Small Business Programs

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Small Business Programs Small Business
Administration Office of Government
Contracting Presented by Ms. Marichu
Relativo Procurement Center Representative (PCR)
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Basis for the Small Business Programs

• Small Business Act
• To aid, counsel, assist protect the interests
  of small business concerns
• Goal of policy is to ensure that a fair
  proportion of purchases, contracts subcontracts
  be placed with small businesses
• Level the Playing Field

http//www.sba.gov/library/lawroom.html
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What is a Small Business?

• Organized for profit
• Place of business in the U.S.
• Operates primarily in the U.S. or makes
  significant contribution to the U.S. economy
• Taxes, U.S. products, materials or labor
• Cannot be dominant in its field on a national
  basis
• Self Certification in the Central Contractor
  Registration (CCR) database

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Small Business is Determined by

• Measured by its employment, business receipts, or
  business assets
• Meet the numerical small business size standard
  for its industry
• SBA Table of Size Standards
• North American Industry Classification System
  (NAICS) industries codes

Size Table http//www.sba.gov/size NAICS
http//www.osha.gov/oshstats
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Small Business Programs Government-wide Goals

• 23 - Small Business (SB)
• 5 - Small Disadvantaged Business (SDB)
• (includes 8(a) Business Development)
• 5 - Women-owned Small Business (WOSB)
• 5 - Service Disabled Veteran Owned SB
• (SDVOSB)
• 3 - HUBZone Small Business

FAR Part 19, Public Laws, Code of Federal
Regulations (13 CFR)
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Government-wide Goals Score Cards

• Goals negotiated between SBA and the President
• Goals are monitored reported by SBA
• Prior to 2009 Color codes/After 2009 Letter
  grade
• Reports are published in the SBA website
• Government-wide overall grade for 2009 B or
  94.1
• Dept of Defense overall grade for 2009 B or
  93.6

http//www.sba.gov/aboutsba/sbaprograms/goals/SCOR
ECARD2009.html
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What are the Governing Regulations?

• Title 13 of the Code of Federal Regulations (CFR)
• 121 -Small Business Size Regulations
• 124 -8(a) Business Development/SDB Programs
• 125 -Government Contracting Programs (including
  the SDVOSB Program)
• 126 -HUBZONE Program
• Federal Acquisition Regulation (FAR)
• FAR Part 19
• DFARS, AFFARS, AFARS, EFARS, etc

FAR Part 19, Public Laws, Code of Federal
Regulations (13 CFR)
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Small Business Size Standards

• Firms must be small based on their primary NAICS
  Code, including affiliates
• Size is determined either by
• Average 3 years revenues
• Number of employees
• Manufacturers
• Dealers
• Wholesalers

Source 13 CFR 121 Size Regulations Website
http//www.sba.gov/regulations/121/
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Common Size Standards

• 500 employees most manufacturer mining
  industries
• 100 employees all wholesales trade industries
• 500 employees for federal prime contracts
  subcontracts
• 6.5M most retail service industries
• 31M most general heavy construction
  industries
• 13M all special trade contractors
• 0.75M for most agricultural industries

Source 13 CFR 121.10413 CFR 121.106 13 CFR
121.201 Website http//www.sba.gov/regulations/12
1/
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Size Standards Update

• Size Standard Final Rule issued October 6, 2010
• Effective November 5, 2010
• Last change July 2008
• To Expand Opportunities for Small Businesses
• Keep up with the economy
• Keep up with federal contracting marketplace
• The upcoming changes
• Sector 44-45, Retail Trade
• Sector 72, Accommodation and Food Services
• Sector 81, Other Services

Source Federal Register 61597, 61604, 61591
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Small Business Programs

• What is the 8(a) Small Business Development
  Program?

FAR Part 19, Public Laws, Code of Federal
Regulations (13 CFR)
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Who are Socially Disadvantaged Individuals?

