1. SBA 1st First Wednesday Virtual Learning 2017
“Contracting with HUBZone Certified Small Businesses”
SBA 1st First Wednesday Virtual Learning 2017

2. Hosts Dwight A. Johnson, Procurement Center Representative
SBA Office of Government Contracting, Area IV, Omaha
(402)
Jan Kaiser, Procurement Center Representative
SBA Office of Government Contracting, Area IV, Chicago
(312)
Deborah Crumity, Procurement Center Representative
SBA Office of Government Contracting, Area IV, Rock Island Arsenal
(309)

3. Welcome to “SBA Virtual Learning 2017”
Questions answered during the final 10 minutes.
Technical problems: Contact the moderator with a note or call AT&T Connect Support at
Page numbers stated for those working off hard copies of the program.
We cover the “SBA Quick Reference” as time allows.
For more SBA training visit the SBA Learning Center website

4. Association of Procurement Technical Assistance Centers posts past “First Wednesday” programing
Check this link for past programs:
sba-webinar-library/
Contracting officer resources: “How PTACs partner with federal agencies”:
Find your nearest Procurement Technical Assistance Center at

5. Return to 9:30 – 10:30 am Central for remainder of the 2017 season
FIRST WEDNESDAY VIRTUAL LEARNING SERIES – 2017 SCHEDULE 9:30 to 10:30 Central Time
Return to 9:30 – 10:30 am Central
for remainder of the 2017 season
FY 2017
 Date
 Topic 1
October 5, 2016
Non-Manufacturer Rule 2
November 2, 2016
Market Research: Using FPDS & DSBS 3
December 7, 2016
New All SB Mentor-Protégé Program 4
January 11, 2017
SBA Surveillance Reviews 2017 5
February 1, 2017
Certificate of Competency Program 6
March 1, 2017
Historically Underutilized Business Zones 7
April 12, 2017
Gov’t Subcontracting Compliance 8
May 3, 2017
Woman Owned Small Business 9
June 7, 2017
SBA’s Size Program 10
July 12, 2017
Small Business Legislative Updates 11
August 2, 2017
8(a) Business Development
The program schedule above is for information only and is subject to change.

6. Looking for Your Feedback
Your input is needed and we are requesting that you respond regarding the following issues…
Time Change Trial: We conducted a time change trial in DEC – JAN – FEB and held the First Wednesday training later in the day. Please provide your thoughts about the training and what worked best you and your activity.
Calling for Topics for Next Year: Please tell us what topics you would like covered in next year’s program.
Please respond to the survey BY MARCH 31, 2017 to provide your opinion at:  
If your agency prohibits access to the Survey Monkey website send your thoughts to

7. One Continuous Learning Point
Self-service: Fill in your name on the certificate slide and save. Download the certificate and print for your records. You submit your request for training credit IAW your agency policy, i.e. FAITAS.
Phoning in only: If you listen in groups and you want all attendees to be included on the future mailing list, send addresses of participants in an excel document to

8. CAUTION – Do not recommend fee for service (
CAUTION – Do not recommend fee for service (.com) firms for SAM registration
There are firms that require fee for services to assist small businesses in a variety of ways. Registration in SAM, proposal preparations, certifications (not authorized by SBA) and assistance in getting on GSA Federal Supply Schedules and more.
No government official should be promoting any individual business’ services or products as this implies endorsement of one firm over all others. The government has to remain impartial.  If you come across something that you think is great, encourage that firm to market itself, but do not market on their behalf. 
The government, through the Department of Defense established the Procurement Technical Assistance Program (PTAP) which has centers throughout the country that do provide this and many other services – most of which are at no cost to a firm.

9. Presenters
Mariana Pardo, Director HUBZone Program Washington, DC
Alison Mueller, Attorney Advisor
Office of General Counsel Washington, DC

10. “Contracting with HUBZone Certified Small Businesses”
SBA on Small Business Joint Ventures
SBA on Small Business Joint Ventures
1/27/2018
“Contracting with HUBZone Certified Small Businesses”
Historically Underutilized Business Zone Program
13 CFR part 126
FAR subpart 19.13 10 10

11. Overview OVERVIEW HUBZONE SET-ASIDES AND SOLE SOURCE AWARDS
SET ASIDE OF ORDERS
HUBZONE PRICE EVALUATION PREFERENCE IN FULL AND OPEN COMPETITION
LIMITATIONS ON SUBCONTRACTING AND NONMANUFACTURER RULE

