competition Only VA can set aside for veteran-own small business Required to register in http://www.vip.vetbiz.gov/ Self certification in CCR Under review due to abuse Government-wide goal: 3 % Source: 13 CFR 125.8 – 125.13; FAR 19.307
Website: http://www.vetbiz.gov/ Guam Oct 2010 www.sba.gov
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Veterans First Buying Authority
Dept of Veteran’s Affair (VA) program First & second priorities for contracting procurem ent Service-Disabled Veteran-owned small business (SDVOSB) Veteran-owned small business (VOSB) Must register – Vendor Information Pages (VIP) database Veteran status verified – Veterans Benefit Administration’s BIRLS System Only one registration for one company allowed DUNS number required DD Form 214 required Fraudulent claims – debarred for five years Verification of status – once a year Guam Oct 2010 Website: www.vetbizresourcecenter.org
Register: http://www.vetbiz.gov/ VBA Office: 800-827-1000 www.sba.gov
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Small Business Programs
What is the Woman-Owned Small Business Program (WOSB) & Economically Disadvantaged Woman-Owned Small Business (EDWOSB)?
Guam Oct 2010
FAR Part 19, Public Laws, Code of Federal Regulations (13 CFR)
www.sba.gov
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Woman-Owned Small Business (WOSB)
WOSB - At least 51% owned & controlled by one or more women EDWOSB - Economically Disadvantaged & WOSB Manage daily business operations No outside employment United States Citizen Self-certification - CCR & ORCA Government-wide goal: 5%
Woman Business Center (WBC): http://www.sba.gov/aboutsba/sbaprograms/onlinewbc http://www.sba.gov/services
www.sba.gov
Guam Oct 2010 27
WOSB/EDWOSB New Ruling
Set-aside preference effective February 4, 2011 Certification as small business & WOSB/EDWOSB By Federal agency, State Government, or national certifying entity approved by SBA By the contracting officer supported by adequate documentation Self-Certification in CCR & ORCA Guam Oct 2010 WOSB Federal Contract Program Webpage
http:www.sba.gov/wosb
1-800-U-ASK-SBA (827-5722) www.sba.gov
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WOSB/EDWOSB New Ruling
Third-Party Certification Third Party Certifier approved by SBA U.S. Dept of Transportation’s (DOT) Disadvantaged Business Enterprise (DBE) Program As an 8(a) participant Must be provided to the WOSB Program Repository Contracting Officer set-aside to WOSB/EDWOSB: Designated 83 NAICS codes currently underrepresented
Rule of Two
–
Reasonable expectation for competition $5 Million – Manufacturing / $3 Million all others Fair and reasonable price Guam Oct 2010 Final Rule on 13 CFR Parts 121, 124, 125 www.sba.gov
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Teaming Arrangements
Two or more companies form a partnership or joint venture to act as prime contractor Desirable to provide the best combination of performance, cost, quality, and delivery Formal and informal / traditional/non-traditional Limitation on subcontracting (small business to self perform on the contract) Construction – 15 % Services – 50% Supplies – 50% Specialty Trade – 25%
Labor only
Guam Oct 2010 www.sba.gov
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Types of Teaming Arrangements
Prime/Subcontractor relationship (traditional) Joint Ventures (JV) Mentor Protégé SBA approved mentor protégé http://www.sba.gov/aboutsba/sbaprograms/8abd/ment orprogram/index.html
Must be approved by SBA in advance Reference: 13 CFR 124.520
Dept of Defense approved mentor protégé http://www.acq.osd.mil/osbp/mentor_protege/ Guam Oct 2010 www.sba.gov
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Joint Venture (JV)
Each firm should be small to stay small (revenues combined) 8(a) JV must be approved by SBA HUBZone JV – both firms must be HUBZone SDB JV may be entitled to price adjustment in competitive acquisition under authorized NAICS codes SDVOSB JV – the SDVOSB 51 ownership for SDVOSB set asides Performance of Work (Self-perform by JV) Service – 50% Supplies – 50% Construction – 15% Special Trade – 25%