• Subjected to racial or ethnic prejudice or
  cultural bias because of their identity as
  members of a group
• Social disadvantage must stem from circumstances
  beyond their control
• In the absence of evidence, individuals who are
  members of the following designated groups are
  presumed to be socially disadvantaged

13 CFR 124.103
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Who are Socially Disadvantaged Individuals?

• Black Americans
• Hispanic Americans
• Native Americans (American Indians, Eskimos,
  Aleuts, and Native Hawaiians)
• Asian Pacific Americans (persons with origins
  from Japan, China, the Philippines, Vietnam,
  Korea, Samoa, Guam, U.S. Trust Territory of the
  Pacific Islands Republic of Palau, Commonwealth
  of the Northern Mariana Islands, Laos, Cambodia
  Kampuchea, Taiwan Burma, Thailand, Malaysia,
  Indonesia, Singapore, Brunei, Republic of the
  Marshall Islands, Federated States of Micronesia,
  Macao, Hong Kong, Fiji, Tonga, Kiribati, Tuvalu,
  or Nauru Subcontinent Asian Americans (persons
  with origins from India, Pakistan, Bangladesh,
  Sri Lanka, Bhutan, the Maldives Islands or
  Nepal), and
• Members of other groups designated by the SBA

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Small Disadvantaged Business (SDB)

• At least 51 owned by one or more individuals who
  are both socially and economically disadvantaged
• Must be citizen of the United States
• Must manage and control daily business operations
  
• Have management or technical expertise directly
  related to the primary product or service of the
  business
• SBA-no longer certifies SDB as of Oct 08
• Self certify in CCR ORCA

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8(a) Business Development Program

• See definition as the Small Disadvantage Business
  (SDB)
• In business at least two years
• Certified and approved by SBA
• Program is for nine years
• First 4 years Developmental Stage
• Last 5 years Transitional Stage
• Monitored by SBA local district office
• Early graduation
• Government-wide goal 5
• SDB 8(a) goals combined

13 CFR 124.8
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8(a) Set-Aside

• Sole source up to 3.5M / 5.5M for manufacturing
  NAICS
• Unlimited amount to Alaska Native Corp (ANC)
  firms
• Sole Source Competitive 8(a) over 100K
• For competitive 8(a) agency submits offer
  letter to the SBA district office serving the
  geographical area in which the procuring activity
  is located
• For competitive and open construction
  requirements agency submits offer letter to the
  SBA district office serving the geographical area
  in which the work is to be performed
• For competitive 8(a) - Rule of two applies

13 CFR 124.8 FAR19.8
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8(a) Set-Aside cont

• For sole source 8(a)
• Sole source is not protestable
• Withdrawal from the 8(a) program Submit request
  to SBA with justification/approval must be
  obtained prior to changing acquisition
• Competitive 8(a) can be restricted to a state or
  region
• Example Alaska 8(a) firms only or Region 10 8(a)
  firms only (include restriction in the synopsis)

13 CFR 124.502 and FAR 19.8   
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8(a) Set-Aside cont

• Sole Source and competitive 8(a) under 100K
• For sole source agency contacts SBA for firms
  eligibility prior to award
• For competitive agency submits waiver request
  letter to SBA for approval
• Sole Source 8(a) synopsis in FBO not required
• 8(a) stays 8(a)
• Unless it is a new requirement (25 increase in
  scope from previous requirement)
• All construction requirements are considered new
  requirements
• Adverse impact SBAs written determination that
  acceptance of the procurement for 8(a) award
  would have an adverse impact on small business
  (see 13 CFR 124.504(c))

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8(a) Business Development Application Process

• Electronic Application on line www.sba.gov
• Hard copy application mail to

Small Business Administration Division of Program
Certification Eligibility (DPCE) 455 Market
Street, 6th Floor San Francisco, CA 94105 Tel
(415-744-0328
13 CFR 124.8
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Small Business Programs

• What is the HUBZone Program?

FAR Part 19, Public Laws, Code of Federal
Regulations (13 CFR)
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HUBZONE

• Must be owned controlled at least 51 by
• U.S. Citizen, Community Development Corporation,
  an agricultural cooperative, or Indian tribe
• Principal office must be located within HUBZone
• Includes land in Indian Country/Reservation
• Includes military facilities closed by the BRAC
  Act
• Employees 35 must reside in a HUBZone area
• Must be a small business by SBA standards
• Certification by SBA no term limit
• Joint Venture (JV) only with another HUBZone firm

Source 13 CFR 126.607(b) FAR 19.1305(a)
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HUBZONE Prime Contract Benefits

• Competitive HUBZone Set-aside
• Rule of Two Reasonable expectation for
  competition
• Fair market price
• Sole Source only one source available
• Not exceed 5.5M manufacturing NAICS code
• Not exceed 3.5M all other NAICS codes
• Full/Open 10 preference on price
• Government-wide goal - 3

HUBZone area http//www.sba.gov/hubzone (search
by address) On line Application
https//eweb1.sba.gov/hubzone/internet Website
http//www.sba.gov/hubzone
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Small Business Programs

• What is the Service Disabled Veteran-Owned Small
  Business Program (SDVOSB)?

