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U.S. Small Business Administration

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Title: U.S. Small Business Administration


1
U.S. Small Business Administration
  • Selling to The Federal Government
  • Winning
  • Federal Contracts
  • for the
  • IRS and NCMA
  • Greater New York Vendor Outreach Workshop
  • April 16, 2009

2
Federal Contracting Facts
  • The federal government is one of the largest
    single sources of US contracting opportunities
    for small businesses
  • Contracts exist for every item imaginable, from
    paper clips to armored tanks
  • In 2006, small businesses won
  • 77 billion in direct prime contracts
  • 65 billion in subcontracts
  • over 142 billion in total federal contracts

3
Why a Small Business Program?
  • It is the policy of the United States that small
    business (SB) concerns shall have the maximum
    practicable opportunity to participate in the
    performance of contracts awarded by any Federal
    agency.
  • The United States uses the procurement process to
    advance socio-economic policies and objectives.
  • Government Policy Over Several Decades
  • Numerous Statutes, beginning with the Small
    Business Act as amended
  • Various Executive Orders
  • Federal Acquisition Regulation (48 CFR, Part 19)
  • SBA Regulations (13 CFR)

4
Basis for SBA Programs
  • Small Business Act
  • Implements Congressional Policy 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

5
Get to Know SBAs Website
  • At www.sba.gov/businessop/index/html, take online
    federal procurement training modules to improve
    your companys odds to win federal prime and
    subcontracts
  • Topics today include
  • Defining the Market
  • How the Government Buys
  • Contractor Responsibilities
  • And many more

6
What is a Small Business?
  • According to regulation (FAR 19.001)
  • Concern Any business entity organized for
    profit with a place of business located in the
    U.S.
  • Small business concern means a concern,
    including its affiliates, that is independently
    owned and operated, not dominant in the field of
    operation in which it is bidding on government
    contracts, and qualified as a small business
    under the criteria and size standards in 13 CFR
    Part 121.

7
Prime ContractingGovernment-wide Procurement
Goals
  • Small Business (SB) - 23
  • Small Disadvantaged Business (SDB) - 5
  • Women-Owned Small Business (WOSB) - 5
  • HUBZone Small Business - 3
  • Service-Disabled Veteran-Owned SB (SDVOSB) - 3

8
How the Government Buys
  • Order of Precedence
  • FAR 8.603 FPI and AbilityOne
  • GSA or other Federal Supply Schedule
  • 8(a) sole source/competitive 8(a)-HUBZone
    firms
  • HUBZone competition, HUBZone sole source
  • Service Disabled Veteran Set-aside, Sole Source
    (1st priority for the VA (and VOSB 2nd)
  • Small Business Set-aside
  • Full and Open
  • SBAs Position Contracting Officers should use
    their best judgment as
  • to which vehicle ( 8(a), HUBZone, or Service
    Disabled Veteran Owned)
  • is most appropriate for their buy. Program Goal
    achievement is a factor
  • in this determination. Controversial

9


How the Government Buys MAS/FSS
  • MAS/FSS Contracts GSA establishes long-term
    government-wide contracts for the entire
    government to provide access to over 11 million
    commercial supplies (products) and services
  • Preferred method and widely used
  • The General Services Administration (GSA) manages
  • Multiple Award Schedules (MAS) contracts,
  • aka Federal Supply Schedule (FSS) contracts
  • Contact GSA for more information on how to obtain
    a MAS/FSS contract at http//www.gsa.gov and
    select link to GSA Contracts and Schedules

10
First Thing To Do Get Registered
  • Obtain a DUNS Number that will identify your
    business to the federal government by visiting
    www.dnb.com
  • In order to win federal contracts, your business
    must be registered in the federal governments
    Central Contractor Registration (CCR) database at
  • www.ccr.gov
  • Online Representations and Certifications
    Application (ORCA) https//orca.bpn.gov/

11
Identify Your Product or Service
  • 2 different coding systems
  • Federal Supply Classification Code (FSC)
  • http//www.drms.dla.mil/asset/fsclist.html
  • North American Industry Classification System
    Code (NAICS)
  • http//www.census.gov/eos/www/naics/