12. overview

13. SBA administers the HUBZone Program
5/3/2012
SBA administers the HUBZone Program
Status as a HUBZone small business concern (SBC) is determined by SBA, pursuant to 13 CFR part 126
A firm must apply to SBA for HUBZone certification (13 CFR to )
If SBA determines that a concern is a HUBZone SBC, SBA will issue a certification to that effect and will add the concern to the List of Qualified HUBZone Small Business Concerns at
Only firms on the List are HUBZone SBCs and eligible for HUBZone contracting preferences and awards
SBA HUBZone Program

14. HUBZone Contracts (13 CFR 126.600)
HUBZone contracts (including Multiple Award Contracts) include awards to qualified HUBZone SBCs through:
Sole source awards
100% HUBZone set-aside awards and partial set-asides
Full and open competition, where the HUBZone price evaluation preference is applied
Reserves for HUBZone SBCs under Multiple Award Contracts (MAC)
Orders set-aside for HUBZone SBCs against a MAC, where the MAC was awarded in full and open competition

15. Requirements to Bid on HUBZone Contract (13 CFR 126.601)
HUBZones
Requirements to Bid on HUBZone Contract (13 CFR )
When a HUBZone SBC submits its initial offer on a specific HUBZone contract, it must certify to the CO that:
It is a certified HUBZone SBC that appears on SBA’s List;
There has been no material change in its circumstances that could affect its HUBZone eligibility since the date of HUBZone certification;
It is a small business under the NAICS code assigned to the procurement; and
It will “attempt to maintain” the required percentage of employees who are HUBZone residents during the performance of a HUBZone contract.

16. Status as a HUBZone Small Business Concern
To be eligible for a HUBZone contract, a concern must be a HUBZone SBC both at the time it submits its initial offer AND at the time of contract award (13 CFR (c))
In general, a joint venture may be considered a HUBZone SBC if both joint venturers are certified HUBZone SBCs AND each concern is small under the NAICS code assigned to the contract (13 CFR )
NOTE: On February 5, 2015, SBA published a proposed rule that would change this requirement. 80 FR Under the proposed rule, a HUBZone SBC may joint venture with a non-HUBZone SBC if each concern is small under the NAICS code assigned to the contract, and other requirements are met.

17. How to Locate HUBZone Contractors Using the Dynamic Small Business Search (DSBS)

18. DSBS – How HUBZone Certification is Displayed
HUBZones
DSBS – How HUBZone Certification is Displayed
Each firm’s DSBS profile has two fields relevant to HUBZone certification:
“HUBZone Certified? [ ] Yes [ ] No”
“HUBZone Certification Date”
"HUBZone Certified? [X] Yes [ ] No” indicates the firm is currently HUBZone certified
"HUBZone Certified? [ ] Yes [X] No” indicates the firm is NOT currently HUBZone certified
“HUBZone Certification Date” indicates the initial date of certification and does not reflect the dates of any recertification process, which are internal to SBA
NOTE: An approval letter or recertification letter is NOT valid evidence that a firm is currently HUBZone certified, since a firm may have been decertified since the notice was issued.

19. DSBS – Example of Currently Certified HUBZone Small Business

20. DSBS – Example Of Decertified SBC

21. DSBS – Example of Non-HUBZone SBC

22. Relationship Among Small Business Programs (FAR 19.203)
HUBZones
Relationship Among Small Business Programs (FAR )
SBA’s small business socioeconomic programs include:
8(a) Program
HUBZone Program
Service-Disabled Veteran-Owned (SDVO) Small Business Program
Women-Owned Small Business (WOSB) Program
There is no order of precedence among these programs
In determining which socioeconomic program to use, the contracting officer should consider, at a minimum—
Results of market research
Agency progress in fulfilling small business goals

23. HUBZones and Parity Below or AT SAT ($3,500 - $150,000) ABOVE SAT
(>$150,000)
Acquisition is automatically reserved exclusively for small business
CO may award as:
small business set-aside
8(a) set-aside
HUBZone set-aside
SDVO set-aside
WOSB set-aside
If “Rule of 2” is met—
CO expects to receive offers from at least 2 responsible small businesses; and
Award will be made at a fair price
—Acquisition must be set-aside for small business. Before awarding as small business set- aside, CO must first consider awarding as—
8(a) set-aside (or sole source)
HUBZone set-aside (or sole source)
SDVO set-aside (or sole source)
WOSB set-aside (or sole source)
EXCEPTION: “Once 8(a), always 8(a)” rule - If a requirement has been accepted by SBA under the 8(a) Program, it must remain in the 8(a) Program unless SBA agrees to its release.