FAR Part 19, Public Laws, Code of Federal
Regulations (13 CFR)
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Service Disabled Veteran-Owned Business

• The Veterans Benefit Act of 2003
• Procurement can be set aside or sole source
• Rule of Two Reasonable expectation for
  competition
• Only VA can set aside for veteran-own small
  business
• Required to register in http//www.vip.vetbiz.gov/
  
• Self certification in CCR
• Under review due to abuse
• Government-wide goal 3

Source 13 CFR 125.8 125.13 FAR
19.307 Website http//www.vetbiz.gov/
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Veterans First Buying Authority

• Dept of Veterans Affair (VA) program
• First second priorities for contracting
  procurement
• Service-Disabled Veteran-owned small business
  (SDVOSB)
• Veteran-owned small business (VOSB)
• Must register Vendor Information Pages (VIP)
  database
• Veteran status verified Veterans Benefit
  Administrations BIRLS System
• Only one registration for one company allowed
• DUNS number required
• DD Form 214 required
• Fraudulent claims debarred for five years
• Verification of status once a year

Website www.vetbizresourcecenter.org Register
http//www.vetbiz.gov/ VBA Office 800-827-1000
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Small Business Programs

• What is the Woman-Owned Small Business Program
  (WOSB) Economically Disadvantaged Woman-Owned
  Small Business (EDWOSB)?

FAR Part 19, Public Laws, Code of Federal
Regulations (13 CFR)
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Woman-Owned Small Business (WOSB)

• WOSB - At least 51 owned controlled by one or
  more women
• EDWOSB - Economically Disadvantaged WOSB
• Manage daily business operations
• No outside employment
• United States Citizen
• Self-certification - CCR ORCA
• Government-wide goal 5

Woman Business Center (WBC) http//www.sba.gov/a
boutsba/sbaprograms/onlinewbc http//www.sba.gov/s
ervices
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WOSB/EDWOSB New Ruling

• Set-aside preference effective February 4, 2011
• Certification as small business WOSB/EDWOSB
• By Federal agency, State Government, or national
  certifying entity approved by SBA
• By the contracting officer supported by adequate
  documentation
• Self-Certification in CCR ORCA

WOSB Federal Contract Program Webpage httpwww.sba
.gov/wosb 1-800-U-ASK-SBA (827-5722)
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WOSB/EDWOSB New Ruling

• Third-Party Certification
• Third Party Certifier approved by SBA
• U.S. Dept of Transportations (DOT)
  Disadvantaged Business Enterprise (DBE) Program
• As an 8(a) participant
• Must be provided to the WOSB Program Repository
• Contracting Officer set-aside to WOSB/EDWOSB
• Designated 83 NAICS codes currently
  underrepresented
• Rule of Two Reasonable expectation for
  competition
• 5 Million Manufacturing / 3 Million all
  others
• Fair and reasonable price

Final Rule on 13 CFR Parts 121, 124, 125
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Teaming Arrangements

• Two or more companies form a partnership or joint
  venture to act as prime contractor
• Desirable to provide the best combination of
  performance, cost, quality, and delivery
• Formal and informal / traditional/non-traditional
• Limitation on subcontracting (small business to
  self-perform on the contract)
• Construction 15
• Services 50
• Supplies 50
• Specialty Trade 25

Labor only
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Types of Teaming Arrangements

• Prime/Subcontractor relationship (traditional)
• Joint Ventures (JV)
• Mentor Protégé
• SBA approved mentor protégé
• http//www.sba.gov/aboutsba/sbaprograms/8abd/mento
  rprogram/index.html
• Must be approved by SBA in advance
• Reference 13 CFR 124.520
• Dept of Defense approved mentor protégé
• http//www.acq.osd.mil/osbp/mentor_protege/

