HUBZones and Other Federal Set-Asides

2. UHY Advisors, Inc. is the 15th largest professional services
firm in the U.S.
Provide Business Advisory, Audit and Tax services to a
wide variety of companies and industries.
20 offices located through the U.S., with Michigan offices
g , g
in Southfield and Sterling Heights.
Member of UHY International Limited with 211 offices in
65 countries.
A Few Examples. . . . .
$533.8 billion (+12.7%) – Department of Defense
$ 78 7 billi ( 1 7%) – D
78.7 billion (−1.7%) Department of H l h and H
f Health d Human S iServices
$ 72.5 billion (+2.8%) – Department of Transportation
$ 52.5 billion (+10.3%) – Department of Veterans Affairs
$ 51.7 billion (+40.9%) – Department of State
$ 47.5 billion (+18.5%) – Department of Housing and Urban Development
$ 46.7 billion (+12.8%) – Department of Education
$ 42.7 billion (+1.2%) – Department of Homeland Security
$ 26.3 billion (−0.4%) – Department of Energy
$ 26.0 billion (+8.8%) – Department of Agriculture
$ 23.9 billion (−6.3%) – Department of Justice
$ 18.7 billion (+5.1%) – National Aeronautics and Space Administration
$ 13.8 billion (+48.4%) – Department of Commerce
$ 13.3 billion (+4.7%) – Department of Labor
$ 13.3 billion (+4.7%) – Department of the Treasury
$ 12.0 billion (+6.2%) – Department of the Interior
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3. Defense Department Spending:
FY 2006 - $423 Billion
FY 2007 - $457 Billion
FY 2008 – $518 Billion
FY 2009 – $523 Billion
FY 2010 - $533.8 Billion
$136.8 Billion for materials/services
Set-Aside Goals:
Woman Owned – 5%
Service-Disabled Veteran-Owned – 3%
HUBZone – Historically Underutilized Business Zone – 3%
Small Disadvantaged Business Certification – 5%
23% for Set-Asides = $31.5 B = $944 M for HUBZones
The Office of Small Business Programs (OSBP) administers
the Department of Labor's responsibility “to ensure
procurement opportunities for small businesses”
Small Disadvantaged Business (SDB)
8 (a) Business Development Program
Women-Owned
HUBZone
Service-Disabled Veterans
By l
B law, 23% of procurement d ll
f dollars must go to small ll
businesses. U.S. contracting officers must reserve or "set
aside" all or part of a contract of any size if they reasonably
expect offers at fair market prices from two or more
"responsible" U.S. small businesses.
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4. Office of Small and Disadvantaged Business
Utilization
www.dol.gov/oasam/programs/osdbu/
What is a “Small Business”?
"Small" is a term defined for U.S. federal procurement as a for-profit
business, registered to do business in the United States.
To qualify as a small business concern, small business size standards
define the maximum size that a firm, including all of its affiliates,
may be.
A size standard is usually stated in number of employees or average
annual receipts. SBA has established two widely used size standards
500 employees for most manufacturing and mining industries,
and
$7 million in average annual receipts for most
nonmanufacturing industries.
www.sba.gov/contractingopportunities/officials/size/summaryofssi/index.html
3

