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SBA Selling to the Federal Government


Published on

Disclaimer: Information is current as of Sept. 7, 2017.

Presented by:
Ken Surmeier
Business Opportunity Specialist
HubZone Program Liaison
Information Technology/Web Developer
US Small Business Administration
Kansas City District Office
1000 Walnut Street, Suite 500
Kansas City, MO 64106

Published in: Education
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SBA Selling to the Federal Government

  1. 1. 1 SBA Programs and Government Contracting SELLING TO THE FEDERAL GOVERNMENT U.S. Small Business Administration
  2. 2. 2 Government Procurement FY 2016 Federal Government spent $409.1B on prime contracts The Small Business Act requires that the Federal Government set aside 23% contract dollars for small business.
  3. 3. 3 Government Procurement $94 Billion  5%, $4.7B - Small Disadvantaged Business, 8(a)  5%, $4.7B Women Owned Business and EDVOSB  3%, $2.8B HUBZone -Historically Underutilized Business Zone  3%, $2.8B Service Disabled Veteran Owned Business
  4. 4. 4 Getting Started: Does Your Business Qualify for Small Business Government Contracts? Four questions: • Does the Government buy what you are selling • Are you a small business • What is the size standard for my business • Do you fall under a specific certification
  5. 5. 6 Small Business Programs – SBA Certification Programs – 8(a) Business Development Certification – HUBZone Certification – Women Owned Small Business (WOSB) – Economically Disadvantaged Woman Owned Small Business (EDWOSB)
  6. 6. 7 SBA 8(a) Business Development Program Purpose: – To assist eligible small disadvantaged businesses to compete in the American economy through business development. – To provide federal contract preferences to qualified small businesses 8 (a) Program Benefits: – 9 year program to help the small business grow and develop – Participants can receive sole-source contracts, up to a ceiling of $4 million for goods and services and $7 million for manufacturing. – 8(a) firms are also able to form joint ventures to bid on contracts. – 8(a) firms may participate in the mentor/protégé program. – Training workshops
  7. 7. 8 Who is socially disadvantaged? Social disadvantage must stem from circumstances beyond ones control – Subject to racial or ethnic prejudice – Cultural bias within American society – Members of a designated group: Black Americans; Hispanic Americans; Native Americans Asian Pacific Americans, Subcontinent Asian Americans – Other disadvantaged individuals will be required to provide a narrative regarding social disadvantage 13CFR124.103(c) – preponderance of evidence
  8. 8. 9 Who is economically disadvantaged? • Individuals whose ability to compete in the free enterprise system has been impaired • Everyone applying for 8(a) must complete a narrative on economic disadvantage • Federal Regulation Citation: 13CFR124.104 SBA Will Consider: 1. Personal Financial Condition/net worth 2. Excluding the individual’s equity in the firm, equity in the primary residence, and retirement funds that are not accessible without significant penalties. 3. Personal Income for 3-yrs average must not exceed $250,000 ($350,000) 4. Total Assets must not exceed $4M ($6M)
  9. 9. 10 Other Requirements • Be a US citizen • Must be small according to SBA’s size standards • At least 51% unconditional ownership by the disadvantaged person(s). • Must be controlled, managed and operated full- time by the disadvantaged person(s).
  10. 10. 11 Other Requirements Good Character • Violations of any SBA regulations • Debarred or suspended individuals or firms • Any firm or any of its principals that fail to pay financial obligations to the Federal Government • Evidence that the firm knowingly submitted false information during the application process • Applicant firms and principals that lack business integrity as shown by an indictment, guilty plea or civil judgment • Any principal who is incarcerated or on parole or probation
  11. 11. 12 Other Requirements • Potential for Success: must be in business in its primary NAICS code for at least two full years immediately prior to the date of its 8(a) application. • Proof of two years operation is verified by revenues reported in business tax returns. • Exception (13CFR124.107) • Financial capability: sufficient capitalization, financial performance, bonding capacity, manageable debts. • Managerial and Technical capability: performance on previous contracts, firm has the necessary personnel, licenses, certifications, and facilities.
  12. 12. 13 Applying to the 8(a) Business Development Program – => Contracting => 8(a) Business Development – How to Apply – Steps to Applying to the 8(a) Program – Before you Apply – Additional Information Before you Apply – 8(a) Application Checklist The Division of Eligibility & Certification San Francisco, CA
