Gain a Competitive Edge with Small Business Programs

Government Business Solutions (GBS) provides guidance, education and resource information to business and business owners looking to grow their business through government contracts. As an active 8(a) Woman-owned government contractor, we are a a full-service government Project Management and Human Resources, Event Management consulting firm, with current contracts with DHS, GSA, SBA, etc. Innovators behind the American Express OPEN Victory in Procurement Program, created to educate the small business community on the importance of growing their business with Government Contracts. Lourdes Martin-Rosa’s American Express OPEN’s Advisor has been featured in over 660 articles and has reached over 7 million small businesses within the U. S.

Our Objectives How does the Federal Government Buy? – Federal 2011 Expenditures – Small Business Goals Steps for Success – Do I need a small business certification? – Are these small business programs really at parity? Federal Small Business Programs – 8(a) Business Development Program – New 8(m) Women-owned Small Business Program – Hub-zone Small Business Program – Service-disabled Veteran-owned Small Business Program – Teaming/Subcontracting Benefits Valuable Websites to consider

Introduction to Federal Government Procurement

Agency Small Business Goals

Small Business Certification and Verification Programs Certification: – 8(a) Small Business Development Program – Hub-zone: Historically Underutilized Business Development Program Verification: – 8(m) Woman-owned Small Business/Economically Disadvantaged Woman-owned Small Business – Service-disabled Veteran-owned Small Business

8(a) Sole Source and Competitive Contracts Section 8(a) of the Small Business Act authorizes the SBA to enter into prime contracts with other Federal agencies for products and services. SBA certifies eligible socially and economically disadvantaged small businesses and subcontracts with firms participating in the agency’s 8(a) Business Development Program to provide products and/or perform contract services for Federal agencies. Pursuant to a Partnership Agreement with the SBA, many agencies have been delegated the authority to execute 8(a) contracts. For contract requirements valued at less than $4 million, the agency selects a source and negotiates a contract with a selected firm. For contract requirements with a value exceeding the $4 million dollar threshold, the contract opportunity is competed among the eligible businesses in the 8(a) portfolio. For more information on eligibility for the 8(a) Business Development Program, please review the SBA's 8(a) Development Program.

8(a) New Program Rules to help strengthen contracting opportunities Joint Ventures: – To ensure that non-disadvantaged firms do not unduly benefit from the 8(a) program. The 8(a) participant in a Mentor-Protégé agreement must perform 40% of the work of each 8(a) joint venture contract that it is awarded. – A joint venture awarded an 8(a) contract cannot subcontract work to any non-8(a) joint venture partner, including a large business mentor. – Each 8(a) firm that performs an 8(a) contract through a joint venture must report to SBA how the performance of work requirements (i.e., that the joint venture performed at least 50% of the work of the contract and that the 8(a) participant to the joint venture performed at least 40% of the work done by the joint venture) were met on the contract. 8(a) ANCs, NHOs, CDCs: – The rule requires firms owned by tribes, Alaskan Native Corporations (ANC), Native Hawaiian Organizations (NHO) and Community Development Corporations (CDC) to report benefits flowing back to their respective communities. – Firms owned by a tribe, ANC, NHO or CDC may not receive a sole source 8(a) contract that is a follow-on contract to an 8(a) contract that was performed immediately previously by another participant (or former participant) owned by the same tribe/ANC/NHO/CDC.

Pathways to an 8(a) Sole Source Award Three (3) Ways to Initiate an Action: – Requirements Search Letter – Requirements Letter – Offering Letter FAR Selecting Acquisitions for the 8(a) Program: – the SBA and an agency match the agency’s requirements with the capabilities of 8(a) concerns to establish a basis for the agency to contract with the SBA under the program. – Selection is initiated in one of three ways – The SBA advises an agency contracting activity through a search letter of an 8(a) firm’s capabilities and asks the agency to identify acquisitions to support the firm’s business plans. The SBA identifies a specific requirement for a particular 8(a) firm or firms and asks the agency contracting activity to offer the acquisition to the 8(a) Program for the firms. Agencies may also review other proposed acquisitions for the purpose of identifying requirements which may be offered to the SBA. Where agencies independently, or through the self marketing efforts of an 8(a) firm, identify a requirement for the 8(a) Program, they may offer on behalf of a specific 8(a) firm, for the 8(a) Program in general, or for 8(a) competition.

8(a) New Program Rules to help strengthen contracting opportunities Joint Ventures: – To ensure that non-disadvantaged firms do not unduly benefit from the 8(a) program. The 8(a) participant in a Mentor-Protégé agreement must perform 40% of the work of each 8(a) joint venture contract that it is awarded. – A joint venture awarded an 8(a) contract cannot subcontract work to any non-8(a) joint venture partner, including a large business mentor. – Each 8(a) firm that performs an 8(a) contract through a joint venture must report to SBA how the performance of work requirements (i.e., that the joint venture performed at least 50% of the work of the contract and that the 8(a) participant to the joint venture performed at least 40% of the work done by the joint venture) were met on the contract. 8(a) ANCs, NHOs, CDCs: – The rule requires firms owned by tribes, Alaskan Native Corporations (ANC), Native Hawaiian Organizations (NHO) and Community Development Corporations (CDC) to report benefits flowing back to their respective communities. – Firms owned by a tribe, ANC, NHO or CDC may not receive a sole source 8(a) contract that is a follow-on contract to an 8(a) contract that was performed immediately previously by another participant (or former participant) owned by the same tribe/ANC/NHO/CDC.