12
Know the Federal Contract Certifications
  • Self-Certifications
  • Small Business NAICS Codes/Size Standards
  • Women-owned Small Business (WOSB)
  • Veteran-owned Small Business (VOSB)
  • Service-Disabled Veteran-owned Small Business
  • (SDVOSB)
  • SBAs Formal Certification Programs 8(a)
    Business Development
  • HUBZone Empowerment Contracting

13
Find Out If You Qualify for SBA Certifications
  • Require formal certification (pre-approval) by
    the government
  • 8(a) - Socially and economically disadvantaged
    firms enrolled in a 9-year business development
    program eligible to receive competitive and sole
    source awards. www.sba.gov/8abd
  • HUBZone - Small businesses, owned and controlled
    by only by US Citizens, community Development
    Corps, Indian tribes with its principal office
    located in areas identified as historically
    underutilized business zones, and with 35 of
    employees coming from HUBZones, eligible to
    receive competitive and sole source awards.
  • www.sba.gov/hubzone

14
Eligibility for 8(a) SDB Programs
  • 8(a) SDB
  • A small Business A small business
  • US Citizen US Citizen
  • 51 owned and controlled Same
    controlled by socially
  • economically disadvantaged
  • individuals
  • Net worth below 250K Net worth below 750K
  • In business at least 2 years

15
HUBZone Requirements
  • FOUR Requirements
  • Must be a small business by SBA standards
  • Concern must be owned and controlled only by
    US Citizens, Community Development Corporation or
    Indian Tribes
  • The principal office must be located in a
    HUBZone
  • At least 35 of the concerns employees must
    reside in a HUBZone

16
HUBZone Program
  • Applies to purchases over 3000
  • Must be certified by SBA - no term limits
  • Annual self-certification required after
    initial approval
  • Competitive and sole source set-aside program
    benefits
  • Cant consider actions for HUBZone SA if FSS,
    UNICOR, NIB/NISH, or 8(a)
  • Sole source Up to 5.5 M (mfg) and Up to 3.5M
    (non-mfg)
  • 10 price evaluation preference (on non
    set-asides)
  • Principal office must be in a HUBZone
  • 35 of employees must live in a HUBZone
  • FAR 19.13

17
Service-Disabled Veteran-Owned Small Businesses
  • Sole Source
  • Buys over 100,000
  • Only 1 Source
  • Up to 5.5 M (mfg)
  • Up to 3.5 M (non-mfg)
  • Cant consider if FSS,
  • UNICOR, NIB/NISH,
  • or 8(a)
  • Set-Aside
  • - Buys over 3000
  • - Rule of Two
  • - No upward limit
  • - Cant consider if
  • FSS, UNICOR,
  • NIB/NISH, or 8(a)

18
Service-Disabled Veteran-Owned Small Businesses
  • Additional Points to Remember
  • VA determines Service Disability - SBA
    determines size, if protested
  • No term limits no need to apply or reapply
  • Competitive and sole-source program benefits
  • Subcontracting and Prime Contracting goals
  • FAR 19.14

19
Identify Contract Opportunities
  • Federal Business Opportunities (FedBizOpps) (FBO)
    is the exclusive official source to identify
    federal contracts over 25,000
  • www.fedbizopps.gov or www.fbo.gov
  • Demonstration Videos - Training videos are now
    available to familiarize users with the features
    and functionality of the new FBO
  • Sources Sought Notices in the FBO Become
    familiar with and Respond to these notices.
  • Large contract awards and special notices (e.g.,
    procurement conferences) are also publicized in
    the FBO.
  • Contains Recovery and Reinvestment Act Actions

20
Learn Federal Contracting Procedures
  • In order to win federal contracts, you must
    become familiar with federal regulations
  • . Federal Acquisition Regulations (FAR)
  • www.acqnet.gov/far
  • Subpart 8.4 Federal Supply
  • Schedules
  • Part 13 Simplified Acquisitions
  • Part 14 Sealed Bidding
  • Part 15 Contracting by Negotiation
  • Part 19 - Small Business Programs
  • Defense Federal Acquisition Regulation Supplement
    (DFARS) www.acq.osd.mil/dpap/

21
Prepare your offer
  • 3 Rules for a solicitation
  • -Read itRead itRead it!!!
  • Request a Procurement History
  • Attend Pre-Bid Meetings
  • Walk-Throughs
  • Get clarification of ambiguities
  • Proofread your proposal
  • Submit it on time!

