The document provides an overview of small business programs and contracting opportunities. It discusses definitions of small businesses and various small business preference programs including 8(a), WOSB, VOSB, SDVOSB, and HUBZone. It also summarizes recent changes from the Small Business Jobs Act regarding parity among programs and accelerated payments to small businesses.

1. Center for Workforce & Community
Education
Government Contracting
Seminar
Kris Parker & Pat Canciglia
(540) 653-4806
(540) 653-7958 Distribution Statement A:
Approved for Public Release;
Approved for Public Release Distribution is Unlimited
1
09 June 2011

2. Agenda
•Introduction
•Small Business Defined
•Small Business Programs & Associated
Changes
•Jobs Act/Accelerated Payments
•Better Buying Power
•Efforts at Dahlgren
•Questions
Approved for Public Release 2

3. Brief SB Program History
• Began as a response to WWII needs
• Small Business Mobilization Act of 1942 – Response by
Congress to help small plants compete with larger ones.
– Act authorized a price premium to be paid in contracting with
small firms
– Applicable only during wartime
• Armed Services Production Act of 1947 – provided that “…a
fair proportion of total Federal purchases and contracts be
placed with Small Business concerns…”
– Act extended provisions of the SB Mobilization act to peacetime
• Defense Production Act of 1950 – provided that awards could
be made to small businesses at other than the lowest
possible price
• Small Business Act of 1953 – Created the Small Business
Administration (SBA) as and independent agency of the
Executive Branch
– The Government should aid, counsel, assist, and protect, insofar
as possible, the interests of small business concerns to…ensure
that a fair proportion of the total purchases be place with small
business Approved for Public Release 3

4. What is a Small Business?
• A concern that:
– Is FOR Profit
– Is independently owned and operated
– Is not dominant in the field of operation in which it is bidding on
Government Contracts
– Can qualify under the size standards
• Size Standards:
– Established by U.S. Small Business Administration (SBA) on an industry-
by-industry basis using North American Industry Classification System
(NAICS) codes
– Size standards are based on:
• For manufacturing, number of employees
• For services and construction, average annual receipts for three
preceding accounting years
• Example: NAICS 541330, Engineering Services, size standard is $27
million
• Federal Small Business concerns differ from
state/local
Approved for Public Release 4

5. Small Business Preference
• Federal Acquisition Regulations
Provide:
– Set Asides
– Sole Source/Direct Award (for certain
concerns)
– Mandatory % of $ to Small Business
– Subcontracting requirements
– Most provisions detailed in FAR 19
Approved for Public Release 5

6. Small Business Programs
Conventional Small Business
Small Woman-Owned
Disadvantaged Small Business
Business (WOSB)
(SDB)
Veteran-Owned
Section 8(a) Small Business
(VOSB)
Minority Institutions
Service-Disabled VOSB
(SDVOSB)
HUBZone
Approved for Public Release 6

7. SDB
• Small Disadvantaged Business (SDB)
– Small Business 51% owned and operated by socially and
economically disadvantaged individuals
– 8(a) Business Development Program is a Subset of SBD
– As of 01 October 2008, Standard SDB criteria is a Self-
Certifying criteria
Approved for Public Release 7

8. The 8(a) Program
• Section 8(a) of the Small Business Act established a Business
Development Program for SDBs
– An 8(a) SDB can be in the program for up to 9 years
• Exception: Native Alaskan and American Indian firms never
graduate
• 8(a) provisions allow for set-aside and sole source efforts
• 8(a) firms can receive direct, sole-source awards up to
following thresholds;
– Manufacturing: $6.5 million (Increased from $5.5 million)
– Services: $4.0 million (Increased from $3.5 million)
– 8(a) competition normally used above these levels
• Exception: Native Alaskan/American Indian firms – no ceiling
• SBA is legally the prime contractor for 8(a) contracts; however, DoD
activities execute contracts for the SBA under special partnership
agreements
Approved for Public Release 8

