Subcontracting Opportunities for Small Businesses in Federal Procurement

1. Subcontracting Opportunities Presented by Ms. Marichu Relativo Procurement Center Representative (PCR) Office of Government Contracting (GC) -- advocates on behalf of small business in the federal procurement world. www.sba.gov

2. Government Procurement Basic Rules www.sba.gov

3. Registration Requirement • Federal Government Requirement • Mandatory for Prime Contractors • Optional for Subcontractors • Accessible World-wide • Utilized to Seek Sources • Free Marketing & Advertisement Website: https://www.bpn.gov/ccr/ www.sba.gov

4. Small Business Programs • Self-Certification in CCR • Small Business – NAICS Codes • Woman-owned Business • Veteran-owned Business • Service Disabled Veteran-owned Business • Small Disadvantaged Business (SDB) • Certification Approved by SBA • 8(a) Business Development • HUBZone www.sba.gov

5. Government-wide Small Business Goals Set-aside a percentage of contract dollars to: • Small Business – 23% • Woman Owned (SWOSB) – 5% • Disabled Veteran Owned (SDVOSB) – 3% • HUBZone – 3% • 8(a)/SDB – 5% www.sba.gov

6. Prime / Subcontractor Partnerships Joint Ventures (JV) Mentor-Protégé (SBA/DoD) Teaming Arrangements FAR 9.601: “Contractor team arrangement,” means an arrangement in which -- (1) Two or more companies form a partnership or joint venture to act as a potential prime contractor; or (2) A potential prime contractor agrees with one or more other companies to have them act as its subcontractors under a specified Government contract or acquisition program. www.sba.gov

7. Self-Perform Rule • Small Business as Prime Contractor • Required to self-perform per 52.219-14: Limitation on Subcontracting (FAR) • Construction – 15% • Services – 50% • Supplier – 50% • Specialty Trade – 25% • Percentage based on labor dollars www.sba.gov

8. Subcontracting Plan • Required for large business • Dollar threshold • Contract or contract modification exceed $650K ($1.5M for construction of facility) • Subcontracting Possibilities • Contract appears to offer subcontracting possibilities www.sba.gov

9. Subcontracting Plan • The prime contractor must submit a plan to the agency for approval prior to contract award • The plan must identify the goals by percentage/dollar amount to subcontract (HUBZone, 8(a), SWOSB, SDVOSB, and SB) • The agency & SBA monitors the plan throughout the life of the contract • The prime contractor submits subcontracting report electronically (eSRS) • Penalty for not following the plan • Charge the prime liquidated damages (LD) or fee equal to the actual dollar amount by which the contractor failed to achieve each goal www.sba.gov

10. Where to Find Subcontracting Opportunities? www.sba.gov

11. Subcontracting Opportunities http://web.sba.gov/subnet Prime Contracts www.sba.gov

12. FedBizOpps -- FBO www.fbo.gov/ or www.fedbizopps.gov www.sba.gov

13. FedBizOpps Search Watch Demonstration Videos www.sba.gov

14. Set Up Search Criteria www.sba.gov

15. Contact the firm directly www.sba.gov

16. FedBizOpps.gov Agency Forecasts www.sba.gov

17. Procurement Forecast Use pull down menu and select the agency . http://www.acqnet.gov/comp/procurement_forecasts/index.html www.sba.gov

18. DoD Website Click to obtain DOD-wide listing www.sba.gov

19. Alaska Prime Contractor List Contact the prime contractors and market your firm http://www.acq.osd.mil/osbp/doing_business/Subcontracting_Directory_0908.pdf www.sba.gov

