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Breakout Session # 705 Denise M. Benjamin Acting Associate Administrator

Maximizing the use of Small Business Contracting Programs. Breakout Session # 705 Denise M. Benjamin Acting Associate Administrator Office of Government Contracting U.S. Small Business Administration April 26, 2005 1:30 – 2:30 p.m . . Objectives.

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Breakout Session # 705 Denise M. Benjamin Acting Associate Administrator

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  1. Maximizing the use of Small Business Contracting Programs Breakout Session #705 Denise M. Benjamin Acting Associate Administrator Office of Government Contracting U.S. Small Business Administration April 26, 2005 1:30 – 2:30 p.m. NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  2. Objectives • Discuss underlying principles of Small Business Goaling Program. • Describe major contracting mechanisms to achieve prime contracting goals. • Identify strategies for maximizing small business contracting goal achievements. NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  3. Why Worry about Small Business? • Government Policy Over Several Decades • Numerous Statutes, especially the Small Business Act of 1958 • Required under SBA implementing regulations • Mandated under the Federal Acquisition Regulation NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  4. Government-wide Procurement Goals (Section 15(g) of the Small Business Act) • Small Business (SB) - 23% • Small Disadvantaged Business (SDB) - 5% • Women-Owned Small Business (WOSB) - 5% • HUBZone Small Business - 3% • Service-Disabled Veteran-Owned SB - 3% NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  5. Government-Wide Small Business Achievements FY 02-03 NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  6. Government-Wide Small Business Goals & Achievements FY 03 (%$) NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  7. Goals & Achievement by Agency– FY 03 NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  8. Small Business Procurement Mechanisms • Contracts awarded under the 8(a) Business Development program • HUBZone program • Service-Disabled Veteran-Owned Small Business program • Small Business Set-Asides NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  9. 8(a) BD Program • Characterized as a business development program • SBA certifies firms as eligible 8(a) BD program participants • Firms are entitled to contract assistance based on sole source and limited competition contracts NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  10. Qualifications for 8(a) Program Participation • At least 51% unconditional ownership and control by socially and economically disadvantaged individual • Disadvantaged owner must be a U.S. citizen • Disadvantaged owner must have good character • Firm must be small based on primary NAICS code • Firm must have the potential for success NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  11. HUBZone Program • Provide Federal contracting assistance for qualified small business concerns located in historically underutilized business zones (HUBZones) to: • Increase employment opportunities • Stimulate capital investment in those areas • Empower communities through economic leveraging and the “multiplier effect NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  12. HUBZone Program Eligibility Requirements • Must be a small business • Concern must be at least 51% owned and controlled by U.S. citizens • Principal office of the concern must be located in a HUBZone • At least 35% of the concerns employees must reside in a HUBZone NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  13. HUBZone Program Statutory Changes Effective December 8, 2005 • Expanded ownership eligibility requirements • Expand HUBZone designation requirements for non-metropolitan (rural) counties • Extend HUBZone designation to military base closure areas • Extend HUBZone designations until after 2010 census released • Expand 35% HUBZone residency requirement for Tribally-owned concerns NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  14. HUBZone Procurement Mechanism • Sole source awards • Limited competition awards reserved for certified HUBZone firms • Awards through full and open competition after application of the price evaluation preference in favor of HUBZone concerns NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  15. Service-Disabled Veteran-Owned Small Business (SDVOSB) Program • Implements Section 308 of the Veterans Benefits Act of 2003 (Public Law 108-183) • Interim Final Rule published on May 5, 2004 • SBA Final Rule published concurrently with FAR change on March 23, 2005 NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  16. SDVOSB Program • Establishes a procurement program to assist Federal agencies in achieving the 3 percent government-wide goal for SDVOSBs • SDVOSBs self-certify their status NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  17. SDVOSB Procurement Mechanism • May reserve contracts for competition by SDVOSBs • May award a sole source contract to a SDVOSB if the contract price will not exceed $5 million for manufacturing contracts or $3 million for all other contracts NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  18. Understand Relationship Between Available Contracting Mechanisms • Must consider set aside for 8(a), HUBZone and SDVOSB before setting aside for small business generally • Should consider progress in achieving specific small business goals NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  19. Maximize Goal Achievements by Awarding to business with Multiple Eligibilities • May count an award to more than one small business category at a time • Identify awardees that satisfy multiple small business categories NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  20. Consider Small business Teams for Potential Small Business Sources • Teaming allows several companies lacking capacity or diversity to compete for larger contracts • Provides access to capital and technical expertise of larger companies • Allows businesses to gain experience in new areas of work • Enhances cost competitiveness NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  21. Verify Eligibility of Small Business Awardees • Interface between SBA’s database and Central Contractor Registration (CCR) • Dynamic Small Business Search” button on the CCR Home Page points the user back to SBA’s database for this purpose • Anticipated final SBA rule on recertification of small business status expected NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  22. Treat Contracting Goals as Minimum Targets Rather than Ceilings • The policy of the U.S. is to ensure that small businesses have the maximum practicable opportunity to participate in providing goods and services to the government • The Small Business Act requires a goal of not less than 23 percent of the total value of all prime contract awards for each fiscal year. NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

  23. Useful SBA Web Sites • SBA – www.sba.gov • HUBZone – www.sba.gov/hubzone • SDB – www.sba.gov/sdb • 8(a) – www.sba.gov/8abd • SBA Offices of Government Contracting – www.sba.gov/GC/indexcontacts.html • Women: www.womenbiz.gov NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

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