5. The SBA’s 8(a) is a business development program:
Assistance to firms that are owned or controlled by individuals
who are socially and economically disadvantaged.
Certified firms are eligible to participate in procurements that
have been set-aside only for this group.
3 Main Requirements:
1) Be a small business (according to the SBA);
2) Be unconditionally owned and controlled by one or more socially
and economically disadvantaged individuals; and
3) Demonstrate a potential for success
Program Participation . . . . 2 Stages:
1) Developmental stage (4 years); and
2) Transitional stage (5 years)
Urged to take an on-line training and self-evaluation course . . .
accessible at:
http://www.sba.gov/aboutsba/sbaprograms/8abd/index.html
Eligible firms can be awarded federal government contracts on a
sole-source basis (up to $3 million for goods and services and $5
million for manufacturing)
SBA has implemented a Mentor-Protege Program to allow 8 (a)
companies to learn from experienced businesses.
Recent changes permit 8(a) firms to form joint ventures and team up
to bid contracts.
Different from a . . . Small Disadvantaged Business (SDB)
http://www.scoreknox.org/library/certification.htm
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6. HUBZone . . . “Historically Underutilized Business Zone”
SBA designates certain areas as being historically underutilized.
Qualifications for HUBZone Status:
1. The principal location of your business must be in a HUBZone
2. Your business must qualify as a “small business”
3. 51 % of your company must be owned by citizens of the United
States of America
4. 35% of your workforce must reside “in a HUBZone”
NOTE: I l d t
NOTE Includes temporary . . . . 40 hours/month criteria
h / th it i
Process can take several months . . . .Recertification every 3 years
http://www.sba.gov/hubzone/
Are you located in a HUBZone?
http://map.sba.gov/hubzone/init.asp#address
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7. Be sure to search your address!
HUBZone
Michigan HUBZone Certified Companies:
A recent check shows that there are 278 Michigan Companies that
are HUBZone certified.
A check of Federal Solicitations at www.fbo.gov (Federal Business
Opportunities) detailed the following:
a. 600 solicitations for HUBZone companies across the US
(within the last 90 days)
b. 9 specifically for the state of Michigan. Example of recent awards:
- Dredging…………………….. $226,250
- Li h i
Lighting……………………… $ 66,864 66 864
- Relocate Buoy Shed ………… $464,000
Search:
http://dsbs.sba.gov/dsbs/search/dsp_searchhubzone.cfm
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8. $158,128,947
$7,832,723
$1,971,297
Women-Owned classification is . . . . a small business concern which
is at least 51% owned by one or more women
No formal certification is required by the federal g
q y government . . .
But it is coming!
Self –Certify in the CCR (Central Contractor Registration)
The Office of Women’s Business Ownership (OWBO)
http://www.sba.gov/services/counseling/wbc/index.html
exists to establish and oversee a network of Women’s Business
Centers (WBCs) throughout the U.S.
One recognized certification is by the Women’s Enterprise National
Council (WBENC) . . .http://www.wbenc.org/Certification/
7

9. Executive order signed by President George W. Bush on October 20,
2004, directed the U.S. General Services Administration (GSA) to
create an initiative to help provide more opportunities in federal
contracting for Service-Disabled Veteran-Owned Small Businesses
Open to veteran with a service connected
disability . . .3% set-aside
Must meet eligibility requirements:
DD Form 214 (Certificate of Release or Discharge from
Active Duty)
Letter from the Department of Veterans Affairs (VA), or
your discharge paper from the branch of service you were
in, stating that you have a service connected disability
rating ranging from 0 to 100% disability.
A veteran with a zero-percent rating letter is eligible to
self-represent as a Service Disabled Veteran for federal
contracting purposes.
http://www.gsa.gov/portal/category/25553
Center for Veterans Enterprise (CVE). . . .the CVE maintains VA’s
database of Service-Disabled Veteran Owned Small Businesses and
Veteran-Owned Small Businesses.
The database name is Vendor Information Pages (VIP). The VIP
database is accessed via www.VetBiz.gov.
4,843 SDVOSB listing in Michigan! 1,579 are CVE Certified by the
Center for Veterans Enterprise
CVE Certification . . . . http://www vip vetbiz gov/
http://www.vip.vetbiz.gov/
http://www.acq.osd.mil/osbp/programs/veterans/index.htm
8

10. 9

11. The Process Takes Resources . . . Time and Commitment
Each federal agency with contracting authority is required to establish an
Office of Small and Disadvantages Business Utilization (OSDBU). The
Federal OSDBU Directors Interagency Council Web site provides
procurement information on a number of agencies and on key small
business issues and topics.
Federal agencies often purchase goods and services from businesses via
their contracts on the General Services Administration's (GSA) Federal
Supply Schedule.
The E-Business Institute is a virtual campus with business
counseling, training courses, workshops, and management
resources, to help small businesses compete.
The Small Business Regulatory Compliance Assistance page —
designed to assist small businesses in complying with rules, regulations,
and laws enforced by the Department.
FedBizOpps lists federal business opportunities, contract solicitations
and amendments, subcontracting leads, contract awards, and other
business opportunities.
The Office of Federal Procurement Policy's Acquisition Reform Network
(ARNet) includes the federal acquisition regulations.
Information on federal socioeconomic procurement programs, such as
HUBZones and the Small Disadvantaged Business programs are
available at SBA's Web site.
10

