SBA’sBusiness Development         andContracting Programs     Washington Metropolitan Area District Office
Small Business Act, 1953“It is the Declared Policy of the Congress…to insure that a fair proportion of the totalpurchases ...
Federal Procurement    U.S.Government:                  Federal                           Contracts =The World’s          ...
Federal Procurement PROCUREMENT TARGETS:   Small Businesses: 23%Service-Disabled Vets: 3%                SDB: 5%          ...
U.S. Small Business AdministrationWashington Metropolitan Area District                        • District of Columbia     ...
What part does the SBA play in            procurement?1. Keeping Score:SBA negotiates annual procurement goals with each F...
What part does the SBA play in            procurement?2. Counseling and Training:Procurement training and matchmaking even...
What part does the SBA play in           procurement?3. CertificationSBA-Certified:HUBZone Empowerment Contracting Program...
HUBZone Empowerment        Contracting ProgramDesigned to stimulate economic development and   create jobs in urban and ru...
HUBZone Empowerment        Contracting ProgramHUBZone contracts are awarded to a qualifiedHUBZone Small Business Contracto...
HUBZone RequirementsMust be a SMALL businessConcern must be owned and controlled only by UScitizensPrincipal office of the...
8(a) Business Development Program       Helps eligible small socially andeconomically disadvantaged businesses grow       ...
8(a) Business Development ProgramProgram enrollment = 9 yearsProgram participation divided into 2 stages:Year 1 – 4 Develo...
Completion of Program TermA concern may leave the program by: Expiration of the program term (Nine years) Voluntary with...
New Suspension Rule –For Military ServiceIf the disadvantaged individual owner(s) of the 8(a)firm are called to active mil...
8(a) Eligibility United States citizen Socially & economically disadvantaged Own unconditionally at least 51% of concer...
Who is Socially and  Economically Disadvantaged?Socially disadvantaged persons have beensubjected to racial or ethnic prej...
Determining Economic          DisadvantageSBA will examine:  Personal income for the past three years  Personal net wort...
Size for Primary NAICS CodeFirm must generally remain small. SBA may  graduate a participant prior to the expiration of  i...
Joint Ventures: StructureRequirements tightened for joint ventures (JV) so that non-disadvantaged firms do not unduly bene...
Joint Ventures:Generally may not be awarded more than threecontracts over a two year period, starting from thedate of the ...
Reporting onPerformance of Work RequirementsAnnual Review: Participant must demonstrate how it is meeting the performance ...
Mentor Protégé Program Non-profits can be Mentors Mentor can have up to 3 protégés at one time A firm cannot be both a ...
Mentor Protégé Program Mentor/Protégé Agreement must be approved by SBA  before the firms can submit a JV offer on a proc...
Failure to Provide AssistanceConsequences if Mentor does not provide agreed-to  assistance: SBA may terminate the Mentor/...
Self-Certified   Contracting Programs  Small Disadvantaged Businesses (SDB)Service-Disabled Veteran-Owned Businesses      ...
Small Disadvantaged Business (SDB) Program  Self-certifying program as of October 2008  Subcontracting opportunities  SDBs...
SDB Eligibility Criteria Similar to 8(a), except higher allowable Net WorthAfter excluding the individual’s equity in the ...
Service-Disabled Veteran-Owned  Business (SDVOB) ProgramSelf-certifying programSDVOBs are eligible to bid on set-aside con...
SDVOB Program: Who is Eligible?Size: Must be small according to SBA size standardsOwnership: Must be at least 51% directly...
Women-Owned Small Business     (WOSB)Program          Program Started February 2011             Firms self-certify asWomen...
WOSB Program: Who is eligible?Size: Must be small according to SBA size standardsOwnership: Must be at least 51% directly ...
WOSB Program: EDWOSBAn Economicallly-Disadvantaged Woman-Owned Small Business (EDWOSB) is a WOSBwhich is owned by a woman ...
WOSB Program: Set-asidesI. RAND Study = 83 NAICS Codes:  45 NAICS Codes =  Women-owned businesses “under-represented”  Com...