Labor only
Guam Oct 2010 www.sba.gov
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Mentor Protégé
SBA approved mentor protégé The protégé must be an 8(a) firm The mentor can be a large business The protégé can joint venture with the mentor Mentor can be a large business/doesn’t impact the small business size status Participate on any acquisition (set-asides or not) Dept of Defense (DOD) mentor protégé – Provide mutual benefits to the small business and the other more established business Protégé receives the assistance (financially, technical, managerial) Mentor provides subcontracting opportunities to Protégé Guam Oct 2010 www.sba.gov
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Order of Preference
Parity among the following: 8(a) BD HUBZone SDVOSB WOSB – Preference status – effective February 5, 2011 Underrepresented NAICS codes set aside to WOSB/EDWOSB General Rule: “Once 8(a) – Stays 8(a)” Per FAR 19.8/13CFR 124 Exception: New requirement or requirement increased by 25% Construction requirement – considered new requirement Same applies to the other Small Business Programs Geographic Restriction on set aside: None Exception: Alaska ANC/8(a) firms Guam Oct 2010 www.sba.gov
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Small Business Set Aside Rule
Under Simplified Acquisition Threshold (under $150,000): FAR 19.502-2(a)
--
automatically reserved exclusively for small business concerns (including 8(a), HUBZone, SDVOSB)
Rule of Two
– two of more firms available to do the work Above Simplified Acquisition Threshold – Order of Precedence: CFR References: 13 CFR 126.607(b) – HUBZone 13 CFR 125.19(b) – SDVOSB 13 CFR 124.503 (j) – 8(a) FAR References: 19.501(c),(d),(e) 19.800(e) – 8(a) 19.1305(a) – HUBZone 19.1404(d) – SDVOSB 19.1405(a), (c) – SDVOSB
Websites: http://farsite.hill.af.mil/
www.sba.gov
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Size Protest
Who can submit a size protest?
Firm involved in the acquisition Who handles Size Protest?
SBA Office of Government Contracting (Size Specialist) Forward the Size Protest to the GC office servicing the firm’s principal office location For Guam firms – send to: Small Business Administration** Office of Government Contracting, Area 6 455 Market Street, 6th Floor San Francisco, CA 94105 Phone: 415-744-8429
**Please call Carol Bunts at (415) 744-6844 before forwarding your size status protest
Guam Oct 2010 www.sba.gov
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Size Do Matt
er
Micro-Purchase: Supplies (under $3,000) Service (under $2,500) Construction (under $2,000) Simplified Acquisition: Reserved for small business set aside (under $150,000)
Rule of Two
Formal Acquisition: Bids & Proposals (over $150,000) Consider small business set aside
Rule of Two
Guam Oct 2010 www.sba.gov
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Register/Update Your Business
Complete Central Contractor Registration Database (CCR) Keep Current (Update yearly)
www.ccr.gov
Complete SBA Profile (Dynamic Small Business Search (DSBS)
http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm
Complete on-line Representations and Certifications Application (ORCA)
https://orca.bpn.gov/
Guam Oct 2010 www.sba.gov
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Additional Assistance
Local District Offices and Resource Partners
SBA Guam Brand Office – Ken Lujan ( [email protected]
) /Tel: 671-472-7277
SBA Procurement Center Representative (PCR) – Hawaii, Guam & Pacific Insular Area – Larry Orr ( [email protected]
)/ Tel: 808-474-7317
Procurement Technical Assistance Center (PTAC) http://www.guamptac.com/
Small Business Development Centers
www.sba.gov/sdbc/
Small Business Specialists (SBS)
www.acq.osd.mil/sadbu
Guam Oct 2010 www.sba.gov
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Guam Oct 2010
Questions?
www.sba.gov
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