2016 Midwest Small Business Government Contracting Symposium · Government Contracting Symposium . Mr. Kenyata Wesley Acting Director DoD Office of Small Business Programs . ... Top

2016 Midwest Small Business

Government Contracting

Symposium

Mr. Kenyata Wesley

Acting Director DoD Office of

Small Business Programs

Mr. John Shoraka

Associate Administrator of Government Contracting and

Business Development Small Business Administration

Mr. Tommy Marks

Director, Army Small Business Programs

OSBP Brief

May 25, 2016

Mr. Tommy Marks Director, Office of Small Business Programs

Office of the Secretary of The Army

2

Rock Island Small Business Spending

Although, Overall Spending has decreased, Rock Island continues to be a strong supporter of Small Businesses. Over the past 5 years, Rock Island awarded almost $281 Million to Small Businesses, with over $34 Million obligated in FY15. For FY16, the total is already at $22.2 Million, and is on pace to eclipse the total from the previous year.

$417.9 M

$280.9 M

$0.0 M

$50.0 M

$100.0 M

$150.0 M

$200.0 M

$250.0 M

$300.0 M

$350.0 M

$400.0 M

$450.0 M

OTHER THANSMALL BUSINESS

SMALL BUSINESS

FY11 - FY15

$72.9 M

$34.1 M

$0.0 M

$10.0 M

$20.0 M

$30.0 M

$40.0 M

$50.0 M

$60.0 M

$70.0 M

$80.0 M


SMALL BUSINESS

FY15

$4.8 M

$22.2 M

$0.0 M

$5.0 M

$10.0 M

$15.0 M

$20.0 M

$25.0 M


SMALL BUSINESS

FY16 YTD

**As of 19 MAY 2016

Rock Island Small Business Spending,

5 Year Summary

3

Rock Island Spending Breakdown by Business Size, FY11 – FY16YTD

FY11 FY12 FY13 FY14 FY15 FY16YTD

Total $ Percent Total $ Percent Total $ Percent Total $ Percent Total $ Percent Total $ Percent

OTHER THAN SMALL BUSINESS

$102.8 M 55.6% $135.2 M 53.2% $49.3 M 66.1% $57.5 M 73.7% $72.9 M 68.1% $4.8 M 17.8%

SMALL BUSINESS $82.2 M 44.4% $118.8 M 46.8% $25.3 M 33.9% $20.5 M 26.3% $34.1 M 31.9% $22.2 M 82.2%

**As of 19 MAY 2016

55.59% 53.23%

66.09%

73.74% 68.14%

44.41% 46.77% 33.91%

26.26% 31.86%

0%

10%

20%

30%

40%

50%

60%

70%

80%

FY11 FY12 FY13 FY14 FY15

Yearly Spending Percentage By Business Size Classification

OTHER THAN SMALL BUSINESS SMALL BUSINESS Goal

4

Rock Island Small Business Spending

Rock Island has consistently performed well compared to the Army-wide goal for Small Business Spending. Currently, Rock Island is on pace to out-perform the previous 5 years and award a majority of dollars to Small Businesses.

YTD spending

FY15: 30.1%

FY 16: 82.15%

**As of 19 MAY 2016

5

Rock Island Small Business Spending By State

Rock Island local spending has varied from year to

year. Illinois and Iowa rank near the top from

FY11 – FY15, but military heavy states, such as

Florida and Virginia, have received large amounts

of Small Business Spending. In FY16, Local

spending has surged, as Illinois and Iowa have

been received a combined $9M of the $22M

Small Business dollars awarded.

