HUBZones & Set Asides


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HUBZones and Other Federal Set-Asides

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HUBZones & Set Asides

  1. 1. 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 1
  2. 2. 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. 2
  3. 3. Office of Small and Disadvantaged Business Utilization 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. 3
  4. 4. 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: 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) 4
  5. 5. 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 Are you located in a HUBZone? 5
  6. 6. 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 (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: 6
  7. 7. $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) 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) . . . 7
  8. 8. 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. 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 4,843 SDVOSB listing in Michigan! 1,579 are CVE Certified by the Center for Veterans Enterprise CVE Certification . . . . http://www vip vetbiz gov/ 8
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  10. 10. 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
  11. 11. 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. 11
  12. 12. 1. Get your basic company information organized . . . and ready 2. Obtain your numbers! DUNS Data Universal Numbering System CCR Central Contractor Registration Database 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) 12 Designated PTAC Centers in the State of Michigan! 12
  13. 13. 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. 13
  14. 14. 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 14
  15. 15. 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 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
  16. 16. 2010 Combat Vehicles Conference . . Dearborn, MI November 8-9, 2010 TACOM Life Cycle Management Command APBI Hyatt Regency Dearborn, Dearborn, MI, October 20-22, 2010 Federal Business Opportunities . . . Association of United States Army (AUSA) National Contract Management Association (NCMA) Defense Logistics Agency (DLA) - 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
  17. 17. THANK YOU! Alan Lund UHY Advisors, Inc. Southfield, Michigan 48034 (248) 355-1040 17
  18. 18. 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
  19. 19. Regiistratiion Assiistance Reg strat on Ass stance  Checklist  Central Contractor Registration (CCR) 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 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. Product/Service Description; Company narrative: X Registration Assistance Checklist ~ page 1 of 2
  20. 20. 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) X X Standard Industrial Classification (SIC) Codes (choose all codes that apply to your company’s products/services) (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) 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