Small Business Programs Small Business Administration Office of Government Contracting

Guam Oct 2010 www.sba.gov

Small Business Programs

Small Business AdministrationOffice of Government Contracting

Presented by

Ms. Marichu RelativoProcurement Center Representative (PCR)

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Basis for the Small Business Programs

Small Business Act To aid, counsel, assist & protect the interests of

small business concerns Goal of policy is to ensure that a fair proportion

of purchases, contracts & subcontracts be placed with small businesses

“Level the Playing Field”

http://www.sba.gov/library/lawroom.html

Guam Oct 2010 www.sba.gov

Organized for profitPlace of business in the U.S.Operates primarily in the U.S. or makes

significant contribution to the U.S. economy Taxes, U.S. products, materials or labor

Cannot be dominant in its field on a national basisSelf Certification in the Central Contractor

Registration (CCR) database

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What is a Small Business?

Measured by its employment, business receipts, or business assets

Meet the numerical small business size standard for its industrySBA Table of Size StandardsNorth American Industry Classification

System (NAICS) industries codes

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Small Business is Determined by

Size Table: http://www.sba.gov/sizeNAICS: http://www.osha.gov/oshstatsSize Table: http://www.sba.gov/sizeNAICS: http://www.osha.gov/oshstats

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Small Business Programs & Government-wide

Goals 23% - Small Business (SB) 5% - Small Disadvantaged Business (SDB)

(includes 8(a) Business Development) 5% - Women-owned Small Business (WOSB) 5% - Service Disabled Veteran Owned SB

(SDVOSB) 3% - HUBZone Small Business

FAR Part 19, Public Laws, Code of Federal Regulations (13 CFR)

Guam Oct 2010 www.sba.gov

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Government-wide Goals & Score Cards

Goals negotiated between SBA and the President Goals are monitored & reported by SBA

Prior to 2009 – Color codes/After 2009 – Letter gradeReports are published in the SBA website

Government-wide overall grade for 2009 – “B” or 94.1Dept of Defense overall grade for 2009 – “B” or 93.6

Guam Oct 2010 www.sba.gov

http://www.sba.gov/aboutsba/sbaprograms/goals/SCORECARD2009.html

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What are the Governing Regulations?

Title 13 of the Code of Federal Regulations (CFR)121 -Small Business Size Regulations124 -8(a) Business Development/SDB Programs125 -Government Contracting Programs (including

the SDVOSB Program)126 -HUBZONE Program

Federal Acquisition Regulation (FAR)FAR Part 19

DFARS, AFFARS, AFARS, EFARS, etc

FAR Part 19, Public Laws, Code of Federal Regulations (13 CFR)Guam Oct 2010 www.sba.gov

Firms must be small based on their primary NAICS Code, including affiliates

Size is determined either by: Average 3 years revenuesNumber of employees

ManufacturersDealersWholesalers

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Small Business Size Standards

Source: 13 CFR 121 Size RegulationsWebsite: http://www.sba.gov/regulations/121/

Source: 13 CFR 121 Size RegulationsWebsite: http://www.sba.gov/regulations/121/

500 employees – most manufacturer & mining industries

100 employees – all wholesales trade industries500 employees – for federal prime contracts &

subcontracts $6.5M – most retail & service industries $31M – most general & heavy construction industries $13M – all special trade contractors $0.75M – for most agricultural industries

Guam Oct 2010 www.sba.gov 9

Common Size Standards

Source: 13 CFR § 121.104;13 CFR § 121.106; 13 CFR 121.201Website: http://www.sba.gov/regulations/121/

Source: 13 CFR § 121.104;13 CFR § 121.106; 13 CFR 121.201Website: http://www.sba.gov/regulations/121/

Size Standard Final Rule issued October 6, 2010Effective November 5, 2010Last change July 2008

To Expand Opportunities for Small BusinessesKeep up with the economyKeep up with federal contracting marketplace

The upcoming changes:Sector 44-45, Retail TradeSector 72, Accommodation and Food ServicesSector 81, Other Services

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Size Standards Update

Source: Federal Register 61597, 61604, 61591 Source: Federal Register 61597, 61604, 61591

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Small Business Programs

What is the 8(a) Small Business Development Program?

