Federal Government Small Business Contracting Programs

2. Federal Government Small Business Contracting Programs Lucy Leu, Procurement Center Representative (PCR), San Diego, CA

3. Objectives Small Business Set-Asides Historically Underutilized Business Zone (HUBZone) Program Woman-Owned Small Business (WOSB) Program Service-Disabled Veteran-Owned (SDEVOSB) Program Small Business Programs Helping Large Businesses Non-Manufacture Rule and Subcontracting Global Markets

4. U.S. Small Business Administration 3 C’s Contracting (PCRs!) Procurement Center Representative Counseling Credit PCR Main Function: Assist Procurement Centers to ensure maximum opportunities for small businesses in Federal Procurement

5. Set-Asides for Small Business(how they work) Federal Procurements Size Determination Socioeconomic Status Marketing A Small business Set-Aside is the reserving of an acquisition exclusively for participation by small business concerns North American Industry Classification Systems Codes (NAICS codes) Example: Architectural Services 541310 $8 Mil The Small Business Act specifies various socioeconomic Programs which allow for more specific Set-Asides. (8(a), HUBZone, SDVOSB, WOSB) YES!! PLEASE DO

6. Set-Aside for Certification Programs and Socio-Economic Categories Small Business (23%) HUBZone Businesses (3%) Women-Owned Small Businesses (5%) Service-Disabled Veteran-Owned Small Businesses (3%) Small Disadvantaged Businesses (including 8(a) certified) (5%) Set-asides are reserved for small business between $3,500 (Micro- purchase Threshold) to $250,000 (Simplified Acquisition Threshold) Targeted set-asides and acquisition goals:

7. EMPLOYMENT OPPORTUNITIES What is a HUBZone?Historically Underutilized Business Zone HUBZone Program Purpose HUBZone ECONOMIC LEVERAGE CAPITAL INVESTMENT

8. HUBZone Eligibility and Requirements 51% owned by U.S. Citizens Ownership Located in a HUBZone Principal Office 35% of employees in HUBZone 35% Residency SBA size standards Size Review HUBZone locations HUBZone Location

9. More on HUBZone Set-Asides 1 2 Eligibility NAICS and Fair and Reasonable Price • SB for the NAICS being used. • Awarded at a fair and reasonable price. • SBA Certified. • Providing the product mfg by a HUBZone SB (no waivers). 4 3 Sole Source Sole Source/Competitive Only (1) HUBZone that can perform/supply • SS: NTE $7M for manufacturing or NTE $4M for all others

10. WOSB Eligibility and Requirements 51 % ownership requirements Highest officer position No minimum time in business Proper NAICS codes Manage daily operations Managerial experience

11. More on WOSB and EDWOSB Set-Asides 1 2 Certification, NAICS Code Fair and Reasonable Price • WOSB Program Repository. • Awarded at a fair and reasonable price. • Certified via third party. • Specific NAICS codes. • Mfg by WOSB/EDWOSB unless under SAP, then SB mfg 4 3 Sole Source Sole Source/Competitive Only (1) WOSB/EDWOSB that can perform • SS: NTE $6.5M for manufacturing or $4M for all others

12. WOSB and EDWOSB Set-Aside Contracts Industry WOSB EDWOSB NAICS code assigned to contract is in an industry where WOSBs are substantially underrepresented NAICS code assigned to contract is in an industry where EDWOSBs are underrepresented Industries Rule of Two Award Price Rule of Two Contracting officer has reasonable expectation that 2 or more WOSBs/EDWOSBs will submit an offer Award Price Contract must be awarded at fair market price Insext Here

13. SDVOSB Eligibility and Requirements 51 % ownership requirements Manage daily operations Highest officer position Proper NAICS codes Managerial experience

14. More on SDVOSB Set-Asides 1 2 Certification Fair and Reasonable Price • Awarded at a fair and reasonable price • Self-certification. Providing the product mfg by SDVOSB. 4 3 Sole Source Sole Source /Competitive Only (1)SDVOSB that can perform • SS: NTE $6.5M for manufacturing or $4M for all others

15. Large Businesses / Small Businesses Non-Manufacture Rule Subcontracting Program Non-Manufacturer Rule allows a SB to provide a product manufactured by another SB on a SBSA procurement. * All Contracts over SAT: Maximum opportunity for SB participation. * All Contracts awarded to LB over $700K: require a SB Subcontracting Plan (DOD 33%) Exceptions to the Non-Manufacture Rule SBA Waiver List Individual (one time) SBA Waiver Under the SAT ($250K) - can be a pre-award evaluation factor - can be “suggested” by the awarding activity - Performance and compliance will be evaluated and documented in CPARs for consideration on future acquisitions Subcontracting Authorized SB Distributors. LB Special Pricing to SB Distributors.

16. Small Business Subcontracting Plans When and Why What’s Required • Contracts Over $700 • Awarded to “other than small • business” • With Subcontracting Opportunities • ----------------------------------- • To provide opportunities to • SBs • Evaluation Factor in source • selection • Evaluation in Past Utilization • of SBs • Win/Win for both firms Federal Acquisition Regulations (FAR) 19.704 * goals, categories, supplies/services, administrator and 15 other requirements * most common types: Individual, Commercial * Twice a year reports * Different from a SB Utilization Plan * Incorporated into contract Reviewed by SBA PCR Subcontracting DoD Goal 33%

17. Exports/Imports96% of consumers live outside the US Training SBA webpage – Taking your business global – An Introduction to exporting • Finance Programs • Export Express Loan • Export Working Capital • Loan • International Trade Loan Trade Resources SBA Office of International Trade (OIT) State Trade Expansion Program (STEP) Export.gov Why/Why Not See above. can be complicated, Trade Agreement Laws, changes More Information: Cindy Harris, 619 727-4884, cynthia.harris@sba.gov

18. Questions ??? ??? ??? ??? ??? Lucy Leu, SBA PCR, jane.leu@sba.gov, (619) 727-4882 18