Traditional Procurement Programs

2. Traditional Procurement Programs Full and Open Competition Unrestricted Small Business Set Aside Small business set-a-sides 8(a) HUBZONE Service Disabled Veteran Owned Woman-owned Business (Pending) Prime contractor Sub-contract Program

3. Federal Procurement Goals Federal procurement goals provide agencies with a strong incentive to look for qualified small businesses when awarding contracts. Explore: SBA Certification Programs Self-certification Programs

4. Special Emphasis Groups 23% overall small business goal Woman-owned small businesses 5% goal Proposed rule published March 4, 2010 Robust certification in ORCA Service Disabled Veterans 3% goal Register in www.vetbiz.gov Restricted competition

5. SBA Certification Programs SBA programs assist specific groups in securing federal contracts: Historically Underutilized Business Zone Program (HUBZone) 8(a) Business Development Program

6. Section 8(a) Business Development Program Owned and controlled by socially and economically disadvantaged U.S. Citizens Personal net worth may not exceed $250,000 51% unconditionally owned by disadvantaged individuals Nine years Two-year rule Automatically certified SDB https://eweb.sba.gov/gls/dsp_login.cfm

7. HUBZONE Program Historically Underutilized Business Zone Empowerment contracting program Provide Federal contracting assistance Increase employment opportunities Stimulate capital investment Electronic application 3% goal

8. HUBZONE Program Requirements Principal office physical location: Within one or more qualified census tracts, or Qualified non-metropolitan counties, or Federally recognized Indian reservation Exclusively owned and controlled by U.S. Citizens At least 35% of employees reside in a Hubzone

9. HUBZONE Contractual Assistance HUBZONE set-aside contracts Sole source and competitive Price evaluation preference Subcontracting opportunities 3% Federal contracting goal www.sba.gov/hubzone to apply https://eweb.sba.gov/gls/dsp_login.cfm

10. How Does the SBA Help MeBecome a Government Contractor? Procurement Forecasts www.sba.gov/gc Resources and Opportunities Federal Agency Procurement Forecasts 1. Procurement Forecast 2. Select Agency

11. Small Business Training Network – a virtual campus Business Opportunities: A Guide to Winning Federal Contracts Free, online “how-to” courses on federal procurement procedures www.sba.gov/training

12. Identify Subcontracting Opportunities Teaming with a prime contractor can be a profitable experience. Experience gained as a subcontractor helps youin bidding on prime contracts. SBA’s SUB-Net searchable database posts subcontracting opportunities. www.sba.gov/gc SUB-NET

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14. 14 SBA’s Role SBA provides – Bid Bond Payment Bond Performance Bond Gives sureties an incentive to provide bonding Strengthens contractors ability Increases access to contracting opportunities SBA assumes percentage of loss

15. 15 SBA’s Role Cont’d Guarantee bonds for contracts up to $2.0 Million – Note: Under 2009 Recovery Act, up to $5.0 and $10.0 until September 30, 2010 Reimburse surety for losses incurred Prior Approval Program – SBA Guarantees 90% of losses on bonds up to $100,000 on bonds to certified 8(a) and SDB firms; 80% on all other bonds Preferred Surety Bond (PSB) – 70% Guarantee SBA’s bonds do not cover subcontractors

16. 16 SBA Surety Bond Guarantee Program - Agent reviews application, recommend to surety company for approval Package sent to SBA/SBG Area Office for evaluation SBA issues guarantee to surety company Surety company must be certified by U.S. Treasury Designed for smaller, less experienced firms

17. 17 Contractor’s Eligibility Requirements Small business Independently owned and operated Possess good reputation Not debarred or suspended No default on previously SBA guaranteed bonds U.S. Citizen or registered legal alien Ensure satisfactory performance of contract Contract cannot exceed $2.0 Million - Note: Under 2009 Recovery Act, up to $5.0 and $10.0 until September 30, 2010 Apply for a specific bond

18. 18 Contractor’s Responsibilities Prequalification Checklist Organizational Chart Resumes Business Plan Work in Progress Continuity or Completion Plan Line of Credit Letters of Recommendation

19. 19 What Do Bonds Cost? No charge for bid bonds SBA processing fee of $7.29 per thousand dollars of the guaranteed amount Surety bond premiums range from one-half of one percent to two percent of the contract amount Factors considered: size, type, duration of project, contractor

20. 20 SBA Surety Bond Guarantee Program Typical Contractor Profile Start-up firms Under 3 years in business Marginal financial resources Working capital Equity Losing year okay Leveraged No prior bonded project experience Changing specialty Marginal credit history Note: we provide guarantees to many existing, medium size firms

21. Is Becoming a Government Contractor Right for You? Can you spend the time required to identify agencies and buyers? Can your business financially support the costs involved in a government contract? Are you prepared to learn and follow the federal procurement rules?

22. Getting Started –Registering with the CCR The Central Contractor Registration is an online database of companies wanting to do business with the federal government. Buying agencies can search the CCR for vendors. Creating and updating your small business profile in CCR gives your firm access to contracting opportunities. www.ccr.gov

23. Getting Started –the Dynamic Small Business Search From CCR, enter your business profile in SBA’s Dynamic Small Business Search database. Using the DSBS, agencies can quickly identify potential small business vendors.

24. Jo Ann LawrenceLouisiana District Office 365 Canal Street, Suite 2820 New Orleans, LA 70130 jo.lawrence3@sba.gov 504-589-6688