24. HUBZONE SET-ASIDES AND SOLE SOURCE AWARDS

25. HUBZone Set-Aside Procedures (13 CFR 126.607, FAR 19.1305)
Below SAT CO MAY award via HUBZone set-aside
Above SAT CO SHALL consider a HUBZone set- aside before considering a HUBZone sole source award or a small business set-aside
To award via HUBZone set-aside, CO must have a reasonable expectation that—
Offers will be received from 2+ HUBZone SBCs; and
Award will be made at a fair market price

26. HUBZone Set-Aside – Only One Offer or No Offers (FAR 19.1305(c))
1/27/2018
HUBZone Set-Aside – Only One Offer or No Offers (FAR (c))
If the CO receives—
only one acceptable offer from a certified HUBZone SBC the CO should make an award to that concern
no acceptable offers from HUBZone SBCs
the CO should withdraw the HUBZone set-aside and set the procurement aside for small business concerns, as appropriate (see FAR )
(402)

27. HUBZone Sole Source Awards (13 CFR 126.612, FAR 19.1306)
CO may award a sole source contract to a HUBZone SBC (before considering a small business set-aside) if—
CO does not expect to receive offers from at least 2 HUBZone SBCs
The acquisition is greater than the SAT
Anticipated price of the contract (including options) will not exceed—
$7 M for a requirement assigned a manufacturing NAICS code; or
$4 M for all other requirements
The requirement is not currently being performed by an 8(a) participant and has not been accepted as an 8(a) requirement by SBA
The HUBZone SBC has been determined to be a responsible contractor with respect to performance
Award can be made at a fair and reasonable price
SBA has the right to appeal CO’s decision not to make a HUBZone sole source award
Check for FAR
inflation change

28. SET ASIDE OF ORDERS

29. Set-Aside of Orders A CO may—
Set-aside an order placed against a multiple-award contract for HUBZone SBCs (FAR 19.5) and no justification for this exception to fair opportunity is required (FAR 16.5)
Set-aside part(s) of a multiple-award contract for HUBZone SBCs (FAR 19.5)
Reserve one or more contract awards for HUBZone SBCs under full and open multiple-award procurements (FAR 19.5)
Set-aside orders & BPAs under the GSA Schedule (FAR 8.4)

30. Set-Aside of Orders – FAR Part 19 Applies
FAR (b)(2)(i)(F): When setting aside orders for small business concerns:
The specific small business program eligibility requirements identified in part 19 apply.
FAR (a)(2): When setting aside orders and BPAs against the GSA Schedule:
What does this mean? Examples:
HUBZone joint venture requirements apply
HUBZone limitations on subcontracting apply

31. HUBZONE PRICE EVALUATION PREFERENCE (PEP)

32. Price Evaluation Preference For HUBzone SBCs (13 CFR 126. 613, FAR 19
The HUBZone price evaluation preference (PEP) shall be used in acquisitions conducted using full and open competition
The preference shall NOT be used—
Where price is not a selection factor (e.g., Architect/Engineer acquisitions)
Where all fair and reasonable offers are accepted (e.g., the award of multiple award schedule contracts)
HZ PEP only applied in F&O, including on non-reserved portion or non-set-aside portion

33. Applying the HUBZone PEP
The CO shall apply the HUBZone PEP in F&O competition, when the lowest, responsive, responsible offeror is a large business
The PEP is applied by adding a factor of 10% to—
The otherwise lowest, responsive, responsible offer from a large business (AKA the large business that is the apparent successful offeror)
Offers from HUBZone SBCs that have waived the PEP
Offers from small business concerns that are not the apparent successful offeror
NOTE: Apply PEP first, then do best value analysis
NOTE: If PEP waived, then not submitting offer as HZ SBC and do not need to meet LOS or NMR

34. Price Evaluation Preference – Examples
Before PEP applied, the large business is the lowest, responsive and responsible offeror.
After applying the 10% PEP, the large business is still the lowest, responsive and responsible offeror.
In this example, the application of the PEP does not benefit the HUBZone SBC.
OFFER:
HUBZone $113
Small $103
Large $100
PEP APPLIED (*10%):
HUBZone $113
Small $113.3
Large $110
NOTE: If price equal  Award to the HZ SBC

