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Sblo101 june2013finalfor dist


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Sblo101 june2013finalfor dist

  1. 1. SBLO 101 GRETCHEN EBERT-MEDTRONIC MARK SCHNORENBERG-WOODWARD, INC. Small Business Liaison Officer Training June 20, 2013
  2. 2. AGENDA  Part 1- Introduction to Small Business Program  Part 2- The Small Business Liaison Officer  Part 3- Subcontracting Plans  Part 4- Program Review  Part 5- ISR/SSR Reporting  Part 6- Other Socio-economic Programs  Part 7- Resources (SAM, DSBS, DIR)
  3. 3. PART 1 - SMALL BUSINESS PROGRAM  Why Small Business (SB) Programs?  Government recognized that small business is the backbone of our economy, fueling jobs and economic growth. Other small business sub- classifications were identified and added over the years reflecting socio-economic conditions and areas of underutilization.
  4. 4. SMALL BUSINESS FACTS **Innovation and Flexibility: • Small businesses garner 13 times more patents per employee than large. • Patents from small businesses are twice as likely than those from large firms to be among the one percent most cited. • Small businesses tend to have fewer layers of bureaucracy, which often allows them to be more responsive to market forces and able to more easily adopt innovations in technology. • 99.7 percent of U.S. employer firms • 64 percent of net new private-sector jobs • 49.2 percent of private-sector employment • 42.9 percent of private-sector payroll *Economic Development Small businesses represent: • 46 percent of private-sector output • 43 percent of high-tech employment • 98 percent of firms exporting goods • 33 percent of exporting value *Source: U.S. Census Bureau, SUSB, CPS; International Trade Administration; Bureau of Labor Statistics, BED; Advocacy- funded research, Small Business GDP: Update 2002-2010, **Source: SBA Office of Advocacy website:
  6. 6. SMALL BUSINESS LEGISLATION Act Targeted Classification Purpose SB Mobilization Act of 1942 Small Business - Develop economic scale to help SBs compete (war effort only) SB Act of 1953 Small Business - Established the Small Business Administration - Est. guaranteed loans, technical and administrative assistance for SB concerns in order to compete for Gov’t Contracts Revision to the SB Act of 1973 SDB - Minority redefined as Small Disadvantaged Business (SDB) - Required Federal Agencies to develop goals - Est. Office of Small and Disadvantaged Business Utilization (OSBDU) Public Law 99-661 (1987) SDB - Est. 5% goal HBCU/MI - Emphasized contracting with Historically Black Colleges/Universities & Minority Institutions (HBCU/MI) Federal Acquisition Streamlining Act 1994 WOSB - Est. Woman Owned SB goal of 5% (P/L 103-355) HUBZone Empowerment (P/L 103-135) HUBZone SB - Escalated Goal from 1% to current 3% (Included in SB Reauthorization Act 1997) Veteran’s Entrepreneurship and SB Development Act of 1999 Veteran SB - Est. goal of 3% to Veteran Owned SB (P/L 106-50) - Must be certified by VA as VOSB or SDVOSB to contract with the VA
  7. 7. SMALL BUSINESS PROGRAM  What is a Small Business  Definitions in FAR Part 2 and 19.001  North American Industry Classification System (NAICS) codes  Developed for use in classifying the type of industry in which a company is engaged in-products or services  Products-typically size based on number of employees  Construction or service-standard based on average sales for past 3-years
  8. 8. SMALL BUSINESS SIZE STANDARDS The SBA’s small business size standards are usually expressed in number of employees over the past year or average annual receipts over the past three years, depending on the industry. Small Business Size Standards Define the Maximum Size of a Firm (Refer to SBA’s Small Business Size Regulations (13 CFR §121) or the Table of Small Business Size Standards (13 CFR §121.201) for more information. e.g., 500 employees for most manufacturing and mining industries e.g., $7M average annual receipts for most non-manufacturing industries Medtronic eLearning
  9. 9. SMALL BUSINESS PROGRAM  Definitions  Ownership-No less than 51% Ownership and control by one or more Women, Veterans or Disadvantaged individuals.  HUBZone-Principle location in a HUBZone and no less than 35% of the employees reside in a HUBZone.  Socially Disadvantaged-those who have been subject to ethnic prejudice or cultural bias as a member of a group.
