Doing Business with VA National 8(a) 2017 Summer Regional Conference June 28-29, 2017

Overview OSDBU Mission and Vision OSDBU Program Areas VA Small Business Achievement FY 16 What VA Buys Impact of Kingdomware Supreme Court Decision Procurement Ready Checklist How to Stand Out from the Crowd Adjusting to Current Small Business Climate How to Take Advantage of Increased Opportunities NVSBE 2017- SAVE THE DATE! VA Resources for Veteran Entrepreneurs Information Resources Today’s objective is to provide you a snapshot on how VA supports Veteran Entrepreneurship.

Mission: Vision: Our Mission and Vision Centered around our support for Veteran small business success Mission: Enable Veterans to gain access to economic opportunity by leveraging the federal procurement system and enabling participation of procurement ready small businesses. Vision: OSDBU has a basic mission which centers around support for Veteran small business success and achievement making the Veteran our primary customer. This includes increasing their access to procurement opportunities, promotion of Veteran employment, and support of VA Small Business goals. By 2019, OSDBU will transform how procurement ready small businesses gain access to economic opportunity through increased awareness, reduced risk, enhanced access, improved procurement mechanisms, and better performance in order to enable Veterans to gain access to economic opportunities.

OSDBU Program Areas Small Business Policy How we support Veteran small businesses Small Business Policy Verification Direct Access Field Operations Trial Program Support Trial Strategic Outreach and Communications Small Business Policy (SBP) Mission: Ensure small businesses, and especially Veteran-owned small businesses, have the maximum practicable opportunity to benefit from VA contracting opportunities through appropriate policy, goals, and accountability mechanisms. SBP -Why Important? The Small Business Policy Program ensures that VA actively maintains and fulfils its responsibilities and obligations under Congressional and Legislative law. It works with VA and other Federal agencies to create policies that support VA interests. The program also works closely with the Office of the Secretary for Veterans Affairs (OSVA) and the Small Business Administration (SBA) to assist with the establishment of VA small business goals. Verification Mission: Enable eligible VOSBs to be verified for inclusion in the Veterans First Program Verification- Why Important? Verification is a pre-requisite to the Veterans First Contracting Program which facilitates SDVOSB and VOSB participation in VA contracting. VA is the only federal agency that verifies Veteran-Owned Small Businesses as a requirement for competing for Veteran set-aside procurement opportunities. DAP Mission: Enable VOSBs and other small businesses opportunities to gain direct access to Federal and Commercial Procurement Decision Makers (PDM) DAP- Why Important? Direct Access allows both the small business owner and PDM to build the business relationship essential to adding value to VA through access to procurement opportunities. Field Operations Trial (FOT) Mission: Enable compliance with 38 USC 8127 by reviewing procurements to ensure appropriate set-asides FOT Why Important? VA is accountable for compliance with 38 USC 8127. OSDBU review precludes successful protests and protects VA reputation. Program Support Trial (PST) Mission: To provide program office support that enables maximum consideration of VOSBs and SDVOSBs in the VA procurement process. Why Important? The Program Support Trial (PST) allows VA Program Offices to directly engage with OSDBU on procurement strategies (such as Medical Furniture & Medical Surgical Prime Vendor Acquisitions) and assists with improvement and enhancement of those initiatives to create increased procurement opportunities for VOSBs. Strategic Outreach and Communications (SOC) Mission: Provide communication, education, and the distribution of information to the stakeholder to promote awareness and understanding of VA small business programs. SOC provides an avenue for OSDBU to inform all of its stakeholders about VA small business programs and resources, VA small business goals, and access opportunities.