12. The Electronic Subcontracting Reporting System (eSRS) is the official
Web site that all large prime contractors and large subcontractors should
use for submitting both the Individual Subcontracting Report (formerly
SF 294) and the Summary Subcontract Report (formerly SF 295).
The Central Contractor Registration (CCR) is a single point of entry for
vendors that want to do business with the federal government. CCR's
Dynamic Small Business Search function may be used to identify small,
disadvantaged, 8(a), veteran and women-owned businesses to fulfill
needs.
The SUB-Net is SBA's Internet-based database of subcontracting
opportunities. Prime contractors use SUB-Net to post
subcontracting/teaming opportunities. Small businesses can use this Web
site to identify opportunities in their areas of expertise.
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13. 1. Get your basic company information organized . . . and ready
2. Obtain your numbers!
DUNS Data Universal Numbering System
www.dnb.com/duns
CCR Central Contractor Registration Database
www.ccr.gov
TPIN Trading Partner Identification Number
g
CCR will create and provide your TPIN
CAGE Commercial and Government Entity Identifier
Assigned as part of CCR process
3. Tap into regional sources . . . .Free!
- Procurement Technical Assistance Centers (PTAC)
www.michigantac.org/PTACDirectory.pdf
12
Designated
PTAC
Centers in
the State of
Michigan!
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14. 3. It’s very time consuming!
- The PTAC's Electronic bid matching scans a variety of
government agencies to provide a report specific to your
company s
company's product or service.
- Bid Match provides a wide variety of government bid
opportunities, including those from the FedBizOpps database,
DLA's bulletin boards, various EDI systems, state and local
agencies, and foreign entities.
4. Other Resources:
- SBA also offers online self-paced training program
"Building Opportunities: A Guide to Winning Federal Contracts"
- Federal agencies often purchase goods and services from
businesses via the General Services Administration's (GSA)
Federal Supply Schedule.
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15. http://www.donhq.navy.mil/OSBP/
Start Here . . . .
Navy’s Action Steps to Opportunities
1. Identify your product or service
2. Obtain a DUNS number (Data Universal Numbering System)
3. Register with the Central Contracting Registration (CCR) System
4. Obtain a CAGE (Commercial and Government Entity) Code
5. Register with the SBA’s Procurement Marketing and Access Network
(PRO-Net) system
6. Become “Familiar” with Federal, DoD, and Navy contracting procedures
7. Identify the Navy/Marine Corps contracting activity that purchases your
product or service
8. Contact the designated Navy Small Business Specialist
9. Identify current and future Navy and Marine Corps procurement
opportunities
10. Investigate Federal Supply Schedule (FSS) contracts
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16. Subcontracting opportunities with the DoD
Regardless of your product or service it is important that you do
not neglect a very large secondary market, Subcontracting
Opportunities with DoD Prime Contractors
www.acq.osd.mil/osbp/doing_business/Subcon
tracting_Directory_0908.pdf
Listing of DoD prime contractors by state . . .Provides a point of
contact (Small Business Liaison Officer) within each firm
firm.
The SBA's SUB-Net is a valuable source for subcontracting
opportunities.
15

17. 2010 Combat Vehicles Conference . . Dearborn, MI
November 8-9, 2010 www.ndia.org/meetings/1620
TACOM Life Cycle Management Command APBI
Hyatt Regency Dearborn, Dearborn, MI, October 20-22, 2010
www.ndia.org/meetings/1520
Federal Business Opportunities . . . www.fbo.gov
Association of United States Army (AUSA)
http://www.ausa.org/Pages/default.aspx
National Contract Management Association (NCMA)
http://www.ncmahq.org/
Defense Logistics Agency (DLA) - http://www.dla.mil/j-7/
Manages Supplier Relationship Management (SRM) to support the DoD Supply Chain
Now let’s look at the State of Michigan
Opportunities:
Michigan does not have
Here we Set-Asides like the federal
go again! government . . .
- SDVOB
- Community Rehabilitation
Organizations
- Michigan Preference
- Reciprocal Preference
16

18. THANK YOU!
Alan Lund
UHY Advisors, Inc.
Southfield, Michigan 48034
(248) 355-1040
Alund@uhy-us.com
17

19. 8(a)/SDB Comparison/Contrast Chart
Certification 8(a) SDB
Small Business Per 13 CFR 121 Per 13 CFR 121
Ownership 51% minority 51% minority
Socially Blacks Blacks
Disadvantaged Hispanics Hispanics
Native Americans Native Americans
Asians Asians
Subcontinent Asians Subcontinent Asians
***************************** ***************************
Individuals not members of Individuals not members of
designated groups designated groups
Economically
$250,000 $750,000
Disadvantaged
Control and
By 51% owner By 51% owner
Management
Potential For 2 years in business or meet
N/A
Success waiver provisions
Character analysis Review of SBA Form 912- SBA Form 912 not required as
Statement of Personal History part of the application
Application
90 days 30 days
Processing Time
Certification Term 9 years period 3 years
Sole source and competitive
Sole Source
$5,000,000 and under for
manufacturing
Set Aside $3,000,000 and under for all
N/A
Contracts other services
Competitive
> $5,000,000 in mfg.
>$3,000,000 for all other
services
Price Evaluation
N/A 10%
Adjustment
Reciprocal
Yes-All 8(a) firms are SDBs No-All SDBs are not 8(a)s
Certification
Small Business Administration Small Business Administration
San Francisco Central Office Office of Small Disadvantaged
Application Duty Station Business (SDB) Certification
Submission Division of Program Certification and Eligibility
Address and Eligibility Mail Code 8800
455 Market St., 6th Floor 409 3rd Street, SW
San Francisco, CA 94105 Washington, DC 20416