22
Contract Performance
  • Contingency Plans
  • Have a back up plan if something goes wrong
  • Give yourself enough time to react
  • Anticipating Final Inspection
  • Make an appointment before shipping date
  • On-Time delivery
  • Establish a good track record

23
Getting Paid
  • Know the paperwork process
  • Keep good records
  • Know your options
  • Progress payments
  • Prompt Payment Act
  • EFT (electronic funds transfer)
  • Accept government credit cards

24
Market Your Company
  • In order to effectively market your companys
    product or service, you must
  • Identify your customers
  • Research their requirements
  • Learn federal procurement regulations
  • Present your capabilities directly to the federal
    activities and large prime contractors that buy
    your products and services
  • Attend procurement conferences and business expos
  • Attend Business Matchmaking events
  • Add details to DSBS your Dynamic Small Business
    Search profile (e.g., GSA schedule number,
    commercial customers, federal customers, special
    capabilities).
  • Show contracting officers that your company is a
    good match for their needs and requirements

25
Market Your Company
  • TARGET YOUR CUSTOMER Who buys your product or
    service? How do they buy? When do they buy?
  • KNOW THE RULES Federal Acquisition
    Regulations, Contract requirements and
    specifications
  • PERFORM AS PROMISED On-time delivery, Good
    Quality, at a Fair Price
  • CHAMPION of EXCELLENCE
  • PLEASANTLY PERSISTENT

26
Explore Subcontracting Opportunities
  • Prime contract winners often require subcontracts
    to fulfill their requirements
  • The SBA/GC Subcontracting Opportunities Directory
    lists by state the large business federal prime
    contractors with the contact information for each
    Small Business Liaison Officer (SBLO). View the
    directory at http//www.sba.gov/aboutsba/sbaprogr
    ams/gc/contacts/gc_subcontracts_opportunities.html
  • SBAs SUB-Net Federal agencies, state and local
    governments, non-profit organizations, colleges
    and universities, and small businesses can use
    SUB-Net to post solicitations and notices.
    SUB-Net can be reached through the SBAs Home
    Page at http//web.sba.gov/subnet.

27
Seek Help From Resource Partners
  • PTAC www.dla.mil/db/procurem.htm
  • Small Business Development Centers - LIDC
  • Women Business Centers
  • http//www.sba.gov/aboutsba/sbaprograms/onlinewbc
    /index.html
  • SCORE - Get Advice (online and in-person
    mentoring) from Successful Business Advisors
    www.score.org

28
Seek Help From Resource Partners
  • Additional Help
  • Commercial Market Representatives
  • www.sba.gov/gc/indexcontacts.html
  • Small Business Specialists
  • www.defenselink.mil/
  • Directors of Federal Agency Office of Small and
    Disadvantaged Business Utilization
  • www.osdbu.gov

29
Learn About Other SBA Programs
  • Find other SBA programs at http//www.sba.gov/inde
    x.html
  • - Financial Assistance
  • - Contract Opportunities
  • - Online Training - Free Online Courses
  • - Counseling Assistance
  • - Laws and Regulations

30
U.S. Small Business Administration
  • Debra B. Libow
  • Procurement Center Representative
  • at
  • debra.libow_at_sba.gov
  • 212-264-4395
  • U.S. Small Business Administration
  • OFFICE OF GOVERNMENT CONTRACTING
  • Area I (CT, ME, MA, NH, NJ, NY, RI, VT, PR and
    the USVI)
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