  13. 13. 14 Applying to the 8(a) Business Development Program – SBA reviews application for completeness and notifies firm of deficiencies within 15 days. – If incomplete, applicant submits corrections within 15 days and a determination of completeness is made by SBA within 10 days of receipt of firm’s response. – Applicant advised of outcome by the Associate Administrator within 90 days from the date completed application was accepted. – If declined, applicant advised of right to request reconsideration within 45 days of date of decline. Should the concern not seek reconsideration, there is a mandatory 12 month waiting period before firm may reapply. – If declined after reconsideration, there is a mandatory 12 month waiting period before firm may reapply.
  14. 14. 15 HUBZone Program Historically Underutilized Business Zone – Established in 1997 by Public Law 105-135; – Purpose of the program: – To help distressed communities reverse a sluggish economy; – To provide federal contract preferences to qualified small businesses. – What is a HUBZone? – HUBZone maps – An area as small as a city block and as large as a county; – Areas typically are located in distressed urban areas and rural communities with low median household incomes and high unemployment
  15. 15. 16 HUBZone Requirements Qualifying for HUBZone: – Principal Office must be in a HUBZone • Principal office is the office with the most employees – Worksite can be anywhere; – At least 35% of its employees must reside in any designated HUBZone area – at least 180 days – NAICS Code determines size standards • Must be a Small Business – 51% of the ownership and control must be US Citizens; • Definition of employee : 40hrs/month = full-time
  16. 16. 17 Benefits of the HUBZone Program • 10% price evaluation preference in full and open contract competitions, as well as subcontracting opportunities. • Competitive and sole source contracting • The federal government has a goal of awarding 3% of all dollars for federal prime contracts to HUBZone-certified firms.
  17. 17. 18 How to Apply to the HUBZone Program » Contracting » Government Contracting Programs » HUBZone Program » Applying for the HUBZone Program You will see: • The Application Process Before You Begin • Application Process Steps • Frequently Asked Questions
  18. 18. 19 Women Owned Small Businesses Programs WOSB/EDWOSB – Established February 4, 2011 • Makes it easier for women-owned companies to compete for and win federal contracts. • Provides agencies a tool to achieve WOSB contracting goal (5% of its prime contracting dollars must be awarded to WOSBs)
  19. 19. 20 Women Owned Small Businesses Programs • Meet small business size standard for primary NAICS code and contract • At least 51% unconditionally and directly owned by women who are U.S. citizens • The woman must manage the day-to-day operations • The woman must make the long-term decisions for the business • A woman must the hold highest officer position in the company • This woman must work at business full-time during normal working hours. • No minimum amount of time for the business to be operational
  20. 20. 21 Women Owned Small Businesses Programs Economically Disadvantaged Women Owned Small Businesses All WOSB criteria PLUS – Personal net worth of less than $750,000 • EXCLUDES: ownership in business and primary personal residence • EXCLUDES: income reinvested or used to pay taxes of business • EXCLUDES: funds reinvested in official retirement account • EXCLUDES: transferred assets within two years if to or on behalf of immediate family member for specific purpose – Adjusted gross yearly income averaged over the three years preceding the certification less than $350,000 – Fair market value of all assets are less than $6 million
  21. 21. 22 Women Owned Small Businesses Programs WOSB • Currently self-certify/ or third party certifiers • Add documents to repository, – Verification of US citizenship – Corporate information relating to verifying ownership by a woman or women EDWOSB • Women claiming economic disadvantage • Additional documents to repository: – As required by the program
  22. 22. 23 Women Owned Small Businesses Programs For questions relating to the WOSB/EDWOSB program, please email For questions relating to the system, please email or you can always email - Questions ???
  23. 23. 24 Useful Websites • U.S. Small Business Administration – – • 8(a) Program – • Hubzone – • Woman Owned/EDWOSB – • System for Award Management –
  24. 24. 25 Resource Partners for Assistance Willis Mushrush 417.256.2391 Bronwen Elizabeth Madden 417.255.7966
  25. 25. 26 For more information about these programs or SBA please contact Ken Surmeier 816.426.4919 Thank you for attending