$65.2 M

$43.2 M

$24.8 M $20.9 M

$15.6 M

$0.00 M

$20.00 M

$40.00 M

$60.00 M

$80.00 M

Small Business Spending by State FY11-FY15

$3.58 M $3.40 M $2.96 M $2.91 M

$2.66 M

$0.00 M

$1.00 M

$2.00 M

$3.00 M

$4.00 M

$5.00 M

Small Business Spending by State FY15

$6.3 M

$2.8 M $2.1 M $1.8 M $1.7 M

$0.00 M

$2.00 M

$4.00 M

$6.00 M

$8.00 M

Small Business Spending by State FY16 YTD

Iowa: 8th ($20.5M) Illinois: 7th ($2.5M)

**As of 19 MAY 2016

6

Rock Island HUBZone and 8(a)

Small Business Spending

$7.76 M

$71.98 M

$0.0M

$10.0 M

$20.0 M

$30.0 M

$40.0 M

$50.0 M

$60.0 M

$70.0 M

$80.0 M

HUBZone 8(a)

FY11 - FY15

$1.36 M

$0.00 M $0.0M

$0.2 M

$0.4 M

$0.6 M

$0.8 M

$1.0 M

$1.2 M

$1.4 M

$1.6 M

HUBZone 8(a)

FY15

$0.58 M

$0.04 M

$0.0M

$0.2 M

$0.4 M

$0.6 M

$0.8 M

$1.0 M

$1.2 M

$1.4 M

$1.6 M

HUBZone 8(a)