FAR Part 19, Public Laws, Code of Federal Regulations (13 CFR)

Guam Oct 2010 www.sba.gov

Subjected to racial or ethnic prejudice or cultural bias because of their identity as members of a group

Social disadvantage must stem from circumstances beyond their control

In the absence of evidence, individuals who are members of the following designated groups are presumed to be socially disadvantaged:

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Who are Socially Disadvantaged Individuals?

13 CFR 124.103

Black Americans Hispanic Americans Native Americans (American Indians, Eskimos, Aleuts, and Native

Hawaiians) Asian Pacific Americans (persons with origins from Japan, China, the

Philippines, Vietnam, Korea, Samoa, Guam, U.S. Trust Territory of the Pacific Islands [Republic of Palau], Commonwealth of the Northern Mariana Islands, Laos, Cambodia [Kampuchea], Taiwan; Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Republic of the Marshall Islands, Federated States of Micronesia, Macao, Hong Kong, Fiji, Tonga, Kiribati, Tuvalu, or Nauru; Subcontinent Asian Americans (persons with origins from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, the Maldives Islands or Nepal), and

Members of other groups designated by the SBA

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Who are Socially Disadvantaged Individuals?

At least 51% owned by one or more individuals who are both socially and economically disadvantaged

Must be citizen of the United States Must manage and control daily business operations Have management or technical expertise directly

related to the primary product or service of the business

SBA-no longer certifies SDB as of Oct 08Self certify in CCR & ORCA

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Small Disadvantaged Business (SDB)

See definition as the Small Disadvantage Business (SDB) In business at least two years Certified and approved by SBA Program is for nine years

First 4 years – Developmental StageLast 5 years – Transitional StageMonitored by SBA local district officeEarly graduation

Government-wide goal: 5 %SDB & 8(a) goals combined

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8(a) Business Development Program

13 CFR 124.8

Sole source up to $3.5M / $5.5M for manufacturing NAICSUnlimited amount to Alaska Native Corp (ANC) firms

Sole Source & Competitive 8(a) over $100KFor competitive 8(a) – agency submits offer letter to the SBA

district office serving the geographical area in which the procuring activity is located;

For competitive and open construction requirements – agency submits offer letter to the SBA district office serving the geographical area in which the work is to be performed

For competitive 8(a) - Rule of two applies

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8(a) Set-Aside

13 CFR 124.8; FAR19.8

For sole source 8(a): Sole source is not protestable

Withdrawal from the 8(a) program – Submit request to SBA with justification/approval must be obtained prior to changing acquisition

Competitive 8(a) can be restricted to a state or region Example: Alaska 8(a) firms only or Region 10 8(a)

firms only (include restriction in the synopsis)

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8(a) Set-Aside cont

13 CFR 124.502 and FAR 19.8   

Sole Source and competitive 8(a) under $100K For sole source – agency contacts SBA for firm’s eligibility prior to

award For competitive – agency submits waiver request letter to SBA for

approval Sole Source 8(a) – synopsis in FBO not required “8(a) stays 8(a)”

Unless it is a new requirement (25% increase in scope from previous requirement)

All construction requirements are considered new requirements Adverse impact – SBA‘s written determination that acceptance of

the procurement for 8(a) award would have an adverse impact on small business (see 13 CFR 124.504(c))

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8(a) Set-Aside cont

Electronic Application on line: www.sba.govHard copy application – mail to:

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8(a) Business Development Application Process

13 CFR 124.8

Small Business AdministrationDivision of Program Certification & Eligibility (DPCE)

455 Market Street, 6th FloorSan Francisco, CA 94105

Tel: (415-744-0328

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Small Business Programs

What is the HUBZone Program?