  10. 10. SMALL BUSINESS PROGRAM  SDB Individuals-Black Americans, Hispanic Americans, Native Americans (American Indians, Eskimos, Aleuts or Native Hawaiians), Asian Pacific Americans, Subcontinent Asian Americans or other groups designated from time-to-time by the SBA
  11. 11. PART 2 - SMALL BUSINESS LIAISON OFFICER  Appointed by letter by appropriate level of authority  In organization influencing all subcontracting activities  Should report to CEO or senior level management  When new SBLO is appointed, cognizant DCMA Office should be notified
  12. 12. SMALL BUSINESS LIAISON OFFICER  Duties  Responsible for the entire program for the organization  Defined in the Small Business Subcontracting Plan  Direct influence in development of the SB Plan  Develop and oversee local procedures  Develop source lists as an aid to identify suppliers  CCR, PTACs, DCMA, Supplier Portal, etc  Ensure supply base is being updated  Continuous efforts to identify new SB concerns
  13. 13. SMALL BUSINESS LIAISON OFFICER  More Duties  Attend and sponsor procurement conferences  Update management on SB program status  Conduct SB training for all individuals involved in subcontracting effort  Completion of annual/semi-annual ISRs and SSRs  Ensure Maximum Practicable Opportunities for SBs whenever possible  Network with Industry SBLOs, PTACs, SBA, DCMA, etc
  14. 14. PART 3 – SUBCONTRACTING PLANS  Individual Subcontracting Plan (FAR 19.704(a))  A separate Plan for each contract >$650,000 or $1,500,000 for construction  Master Subcontracting Plan (FAR 19.704(b))  Plant or Division wide basis  Requires all Plan elements, except goals  Goals are submitted for each contract where Master Plan is used.  3-year period approved by Administrative Contracting Officer
  15. 15. SUBCONTRACTING PLANS  Commercial Subcontracting Plan (FAR 19.704(d))  Used by subcontractors supplying commercial items  Submitted to 1st awarded Contracting Officer in the contractor’s fiscal year  In effect for all Gov’t contracts in effect during that period
  16. 16. SUBCONTRACTING PLANS  Comprehensive Subcontracting Plan (DFARs 219.702(a))  In extended period as a test program  Corporate, division or plant-wide basis  Large business concerns at the major corporate level (Boeing, Lockheed-Martin, etc)  Performing under at least 3 DoD contracts  Negotiated on annual basis  Incorporated in all DoD contracts requiring a plan
  17. 17. SUBCONTRACTING PLANS  Plan Elements  Goals, expressed in terms of percentages of total planned subcontracting dollars for use of:  Small Businesses, veteran-owned SB, service-disabled veteran owned SB, Small Disadvantaged Business, HUBZone SB and woman-owned SB  Statement of total dollars to be subcontracted  For each individual plan, or  Annually for a commercial plan
  18. 18. SUBCONTRACTING PLANS  Elements  Description of the principal types of supplies and services to be subcontracted  Identified by sub-classification  Description of the method used to develop goals  Description of methods used to identify potential sources for solicitation purposes  DSBS, SAM, SBA, PTACs, catalogs, outreach, etc  Statement as to whether or not indirect spend is used in establishing subcontracting goals
  19. 19. SUBCONTRACTING PLANS  The name of the individual employed by the offeror who will administer the subcontracting program.  Description of the efforts the offeror will make to assure that SBs have an equitable opportunity to compete for opportunities.  Assurance that the offeror will flow down 52.219-8 Utilization of Small Business Concerns in their subcontracts
  20. 20. SUBCONTRACTING PLANS  Assurances that the offeror will-  Cooperate in any studies or surveys as required  Submit periodic reports so that the Gov’t can determine the extent of compliance to the submitted plan  Submit ISRs and SSRs as required  Assure that subcontractors will submit ISRs & SSRs  Where applicable*
  21. 21. SUBCONTRACTING PLANS  Description of records that will be maintained concerning the SB Program  Source lists and other data identifying SB concerns  Organizations contacted in an attempt to locate SB concerns  Records of solicitations >$150k and the efforts to source with SB concerns  List of outreach efforts  Records of workshops, training, etc
  22. 22. PART 4 – AGENCY REVIEW  Agency (i.e. DCMA, SBA) to perform surveillance review of Contractor’s Subcontracting Program (not an audit)  Using DCMA Form 640 or equivalent as an outline  Contractor should use as prep guideline  Often provided by reviewing agency in advance  Annually or periodically  Exit briefing with CEO or managing leadership  Program rating will be assigned as a result  Unsatisfactory  More than 3 deficiencies  Not meeting contractual requirements  Kept until deficiencies are corrected  Verified in follow-up review
  23. 23. AGENCY REVIEW  Review Ratings  Marginal  Between one and three deficiencies  Kept until corrected  Acceptable  Meeting contractual requirements  Meets or exceeds goals  Complied with reporting requirements  Highly Successful  Acceptable plus extra efforts in promoting SB participation  Outstanding  Highly Successful plus exceptional efforts to promote program
  24. 24. PART 5 – ISR/SSR REPORTING  Utilization of eSRS is required for the semi-annual and annual reporting requirements  ISRs  Used for those reporting Individual and Master Plans  Semi-annually  Cumulative data during the life of the program  One ISR for each contract with a submitted plan  SSRs  Used by those reporting on a Comprehensive Plan & Commercial Plan  Annually (based on government fiscal year)  Individual and Master Plans  Semi-annually covering entire SB Program  One SSR per reporting agency (DoD, VA, DOE, etc.)
