Small Business Update January 17, 2012 Randy Czaia Minnesota District SBA Office 1

U.S. Small Business Administration Agency of U.S. Government – Part of Presidents Cabinet Financial Assistance Business Counseling and Training Government Contracting (national) (local) 2

Big Changes to the Small Business Contracting Programs in 2011! Jobs Act HUBZone Women Owned Small Business Program 8(a) Business Development 3

Small Business Jobs Act of 2010 Parity of Small Business Programs Repeal of Comp Demo Set Asides for Multiple Award Schedules Presumption of Loss (under False Claims Act) for Size Misrepresentation 4

Small Business Jobs Act of 2010 Annual Certification of size in ORCA DOJ Attorney General will issue policy for prosecution of size and status fraud Establishes SB Teams Pilot Project Establish Mentor Protégé Programs for HUBZone, SDVOSB, and WOSB 5

Small Business Jobs Act of 2010 Holding Large Prime Contractors Accountable to Subcontracting Plans – Contractor must explain in writing to the Contracting Officer reasons why it did not award identified subcontracts. Payment to subcontractors Contractor must notify the CO when payments are less than the agreed to price or payments are not made with in 90 days. 6

Expiration of Grandfathered HUBZone Areas 2004 Law stated no HUBZone area will lose its designation until 2010 census. On Oct 1, 2011 SBA announced new HUBZone Counties based on census data. All of the areas Grandfathered by 2004 law lost status. Approximately 40% of HUBZone certified firms no longer qualified. 7

Women Owned Small Business Program (WOSB) Set-aside program for women enacted by statute in Dec 2, 2000 implemented in Feb 4, Set-aside only permitted under NAICs codes where: – WOSB underrepresented – WOSB substantially underrepresented Contract limits: $5M for manufacturing or $3M for other contracts. 8

Women Owned Small Business Program (WOSB) Two categories of WOSB: – WOSB – Economically Disadvantaged WOSB (EDWOSB) NAICs codes underrepresented = EDWOSB NAICs codes substantially underrepresented = WOSB 9

Women Owned Small Business Program (WOSB) WOSB and EDWOSB may: – Self certify with documentation into SBA online document repository. – Be certified by SBA approved third party. Contracting Officer verifies documentation of successful offeror. For statistical and subcontracting purposes WOB can still self certify. Information at 10

8(a) Business Development Major changes to 8(a) regulations March 14, 2011 including: – Economic Disadvantage – Restrictions on Tribal and ANC ownership of additional firms and on award of follow-on contracts – Prohibits release of 8(a) requirements without the concurrence of the SBA Associate Administrator for 8(a) BD – Joint ventures – Mentor Protégé 11

SADBOC 2012 SADBOC Government Procurement Fair April 25, 2012 at the Earle Brown Heritage Center – Sign Up to Exhibit! – Sign up for Match-Making! – Spread the word to the vender community! 12

Questions? Minnesota District SBA Office Randall Czaia (612)