FAR Part 19, Public Laws, Code of Federal Regulations (13 CFR)

Guam Oct 2010 www.sba.gov

Must be owned & controlled at least 51% by U.S. Citizen, Community Development Corporation, an

agricultural cooperative, or Indian tribe Principal office must be located within HUBZone

Includes land in Indian Country/Reservation Includes military facilities closed by the BRAC Act

Employees – 35% must reside in a HUBZone area Must be a small business by SBA standards Certification by SBA – no term limit Joint Venture (JV) only with another HUBZone firm

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HUBZONE

Source: 13 CFR 126.607(b); FAR 19.1305(a)

Competitive HUBZone Set-asideRule of Two – Reasonable expectation for competitionFair market price

Sole Source – only one source availableNot exceed $5.5M – manufacturing NAICS codeNot exceed $3.5M – all other NAICS codes

Full/Open – 10% preference on price Government-wide goal - 3%

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HUBZONE Prime Contract Benefits

HUBZone area: http://www.sba.gov/hubzone (search by address)On line Application: https://eweb1.sba.gov/hubzone/internetWebsite: http://www.sba.gov/hubzone

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Small Business Programs

What is the Service Disabled Veteran-Owned Small Business Program (SDVOSB)?

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FAR Part 19, Public Laws, Code of Federal Regulations (13 CFR)

Guam Oct 2010 www.sba.gov

The Veterans Benefit Act of 2003 Procurement can be set aside or sole source

Rule of Two – Reasonable expectation for competitionOnly VA can set aside for veteran-own small business

Required to register in http://www.vip.vetbiz.gov/ Self certification in CCR

Under review due to abuse Government-wide goal: 3 %

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Service Disabled Veteran-Owned Business

Source: 13 CFR 125.8 – 125.13; FAR 19.307Website: http://www.vetbiz.gov/Source: 13 CFR 125.8 – 125.13; FAR 19.307Website: http://www.vetbiz.gov/

Dept of Veteran’s Affair (VA) program First & second priorities for contracting procurement

Service-Disabled Veteran-owned small business (SDVOSB) Veteran-owned small business (VOSB)

Must register – Vendor Information Pages (VIP) database Veteran status verified – Veterans Benefit Administration’s BIRLS System Only one registration for one company allowed DUNS number required DD Form 214 required Fraudulent claims – debarred for five years Verification of status – once a year

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Veterans First Buying Authority

Website: www.vetbizresourcecenter.orgRegister: http://www.vetbiz.gov/VBA Office: 800-827-1000

Website: www.vetbizresourcecenter.orgRegister: http://www.vetbiz.gov/VBA Office: 800-827-1000

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Small Business Programs

What is the Woman-Owned Small Business Program (WOSB) & Economically Disadvantaged Woman-

Owned Small Business (EDWOSB)?

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FAR Part 19, Public Laws, Code of Federal Regulations (13 CFR)

Guam Oct 2010 www.sba.gov

WOSB - At least 51% owned & controlled by one or more women

EDWOSB - Economically Disadvantaged & WOSB Manage daily business operations No outside employment United States Citizen Self-certification - CCR & ORCA Government-wide goal: 5%

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Woman-Owned Small Business (WOSB)

Woman Business Center (WBC): http://www.sba.gov/aboutsba/sbaprograms/onlinewbc

http://www.sba.gov/services

Set-aside preference effective February 4, 2011 Certification as small business & WOSB/EDWOSB

By Federal agency, State Government, or national certifying entity approved by SBA

By the contracting officer supported by adequate documentation

Self-Certification in CCR & ORCA

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WOSB/EDWOSBNew Ruling

WOSB Federal Contract Program Webpagehttp:www.sba.gov/wosb

1-800-U-ASK-SBA (827-5722)

Third-Party Certification Third Party Certifier approved by SBA U.S. Dept of Transportation’s (DOT) Disadvantaged

Business Enterprise (DBE) Program As an 8(a) participant Must be provided to the WOSB Program Repository

Contracting Officer set-aside to WOSB/EDWOSB: Designated 83 NAICS codes currently underrepresented Rule of Two – Reasonable expectation for competition $5 Million – Manufacturing / $3 Million all others Fair and reasonable price

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WOSB/EDWOSBNew Ruling

Final Rule on 13 CFR Parts 121, 124, 125

Two or more companies form a partnership or joint venture to act as prime contractor

Desirable to provide the best combination of performance, cost, quality, and delivery

Formal and informal / traditional/non-traditional Limitation on subcontracting (small business to self-

perform on the contract)Construction – 15 %Services – 50%Supplies – 50%Specialty Trade – 25%