VA Small Business Achievement- FY 16 Committed to providing opportunities to Veteran small businesses- Placing Veterans First Federal Goal VA Goal VA Percentage VA Dollars (billions) 2016 All small business 23% 32.5% 29.9% $6.889 SDVOSB 3% 10.0% 17.8% $4.105 VOSB N/A 12.0% 19.1% $4.410 Small Disadvantaged Business (SDB) – includes 8(a) 5% 5.0% 7.1% $1.637 Women-Owned Small Business (WOSB) 3.0% $0.697 Historically Underutilized Business Zone (HUBZone) 1.6% $0.366 VA Gives Priority to Vets The Department of Veterans Affairs (VA) has special authority for Service-Disabled Veteran-Owned Small Business and Veteran-Owned Small Business (SDVOSB and VOSB) set-aside and sole source contracts. Consistent with its mission to support Veterans, VA hierarchy puts SDVOSB and VOSB at the top of the list when it comes to consideration for the awarding of contracts to small businesses. Small Business groups that follow SDVOSB and VOSB in the hierarchy include: 8(a), HUBZone, Women-Owned Small Business then all other small businesses. For the first time ever, VA awarded more than $4 billion to SDVOSBs and VOSBs in FY 16. This is a substantial achievement as neither category was previously awarded above $4 billion in VA spend. Data above was collected on January 12, 2017 for the Fiscal Year 2016 and reports through September 30, 2016. Data for FY 16 in the Federal Procurement Data System (FPDS) continues to be entered by VA offices. Source: Federal Procurement Data System. Data reported as of January 12, 2017.

What VA Buys Pharmaceuticals and medical and surgical supplies Equipment, supplies, and materials for facility operation Maintenance and repair of medical and scientific equipment Building construction, maintenance, and repair Prosthetic and orthopedic aids Non-IT enterprise-wide solutions Enterprise-wide solutions in information and technology Architect/Engineer services VA Buys VA procures over $3 billion in goods each year from VOSB. Because of our mission, and our SDVOSB and VOSB goals, VA has a key interest in doing business with Veterans.

Impact of Kingdomware Supreme Court Decision Expected increases in opportunities for procurement-ready VOSBs Could potentially slow down some procurements due to increased work load Emphasized need for comprehensive and robust Market Research to facilitate identification of procurement-ready VOSBs for VA requirements VA has been actively engaging with Small Business Liaisons to work on Market Research process improvements Expected increase in volume of Verification applications and increased significance of the Vendor Information Pages (VIP) Key Elements of VA Acquisition Policy Rule of Two applies to all competitive procurements VA continues to promote competitive procurement strategies in order to obtain best value Limited use of sole source authority under 38 U.S.C. § 8127 only when appropriate Continued use of FSS and other acquisition vehicles if Rule of Two can be met VOSB must be verified by VA to be considered under Rule of Two VA Market Research Approach Check VIP Database for VOSB with needed NAICS Determine availability of Verified VOSB on existing VA contracts, FSS, and other acquisition vehicles Conduct market research for “open market” procurement Use of Request For Information (RFI)/Sources Sought through FedBizOpps MyVA Verification Program Implementation of MyVA Verification will improve Veteran experience during the application process Transition occurs in September Increase in demand will create short term stress on the process

Procurement Ready Checklist Performance history Capability statement SAM registration D-U-N-S Number FPDS account Apply for a GSA Schedule, if eligible NAICS Codes and size DSBS Corporate Website Certifications for small business Credit card acceptance Contact information including telephone number and Email address Licenses Bonding capacity Industry/procurement specific certifications Products must meet 19 U.S.C 2501: Trade Agreements Act Knowledge about the customer within the federal marketplace Performance history Capability statement SAM registration D-U-N-S Number FPDS account Apply for a GSA Schedule, if eligible NAICS Codes and size DSBS Corporate Website Certifications for small business Credit card acceptance Contact information including telephone number and Email address Licenses Bonding capacity Industry/procurement specific certifications Products must meet 19 U.S.C 2501: Trade Agreements Act Knowledge about the customer within the federal marketplace

How to Stand Out From the Crowd Explain how your company is unique, different, and distinct from your competitors in responding to the needs of the client. Define and explain the needs of your clients and why your firm is better positioned than others to respond to these needs. State why the customer should pick your company over other competitors. Past Performance Small Business Certificates Vets First Verification Program Certificates of Competency (SBA) ISO 9000/9001 certification Industry Awards Past Performance Small Business Certificates Vets First Verification Program Certificates of Competency (SBA) ISO 9000/9001 certification Industry Awards

