U.S. Small Business Administration

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U.S. Small Business Administration
Veterans Business Development Helping Veterans
Succeed
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Mission Statement

• To foster enhanced entrepreneurship among
  eligible veterans by providing increased
  opportunities.
• To vigorously promote the legitimate interests of
  small business concerns owned and controlled by
  eligible veterans.
• To ensure that those concerns receive fair
  consideration in purchases made by the Federal
  government.

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• Starting and/or Growing a Small Businesses

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What we do for veterans

• Start and/or Grow Small Businesses
• Access Capital
• Business Counseling
• Government Contracts
• www.sba.gov/vets

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Starting/Expanding Businesses

• Special considerations are given to veterans
  under SBAs management and technical assistance
  programs and guaranty loan programs. These
  special considerations include
• Liaison personnel in each field office
• In-depth management counseling and training
  assistance and
• Prompt and priority processing of any loan
  application or financial process.
• (Section 401 of PL 106-50)

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Starting/Expanding Businesses

• SBA provides a wide range of business
  development information and tools through the
  Internet. The main Web Pages are
• www.sba.gov
• www.sba.gov/training
• www.sba.gov/vets
• www.onlinewbc.gov/militaryspouses.html

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Starting/Expanding Businesses

• SBA provides a wide range of business development
  information and tools through the Internet. The
  main Web Pages are
• www.sba.gov
• www.sba.gov/espanol
• www.sba.gov/training
• www.sba.gov/vets
• www.onlinewbc.gov/militaryspouses.html

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Other resources for you

• Center for Veterans Enterprise
• www.vetbiz.gov/default2.htm
• Department of Veterans Affairs
• www.va.gov
• Center for Women Veterans
• www1.va.gov/womenvet
• Disability Information Center
• www.disabilityinfo.gov
• Internal Revenue Service
• www.irs.gov/businesses/small/index.html
• Office of Small Disadvantage Business
  Utilization
• www.va.gov/osdbu

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Small Business help for the Military Spouse
WOMEN BUSINESS INSTITUE- provides assistance
and/or training in finance, management, marketing
and the Internet, and addresses specialized
topics such as home-based businesses and
welfare-to-work. Provides individual business
counseling and tailors its programs to the needs
of its constituency. www.onlinewbc.gov/militaryspo
uses.html WOMEN BUSINSS CENTER - provides a
full business-training curriculum for every level
of business, from start-up to going public. It
also offers worldwide networking, chats, bulletin
boards, resources and links, mentoring, and even
individual counseling. www.onlinewbc.gov/military
spouses.html
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Help with Business Counseling

• In-depth business and management counseling and
  training assistance for you or your employees.
• Through the following programs
• Small Business Development Centers
• Service Corps of Retire Executive
• Cyber counseling
• Online Workshops

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• ACCESSING CAPITAL

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Major SBA Loan Programs

• Regular 7(a) Business Loans.
• SBA Express
• Community Express
• Patriot Express
• 504

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SBAs Patriot Express Loan

• Maximum Loan Amount
• 500,000.00
• Maximum Guaranty Percentage
• 75 percent to 85 percent depending on the amount
  of the loan
• The SBA guaranty on a Patriot Express loan may
  not exceed 85 percent for loans of 150,000 or
  less
• Or, may not exceed 75 percent for loans over
  150,000

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SBAs Patriot Express Loan

• Eligibility Criteria
• Must meet standard SBA eligibility
• Must be 51 percent owned/controlled by
• Veteran (other than dishonorably discharged)
• Service-disabled veteran
• Active Duty Military potential retiree within 24
  months of separation and discharging Active Duty
  member within 12 months of discharge (TAP
  eligible)
• Reservist and National Guard (limited to current
  members and their spouses)
• Current spouse of above or spouse of service
  member or veteran who died of a service-connected
  disability

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SBAs Patriot Express Loan

• Patriot Express Loan Uses
• The Patriot Express Loan may be used for the
  following purposes
• Business startup
• Business expansion
• Equipment purchases
• Working capital
• Inventory
• Business-occupied real-estate purchases

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SBAs Patriot Express Loan

• Collateral Requirements
• Lenders are not required to take collateral for
  loans up to 25,000
• Lenders may use their existing collateral policy
  for loans over 25,000 up to 350,000
• Lenders must take available collateral for loans
  greater than 350,000