35. Price Evaluation Preference – Examples
Before PEP applied, the large business is the lowest, responsive and responsible offeror.
After applying the 10% PEP, the large business is no longer the lowest, responsive and responsible offeror.
In this example, the application of the PEP does benefit the HUBZone SBC.
OFFER:
HUBZone $100
Small $97
Large $95
PEP APPLIED (*10%):
HUBZone $100
Small $106.7
Large $104.5

36. Price Evaluation Preference – Examples
Before PEP applied, the small business is the lowest, responsive and responsible offeror.
Since lowest offeror is not a large business, the HUBZone PEP is not applied.
OFFER:
HUBZone $100
Small $95
Large $97
PEP NOT APPLIED

37. LIMITATIONS ON SUBCONTRACTING AND NONMANUFACTURER RULE (NMR)

38. Limitations on Subcontracting (LOS)
HUBZones
Limitations on Subcontracting (LOS)
Final Rule published at 81 FR – Effective June 30, 2016
Saturday, January 27, 2018
NEW: A HUBZone SBC prime contractor may subcontract part of a HUBZone contract, provided the HUBZone SBC meets the following requirements:
Services (except construction)
Spend no more than 50% of the value of the prime contract on subcontractors that are not HUBZone SBCs
Supplies (from a manufacturer)
General Construction
Spend no more than 85% of the value of the prime contract on subcontractors that are not HUBZone SBCs
Cost of materials are excluded
Special Trade Construction
Spend no more than 75% of the value of the prime contract on subcontractors that are not HUBZone SBCs
NOTE: Subcontractors that are also HUBZone SBCs are referred to as “similarly situated entities”

39. Nonmanufacturer Rule (NMR) (13 CFR 126.601, FAR 19.1303)
NEW: A HUBZone SBC may submit an offer for supplies as a nonmanufacturer if it meets the requirements of the NMR set forth at 13 C.F.R. § (b)(1)
Final rule effective June 30 (81 FR 34243) eliminated the requirement that the manufacturer also be a HUBZone SBC
NEW: A CO may request a waiver of the NMR for a HUBZone contract
Final rule effective June 30 authorized NMR waivers for HUBZone contracts
As a result, the HUBZone program’s treatment of the NMR is now consistent with SBA’s other socioeconomic programs
For HUBZone contracts at or below $25,000, a HUBZone SBC may supply the end item of any domestic manufacturer. This means the manufacturer may be a large business, but the product acquired must be manufactured or produced in the U.S.

40. Compliance With LOS & NMR
When do the HZ LOS and NMR apply?
HUBZone set-asides
Partial HUBZone set-asides
HUBZone reserves
Orders set-aside for HUBZone SBCs
Awards to HUBZone SBCs under F&O after HZ PEP applied
What is the compliance period?
Set aside (full or partial): Base term and each subsequent option period
HOWEVER, CO may require concern to meet the LOS or NMR for each order
Order set-aside under F&O: Term of order

41. Questions

42. ”SBA Quick Reference”

43. Dynamic Small Business Search

44. Summary of CFR Regulations
SBA Size Regulations 13 CFR Part 121
HUBZone Regulations 13 CFR
SBA Certificate of Competency 13 CFR 125.5
Service-Disabled Veteran 13 CFR (b)
8(a) and SDB Regulations 13 CFR
Small Disadvantaged Business 13 CFR (f)
WOSB Program 13 CFR 127
SBA Prime Contracting 13 CFR 125.2
SBA Subcontracting 13 CFR 125.3 44 44

45. Types of SBA Contacts and Offices
A. SBA Government Contracting Area Offices
1. SBA Procurement Center Representatives (PCRs)
2. SBA Commercial Market Representatives (CMRs)
B. SBA District Offices
1. Business Opportunity Specialists (BOS)
C. SBA Regional Offices
D. SBA Headquarters 45 45

46. Six SBA Government Contracting Areas at hyperlink: https://www. sba

47. A. SBA Quick Reference - SBA Area Offices
1. Size protests (with recertification) FAR
13 CFR
13 CFR
2. Locating nearest SBA staffer FAR 19.4
3. Certificate of Competency FAR 19.6
13 CFR 125.5
4. COC Limitations on Subcontracting Compliance
FAR
13 CFR 125.6(f)
5. Receiving copies subcontracting plans
FAR

48. B. SBA Quick Reference - SBA Procurement Center Representatives (PCRs)
FAR   Small Business Administration procurement center representatives. (a)(1) The SBA may assign one or more procurement center representatives to any contracting activity or contract administration office to carry out SBA policies and programs…
(2) If a SBA procurement center representative is not assigned to the procuring activity or contract administration office, contact the SBA Office of Government Contracting Area Office…..
(b) Upon their request and subject to applicable acquisition and security regulations, contracting officers shall give SBA procurement center representatives….access to all reasonably obtainable contract….