Adapting to Current Small Business Climate Kingdomware Decision released in June 2016 Emphasizes usage of “Rule of Two” for all competitive VA procurements Prioritizes the need for VOSBs to become Verified through VA’s Veterans First Contracting Program Heightens significance of Market Research As a result, VA has been working to update current procurement procedures and streamline and improve market research processes What is the Rule of Two? Provides that “… a contracting officer of the Department shall award contracts” by restricting competition to Veteran-Owned Small Businesses if the officer reasonably expects that at least two such businesses “… will submit offers and that the award can be made at a fair and reasonable price that offers best value to the United States.” 38 U. S. C.§8127(d) Supreme Court of the United States, KINGDOMWARE TECHNOLOGIES, INC. v. UNITED STATES

What can VOSBs Do to Take Advantage of Increased Opportunities? Be Verified Have a complete profile in VIP Database Register in VA Business Intelligence Tool (VA BIT) Obtain Federal Supply Schedule as appropriate Register for FedBizOpps (FBO) alerts Respond to RFI/Sources Sought Make sure your Website is Accessible to VA staff Attend Direct Access Program (DAP) events View calendar here: http://www.va.gov/osdbu/library/events.asp Competing for Set-asides SBA Rule: Limitations on Subcontracting Of amount Government pays the prime contractor, no more than 50% may be subcontracted further (limits are 85% and 75% for general and specialty construction) Exceptions: For supplies and construction, cost of materials is excluded from the amount subject to limit Subcontracts to first-tier similarly situated entities are excluded from the amount subject to limit Contracts that are a mix of supplies and services are subject to the limit that applies to the dominant share of the contract (e.g., a predominantly services contract that includes supplies is governed by services limit, and excludes supplies portion) How VOSBs can Improve their Competitive Position in Responding to Set-asides Consider identifying similarly situated entities for teams to supplement your firm’s capabilities If offering on a supply contract as a distributor, be prepared to show you are providing product of a small manufacturer (non-manufacturer rule) To provide product of a large manufacturer, SBA will need to waive non-manufacturer rule to allow it Non-manufacturer rule is not applicable to service contracts

NVSBE 2017- Save the Date! When: December 5th-7th, 2017 Where: St. Louis, MO Key Activities: Business Opportunity Sessions Networking Roundtables Dining with Decision Makers Senior Leader Round Tables Informal Receptions Learning Sessions Exhibits One-on-One Follow-up Meetings 1500-1800 VOSB expected 650+ VOSB registered as of September 20, 2016

VA Resources for Veteran Entrepreneurs Access to Information 2. Doing Business with VA & Procurement Readiness 1. Veteran Entrepreneur Portal (VEP) 3. Events Calendar VA Outreach Resources Available Include: Veteran Entrepreneur Portal (VEP): a one-stop, online listing of small business resources provided to assist Veteran entrepreneurs with information and guidance through various steps of entrepreneurship. Doing Business with VA Reference Guide: explains how to navigate through the VA contracting procurement process. Procurement Readiness: Use this information to ensure your small business is prepared to effectively do business with VA. Events Calendar: where small businesses can find upcoming events that center are creating opportunities for small business to add value to VA.

Information Resources VA Vendor Information Pages (VIP) https://www.vip.vetbiz.gov/ VA Business Intelligence Tool (VA BIT) https://vabit.mybusinessmatches.com/ VA Kingdomware Information https://go.usa.gov/xKsp5 How to Get Verified http://www.va.gov/osdbu/verification/index.asp Doing Business with VA Reference Guide http://www.va.gov/osdbu/library/dbwva.asp Procurement Readiness Reference Guide http://www.va.gov/osdbu/docs/procurementReadiness_FULL.pdf How to Ensure VA Staff Can Access Your Firm’s Website Fact Sheet http://www.va.gov/OSDBU/docs/VIP-Website-Visibility-Fact-Sheet-20160823.pdf National Veterans Small Business Engagement (NVSBE) https://nvsbe16.mybusinessmatches.com/