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SBAs Patriot Express Loan

• Revolving Lines of Credit
• Revolving loans are allowed up to 7 years with
  maturity extensions permitted at the outset
• In offering revolving lines of credit and their
  enhancements, SBA must ensure that borrowers,
  particularly those accessing SBA guaranteed loans
  through credit cards, under stand that these
  funds must be used for business-related purposes

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SBAs Patriot Express Loan

• Interest Rates
• For Patriot Express Loans, the standard 7(a)
  interest rate restrictions apply
• A lender may charge up to 2.25 percent over the
  Prime rate for maturities under seven years
• A lender may charge up to 2.75 percent over the
  Prime rate for maturities over seven years
• The rates can be 2 percent higher for loans of
  25,000 or less
• Or, 1 percent higher for loans between 25,000 or
  50,000.

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Military Reservist Economic Injury Disaster Loan
program (MREIDL)

• Special Assistance to Reservists Ordered to
  Active Duty During Military Conflict
• Loan terms - Up to 30 years
• Loan Amount Limit - 2,000,000
• Maximum Interest Rate 4.000
• Direct Loan SBA
• Filing Period One year after discharge or
  release from Active Duty
• .
• (Section 402 of PL 106-50)

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Selling to the Federal Government
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First Thing To Do

• Obtain a Data Universal Number System (DUNS)
  Number
• www.dnb.com/us
• DUNS Number can be obtained free-of-charge at
  time of CCR registration (see next slide)

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Register Your Business

• Central Contractor Registration Database (CCR)
• Keep Current (Update yearly at minimum)
• www.ccr.gov
• Online Representations and Certifications
  Application (ORCA)
• https//orca.bpn.gov/

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Veterans Program
Service Disabled Veteran Owned Small Business

• Applies to purchases over 3,000
• Self Certified on CCR
• VA determines Service Disability
• No term limits
• Competitive and sole-source program benefits
• Subcontracting and Prime Contracting goals
• FAR 19.14

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Know the Rules

• Federal Acquisition Regulations (FAR)
• www.arnet.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

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Finding Prime Contract Opportunities

• Research Past Purchases
• GSA Federal Procurement Data Center
• https//www.FPDS.gov
• Identify Current Procurement Opportunities
• Federal Business Opportunities (FBO)
• www.fbo.gov

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Finding Subcontracting Opportunities

• Subcontracting Opportunities
• Directory of Large Prime Contractors
• www.sba.gov/gc/sbsd.html
• SUB-Net
• http//web.sba.gov/subnet

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Federal Supply Schedules

• Investigate Federal Supply Schedule (FSS)
  Contracts
• Become a GSA schedule contractor
• www.gsa.gov

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Joint Ventures Teams

• Investigate Joint Venture/Teaming Arrangements
• Excluded from affiliation 13 CFR 121.103(f)(3)
• bundled requirement
• other than a bundled requirement

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Market Your Firm

• 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

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View Solicitations

• Request or download a bid package
• Obtain copies of relevant specifications
• drawings
• Understand relevant purchasing regulations
• Federal Acquisition Regulations
• Micro-purchases (under 3,000)
• Simplified Acquisitions (under 100,000)
• Bids Proposals (over 100,000)
• Contract clauses

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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!

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Contract Award

• Are you Responsive?
• Are you Responsible?
• Pre-Award Survey Technical capability
• production capability
• Quality Assurance (QA)
• Financial accounts receivable, net worth,
• cash flow
• Accounting System
• System for Qualifying Suppliers
• Packaging, Marking, Shipping

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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

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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

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Seek Additional Assistance

• Procurement Technical Assistance Center
• (PTACs) www.dla.mil/db/procurem.htm
• Small Business Specialists
• www.acq.osd.mil/sadbu
• Local District Offices and Resource Partners
• www.sba.gov
• Local Small Business Development Centers
• SCORE www.score.org
• Womens Business Development Centers
  http//www.onlinewbc.gov/

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Helpful Web Sites

• DOD Small Disadvantaged Business Utilization
  Office
• www.acq.osd.mil/sadbu/
• Procurement and Technical Assistance Centers
• www.sellingtothegovernment.net
• Small Business Development Centers
• www.sba.gov/sdbc/

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More Helpful Web Sites

• SBAs Home Page www.sba.gov
• Government Contracting www.sba.gov/GC
• Site includes links to all major government
  contracting programs discussed here plus much,
  much more.