9. The 8(a) Program
• DoD/Navy Policy: once 8(a), always 8(a)
– Assuming no material change to a requirement, a
graduated firm may no longer be able to compete for the
work it performed
• 8(a) Status requires SBA Certification
• IMPORTANT TO NOTE
– 8(a) Status must be valid at time of Contract Award for
Sole Source Efforts
– 8(a) Status must be valid at time of Proposal Submission
for 8(a) Competitive Set-Asides
– 13 CFR § 124
Approved for Public Release 9

10. The 8(a) Program
• Recent Regulatory Updates enacted
by the SBA effective 14 March 2011
• Changes include:
– Clarification on factors determining
economic disadvantage
– Increased reporting requirements for
Tribally-owned firms
– New Ownership and Control
Requirements
– Suspension for call-ups to active duty
Approved for Public Release 10

11. WOSB/EDWOSB
• Women-Owned Small Business
– Small Business Reauthorization Act of 2000 set stage for
WOSB Set-Asides
– Criteria Divided in two categories:
• Woman Owned Small Business (WOSB)
• Economically Disadvantaged Woman Owned Small Business
(EDWOSB)
– WOSB & EDWOSB Small Business concerns must be 51%
owned and operated by one or more women
– Current regulations effective 04 February 2011
– New FAR Clause 19.15 recently included to provide
guidance
– NO SOLE SOURCE Provisions
Approved for Public Release 11

12. WOSB/EDWOSB
• Women-Owned Small Business
– Current Proposal Allows for WOSB Set-Asides as of 04
February 2011
• Manufacturing: $6.5 million
• All Others: $4.0 million
– Set-Asides Eligible ONLY for 83 Designated NAICS Codes
• 45 Determined to be Underrepresented
• 38 Determined to be Substantially Underrepresented
– WOSB is a Self-Certifying Criteria
Approved for Public Release 12

13. VOSB/SDVOSB
• Veteran-Owned Small Business
– Small Business 51% owned and operated by one or more
veterans
– Veterans Administration is the only Federal Agency with
VOSB Set-Aside authority
• Service-disabled VOSB (SDVOSB)
– SDVOSB provisions allow for set-aside and sole source
efforts
– Subset of VOSB can receive direct (sole-source) awards
up to following thresholds;
• Manufacturing: $6.0 million (Increased from $5.5 million)
• Services: $3.5 million (Increased from $3.0 million)
Approved for Public Release 13

14. VOSB/SDVOSB
• For SDVOSB sole source efforts:
– Contracting Officer must determine that there is
only one qualified SDVOSB available
• The effort must not be currently performed
by an 8(a) Small Business
• Both VOSB & SDVOSB are Self-Certifying
concerns
Approved for Public Release 14

15. HUBZone
• HUBZone Small Business
• HUBZone provisions allow for set-aside and sole source
efforts
• HUBZone firms can receive direct, sole-source awards up to
following thresholds;
– Manufacturing: $6.5 million (Increased from $5.5 million)
– Services: $4.0 million (Increased from $3.5 million)
– Purchases must be >$150k for sole source provisions to be
exercised
• For HUBZone sole source efforts:
– Contracting Officer must determine that there is only one
qualified HUBZone available
• The effort must not be currently performed by an 8(a) Small
Business
• HUBZone Status requires SBA Certification
Approved for Public Release 15

16. HUBZone
• IMPORTANT TO NOTE
– HUBZone Status must be valid at time of Proposal
Submission and Contract Award
– HUBZone Mapping to be updated later this year
Approved for Public Release 16

17. Small Business Jobs Act
• Public Law 111-240, singed into effort 27
September 2010
• Officially restored “Parity”
– Removed “Shall” from HUBZone verbiage and
replaced it with “May”
• Established Government-wide policy on
Bundling
• Calls for annual Size Standard Certification
• Significant federal financial investments and
tax incentives for Small Business
Approved for Public Release 17