20. Regiistratiion Assiistance
Reg strat on Ass stance
 Checklist
 Central Contractor Registration (CCR) http://www.ccr.gov/
Both current and potential government vendors are required to register in ___________________
CCR in order to be awarded contracts by the government. Vendors are CCR Confirmation #
required to complete the registration to provide basic information relevant to ___________________
procurement and financial transactions. Vendors must update or renew their CCR TPIN
registration annually to maintain an active status. ___________________
MPIN
 SBA’s Dynamic Small Business Database (formerly PRO-Net)
If you are a small business and register in CCR your company information will ___________________
automatically populate the SBA Small Business database. The database is a SBA User ID
search engine for contracting officers, a marketing tool for small firms and a ___________________
"link" to procurement opportunities and important information. SBA Password
 State of Michigan Vendor/Payee Registration http://www.cpexpress.state.mi.us/
All companies doing business with the State of Michigan must be registered vendors.
This site requires businesses to enter general business information and indication
___________________
State User ID
types of goods and/or services they can offer to the state. Vendors are also allowed
to maintain their own vendor record at this website by updating their information
___________________
State Password
when necessary.
Below are items that you MUST have available to complete the above registrations. If you
have difficulty locating this information, please contact the us for assistance.
State
CCR SBA
of MI
Legal Business Name:
Physical Street Address:
Phone Number: Fax Number:
E-mail Address: Business Start Date: X X X
Average Number of Employees: Fiscal Year Close Date:
Annual Revenue: Type of Organization:
Company web site:
US Federal Tax Identification Number (TIN):
Your Taxpayer ID Number is the Employer ID Number issued by the Internal Revenue X X X
Service. You may contact the IRS at 800-829-1040 to verify your TIN.
Data and Universal Numbering System (DUNS) Number:
IF YOU DO NOT HAVE A DUNS NUMBER YOU CANNOT BEGIN CCR or PRO-Net!
X X
To obtain a DUNS#: Call (866) 705-5711.
http://www.ccr.gov/pdfs/DUNSGuideGovVendors.pdf
Product/Service Description; Company narrative:
X
Registration Assistance Checklist ~ page 1 of 2

21. State
Regiisttrattiion Assiisttance Checklliistt (((contttiiinued)))
Reg s ra on Ass s ance Check s con nued con nued CCR SBA
of MI
North American Industry Classification System (NAICS)
(choose all codes that apply to your company’s products/services)
http://www.census.gov/epcd/naics02/naicod02.htm
http://www.naics.com/ X X
Standard Industrial Classification (SIC) Codes
(choose all codes that apply to your company’s products/services)
http://www.osha.gov/oshstats/sicser.html
http://www.omwbe.wa.gov/directory/directory.htm
(You may have more than one!) X X
Federal Supply Codes (FSC)/Product Service Codes (PSC)
(choose all codes that apply to your company’s products/services)
http://www.softshare.com/tables/pscs/
http://www.dlis.dla.mil/PDFs/h2.pdf X X
Financial Institution Name:
ABA Routing Number:
X X
Account Number:
(Account Number and Routing Number are listed on your checks.)
Automated Clearing House (ACH) phone number and fax number
ACH Phone Number:
ACH Fax Number: X
Contact you financial institution for this information. If your financial institution is
unclear of what you are asking, explain that you need the phone number that someone
would call if there were a problem with an electronic payment.
Accounts Receivable Point of Contact
Name:
X
Email Address:
Phone number:
Additional information you may find useful:
(This data is not required!)
 Federal government references – information on past government contracts
o Contract name, contract number, start date, end date, value, contact name, contact phone number
 Other customer references
o Contract name, contract number, start date, end date, value, contact name, contact phone number
 EDI Information (if EDI capable)
o VAN provider, Interchange ID Qualifier, Interchange Sender ID Identifier, Functional Group Identifier, EDI
Point of Contact (name, email, phone)
Registration Assistance Checklist ~ page 2 of 2