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Things To Remember

• 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
• How to obtain Contract history
• PERFORM AS PROMISED On-time delivery,
• Good Quality, at a Fair Price

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Service-Disabled Veteran-Owned Small Business
Concern Program

• U.S. Small Business Administration
• Office of Federal Contract Assistance for Veteran
  Business Owners

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PROGRAM HISTORY

• The VETERANS ENTREPRENEURSHIP and SMALL BUSINESS
  DEVELOPMENT ACT of 1999 (PL106-50) established an
  annual Government-wide goal of not less than 3
  percent of the total value of all prime contract
  and subcontract awards for participation by small
  business concerns owned and controlled by
  service-disabled veterans.
• The VETERANS BENEFITS ACT (VBA) of 2003
  (PL108-183) added, in addition to other
  provisions, a contracting mechanism to enable
  agencies to reach the 3 prime contracting goal
  established in1999.

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PROGRAM HISTORY

• On May 5, 2004, the SBA issued the Interim Final
  Rule to implement Section 308 of the VBA of 2003
  established a sole source and set-aside
  procurement program for service-disabled
  veteran-owned small business concerns (SDVO SBC).
  Federal Register Vol 69, No. 87, p. 25262
• On October 20, 2004, President Bush issued
  Executive Order 13360 to strengthen opportunities
  in Federal contracting for Service-Disabled
  Veteran-Owned Small Business Concerns. Federal
  Register Vol 69, No. 206, p. 62549

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PROGRAM ELIGIBILITY REQUIREMENTS

• Adjudication
• Size
• Ownership Control
• Highest Position Held

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ELIGIBILITY REQUIREMENTS

• The SDV must have a service-connected disability
  that has been determined by the Dept of Veterans
  Affairs or DOD
• The SDVO SBC must be small under the NAICS code
  assigned to the procurement
• The SDV must unconditionally own 51 of the SDVO
  SBC
• The SDV must control the management and daily
  operations of the SDVO SBC
• The SDV must hold the highest officer position in
  the SDVO SBC
• 13 CFR 125.8 125.10/FAR Part 19.1403(a) -
  (b)

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TYPES OF CONTRACTS

• SET-ASIDE EXEMPTIONS
• SET-ASIDES
• SOLE SOURCE
• SIMPLIFIED ACQUISITIONS

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SET-ASIDE EXEMPTIONS

• A contracting activity may not make a requirement
  available
• for a SDVO contract if
• The requirement would be fulfilled through award
  to Federal Prison Industries, Inc. or to
  Javits-Wagner-ODay Act participating non-profit
  agencies for the blind and severely disabled.
• The requirement is currently being performed by
  an 8(a) participant or SBA has accepted that
  requirement for performance under the authority
  of the Section 8(a) Program.
• 13 CFR 125.18/FAR Part 19.1404

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SET-ASIDE REQUIREMENTS

• A Contracting Officer (CO) may set-aside
  requirements if
• The requirement is not exempted from SDVO
  contracting.
• The contracting officer considers setting aside
  the requirement for 8(a), HUBZone, or SDVO SBC
  participation before considering setting aside
  the requirement as a small business set-aside.
• There is a reasonable expectation that at least
  two responsible SDVO SBCs will submit offers and
• The award can be made at a fair market price.
• 13 CFR 125.19/FAR Part 19.1405(a) (b)

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SOLE SOURCE CONTRACTS

• A CO may award a sole source contract if
• The requirement is not exempted from SDVO
  contracting and cannot be set-aside.
• The CO does not have a reasonable expectation
  that at least two responsible SDVO SBCs will
  submit offers.
• The anticipated award price of the contract,
  including options, will not exceed
• 5.0M for manufacturing requirements
• 3.0M for all other requirements
• Award can be made at a fair market price.
• 13 CFR 125.20/FAR Part 19.1406

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SIMPLIFIED ACQUISITION THRESHOLD

• If the requirement is at or below the simplified
  acquisition
• threshold, the CO may set-aside the requirement
  for
• consideration among SDVO SBCs using simplified
• acquisition procedures or may award a sole source
• contract to an SDVO SBC.
• 13 CFR 125.21

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ADDITIONAL CONTRACT REQUIREMENTS

• LIMITATIONS ON SUBCONTRACTING
• JOINT VENTURES
• NON-MANUFACTURERS

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ADDITIONAL CONTRACT REQUIREMENTS