HubZone Sole Source and Set aside contracts Federal agencies may conduct HUBZone small business contract set-asides when the contracting officer determines that there are two or more eligible HUBZone businesses located in officially designated economically distressed areas in the U.S. and that the HUBZones demonstrate the capability and capacity to perform the requirement at a fair market price. The contracting officer may negotiate and award a contract on a sole-source basis if it is determined that only one HUBZone is capable of performing the contract opportunity. Eligible HUBZone firms must be certified by the SBA to participate in the prime contract program and be eligible for HUBZone subcontracting opportunities afforded by other than small businesses that are required to establish small business subcontracting programs and plans. For more information on HUBZone eligibility, please review SBA’s HUBZone Web siteHUBZone Web site

Service-disabled Veteran-owned Sole Source and Set aside Contracts A service-disabled veteran-owned small business (SDVOSB) is one that is at least 51 percent owned by one or more service-disabled veterans. Agencies have made a commitment to meet the Federal-wide 3% goal in support of SDVOSBs and adhere to the activities set forth in each agency’s strategic plan to increase prime and subcontract opportunities for SDVOSBs. Federal agencies shall conduct SDVOSB small business contract set-asides when the contracting officer determines that there are two or more eligible SDVOSB concerns that demonstrate the capability and capacity to perform the requirement at a fair market price. The contracting officer can negotiate and award a contract on a sole-source basis if it is determined that only one firm demonstrates the capability and capacity to perform the contract opportunity. For more information on SDVOSB eligibility, please review the information provided by the Department of Veterans Affair's Center for Veteran EnterpriseCenter for Veteran Enterprise

8(m) WOSB/EDWOSB Set Asides Program was implemented on February 4, 2011, aimed at increasing contracting opportunities for Women-owned small businesses. Small businesses that are at least 51 percent owned, controlled, and operated by a woman (or women) meet the woman-owned criteria. Agencies set annual goals for contract awards to woman-owned small businesses (WOSB) and actively encourages their participation in their agency’s contract program. There are 83 industries under which a contract opportunity may be set aside for WOSBs. Some set-aside opportunities also require that the owner be economically disadvantaged in order to compete for a set- aside opportunity. For more information on WOSB eligibility and program specifics, please review WOSB Federal Contract ProgramWOSB Federal Contract Program

Subcontracting Program and Plan Requirements from Other than Small Businesses Other than small business concerns awarded Federal contracts exceeding $650,000 (or $ 1,500,000 in the construction industry) are required by Section 19.7 of the Federal Acquisition Regulations to established goals for awarding subcontracts to small businesses, including businesses owned by the disadvantaged, women, veterans, service-disabled veterans, and businesses located in HUBZones. Each subcontracting plan describes the prime contractor’s small business program, subcontract goals, record-keeping and reporting, and administrative responsibilities for subcontract plan performance to meet goals and other objectives. The SBA’s Subcontracting Network (SUB-Net) serves as a portal for prime contractors and subcontractor to network and post subcontracting opportunities.SUB-Net

Small Business Teaming Benefits For Small, 8(a), SDB, HUBZone, Service-Disabled Veteran-Owned and Women- Owned Small Businesses, teaming with a large prime contractor or other small businesses has many benefits, including the opportunity to: 1.Build capacity (realize advancements in management and technical skills) 2.Increase annual profits 3.Work on large government procurements 4.Increase working capital 5.Gain experience with a diverse workforce 6.Expand and/or diversify products 7.Network to develop strong business relationships 8.Increase contract awards

Choosing the right Teammates Decisions Research Dynamic Small Business Search GSA Schedule Holders FPDS Past Performance Certifications Leverage Resources Maximize Staff Minimize Cost Beware Make sure you team with good performers!

Industry Specific Teaming Rules  FAR Established by 13 CFR (2004) SB Prime Contractor Must Perform Specified Minimum Amounts Of Work When The Contract is Set Aside for SB or 8(a), Sole Source or Competitive (Minimum Work Also Specified for HUBZones and SDVOSB) Services = 51% of Work With Own Employees Supplies or Products = 51% of Cost of Manufacturing not Including Cost of Materials General Construction = at Least 15% Not Including Cost of Materials Special Trade Construction = 25% Cost of the Contract With Own Employees Not Including Cost of Materials

MENTOR PROTÉGÉ PROGRAMS One way small businesses can gain access to federal procurement opportunities is through mentor protégé programs. With the help of a mentor, a small business is able to gain access to additional business resources, including credit and capital, managerial and technical training, and networking opportunities. The main goal of the partnership between the mentor and protégé is to help the protégé become a valued business partner and to eventually be able to perform as a successful prime contractor.

IS CERTIFICATION REQUIRED TO PARTICIPATE IN A MENTOR PROTÉGÉ PROGRAM? The SBA Mentor Protégé program is available only to 8(a) firms that have been certified into that program. Other federal agency Mentor Protégé programs require verification of the status of the firm as an 8(a), Small Disadvantaged Business or HUBZone firm for program participation. However, the participation of a SDVB or a WOSB in a federal Mentor Protégé program only requires self certification of the firm ’ s status.

WHAT ARE THE BENEFITS OF A MENTOR PROTÉGÉ RELATIONSHIP? Benefits from the Mentor Protégé relationship may include: 1. An increase in annual profits 2. Opportunities to joint venture with prime contractors 3. Increased working capital 4. Technical and managerial training opportunities 5. Increased personnel to manage projects 6. Larger working facilities 7. Additional and/or state of the art equipment In addition, protégés may enjoy the benefits of financial assistance in the form of equity investments and/or loans.

Where to find Teaming Partners

Where to find Teaming Partners?

FBO.gov

Where to find Teaming Partners

Federal Procurement Data System

GSA Schedules

GSA Sales Query

Beware!!

Small Business Teaming Success!!. Coming together is a beginning. Keeping together is progress. Delivering exceptional services and products to our federal government customers is a success!