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Joint Venture (JV)

• Each firm should be small to stay small (revenues
  combined)
• 8(a) JV must be approved by SBA
• HUBZone JV both firms must be HUBZone
• SDB JV may be entitled to price adjustment in
  competitive acquisition under authorized NAICS
  codes
• SDVOSB JV the SDVOSB 51 ownership for SDVOSB
  set asides
• Performance of Work (Self-perform by JV)
• Service 50
• Supplies 50
• Construction 15
• Special Trade 25

Labor only
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Mentor Protégé

• SBA approved mentor protégé
• The protégé must be an 8(a) firm
• The mentor can be a large business
• The protégé can joint venture with the mentor
• Mentor can be a large business/doesnt impact the
  small business size status
• Participate on any acquisition (set-asides or
  not)
• Dept of Defense (DOD) mentor protégé
• Provide mutual benefits to the small business and
  the other more established business
• Protégé receives the assistance (financially,
  technical, managerial)
• Mentor provides subcontracting opportunities to
  Protégé

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Order of Preference

• Parity among the following
• 8(a) BD
• HUBZone
• SDVOSB
• WOSB Preference status effective February 5,
  2011
• Underrepresented NAICS codes set aside to
  WOSB/EDWOSB
• General Rule Once 8(a) Stays 8(a)
• Per FAR 19.8/13CFR 124
• Exception New requirement or requirement
  increased by 25
• Construction requirement considered new
  requirement
• Same applies to the other Small Business Programs
• Geographic Restriction on set aside
• None
• Exception Alaska ANC/8(a) firms

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Small Business Set Aside Rule

• Under Simplified Acquisition Threshold (under
  150,000)
• FAR 19.502-2(a) -- automatically reserved
  exclusively for small business concerns
  (including 8(a), HUBZone, SDVOSB)
• Rule of Two two of more firms available to do
  the work
• Above Simplified Acquisition Threshold Order of
  Precedence

• FAR References
• 19.501(c),(d),(e)
• 19.800(e) 8(a)
• 19.1305(a) HUBZone
• 19.1404(d) SDVOSB
• 19.1405(a), (c) SDVOSB

• CFR References
• 13 CFR 126.607(b) HUBZone
• 13 CFR 125.19(b) SDVOSB
• 13 CFR 124.503 (j) 8(a)

Websites http//farsite.hill.af.mil/
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Size Protest

• Who can submit a size protest?
• Firm involved in the acquisition
• Who handles Size Protest?
• SBA Office of Government Contracting (Size
  Specialist)
• Forward the Size Protest to the GC office
  servicing the firms principal office location
• For Guam firms send to

Small Business Administration Office of
Government Contracting, Area 6 455 Market
Street, 6th Floor San Francisco, CA 94105
Phone [phone]
Please call Carol Bunts at [phone]
before forwarding your size status protest
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Size Do Matter

• Micro-Purchase
• Supplies (under 3,000)
• Service (under 2,500)
• Construction (under 2,000)
• Simplified Acquisition
• Reserved for small business set aside (under
  150,000)
• Rule of Two
• Formal Acquisition
• Bids Proposals (over 150,000)
• Consider small business set aside
• Rule of Two

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Register/Update Your Business

• Complete Central Contractor Registration Database
  (CCR)
• Keep Current (Update yearly)
• www.ccr.gov
• Complete SBA Profile (Dynamic Small Business
  Search (DSBS)
• http//dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm
• Complete on-line Representations and
  Certifications Application (ORCA)
• https//orca.bpn.gov/

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Additional Assistance

• Local District Offices and Resource Partners
• SBA Guam Brand Office Ken Lujan (kenneth.lujan
  _at_sba.gov) /Tel [phone]
• SBA Procurement Center Representative (PCR)
  Hawaii, Guam Pacific Insular Area Larry Orr
  (Larry.orr_at_sba.gov)/ Tel [phone]
• Procurement Technical Assistance Center (PTAC)
• http//www.guamptac.com/
• Small Business Development Centers
• www.sba.gov/sdbc/
• Small Business Specialists (SBS)
• www.acq.osd.mil/sadbu

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Questions?