WOSB Program: CertificationSelf-Certification:•Register in CCR (Central Contractor Registration)       http://www.ccr.gov•...
For More Information              Contact yourWashington Metropolitan Area District Office:        www.sba.gov/dc         ...
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Doing Business with the Government | Doing Business in DC | SBA

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Washington, DC Economic Partnership’s Doing Business in DC program on doing business with the government featuring Dave Wiggs from the U.S. Small Business Administration. SBA’s business development and contracting programs are explained. Learn more at http://www.wdcep.com/business-in-dc/doing-business-with-government/

DoingBusiness2.0 | July 2012 | Doing Business with the Government

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  • Replaces the “significant portion” language of the previous regulations.
  • Doing Business with the Government | Doing Business in DC | SBA

    1. 1. SBA’sBusiness Development andContracting Programs Washington Metropolitan Area District Office
    2. 2. Small Business Act, 1953“It is the Declared Policy of the Congress…to insure that a fair proportion of the totalpurchases and contracts or subcontracts for propertyand services for the Government be placed withsmall business enterprises.” Washington Metropolitan Area District Office
    3. 3. Federal Procurement U.S.Government: Federal Contracts =The World’s $500 Billion + Largest per year Customer Washington Metropolitan Area District Office
    4. 4. Federal Procurement PROCUREMENT TARGETS: Small Businesses: 23%Service-Disabled Vets: 3% SDB: 5% $500 Billion + Women-owned: 5% per year HUBZone: 3% Washington Metropolitan Area District Office
    5. 5. U.S. Small Business AdministrationWashington Metropolitan Area District • District of Columbia • Montgomery County, MD • Prince George’s County, MD • Fairfax County, VA • Loudoun County, VA • Arlington County, VA • City of Fairfax, VA • City of Alexandria, VA Washington Metropolitan Area District Office
    6. 6. What part does the SBA play in procurement?1. Keeping Score:SBA negotiates annual procurement goals with each Federal agencyEnsures that the combined goals > 23%Reviews each agency’s resultsIssues annual Small Business Procurement Scorecard for entire Federal Government Washington Metropolitan Area District Office
    7. 7. What part does the SBA play in procurement?2. Counseling and Training:Procurement training and matchmaking events.Resource Partners help business owners find and bid on procurement opportunities.Resource Partners include: SCORE, SBDC, WBC. Washington Metropolitan Area District Office
    8. 8. What part does the SBA play in procurement?3. CertificationSBA-Certified:HUBZone Empowerment Contracting Program8(a) Business Development ProgramSelf-Certified:Small Disadvantaged BusinessService Disabled Veteran-Owned BusinessWomen-Owned Small Business Washington Metropolitan Area District Office
    9. 9. HUBZone Empowerment Contracting ProgramDesigned to stimulate economic development and create jobs in urban and rural communities. HUBZone = Historically Underutilized Business Zone Washington Metropolitan Area District Office
    10. 10. HUBZone Empowerment Contracting ProgramHUBZone contracts are awarded to a qualifiedHUBZone Small Business Contractor (SBC) throughany of the following means:Set-aside awards based on competition restricted toqualified HUBZone SBCs.Awards to qualified HUBZone firms through full and opencompetition after a price evaluation preference in favor ofqualified HUBZone SBCs. Washington Metropolitan Area District Office
    11. 11. HUBZone RequirementsMust be a SMALL businessConcern must be owned and controlled only by UScitizensPrincipal office of the concern must be located in aHUBZone; andAt least 35% of the concern’s employees mustreside in a HUBZone Washington Metropolitan Area District Office
    12. 12. 8(a) Business Development Program Helps eligible small socially andeconomically disadvantaged businesses grow and become sustainable. Training in business management & marketing Opportunities to team with other companies Washington Metropolitan Area District Office
    13. 13. 8(a) Business Development ProgramProgram enrollment = 9 yearsProgram participation divided into 2 stages:Year 1 – 4 DevelopmentalYear 5 - 9 TransitionalMust maintain eligibility throughout enrollment Washington Metropolitan Area District Office