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Teaming Arrangements

Labor only

Prime/Subcontractor relationship (traditional)Joint Ventures (JV)Mentor Protégé

SBA approved mentor protégé http://www.sba.gov/aboutsba/sbaprograms/8abd/mentorpro

gram/index.htmlMust be approved by SBA in advanceReference: 13 CFR 124.520

Dept of Defense approved mentor protégéhttp://www.acq.osd.mil/osbp/mentor_protege/

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Types of Teaming Arrangements

Each firm should be small to stay small (revenues combined)

8(a) JV must be approved by SBA

HUBZone JV – both firms must be HUBZone

SDB JV may be entitled to price adjustment in competitive acquisition under authorized NAICS codes

SDVOSB JV – the SDVOSB 51 ownership for SDVOSB set asides

Performance of Work (Self-perform by JV)

Service – 50%

Supplies – 50%

Construction – 15%

Special Trade – 25%

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Joint Venture (JV)

Labor only

SBA approved mentor protégé The protégé must be an 8(a) firm The mentor can be a large business The protégé can joint venture with the mentor Mentor can be a large business/doesn’t impact the small

business size status Participate on any acquisition (set-asides or not)

Dept of Defense (DOD) mentor protégé – Provide mutual benefits to the small business and the other

more established business Protégé receives the assistance (financially, technical,

managerial) Mentor provides subcontracting opportunities to Protégé

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Mentor Protégé

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Parity among the following: 8(a) BD HUBZone SDVOSB WOSB – Preference status – effective February 5, 2011 Underrepresented NAICS codes set aside to WOSB/EDWOSB

General Rule: “Once 8(a) – Stays 8(a)” Per FAR 19.8/13CFR 124 Exception: New requirement or requirement increased by 25% Construction requirement – considered new requirement Same applies to the other Small Business Programs Geographic Restriction on set aside: None Exception: Alaska ANC/8(a) firms

Order of Preference

Guam Oct 2010 www.sba.gov

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Under Simplified Acquisition Threshold (under $150,000):FAR 19.502-2(a) -- automatically reserved exclusively for small

business concerns (including 8(a), HUBZone, SDVOSB)Rule of Two – two of more firms available to do the work

Above Simplified Acquisition Threshold – Order of Precedence:

Small Business Set Aside Rule

CFR References:13 CFR 126.607(b) – HUBZone13 CFR 125.19(b) – SDVOSB13 CFR 124.503 (j) – 8(a)

FAR References: 19.501(c),(d),(e)19.800(e) – 8(a)19.1305(a) – HUBZone 19.1404(d) – SDVOSB19.1405(a), (c) – SDVOSB

Websites: http://farsite.hill.af.mil/ Guam Oct 2010 www.sba.gov

Who can submit a size protest? Firm involved in the acquisition

Who handles Size Protest?SBA Office of Government Contracting (Size Specialist)Forward the Size Protest to the GC office servicing the

firm’s principal office location For Guam firms – send to:

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Size Protest

Small Business Administration**Office of Government Contracting, Area 6

455 Market Street, 6th Floor San Francisco, CA 94105

Phone: 415-744-8429

**Please call Carol Bunts at (415) 744-6844 before forwarding your size status protest

Micro-Purchase: Supplies (under $3,000)Service (under $2,500)Construction (under $2,000)

Simplified Acquisition:Reserved for small business set aside (under $150,000)Rule of Two

Formal Acquisition:Bids & Proposals (over $150,000)Consider small business set asideRule of Two

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Size Do Matter

Complete Central Contractor Registration Database (CCR) Keep Current (Update yearly)www.ccr.gov

Complete SBA Profile (Dynamic Small Business Search (DSBS)http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm

Complete on-line Representations and Certifications Application (ORCA) https://orca.bpn.gov/

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Register/Update Your Business

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Additional Assistance Local District Offices and Resource Partners

SBA Guam Brand Office – Ken Lujan(kenneth.lujan@sba.gov) /Tel: 671-472-7277

SBA Procurement Center Representative (PCR) – Hawaii, Guam & Pacific Insular Area – Larry Orr (Larry.orr@sba.gov)/ Tel: 808-474-7317 Procurement Technical Assistance Center (PTAC)

http://www.guamptac.com/ Small Business Development Centers

www.sba.gov/sdbc/

Small Business Specialists (SBS) www.acq.osd.mil/sadbu

Questions?

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