NDIA Small Business Workshop26 Aug 05

Presented by Leona Fitzpatrick HQ AFSPC/MSKM

Small Business

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Overview

• North American Industrial Classification System (NAICS) selection

• Small Business Set-Aside Requirements

• Small Business Goal Establishment • AFSPC Goals/Achievements • Small Business Subcontracting

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NAICS Selection

• NAICS was developed jointly by the U.S., Canada, and Mexico to provide comparability in statistics about business activity across North America

• NAICS codes are used to establish the size standards for individual contracting actions

• The contracting officer, in consultation with the small business specialist, determines the appropriate NAICS code that applies to the acquisition and identifies it and the small business size standard in each solicitation • An analysis of each procurement is done to determine what the

majority of the requirements are for the acquisition• For CAASETA and N2A2S, an analysis of previous task orders was

accomplished to determine the majority of the work

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NAICS Selection--What is a “Small Business ”

Based on the NAICS of the procurement. Examples:

Less Than• A&E $4M • Food Mess Attendant $17.5M • Grounds Maintenance $6M

• (1 or 2 functions)• Facilities Support/Base Maint $30M

• (3 or more functions)• Wired Telecommunication Carriers (C4I2SR) 1,500 employees• Research and Development in the

Physical, Engineering, and Life Sciences for Space Vehicles and Guided Missiles (CAASETA) 1,000 employees

• Other Management Consultant Services $6M (N2A2S)

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Set-Aside Requirements

• All acquisitions between $2,500 and $100,000 are automatically set-aside for small business (except construction)

• All acquisitions over $100,000 shall be set-aside for small business when there are two or more qualified firms who have the technical capability or productive capacity to provide the product or service (except construction)

SBA concurrence required on all actions $10,000 and above

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Goal Establishment

• Congress establishes government wide goals: • 23% SB • 5% SDB• 5% WOSB • 3% HUBZone • 3% SDVOSB

• DOD receives goals• DoD assigns goals to agencies

• Agencies assign goals to MAJCOMS

• MAJCOMS allocate goals to wings

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Quantitative Goals--How is AFSPC doing?

FY02 Actual FY03 Actual FY04 ActualFY05 Actual (Oct-Jun)

Total Obs $4.7B $5.1B $5.8B $3.6B

SB $ $523.3M $610.8M $631.5M $509.9M

SB 12.3% 11.9% 10.88% 13.20% 14.08%SDB 4.9% 6.1% 4.52% 6.00% 5.41%WOSB 3.9% 2.0% 1.46% 3.50% 1.94%HUBZone 0.5% 0.8% 0.65% 1.00% 0.54%SDVOSB 0.1% 0.2% 0.11% 0.30% 0.17%

FY05 Goal

SB Small BusinessSDB Small Disadvantaged BusinessWOSB Woman Owned Small BusinessHUBZone Historically Underutilized Business ZoneSDVOSB Service-Disabled Veteran Owned Small Business

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FY05 – AFSPC Units

FY05 Goals

FY05 Actuals

FY05 Goals

FY05 Actuals

FY05 Goals

FY05 Actuals

FY05 Goals

FY05 Actuals FY05 Goals

FY05 Actuals

Sm Busn 48.80% 53.54% 84.00% 95.38% 30.00% 28.30% 28.50% 32.07% 83.10% 96.51%

SDB 12.60% 13.43% 25.00% 17.86% 18.70% 15.81% 20.85% 27.54% 32.50% 53.05%

WOSB 8.10% 11.40% 13.60% 16.75% 2.40% 1.80% 4.30% 0.08% 11.00% 25.29%

HUBZone 2.40% 1.17% 1.50% 0.77% 3.00% 2.35% 3.30% 0.55% 7.00% 19.44%

SDVOSB 0.60% 0.37% 1.30% 0.02% 0.80% 0.01% 1.20% 0.37% 7.00% 21.01%

FY05 Goals

FY05 Actuals

FY05 Goals

FY05 Actuals

FY05 Goals

FY05 Actuals

FY05 Goals

FY05 Actuals FY05 Goals

FY05 Actuals

Sm Busn 82.00% 73.75% 81.00% 73.15% 85.00% ** 2.00% 2.40% 13.20% 14.08%SDB 15.00% 21.50% 52.00% 48.99% 25.00% 13.05% 1.40% 0.64% 6.00% 5.41%WOSB 15.90% 9.54% 4.00% 4.27% 10.13% 0.49% 0.60% 0.37% 3.50% 1.94%HUBZone 22.70% 17.55% 4.00% 1.56% 6.60% 0.08% 0.01% 0.00% 1.00% 0.54%SDVOSB 3.00% 0.61% 0.50% 3.35% 0.50% 0.00% 0.03% 0.001% 0.30% 0.17%

21SW 30 SW 45SW

AFSPC

50SW 90SW

SMC341SW 460SW 61 ABG

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Small Business Subcontracting

• There are no government wide small business subcontracting goals

• AFSPC policy is to require minimum levels of small business subcontracting goals on full and open source selections

• Goals based on market research

• Achievement of Small Business Subcontracting goals is evaluated on all procurements over $500K

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Small Business Subcontracting

• Increased emphasis on small business subcontracting

• New electronic reporting system being implemented spring 2006

• Contractor Performance Assessment Reports (CPARS) captures small business subcontracting goal achievement for large business