20. Prime Contracts Awarded Contracts by Agencies Opportunities for Subcontracting Work www.sba.gov

21. Prime Contracts Awarded Prime Contracts & Infinite Delivery/Infinite Quantity (IDIQ) • MATOC – Multiple Award Task Order Contract • MACC – Multiple Award Construction Contract • HERC – Heavy Engineering, Repair & Construction Contract • JOC – Job Order Contract (minor construction/repair/rehab) • SABER – Simplified Acquisition of Base Engineer Requirements • BOSS – Base Operations Support Services • ERS – Environmental Remediation Services • FSS – Federal Supply Schedule • GSA – General Supply Schedule See the list of prime contracts www.sba.gov

22. SBA SUB-Net http://web.sba.gov/subnet www.sba.gov

23. FedBizOpps.gov SBA SUB-Net www.sba.gov

24. Subcontracting Network (SUB-Net) Reference handouts www.sba.gov

25. SBA SUB-Net Search www.sba.gov

26. Subcontracting Opportunities by State Click on the Company Name for More Information www.sba.gov

27. Links to Other Sources www.sba.gov

28. Select the state www.sba.gov

29. SUB-Net Results www.sba.gov

30. You Got the Contract –Now what?

31. Tips for Subcontractors • Understand the terms and conditions of the your contract with the prime • Inquiry about method of payment (in the contract document) • Agree on the payment terms prior to work begins • Questions to ask regarding payment: • How and when will I receive compensation? • What is the paperwork process? • What are my options for payment? • Will I be paid via Electronic Funds Transfer (EFT)? • Will I receive progress payments (for percentage of contract completion)? • Will I receive partial payments (for partial delivery of usable items)? • Will I receive payment via government credit cards? www.sba.gov

32. Tips for Subcontractors • Other questions subcontractors should ask the Prime include: • How much can I rely on the prime contractor for special tools, engineering advice, information on manufacturing methods, etc.? • How will quality control and inspection procedures be applied to my subcontract? • What are the special requirements to access the sites, facilities, military installations? • Will I be able to obtain a past performance survey after completion of work? www.sba.gov

33. Tips for Prime Contractors • Ensure your subcontractors understand the terms and conditions of the contract prior to work begins • Discuss any special requirements to access the sites, facilities, military installations • Have a discussion with your subcontractors about method of payment and what paperwork, if any, should be filled out prior to payment. • Both prime and subcontractors should keep records of payments • Ensure your subcontractors provide the necessary information to their subcontractors (payment, access to the site, etc.) www.sba.gov

34. Recovery / Stimulus Projects • General Information: http://www.recovery.gov/ • Projects listed in FedBizOpps: https://www.fbo.gov/index?s=opportunity&tab=searchresults&mode=list&_filt=rec_na&cck=1&au=&ck • State of Alaska: http://omb.alaska.gov/10_omb/budget/IndexEconomicStimulus.htm • SBA: http://www.sba.gov/ www.sba.gov

35. Subcontracting Resources • FedBizOpps –http://www.fedbizopps.gov/ • Procurement Technical Assistance Center (PTAC) –http://www.dla.mil/db/procure.htm • SBA Subcontracting Opportunities Directory –http://www.sba.gov/aboutsba/sbaporgrams/gc/contacts/index.html • Electronic Subcontracting Reporting System (eSRS) –http://www.esrs.gov/ • SBA Subnet –http://web.sba.gov/subnet • Defense Link ($5M award notices) –http://www.defenselink.mil/contracts • Subcontracting Opportunities with DoD Major Prime Contractors –http://www.acq.osd.mil.osb/doing_buisness/index.htm • Companies Participating in DoD Subcontracting Program Report (p14) http://siadapp.dmdc.osd.mil/procurement/historical_reports/statistics/procstat.html • DAU Small Business Community of Practice (SB COP) –https://acc.dau.mil/smallbuisness www.sba.gov

36. 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 www.sba.gov

37. Thank you Questions? Marichu Relativo Tel: 907-271-2297 Email: marichu.relativo@sba.gov http://www.sba.gov/aboutsba/sbaprograms/gcbd/index.html http://www.sba.gov/ www.sba.gov