Subcontracting Program Goals

June 20, 2013

Randy Czaia

Minnesota District SBA Office

U.S. Small Business Administration

• Financial Assistance

• Business Counseling and Training

• Disaster Recovery

• Government Contracting

• http://www.sba.gov/ (national)

• http://www.sba.gov/mn (local)

SBA District Office and SBA Office of

Government Contracting

• Minnesota District Office is one of 68 SBA district offices.

• SBA Government Contracting is separate with its own internal reporting structure.

• Many states (such as Minnesota) do not have any employees from the SBA Office of Government Contracting.

SBA District Office GC Functions

• Outreach and training of small businesses and resource partners.

• Delivery of the 8(a) Business Development Program.

• HUBZone site visits.

SBA Office of Government Contracting

• Dwight Johnson is assigned as the PCR/CMR for Minnesota. – PCR: Procurement Center Representative

– CMR: Commercial Market Representative

• SBA GC Area Office – Size Protest

– Certificate of Competency

• SBA GC HQ – Negotiate agency small business goals

– Status protests

– Waivers

Government Prime Contracting

• SBA negotiates goals with Federal

agencies

– 23% Small Business

– 5% Small Disadvantaged Business

• 8(a) Business Development

– 5% Women Owned Small Business

– 3% HUBZone Small Business

– 3% Service Disabled Small Business

Government Subcontracting

• The contracting officer reviews and negotiates

subcontracting goals with prime contractors.

– Small Business – negotiated

– Small Disadvantaged Business

• 5% statutory

– Women Owned Small Business

• 5% statutory

– HUBZone Small Business - negotiated

– Service Disabled Veteran Owned Small Business-

negotiated

– Veteran Owned Small Business - negotiated

Small Business – Size Standards

• Based on 2012 North American Industrial Classification system codes –NAICs.

• Codes and corresponding size standards at www.sba.gov/size. – Manufacturing and Wholesaling – One year

average number of employees.

– Service Industries – Three year average revenues.

• Self Certification.

• Size Regulations are at 13 CFR 121.

Government Use of Size Standards

• Used by SBA to determine program eligibility. – Business must be small for NAICs code that

best describes the business.

• In prime contracting, used by the CO to set-aside or limit competition to businesses that are small for the product/service being procured.

Prime Contractor Use of Size Standards

• Supplier must be small for the provided product/service to count towards subcontracting goals.

• Prime Contractors send out questionnaires asking suppliers to self-certify if they are small and if they qualify for other sub-categories.

• Some Prime Contractors also look at self-certification data in SAM.

Subcategory Qualification

• Small Disadvantaged Business

• Women Owned Small Business

• HUBZone Small Business Concern

• Service Disabled Veteran Owned Small Business

• Veteran Owned Small Business

• SDB – Self certification

• 8(a) Business Development

– Nine Year Business Development program

– Applicant must apply to SBA

– All 8(a) BD participants are by definition

SDB

SDB and 8(a) Business Development

• Social Disadvantage

– Designated Groups

– Non-Designated Groups

• Economic Disadvantage

• Potential for Success – 8(a) BD only

– Two years in business

– Possible waiver

SDB and 8(a) Business Development

Eligibility Criteria

Women Owned Small Business

• Women Owned Small Business

Concerns may self-certifiy their status.

• Under the WOSB Program (set-aside)

there are also:

– WOSB concern eligible under the WOSB

Program.

– Economically Disadvantaged Women Owned

Small Business (EDWOSB).

• The WOSB Program does not affect

subcontracting goals.

• HUBZone SBC must be certified by

SBA to count towards subcontracting

goals.

• The official list of HUBZone certified

small business concerns is the DSBS.

– (http://dsbs.sba.gov/dsbs/dsp_dsbs.cfm)

HUBZone Small Business Concern

HUBZone Program

• Place based program.

• Designed to increase investment and employment in distressed areas.

• Types of Historically Underutilized Business Zones or HUBZones. – Rural counties.

– Census tracts.

– Exterior boundaries of an Indian reservation.

– Redesignated areas.

• To find out if a location qualifies, type in address at: www.sba.gov/hubzone.

HUBZone Program Eligibility

• Must meet all four requirements.

– Principal Office must be in HUBZone.

– 35% of employees must reside in

HUBZone.

– Must be small.

– Business must be 51% owned by U.S.

Citizens.

• SBA certification required.

– Including subcontractors.

• www.sba.gov/hubzone.

Service Disabled Veteran Owned Small

Business (SDVOSB)

• Self-certification (except for VA

contracts).

• SBA GC responsible for SDVOSB status

protests (except for VA contracts).

• Certification required from VA’s CVE to

be eligible to:

– Compete on VA SDVOSB set-asides.

– To be counted on VA subcontracting plan

goals.

Veteran Owned Small Business (VOSB)

• Self-certification (except for VA

contracts).

• SBA GC responsible for SDVOSB status

protests (except for VA contracts).

• Certification required from VA’s CVE to

be eligible to:

– Compete on VA VOSB set-asides.

– To be counted on VA subcontracting plan

goals.

2014 SADBOC Government

Procurement Fair

• Annual procurement event sponsored by

the Federal Executive Board of

Minnesota’s Small and Disadvantaged

Business Opportunity Council (SADBOC).

• April 30, 2014 at the Earle Brown Heritage

Center.

• Trade show, Workshops, Match Making.

• Recent attendance: 1,000.

Questions?

• Minnesota District SBA Office

www.sba.gov/mn

• Randall Czaia (612) 370-2314

randall.czaia@sba.gov