49. B. SBA Quick Reference SBA PCRs, cont.
1. SBA PCR coordination records FAR (b)   
13 CFR 125.2
2. Small business set-aside appeals FAR
13 CFR 125.2(b)(7)
3. HUBZone set-aside appeals FAR
FAR
13 CFR
4. SDVOSB set-aside appeal FAR
FAR
13 CFR
5. Reporting bundling to SBA (MATOCs) FAR (e)(1)
6. SBA subcontracting plan reviews-copies FAR (3)
13 CFR 125.2(b)(6)(iii)
FAR (c)
13 CFR 125.2(b)(6)(iii)(C)
7. SBA subcontracting program review FAR (4)
8. Small business TFD FAR (e)(4))
(Termination for default)
9. Surveillance review of agency contracting

50. Small Business Coordination Forms Sent To SBA PCRs
Agency
Form
Title 1
Commerce
CD 570
Small Business Set-aside Review 2
Defense
2579
Small Business Coordination Record 3
Energy
4220.2
Small Business Review Form 4
GSA
2689
Small Business Analysis Record 5
HHS
653 6
Homeland Security
700-22 7
Interior
1886
Acquisition Screening and Review Form 8
Labor
DL1-2004
Small Business Procurement Determination 9
NASA
NF 1787
Small Business Review Sheet 10
State
DS-1910
Small Business Clearance Form 11
Transportation
4250
Small Business Program Review Form 12
USDA
AD-1205
Small Business Program – Procurement Review 13 VA
2268
Procurement Request Review For Small Business…

51. Document that you have provided SBA Area Directors with copies of subcontracting plans
Postaward responsibilities of the contracting officer. …:
Notifying the SBA of the award by sending a copy of the award document to the Area Director, Office of Government Contracting, in the SBA area office where the contract will be performed.
(c) Giving to the SBA procurement center representative….a copy of—
(1) Any subcontracting plan submitted in response to a sealed bid solicitation; and
(2) The final negotiated subcontracting plan that was incorporated into a negotiated contract or contract modification.
(d) Notifying the SBA procurement center representative…. of the opportunity to review subcontracting plans in connection with contract modifications.

52. C. SBA Quick Reference - SBA Commercial Market Representatives (CMRs) link at:
Prime contractor portfolio management 13 CFR 125.3
Reviews of subcontracting plan holders 13 CFR 125.3
Matchmaking CFR 125.3
SBA SUB-Net link at:
SBA Subcontracting Opportunities Directory link at:
“SBLO Handbook” link at:

53. D. SBA Quick Reference – SBA Regional and District Offices
Link to district offices at:

54. D. SBA Quick Reference - SBA District Offices, cont.
To locate SBA 8(a) business development servicing office, check Dynamic Small Business Search at the link: and then local resources at the link

55. E. SBA Quick Reference - SBA Headquarters
1. HUBZone status protests FAR  
13 CFR
2. NAICS code appeal FAR
13 CFR
3. Non-manufacturer rule waivers FAR (f)(1)-(7)
13 CFR
4. SDVOSB status protest FAR
13 CFR
5. WOSB Program status protest FAR /13 CFR 55

56. FAR 19. 102 (f ): No class waiver to NMR
FAR (f ): No class waiver to NMR? Check out an individual waiver*

57. A. If you find no class waivers, an SBA individual waiver to the Nonmanufacturer Rule (NMR) may help you to achieve small business goals if*:
B. A waiver for a set-aside is not needed when: 1. One small business manufacturer: * Small business set-aside 2. Small business manufacturer, brand specific of any dollar size with FAR 6 justification: * Small business set-aside 3. Large business, brand specific (or brand equivalent) requirement $25,000 or less with FAR 6: * Small business set-aside C. GSA schedule: Use the closest code listed on the schedule. Then same as above if no class waiver. D. Exception to “NMR” if procurement $25,000 or less (FAR (f)(7)(B))

58. NMR Program Office
The preferred and most expeditious method for asking questions and submitting waiver requests is by to

59. SBA 1st First Wednesday Virtual Learning 2017
Find your PCR at
SBA 1st First Wednesday Virtual Learning 2017