Presented to: Procurement Achievement Reporting System Advisory Council Location: Washington, D.C. Presented by: Fred Dendy, Director, FAA Small Business Development Date: April 16, 2013 Federal Aviation Administration Small Business Development Program Hot Topics

2 Federal Aviation Administration Small Business Development Program April 16, 2013 Who Are We?

3 Federal Aviation Administration Small Business Development April 16, 2013 What We Do…  Establish FAA-wide prime and subcontract goals for small business contract awards;  Develop and publish the FAA’s annual procurement forecast  Execute, develop and establish agency small business policy/guidance  Maintain small business database “Source-Net” to help identify potential sources for set-aside decisions  Provide counseling/outreach/training to the small business community seeking or doing business with FAA via small business expositions/marketplaces, conferences, seminars and symposiums  Provide counseling, assistance and guidance to product/service teams and other FAA procurement decision makers to identify prime contract and subcontract opportunities for small business  Provide guidance and advice to FAA’s small and disadvantaged business utilization specialists in each service area and center

4 Federal Aviation Administration Small Business Development April 16, 2013 Basis for FAA Acquisition Management System  In 1996 DOT Appropriations Act, FAA was directed to develop an acquisition system and exempted from all acquisition-related laws and regulations  Legislation stated the following provisions of Federal acquisition law shall not apply to the new acquisition management system:  Title III of the Federal Property and Administration Services Act of 1949  The Office of Federal Procurement Policy Act  The Federal Acquisition Streamlining Act of 1994  The Small Business Act, except that all reasonable opportunities to be awarded contracts shall be provided to small business concerns and small business owned and controlled by socially and economically disadvantaged individuals.  The Competition in Contracting Act.  Subchapter V of Chapter 35 of Title 31, relating to the procurement protest system.  The Brooks Automatic Data Processing Act  The Federal Acquisition Regulation and any laws not listed above providing authority to promulgate regulations in the Federal Acquisition Regulation.  FAA Acquisition Management System (AMS) issued April 1996

5 Federal Aviation Administration Small Business Development April 16, 2013 Key Themes of AMS Procurement  Minimizes “how to” and encourages tailoring to circumstances  Relies on business judgment - but must have a rational basis supported by substantial evidence  Aligns procurement methods to complexity of requirement  Emphasizes empowerment and collaborative decision-making  Eliminates non-value added activities and arbitrary thresholds

6 Federal Aviation Administration Small Business Development April 16, Key Features of AMS Procurement  Competition is preferred  Streamlined source selection, delegated to lower levels in FAA  Flexible processes and access allowing increased communication with vendors  Simplified/commercial procurement process  Direct, competition-based small business utilization program  Internal FAA Office of Disputes Resolution  Ethical standards for FAA employees and contractors

7 Federal Aviation Administration Small Business Development April 16, 2013 General Benefits of AMS to Vendors  AMS strongly encourages communication with vendors  Provides vendors better understanding of FAA needs and FAA insight into vendor capabilities  Promotes transparency in source selection processes and decisions  Streamlined source selection and “down-select” decisions save vendor bid and proposal costs  Vendors unlikely to receive award are notified early during source selection process

8 Federal Aviation Administration Small Business Development April 16, 2013 General Benefits of AMS to Vendors – cont.  Internal FAA Office of Disputes Resolution for Acquisition  Protests and disputes resolved through alternate disputes resolution  Saves cost and time of adjudication through formal boards or courts  AMS contract clauses based largely on Federal Acquisition Regulation clauses  Vendors do not have to become expert in a different set of contract clauses; history of interpretation and case law applies to AMS clauses

9 Federal Aviation Administration Small Business Development April 16, 2013 General Benefits of AMS to Vendors – cont.  All information comprising AMS is online and in one location - FAA Acquisition System Toolset (FAST) located at (  AMS written in plain language which improves ability to understand what AMS requires

10 Federal Aviation Administration Small Business Development April 16, 2013 Small Business Contracting  Overarching policy is to provide small business reasonable opportunities for prime contracts and subcontracts  FAA must consider a small business set-aside before pursuing an unrestricted contract  For requirements over $100,000, product/service teams must coordinate with the cognizant FAA Small Business Office staff  FAA makes set-aside determination and contracts directly with small business, 8(a), socially and economically disadvantaged business; and service disabled veteran owned small business and Small Business Administration is not involved

11 Federal Aviation Administration Small Business Development Program April 16, 2013

12 Federal Aviation Administration Small Business Development April 16, 2013 Small Business Development Initiatives Set-asides (first consideration): –Small business (self-certification) –Very small businesses (self-certification) –8(a) businesses certified by Small Business Administration –Service-disabled veteran-owned small businesses (SDVOSB) (self-certification and verified in the vetbiz database) Non-competitive awards to 8(a) certified firms and SDVOSB Contract Bundling Reviews Encourage Teaming (i.e., Joint Ventures, Mentor-Protégé, Subcontracting) Marketing Resources

13 Federal Aviation Administration Small Business Development April 16, 2013 Small Business Development Initiatives BUSINESS PLANNING: Core Business Measure: - Small Business and Corporate Citizenship Core Business Initiative: - Award Procurement Dollars to SB, SDB & WOSB Core Activity Target: - Outreach and 25% Small Business Direct Goal Linked to Performance and Compensation

14 Federal Aviation Administration Small Business Development April 16, 2013 Major Procurement Program Goals vs. Accomplishments (Direct Contracts to Small Business) Total Dollars Obligated $4.2B$3.2B$2.9B $2.5B $3.1B$3.3B$3.4B$3.5B$3.8B $3.9B Small Business Goals & Accomplishments FY 02 FY 03FY 04 FY 05FY 06 FY 07 Goal Actual FY 08 FY 09 FY 10 FY 11

15 Federal Aviation Administration Small Business Development Program April 16, 2013 FY-12 Major Procurement Program Goals Agency Goals vs. Accomplishments (10/01/11 – 9/30/12) ($4B Total Obligations Awarded ) % FY-13 Major Procurement Program Goals Agency Goals vs. Accomplishments (10/01/12 – 04/05/13) ($1B Total Obligations Awarded ) %

16 Federal Aviation Administration Small Business Development April 16, 2013 MARKETING RESOURCES Marketing Package Lakisha Davis Business Plans Contracting Opportunities Small Business Development Program Group

17 Federal Aviation Administration Small Business Development Program April 16, Questions?