• LIMITATIONS ON SUBCONTRACTING
• SDVO SBC Prime or Sub-contractor can subcontract
  for
• SERVICES CONTRACTS (EXCEPT CONSTRUCTION)
• 50 of the contract performance incurred for SDVO
  SBC personnel
• SUPPLY CONTRACTS
• 50 of the cost of manufacturing the supplies
• GENERAL CONSTRUCTION
• 15 of the contract performance incurred for SDVO
  SBC personnel
• CONSTRUCTION BY SPECIAL TRADE
• 25 of the contract performance incurred for SDVO
  SBC personnel
• 13 CFR 125.6(b)

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ADDITIONAL CONTRACT REQUIREMENTS

• Joint Ventures
• 1 or more other small business concern (SBC)
• Each SBC is small under the contracts North
  American Industry Classification System code
• SDVO SBC must manage the venture
• JV must perform applicable percentage of work
• 13 CFR 125.15(b)/FAR Part 19.1403(c)

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ADDITIONAL CONTRACT REQUIREMENTS

• Non-manufacturers
• The SDVO SBC does not exceed 500 employees
• Is primarily engaged in the wholesale or retail
  trade
• Sells to the general public and
• Supplies the end item of a small business (unless
  requirement is waived by the SBA Administrator)
• 13 CFR 125.15(c)/FAR Part 19.1403(d)

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PROTEST PROCEDURES

• WHAT?
• WHO?
• WHEN?
• WHERE?
• HOW?

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PROTEST PROCEDURES

• WHAT IS A PROTEST?
• A challenge to either
• SIZE STATUS, in accordance with 13 CFR 121
• ELIGIBILITY STATUS, in accordance with 13 CFR
  125
• Proof of Adjudication
• Ownership
• Control
• 13 CFR 125.26

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PROTEST PROCEDURES

• WHO MAY SUBMIT A PROTEST?
• Sole Source Procurements
• Small Business Administration
• Contracting Officer
• Competitive Set-Asides
• Any interested party
• 13 CFR 125.24

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PROTEST PROCEDURES

• WHEN ARE PROTESTS SUBMITTED?
• Negotiated Procurements
• By Close of Business on the 5th Business Day
  after Notification
• of the Apparent Successful Offeror, no later
  than 5 p.m. est
• Sealed Bid Acquisitions
• By Close of Business on the 5th Business Day
  after Bid Opening, no later than 5 p.m. est
• Any Protest Submitted After the Time Limits is
  untimely, unless submitted by the CO or SBA.
• Any Protest Submitted Prior to Bid Opening or
  Notification is Premature.
• 13 CFR 125.25 (d)

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PROTEST PROCEDURES

• WHERE ARE PROTESTS SUBMITTED?
• CO or SBA submits protest to SBA Associate
  Administrator for Government Contracting
• Any Concern that submits an offer submits protest
  to the Contracting Officer
• 13 CFR 125.25(d)

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PROTEST PROCEDURES

• HOW ARE PROTEST SUBMITTED?
• FORMAT
• In writing
• Be specific
• Include information to determine timeliness and
  standing
• State contract type, e.g., set-aside or sole
  source
• Whether the protested concern was the apparent
  successful offeror
• Date protested concern submitted its offer
• State whether sealed bid or negotiated
  procurement
• Due date of offers
• Date protest was submitted to the CO
• Notice of intent to award date
• Date of contract award, if applicable
• Any additional information SBA may need to assist
  in making determination
• 13 CFR 125.25(b) and (e)

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PROTEST PROCEDURES

• HOW ARE PROTEST SUBMITTED?
• FILING
• BY FAX
• [phone]
• EXPRESS DELIVERY SERVICE or
• U.S. MAIL (POSTMARKED WITHIN THE APPLICABLE TIME
  PERIOD)
• The Associate Administrator for Government
  Contracting
• U.S. Small Business Administration
• 409 Third Street, SW
• Washington DC 20416
• Attn Service-Disabled Veteran Status Protest
• 13 CFR 125.25(e)

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ADDITIONAL TRAINING

• The Defense Acquisition University (DAU) has
  developed a similar course, CLC 009, that is
  available on-line to the general public at the
  DAU Virtual Campus (http//www.dau.mil/).
• It is worth one continuous learning point for
  contracting personnel.

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U.S. Small Business Administration VETERANS
BUSINESS DEVELOPMENT OFFICERKentucky District
Office

• Tommie L. Causey
• 600 Dr. Martin Luther King Jr. Place
• Suite 188
• Louisville KY 40202
• Phone [phone]
• Fax [phone]
• E-mail tommie.causey_at_sba.gov

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Thank You