FY16 YTD

$2.7 M

$1.6 M

$1.0 M

$1.1 M $1.4 M

$0.0 M

$0.5 M

$1.0 M

$1.5 M

$2.0 M

$2.5 M

$3.0 M


Yearly HUBZone Spending

$15.5 M

$49.9 M

$20.2 M

$6.9 M

$0.0 M $0.0 M

$10.0 M

$20.0 M

$30.0 M

$40.0 M

$50.0 M

$60.0 M


Yearly 8(a) Spending

**As of 19 MAY 2016

7

Rock Island Summary

Top 5 Small Business NAICS

FY11-FY15 315990 - Apparel

Accessories and Other Apparel Manufacturing

561210 - Facilities Support Services

336992 - Military Armored Vehicle, Tank, and Tank

Component Manufacturing

541620 - Environmental Consulting Services

541611 - Administrative Management and

General Management Consulting Services

FY15 541990 - All Other

Professional, Scientific, and Technical Services

336390 - Other Motor Vehicle Parts

Manufacturing

332991 - Ball and Roller Bearing Manufacturing

313210 - Broadwoven Fabric Mills

333517 - Machine Tool Manufacturing

FY16YTD 561311 - Employment Placement Agencies

333515 - Cutting Tool and Machine Tool Accessory

Manufacturing

313210 - Broadwoven Fabric Mills

333517 - Machine Tool Manufacturing

332722 - Bolt, Nut, Screw, Rivet, and

Washer Manufacturing

**As of 19 MAY 2016

Rock Island Socioeconomic Goals &

Services Portfolio FY15 Socioeconomic Goals

Category Goal Rock Island

SB 26.50% 31.86%

SDB 11.00% 24.11%

WOSB 4.80% 5.20%

SDVOSB 3.50% 0.78%

HUBZone 3.00% 1.27%

Service Portfolio 34.00% 22.68%

SAT 70.00% 88.73%

FY15 Service Portfolio Goals

FY16 YTD Socioeconomic Goals

Category Goal Rock Island

SB 26.00% 82.15%

SDB 11.00% 2.73%

WOSB 4.80% 0.69%

SDVOSB 3.50% 0.31%

HUBZone 3.00% 0.22%

Service Portfolio 43.52% 89.06%

SAT 68.00% 93.43%

FY16 YTD Service Portfolio Goals

Portfolio Total SB

FY16 YTD

FY16

Goal SB%

KBS $5,735,437 38.81% 99.47%

FRS $394,015 58.97% 36.76%

ECS $185,172 40.61% 73.41%

Portfolio Total SB

FY15

FY15

Goal SB%

KBS $3,257,387 30.32% 5.61%

FRS $257,243 46.07% 100.00%

ECS $151,406 31.72% 46.00%

9 **As of 19 MAY 2016

9

FY15 Small Business

Small

Disadvantaged

Business

Woman Owned SB Service Disabled

Veteran Owned SB HUBZone SB

KBS $3,257,387.08 -$53,878.68 $3,466,176.41 $0.00 $0.00

FRS $257,243.12 $0.00 $0.00 $0.00 $0.00

ECS $151,405.99 $0.00 $0.00 -$5,000.00 $0.00

Total $3,666,036.19 -$53,878.68 $3,466,176.41 -$5,000.00 $0.00

FY16 YTD Small Business

Small

Disadvantaged

Business

Woman Owned SB Service Disabled

Veteran Owned SB HUBZone SB

KBS $5,735,437.42 $0.00 $0.00 $0.00 $0.00

FRS $394,014.54 $0.00 $3,295.00 $0.00 $0.00

ECS $185,172.00 $0.00 $0.00 $0.00 $0.00

Total $6,314,623.96 $0.00 $3,295.00 $0.00 $0.00

Rock Island Service Portfolio By Socioeconomic Category

**As of 19 MAY 2016

10

Rock Island Summary

• From FY11 to FY15, Rock Island awarded 40.2% of obligations to Small

Businesses

– Over $280M awarded over the last 5 years

– In FY15, Small Businesses received 31.9% of obligations

– For FY16 YTD**, Small Businesses received 82.2% of obligations

• Over the last 5 years, Rock Island has awarded the 7th most Small

Business dollars in Iowa, and the 9th most in Illinois

• Rock Island has achieved the Army-wide goal for Small Business Spending

in 4 of the last 5 fiscal years.

• Did not finish below 26%

• Missed goal in FY14 by less than 0.25%

• Most common Small Business services include:

• Vehicle Parts and Tool Manufacturing

• Admin/General Management Consulting Services

• Environmental Consulting Services

**As of 19 MAY 2016

Steven Koprince 785-200-8919

[email protected]

www.koprince.com www.smallgovcon.com Twitter @StevenKoprince

Big Changes for Small Businesses: 2016 Government Contracts Legal Update

Midwest Small Business Procurement Symposium

May 26, 2016


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Presentation Overview


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Presentation Overview

• SBA’s “Universal” Mentor-Protégé Program

• WOSB Program Changes

• The Kingdomware SDVOSB/VOSB Case

• Questions/Discussion


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SBA’s “Universal” M/P Program


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“Universal” Mentor-Protégé

• 2010 Small Business Jobs Act: – Congress authorizes (but does not require) SBA to

create mentor-protégé programs for SDVOSBs, HUBZones, and WOSBs

• 2013 NDAA:

– Congress authorizes (but does not require) SBA to create mentor-protégé programs for all small businesses

– Congress directs SBA to standardize other agencies’ mentor-protégé programs (except DoD)


[email protected]



• SBA Proposal (Feb. 5, 2015):

– Create single, “universal” mentor-protégé program

– Any firm may qualify as protégé if it is small in its primary NAICS code

• Small business may obtain formal SBA size determination to verify eligibility as protégé

– Any for-profit business (large or small) may qualify as a mentor


[email protected]




– Mentors will usually have no more than one protégé, but may have up to three with SBA permission

– Protégés will generally have no more than one mentor, but may have up to two with SBA permission

– Company cannot serve as both mentor and protégé at same time


[email protected]



• SBA Proposal (Feb. 5, 2015): – Mentor and protégé must enter into written

agreement approved by SBA • Changes must be approved by SBA

– Single mentor-protégé agreement limited to three years

– Mentor and protégé will not be deemed affiliated based on assistance provided by mentor to protégé • May still be deemed affiliated for other reasons

– Mentor and protégé may joint venture as a small business for any prime contract or subcontract for which the protégé qualifies as small


[email protected]




– Mentor-protégé JVs must adopt JV agreements containing certain mandatory provisions in order to benefit from affiliation exception

– Requirements very similar to those currently required for 8(a) JVs under 13 C.F.R. 124.513.