    14. 14. Completion of Program TermA concern may leave the program by: Expiration of the program term (Nine years) Voluntary withdrawal or voluntary early graduation Graduation (13 CFR 124.302) Early graduation (13 CFR 124.302 and 304) Termination (13 CFR 124.303 and 304) Washington Metropolitan Area District Office
    15. 15. New Suspension Rule –For Military ServiceIf the disadvantaged individual owner(s) of the 8(a)firm are called to active military status, SBA willno longer terminate the firm.(13 CFR 124.305)Firm may elect to: be suspended from program participation until original owner returns from duty (nine-year clock stops during suspension, resumes from that point), or continue participation if another disadvantaged individual(s) assumes control of the firm Washington Metropolitan Area District Office
    16. 16. 8(a) Eligibility United States citizen Socially & economically disadvantaged Own unconditionally at least 51% of concern Control & manage concern on full-time basis Good character - not debarred, suspended, parole or probation Registered in Central Contractor Registration (CCR) database Two (2) years business history in primary industry classification, as shown with tax returns (may sometimes be waived) Business must be small per SBA’s size standards Washington Metropolitan Area District Office
    17. 17. Who is Socially and Economically Disadvantaged?Socially disadvantaged persons have beensubjected to racial or ethnic prejudice or cultural biasbecause of their identities as members of groups.People are economically disadvantaged if they aresocially disadvantaged and their ability to compete inthe free enterprise system has been impaired due todiminished access to capital and credit. Washington Metropolitan Area District Office
    18. 18. Determining Economic DisadvantageSBA will examine:  Personal income for the past three years  Personal net worth  Fair market value of all assets  Spouse’s financial condition, in certain circumstances Washington Metropolitan Area District Office
    19. 19. Size for Primary NAICS CodeFirm must generally remain small. SBA may graduate a participant prior to the expiration of its program term if firm does not remain small, as adjusted, for three successive program years. Washington Metropolitan Area District Office
    20. 20. Joint Ventures: StructureRequirements tightened for joint ventures (JV) so that non-disadvantaged firms do not unduly benefit from the 8(a) programJV agreement may be informal or formal (separate business structure) but must be in writingCan be unpopulated or populated (JV employs separate employees). Rules are different for each. Washington Metropolitan Area District Office
    21. 21. Joint Ventures:Generally may not be awarded more than threecontracts over a two year period, starting from thedate of the award of the first contract, without thepartners to the JV being deemed affiliated for allpurposes. (13 CFR 121.103)Same entities may create additional JVs and eachnew joint venture entity may be awarded up to 3contracts. Washington Metropolitan Area District Office
    22. 22. Reporting onPerformance of Work RequirementsAnnual Review: Participant must demonstrate how it is meeting the performance of work requirements for each 8(a) contract that it is performing as part of a JV8(a) Contract: At the completion of every 8(a) contract awarded to a JV, the Participant must explain how Performance of Work Requirements were met Washington Metropolitan Area District Office
    23. 23. Mentor Protégé Program Non-profits can be Mentors Mentor can have up to 3 protégés at one time A firm cannot be both a Protégé and a Mentor at the same time Protégé can have second Mentor, corresponding to an unrelated, secondary NAICS code Assistance provided by the Mentor must be tied to the Protégé’s SBA-approved business plan SBA prohibited from approving a new Mentor/Protégé relationship within six months of the end of an 8(a) Participant’s program term Washington Metropolitan Area District Office
    24. 24. Mentor Protégé Program Mentor/Protégé Agreement must be approved by SBA before the firms can submit a JV offer on a procurement as a small business In order to receive the exclusion from affiliation on any 8(a) or non-8(a) contracts, the agreement must comply with all 8(a) JV requirements SBA approved Mentor/Protégé joint ventures are small for federal contracts Contracting benefits derived from Mentor/Protégé relationship end once the protégé leaves the 8(a) program Washington Metropolitan Area District Office