  25. 25. ISR/SSR REPORTING  Timeliness and accuracy are critical  Reports are contractual deliverables  SDB Supplemental Reports due at Year End  Amount of subcontract dollars by NAICS code  Ensure that SDB total from SSR(s) = dollars reported in Supplement Report
  26. 26. PART 6 – OTHER SOCIO-ECONOMIC PROGRAMS  Mentor Protégé Program (DFARS 219.71)  Public Law 101-510-National Defense Authorization Act of 1991  Incentive program for Prime Contractors to assist SB concerns in order to enhance their capabilities  Reimbursable or Credit (dollars for reporting) programs  Mentors need to have DoD approved Mentor application  Mentors need to have at least 1 contract with a SB Plan  Create formal agreement for up to 3-years
  27. 27. OTHER SOCIO-ECONOMIC PROGRAMS  Historically Black Colleges and Universities and Minority Institutions (DFARS 252.219-7003)  Accredited HBCUs established prior to 1964   minorityinst.html  MIs identify institutions having significant minority enrollment  Dollars spent are reportable on ISRs and SSRs
  28. 28. OTHER SOCIO-ECONOMIC PROGRAMS  Indian Incentive Program (FAR 26.101 & 52.226-1)  Incentives to Primes that use Indian Organizations and Indian-owned Economic Enterprises  Equal to 5% of the amount paid to the subcontractor  Organization means the governing body of any Indian Tribe or entity  51% owned and controlled
  29. 29. OTHER SOCIO-ECONOMIC PROGRAMS  All Indian Tribal Companies or Native Alaskan Companies, can be counted a SDB regardless of size  Must be 51% owned and controlled by Tribal/Alaskan organization
  30. 30. RESOURCES   Local SBA Commercial Market Representatives  PTAC,  MNPTAC,  Metropolitan Economic Development Assn (MEDA),  Midwest Minority Supplier Development Council (  Midwest SBLO Group  Industry driven with strong PTAC and Agency support   Meets quarterly with webcasts  SBLO Handbook 
  31. 31. SMALL BUSINESS DATABASES  SBA Dynamic Small Business Search (DSBS)   Generally a self-certifying database. Certifications are now only for 8(a) Business Development and HUBZone.  System for Award Management (   replaces 9 government including CCR, ORCA • United States Dept. of Veterans Affairs – Vendor Information Pages  Federal government web portal and database of verified veteran owned businesses  FedVendor – • government vendor supplier database that contains registered  suppliers contact information and diversity status, revenue and other useful data.
  32. 32. OTHER SEARCH OPTIONS Advocacy/ Membership Groups: • Diversity Information Resources, Supplier diversity not-for profit that offers supplier databases, diversity classification, web portal, and seminars that support supplier diversity programs. • National Minority Supplier Development Council (NMSDC), NMSDC MBISYS - national on-line database of more than 15,000 of America's top minority-owned firms. • Women's Business Enterprise National Council (WBENC) • Women's Business Development Center (WBDC), regional affiliate of WBENC • Chambers of Commerce (national and regional)
  33. 33. To save list in Excel: - Increase Max number of firms to be returned (i.e.100) - Edit columns displayed as desired - Run Search - Save as .xls in file name
  35. 35. – Vendor Information Pages Federal government web portal for veteran owned businesses
  36. 36. Supplier Registration and Validation Branded Registration Portal / Database Shown: DIR / SupplierGATEWAY Data Management System
  37. 37. Users can also upload certificates as attachments. Supplier Registration Pre-Identified certification categories are available for the user to choose (configurable to certifications your organization recognizes). Acquire basic organizational information. Establish Primary contact Information Collect key diversity, demographic and capabilities data
  38. 38. V Advantages/Benefits Validation of certification information Eliminate your due diligence effort Access certification documents online Monitors and notifies suppliers when certifications are about to expire Diversity Validation
  39. 39. City and/or State Certifying Agencies National Gay & Lesbian Chamber of Commerce US Pan Asian American Chamber of Commerce Canadian Aboriginal Minority Supplier Council National Minority Supplier Development Council (NMSDC) NMSDC Regional Councils National Women Business Owners Corporation (NWBOC) Small Business Administration (SBA) SBA 8(a) Program SBA Small Disadvantaged Business (SDB) Program SBA HUBZone Business Program Women's Business Enterprise National Council (WBENC) California Public Utilities Commission (CPUC) M/WBE Clearinghouse DIR Validated Certifications
  40. 40. NMSDC MBISYS National On-line Database (Available to corporate members)
  41. 41.
