Small Business Programs in Federal Procurement


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10th Annual Defense Trade Show

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Small Business Programs in Federal Procurement

  1. 1. SBA’s Socioeconomic Programs Daniel Lucero North Carolina District Office 6302 Fairview Road, Suite 300 Charlotte NC 28210704-344-6396; 10-08
  2. 2. First Thing To Do Are you small? Know your NAICS Codes – Obtain a free Data Universal Number System (DUNS) Number
  3. 3. Register Your Business Register with government - Central Contractor Registration (CCR) -  Review in Dynamic Small Business Search  Online Representations and Certifications Application (ORCA)
  4. 4. Federal Contract Certifications Self-Certifications Small Business – NAICS Codes Small Disadvantage Business Woman-owned Small Business Veteran-owned Business Service Disabled Veteran-owned Business (DD-214) Formal Certification Programs 8(a) Business Development HUBZone
  5. 5. Formal Certifications 8(a) - Socially and economically disadvantagedfirms enrolled in a 9-year business developmentprogram. HUBZone - Small businesses located in areasidentified as historically underutilized businesszones, and with 35% of its employees living inHUBZones.
  6. 6. 8(a) Program Applies to all purchases Must be certified by the SBA Non-competitive (sole source) and competitive program 9-year term - no renewals All 8(a) firms are SDBs Award must be made at fair market price 13cfr124; FAR 19.8 New rules: F/R 11 Feb. 2011
  7. 7. HUBZone Program• Applies to purchases over $3,000; Must be certified by SBA - no term limits; Recertification required every 3 years; Sole-source and Competitive program benefits; 10% price evaluation preference Principal office must be in a HUBZone 35% of employees must live in a HUBZone FAR 19.13; 13cfr126 Are you in a HubZone?
  8. 8. HUBZone-Designated Areas
  9. 9. Veteran’s Program Service Disabled Veteran Owned Small Business Applies to purchases over $3,000 Self Certified on CCR (use DD-214) VA determines Service Disability No term limits Sole-source and competitive program benefits Subcontracting and Prime Contracting goals FAR 19.14; 13cfr125.9-29
  10. 10. Know the Rules Federal Acquisition Regulations (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 SBA SOP 60 02 7 Prime Contracting SBA SOP 60 03 6 Subcontracting
  11. 11. Prime Contract Opportunities Research Past Purchases ‒ GSA Federal Procurement Data Center; Identify Current Procurement Opportunities ‒ Federal Business Opportunities (FBO); Resource: Prime Contracting 13cfr125.2
  12. 12. Subcontracting Opportunities SUB-Net Resources: FAR 19.7; 13cfr125.4
  13. 13. Joint Ventures & TeamsJV- An agreement between one or morebusiness concerns to establish a new legalentity solely for the purpose of performing aspecific 8(a) contract. The contract is thenawarded to the Joint Venture entity rather thanto one or more of the participants.Teaming: formal partnership“DoD Guide to Facilitate Small BusinessTeaming Arrangements”SBA Inst. 8000-596 (Joint Ventures)
  14. 14. Joint Ventures & Teams Joint Venture ‒ Excluded from affiliation – 13 CFR 121.103(h)(3) ‒ “bundled” /”unbundled” requirements ‒ Limited to 3 awards over 2 yr period ‒ 13cfr121.103
  15. 15. Mentor-Protégé Program• Purpose: enhance capabilities of SB and improve its ability to successfully compete for federal government contracts.• Mentor: to provide Protégé: – Technical and management assistance – Financial assistance, including equity investments and/or loans – Subcontracting support – Assistance in performing prime contracts through joint venture arrangements. SBA Mentor/Protégé Application Form
  16. 16. Market Your Firm Present Capability Statement to SBS of federal activities and large prime contractors See “A Guide to Collection & Use of Past Performance Information” ID Small Business Specialist: Google: small business specials; (federal dept.) Attend procurement conferences and business expos Attend Business Matchmaking events
  17. 17. 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 $150,000) Bids & Proposals (over $150,000)
  18. 18. Prepare Your Offer 3 Rules for a solicitation: -Read it…Read it…Read it!!! Request a Procurement History Attend Pre-Bid Meetings & Walk-Throughs Get clarification of ambiguities Proofread your proposal Submit it on time!
  19. 19. 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
  20. 20. Contract Performance Adequate financing (SBA loans) Working capital; bonding Contingency Plans Anticipating Final Inspection On-Time delivery Establish a good track record Contract clauses; FAR 52 CPARS
  21. 21. Getting Paid Know the paperwork process Keep good records Know your options ‒ Progress payments ‒ Prompt Payment Act ‒ FAR 32 & 42 EFT (electronic funds transfer) Wide Area WorkFlow Accept government credit cards
  22. 22. Seek Additional Assistance Procurement Technical Assistance Center (PTACs): Small Business Specialists: NC SBA District Office  Small Business and Technology Development Centers:  SCORE:  Women’s Business Development Centers :
  23. 23. Seek Additional Assistance North Carolina PTACs 919-715-7272 or 800-258-0862 North Carolina Military Business Center (877) 245-5520
  24. 24. SBA Assistance Programs Federal Agency Contract Goal Program: Procurement Marketing (FBO & SUB-Net): Certificate of Competency Program (COC) search: coc Size Program – NAICS Information SBA Small Business Training:
  25. 25. Helpful Web Sites DOD Small & Disadvantaged Business Utilization Office Procurement and Technical Assistance Centers
  26. 26. Surety Bond Program Guaranty bid, performance and payment bonds forcontracts up to $2.0 million for eligible smallcontractors. American Recovery Act = $5.0 million SBA guarantees surety companies against apercentage of losses sustained as a result of acontractors default on a guarantied bid, payment orperformance bond. Resource:
  27. 27. SBA LOAN PROGRAMS 7a - 504 Loan  SBAExpress - Export Financing Patriot Express - Disaster Loans  CAPLines - Small Business  Microloan Investment Co. (SBICs)  CommunityExpressResource: NC Small Business Resource Guide pg 20;;
  28. 28. Federal Grant Programs
  29. 29. Thank you!! Questions?? Daniel Lucero North Carolina District Office6302 Fairview Road, Suite 300 Charlotte NC 28210 704-344-6396
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