Integrity  Service  Excellence Small Business Programs Overview Ms Carol White HQ AFMC/SB 3 Sep 09 Air Force Materiel Command

Small Business Program Overview Why a small business program? What is a small business? Air Force small business program Role of field small business offices –MAJCOM and Units Using the small business program

SB Program Developed by Law – Ensure “Fair Proportion” of Federal Acquisitions are placed with small business concerns (prime & subcontracts) – Broaden Nation’s Industrial Base/National Defense Small Business Administration (SBA) and Agency SB Offices Created to Carry Out Policies and Directives Mandated By the Law REF: FAR & Why a Small Business Program? 3

What is a Small Business? Who are they? What do they do? 4

Type Requirement NAICS Code Size Standard Aircraft Airframe Parts Employees Electronic Warfare Parts Employees Comm/Institutional Construction $33.5 Million Engineering Services $27.0 Million (military/aerospace equip/military weapons) R&D (physical engineering) A/C 1500 Employees (involves product delivery) A/C equip/parts 1000 Employees Independently Owned and Operated Not dominant in its field of operations Qualify under one or more Size Standards established by SBA – North American Industry Classification System (NAICS) Codes Size Differs for Supplies: Number of Employees Size Differs for Services: Preceding 3 Years Average Annual Receipts REF: 13 CFR 121, FAR , & CFR 121 A Small Business Concern 5

Types of Small Business Concerns Small Business Categories Woman Owned Small Business Small Disadvantaged Business (Minority Business) 8(a) Program Alaska Native Corp Historically Underutilized Business Zone (HubZone) REF: FAR , 19.8, & Service Disabled Veteran- Owned/Veteran Owned Small Business 6 NOT in Small Business Program Ability One NIB/NISH Historically Black Colleges & Universities/ Minority Institutions (HBCU/MI)

Objectives – Maximize contracting opportunities for Small Business via acquisition policies, procedures and practices – Promote effective Outreach Program Who’s Responsible for Implementing? – COMMANDERS are responsible for effectively implementing small business programs within their activities. Ensure contracting and technical personnel maintain knowledge of small business program requirements Take all reasonable actions to increase small business participation in activities’ contracting processes AIR FORCE SMALL BUSINESS PROGRAM AIR FORCE SMALL BUSINESS PROGRAM REF: AFI Small Business Program Offices established at MAJCOM and field unit offices. Report to Commanders; manage program on behalf of Commanders

Senior Leaders (Federal) – DOD SB Programs, AF (agency) SB Programs AFMC SB Programs comprised of field SB programs – AFRL (research & development) – Product Centers (acquisition) – Air Logistics Centers (sustainment) – Test Centers (test & evaluation) – Specialized Units AF Global Logistics Support Center (Supply Chain) AF Security Assistance Center (foreign military sales) AF Nuclear Weapons Center REF: FAR Small Business (SB) Program Participants Small Business (SB) Program Participants Early acquisition involvement MUST involve Integrated Product Team participation– Small Business specialists, requirements generators, program managers, contracting, engineers, financial managers, etc.

Role of SB Office Maximize SB Participation – Review acquisitions, make set-aside recommendations, and provide sources – Attend program reviews/acquisition strategy panels – Publicize SB programs– see website: U.S. Air Force Small Business U.S. Air Force Small Business Counsel Contractors – Provide process guidance and insight into Opportunities – Coordinate inquiries/guidance requests – Interface with Command/Center Staff offices, including Wings, Groups and Squadrons Manage Outreach Program – Federal/Agency/Local SB Conferences – Contractor Capability Briefings REF: AFI , DFARS

Evaluate Subcontracting Plans Recommend SB Goals to the Commander – Small Business Plan (qualitative and quantitative objectives) – Goal Areas: Small Business Awards, SDB Awards, WOSB Awards, HUBZone Awards, SDVSB Awards, & HBCU/MI Awards Education – Awareness & Training Sessions – Advise & Assist Source Development – Market Research – Recurring Contracts List – Long Range Acquisition Estimates (LRAE) REF: FAR 19.7, AFR , DFARS , AFMCFARS , FAR Role of SB Office (cont’d)