– Protégé must perform at least 40% of JV’s work

– Procuring agency must take into account past performance of individual JV members


[email protected]




– Agencies (other than DoD) cannot continue existing M/P programs unless approved by SBA

– Other agencies will have one year from final rule to obtain SBA approval of existing M/P programs

– SBA questions whether other agencies’ M/P programs are necessary given universal M/P Program


[email protected]



• SBA Update:

– Final rules expected Summer 2016

– Implementation expected Fall 2016

• For now, program is only a proposal, not a reality

• But now is the time to begin preparing to take full (and early) advantage)


[email protected]


WOSB Program Changes


[email protected]



• Sole Source Awards: – Authorized by 2015 NDAA

– Thresholds: $6.5 million (manufacturing); $4 million (other industries)

– Set-asides only allowed when agency does not have reasonable expectation of two competitive offers from WOSBs/EDWOSBs

– SBA final rule took effect October 14, 2015

– FAR recently updated to incorporate changes


[email protected]



• October 2014 GAO Report:

– WOSB set-asides have had “minimal impact”

– Although WOSB set-asides authorized in 2011, less than 1% of WOSB awards are set-asides

– Contracting officers dislike WOSB document repository

• Extra administrative burdens for a function COs believe should be performed by SBA


[email protected]



• 2015 NDAA:

– Congress deletes, without comment, self-certification authority for WOSB set-asides

– Regulations have yet to be amended—but can they be trusted?

– SBA is saying “business as usual” for self-certification.

• I am not so sure

• Third-party certification may be advisable


[email protected]


The Kingdomware Case


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• History: – Veterans Benefits, Health Care and Technology Act

of 2006 requires VA to establish annual goals for SDVOSB/VOSB contracting and establishes the preference in 38 USC 8127(d)

– Many veterans believed that this requirement established an across-the-board “Veterans First” policy

– VA’s initial position: VA can buy off GSA Schedule without applying “Veterans First” preference


[email protected]



• The statutory section that spawned the case: (d) Use of Restricted Competition.— Except as provided in subsections (b) and (c), for purposes of meeting the goals under subsection (a), and in accordance with this section, a contracting officer of the Department shall award contracts on the basis of competition restricted to small business concerns owned and controlled by veterans if the contracting officer has a reasonable expectation that two or more small business concerns owned and controlled by veterans will submit offers and that the award can be made at a fair and reasonable price that offers best value to the United States.


[email protected]



• History: – GAO sustains protest of VA GSA Schedule buy

made without applying preference (Aldevra, B-405271, B-405524 (Oct. 11, 2011))

– VA refuses to follow GAO recommendation

– GAO subsequently sustains 17 more protests filed by Aldevra and others


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• History: – Court of Federal Claims disagrees with GAO

(Kingdomware Technologies, Inc., v. United States, No. 12-173C (Fed. Cl. 2012))

• Court holds that statute must be construed in light of its goal-setting provisions and is “at best ambiguous” whether it mandates a preference when VA is meeting its goals.


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• History: – Court of Federal Claims upholds COFC decision

on 2-1 vote

– Dissenting justice: “the statutory provision at issue could not be clearer. It provides that contracting officers ‘shall award contracts’ on the basis of restricted competition whenever the contracting officer has a reasonable expectation that the Rule of Two will be satisfied.’


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• June 2015: Supreme Court “grants cert” and agrees to hear the case

• Case scheduled for oral argument on Nov. 9, 2015

• The issue supposedly before the Supreme Court: – Is the VA required to provide a “rule of two”

preference for SDVOSBs and VOSBs even when the VA is meeting its goals?


[email protected]



• October 1: Government abandons previously-successful “goal setting” argument

• Government’s new argument: FSS orders are not “contracts” to which preferences apply – But see: FAR 2.101 definition of “contract”

• February 2016: Oral argument held (first case without Justice Scalia)


[email protected]



• Supreme Court should issue decision by June 2016

• If Court rules in Kingdomware’s favor, it would significantly affect current VA contracting practices, to the benefit of SDVOSBs and VOSBs


[email protected]


For More Information

Steven J. Koprince

Managing Partner

(785) 200-8919

[email protected]

Visit www.smallgovcon.com to sign up for our free monthly electronic newsletter

mailto:[email protected]

http://www.smallgovcon.com/

LUNCH SPONSOR:

Rock Island Arsenal Development Group

Mr. Tim Frye

Documents

2016 Midwest Small Business Government Contracting Symposium · Government Contracting Symposium . Mr. Kenyata Wesley Acting Director DoD Office of Small Business Programs . ... Top