    25. 25. Failure to Provide AssistanceConsequences if Mentor does not provide agreed-to assistance: SBA may terminate the Mentor/Protégé Agreement Mentor is ineligible to participate for 2 years SBA may recommend a stop work order for each contract the Mentor and Protégé are performing as a JV and where they have received the exclusion from affiliation SBA may authorize substitution of protégé firm for the JV May constitute grounds for Government-wide suspension or debarment Washington Metropolitan Area District Office
    26. 26. Self-Certified Contracting Programs Small Disadvantaged Businesses (SDB)Service-Disabled Veteran-Owned Businesses (SDVOB)Women-Owned Small Businesses (WOSB) Washington Metropolitan Area District Office
    27. 27. Small Disadvantaged Business (SDB) Program Self-certifying program as of October 2008 Subcontracting opportunities SDBs are eligible for special bidding benefits Prime contractors get credit towards small business goals for using SDBs as subs Washington Metropolitan Area District Office
    28. 28. SDB Eligibility Criteria Similar to 8(a), except higher allowable Net WorthAfter excluding the individual’s equity in the firm and equityin the primary residence, net worth may not exceed$750,000.*Net Worth less equity in primary residence less equity in business equals adjusted net worth (which must not exceed $750,000 )*when married, separate statements from each spouse to show eachindividual’s joint or community property shares and separate property. Washington Metropolitan Area District Office
    29. 29. Service-Disabled Veteran-Owned Business (SDVOB) ProgramSelf-certifying programSDVOBs are eligible to bid on set-aside contractsSubcontracting opportunitiesPrime contractors get credit towardssmall business goals for using SDVOBs as subs Washington Metropolitan Area District Office
    30. 30. SDVOB Program: Who is Eligible?Size: Must be small according to SBA size standardsOwnership: Must be at least 51% directly and unconditionally owned and controlled by one or more service-disabled veteransStatus: Owner(s) must have Form DD-214 indicating honorable discharge Washington Metropolitan Area District Office
    31. 31. Women-Owned Small Business (WOSB)Program Program Started February 2011 Firms self-certify asWomen-Owned Small Businesses (WOSB), orEconomically-Disadvantaged Women-Owned Small Businesses (EDWOSB) For 83 target industries where WOSBs are under-represented, contract officers may set-aside contracts forWOSBs or EDWOSBs only (under specific circumstances) Washington Metropolitan Area District Office
    32. 32. WOSB Program: Who is eligible?Size: Must be small according to SBA size standardsOwnership: Must be at least 51% directly and unconditionally owned by a woman or womenCitizenship: Majority owner or owners must be U.S. citizensManagement: Control and day-to-day management must be in hands of a woman or women Washington Metropolitan Area District Office
    33. 33. WOSB Program: EDWOSBAn Economicallly-Disadvantaged Woman-Owned Small Business (EDWOSB) is a WOSBwhich is owned by a woman or women whose:Personal Net Worth < $750,000Average Annual Income < $350,000 (preceding 3 year average)Total Assets < $6,000,000 (including primary residence and business) Washington Metropolitan Area District Office
    34. 34. WOSB Program: Set-asidesI. RAND Study = 83 NAICS Codes: 45 NAICS Codes = Women-owned businesses “under-represented” Competition may be restricted to certified EDWOSBs 38 NAICS Codes = Women-owned businesses “substantially under-represented” Competition may be restricted to ALL CERTIFIED WOSBsII. Award < $3 million ($5 million for manufacturing)III. “Reasonable expectation” of two or more WOSBs or EDWOSBs biddingIV. “Fair and reasonable” price Washington Metropolitan Area District Office
    35. 35. WOSB Program: CertificationSelf-Certification:•Register in CCR (Central Contractor Registration) http://www.ccr.gov•Enter data in ORCA (Online Representations and Certifications Application) http://orca.bpn.gov•Submit documents to SBA’s WOSB Program Repository See http://www.sba.gov/wosb for detailsThird Party Certification:SBA has approved several third-party certifiers. Washington Metropolitan Area District Office
    36. 36. For More Information Contact yourWashington Metropolitan Area District Office: www.sba.gov/dc or 202-272-0345 Washington Metropolitan Area District Office
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