18. Accelerated Payment
• Interim Rule effective 27 April 2011
• Modifies DFAR & Associated Payment
Systems to make Accelerated Payment to
ALL Small Business
• Removes the term “Disadvantaged” from
the DFAR Verbiage
• Current FPDS data reflects approx. 60,000
active Small Business contracts
• Targeted payment date of 7-10 days
Approved for Public Release 18

19. Set-Aside Considerations
• All procurements between $3k and $150K
automatically SB Set-Asides (FAR 19.502-2)
• Procurements >$150K shall be set-aside if two
or more qualified small businesses available
• Repetitive procurements should follow suit
unless market research indicated otherwise,
e.g., an 8(a) set-aside is re-procured as 8(a),
etc.
• Help us help you!
Approved for Public Release 19

20. Sole Source Considerations
• Governed by FAR 6.3
• Very high scrutiny
• Only concerns w/Sole Source provisions:
– 8(a)
– SDVOSB
– HUBZone
• Local Sole Source Signature Authority to
$12.5m
Approved for Public Release 20

21. Fundamental Thoughts
• LEAD with your Capabilities –
LEVERAGE your Concern
• Know your Market
– Internal – Be familiar with the target
ordering office
– External – Know your competition
• Focus your talents
• Have a future plan with contingencies
Approved for Public Release 21

22. Policy Trend:
Better Buying Power
“Better Buying Power” - USD(AT&L) memo of 14Sep10
-- Dr. Carter outlined his acquisition initiatives to deliver better value to the
taxpayer and our warfighters. They were organized under these topics:
1. Target Affordability and Control Cost Growth
2. Incentivize Productivity and Innovation in Industry
3. Promote Real Competition
4. Improve Tradecraft in Service Acquisitions
5. Reduce Non-Productive Processes and Bureaucracy
“Implementation Directive for Better Buying Power (USD(AT&L) memo
03Nov10)
-- Directs implementation of specific actions with regard to the five initiatives
above.
Approved for Public Release 22

23. Specific Direction Affecting
Small Business
• Reinvigorate Industry IR&D/Protect DoD
Technology Base
– Enhance SBIR Program to Promote Role of Small
Business in Supporting DoD IRAD Needs
• Increase Dynamic Small Business Role in
DoD Marketplace Competition
– For All Competitive and Non-Competitive
Procurements, Seek Increased SB Participation
Through Weighting Factors in Past Performance
and in Fee Construct
• Increase Small Business Participation in
Providing Services
– Seek Opportunities to Compete Multiple-Award
ID/IQ Contracts Among Small Businesses
Approved for Public Release 23

24. Competition & Small Business
Opportunity at Dahlgren
• SeaPort Pre-Solicitation Announcements
- Have become a practice at NSWCDD Contracts
- Announcements allow companies more time to
prepare for the upcoming effort
• SeaPort Sources Sought Announcements
- Posted whenever practicable
- Provide every opportunity for Small Business
participation
• Industry Days
• Highly encouraging early involvement with
Program Managers and Industry Partners
• Acquisition Planning
• Early identification of follow-on efforts;
concurrent with final option exercise
Approved for Public Release 24

25. FY 2010 Contracting for
NSWCDD Departments
Dollars Obligated Contract Actions
17%
46%
54%
83%
Services
Supplies
Approved for Public Release 25

26. FY 2010 Obligations - Top 10 FSC Groups ($000)
$180,000
Thousands
$160,000
Top Ten FSC’s
$140,000 Account for 90% of
Obligations
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$-
Approved for Public Release 26

27. NSWCDD
CONTRACTING DOLLARS (INCLUDING PURCHASE CARDS) VS TOTAL OBLIGATIONAL AUTHORITY
27
Approved for Public Release

28. WORK PRODUCT METRICS
(NSWCDD)
*DATA INCLUDES CDSA, OTHER NASP TENANTS, PURCHASE CARDS, GRANTS AND OTHER TRANSACTIONS
28
Approved for Public Release

29. Questions?
Approved for Public Release 29