  43. 43. SBLO HANDBOOK CHAPTER 1 SBA’S ROLE IN PRE-AWARD SUBCONTRACTING  PLAN REVIEWS 4 – 5  The Laws, The Rules, and The Regulations  Why Does The Government Require Subcontracting Plans?  Federal Acquisition Regulation (FAR ) Part 19  Assistance Available from SBA CHAPTER 2 THE SUBCONTRACTING PLAN 6 – 10  What Are The Required Elements of a Plan?  What Are The Types Of Subcontracting Plans?  What is Maximum Practicable Opportunity (MPO)?  What Actions Should Other-Than-Small Business Contractors Take to Enhance MPO? CHAPTER 3 SUBCONTRACTING FLOW-DOWN REQUIREMENTS 11 - 12  What is a First–Tier Subcontractor?  What are Second-Tier, Third Tier, Fourth-Tier Subcontractors, etc.?  How Far Does the Flow-Down Go? CHAPTER 4 HOW TO REVIEW A SUBCONTRACTING PLAN 13 - 14  What are the Pre-award Responsibilities of an Other-  than-Small Business Prime Contractor or Subcontractor?  Who Reviews the Subcontracting Plan?  How Should the Prime Contractor Review the Subcontracting Plan?  What is an Acceptable Subcontracting Plan?  What Should the Prime Contractor Do with an  Unacceptable Plan? CHAPTER 5 NAICS CODES, SIZE STANDARDS, AND  CERTIFICATIONS 15 - 18  What Is A NAICS Code?  What Are Size Standards?  What Is A Small Business?  What Is Affiliation? How Do NAICS Codes Affect Size Status Self Certifications?  What Certifications Apply to Subcontractors?  What Is Self-Certification?  What Are Federal Certifications?  Who Can Challenge/Protest the Size Status of  A Subcontractor?  Who Can Challenge/Protest The  Disadvantaged Status Of  A Subcontractor?
  44. 44.  CHAPTER 6 POST-AWARD SUBCONTRACTING RESPONSIBILITIES 19 - 23  Who is Responsible for Enforcing the Subcontracting Rules?  Individual Subcontract Report (ISR) Subcontracting Report for Individual Contracts  Who Submits Reports? (Reporting Requirements  for 1st Tier Goals)  How Often is The ISR Submitted?  What Is Reported On The ISR?  Summary Subcontract Report (SSR)  Who Submits the SSR?  To Whom Is The SSR Submitted?  How Often Is The SSR Submitted?  What Is Reported On The SSR?  CHAPTER 7 HOW SBA MONITORS OTSB CONTRACTORS 24 – 25  Subcontracting Program Compliance Reviews  Performance Reviews  Subcontracting Orientation and Assistance Reviews (SOAR)  Follow-Up Reviews  CHAPTER 8 SUBCONTRACTING PROGRAM AWARDS 26  Award Of Distinction  Dwight D. Eisenhower Award For Excellence  Francis Perkins Vanguard Award  Small Business Subcontractor of the Year  APPENDICES  A – Legislation Affecting Federal Prime and Subcontracts  B – Subcontracting Assistance Program Fact Sheet  C – Subcontracting Plan Format  D – Sample Documentation of Purchases over $100,000 Form  E – Sample Flow-Down Letters  F – Subcontracting Plan Review Sheets  G – Small Business Federal Definitions  H – Sample Size Self-Certification Form  I – MOU with DCMA/SBA  J – SBA Small Business Program Compliance Review Checklist  K – Websites  L – Frequently Asked Questions  SBLO Handbook: SBLO Handbook, Cont’d
  45. 45. SBLO Handbook, Cont’d Appendix D Document small business inclusion of for orders exceeding $150,000 (awarded to large business)
  46. 46. SBLO Handbook, Cont’d Appendix J
  47. 47. SBLO 101 QUESTIONS?