– 8(a) Set-Aside – HUBZone 8(a) – Other 8(a) – HUBZone Set-Aside Competition – HUBZone Sole Source – SDVOB Competition – SDVOB Sole Source – Small Business Set-Aside – Full & Open Competition – Sole Source Market research should be conducted continually to find small businesses that meet the government’s need Order of Precedence REF: FAR (e) & (a) Using the SB Program If a requirement is already in the 8(a) program, it has first precedence. SBA must authorize release from the 8(a) program. HUBZone and SDVOB have parity if a requirement is already within the 8(a) program. 11 For new requirements, 8(a), HUBZone and SDVOB have parity within the order of precedence

Section 8(a) program – Business Development Program for SDB – Administered by SBA – Nine-year term – Allows 8(a) firms to receive Sole Source contracts (subject to established dollar thresholds) How does an 8(a) firm get a contract? – SB specialists makes recommendation to meet SB goals – 8(a) firms engaged in self-marketing to SB specialists, program managers, contracting officers – 8(a) firms search Federal Business Opportunities via website: REF: FAR Small Business Administration (SBA) Section 8(a) Program

– SBA requests Letter on behalf of specific 8(a) firm Requires a response – Familiar with the contractor and their capabilities? – If not--make an informed judgment? – Ask for specific references on previous/on-going work – Ask for a capabilities presentation 8(a) requirements offered to SBA for acceptance - Direct award made to 8(a) firm REF: FAR Small Business Administration (SBA) Section 8(a) Program (cont’d) Does An 8(a) firm get a contract?

How can the 8(a) Program help you? – If you find a qualified 8(a) firm: Can be Sole Source up to thresholds of $3M services; $5M non-services – No J&A, sole source justification, or synopsis required Use eligible firms for follow-on contracts SBA’s 8(a) Mentor-Protégé Program – Enhance ability of young 8(a) firms – Graduated/transitional 8(a)s mentor ‘developmental 8(a)s’ – Agreements approved by SBA – Offers seamless transition of support; keeps work in 8(a) Program REF: FAR , 5.202(a)(4), 6.204(b), Small Business Administration (SBA) Section 8(a) Program (cont’d)

HUBZone Program – Federal contracting assistance for HUBZone firms – Increase employment/capital investment – SBA certifies all firms – No time limit for remaining on SBA List if criteria met How does a HUBZone firm get a contract? – HUBZone Set-Aside Competition Reasonable expectation at least two HUBZone firms will submit offers and award can be made at fair market price – HUBZone Sole Source Acquisition > $100,000 Anticipated award will not exceed certain dollar thresholds ($5M for manufacturing; $3M for all others) Firm is responsible and award can be made at fair price REF: FAR HubZone Program

How can the HUBZone Program help you? – Sole Source to HUBZone Firm: J&A required SBA website of certified HUBZone firms – – Query SBA Dynamic Small Business Search database REF: FAR HubZone Program (cont’d)

SDVOB Program – Federal contracting assistance for service-disabled veterans – Increase employment/capital investment – No SBA certification How does a SDVOB firm get a contract? – SDVOSBC Set-Aside Competition – Reasonable expectation at least two SDVOSBC firms will submit offers and award can be made at fair market price – SDVOB Sole Source – Anticipated award will not exceed certain dollar thresholds ($5M for manufacturing; $3M for all others) – Firm is responsible and award can be made at fair price REF: FAR SDVOB Program

How can the SDVOB Program help you? – Sole Source to SDVOB firm: – J&A required – Continue to use eligible firm for follow-on contract SBA website of certified SDVOB firms – Query SBA Dynamic Small Business Search database – – REF: FAR SDVOB Program (cont’d)

Why use the Small Business Program? – Not just because the law says to… Small Businesses can offer Value – Quality Products/Services – Timely Delivery – Cost Savings Check out AF Small Business News Reviews: 19 Key Take-Away

- For Federal acquisitions, “business concerns” are defined by Size Standards, NAICS Codes, and Ownership Percentage. - The Objectives of the Air Force SB Program parallel the “Intent of Public Law” in Maximizing Contracting Opportunities for Small Businesses in support of the Air Force mission. - The SB Specialist is the Liaison in Implementation of SB policies set forth in Public Law and Federal regulations. - Air Force performance dependent upon MAJCOM results. DoD performance contingent upon Agency achievements. AFMC goals assigned by Air Force. AFMC assigns goals, in turn, to Centers. Centers may, in turn, assign goals to subordinate units. Centers’ SB achievements consolidated to arrive at overall AFMC performance. - Small Businesses can offer exceptional value to warfighter – agility, innovation and cost control. 20 Key Take-Aways

21 Any Questions?