1 / 39

Breakout Session # 1905 Vida K. Castillo, Ph.D. Government Contract Manager, VLOC, Inc. 24 April 2007 1:40PM – 2

Small Business Programs: The Why and The How. Breakout Session # 1905 Vida K. Castillo, Ph.D. Government Contract Manager, VLOC, Inc. 24 April 2007 1:40PM – 2:40PM. Overview. What Is It? Historical Development Small Business Program Basics Subcontracting Plans and Reporting

caspar
Download Presentation

Breakout Session # 1905 Vida K. Castillo, Ph.D. Government Contract Manager, VLOC, Inc. 24 April 2007 1:40PM – 2

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Small Business Programs: The Why and The How Breakout Session # 1905 Vida K. Castillo, Ph.D. Government Contract Manager, VLOC, Inc. 24 April 2007 1:40PM – 2:40PM

  2. Overview • What Is It? • Historical Development • Small Business Program Basics • Subcontracting Plans and Reporting • Liabilities and Errors • Summary

  3. What is a Small Business? What is the difference between an SDB and an MBE?

  4. What Is It? • Implemented program/policy to allow maximum practicable opportunity for small business to participate in procurements • Mandated by Public Law • Makes good business sense

  5. Historical Development

  6. Historical Development • Wagner-O’Day Act of 1938 • Passed under FDR • Provided employment opportunities for people who are blind • Birth of NIB and JWOD

  7. Historical Development • Establishment of House Permanent Select Committee on Small Business • Created in 1941, 3 days before Pearl Harbor • Encouraged free competition and SB development • SB Mobilization Act of 1938 • Accounted for SB lack of economies of scale

  8. Historical Development • Armed Services Procurement Act of 1947 • Mandated that fair proportion of total Federal contracts places with SB • Implemented Armed Services Procurement Regulation • SB Act of 1953 (PL 83-163) • Temporarily created SBA

  9. Historical Development • SB Investment Act of 1958 (PL 85-536) • Made SBA permanent • Implemented SB subcontracting clause in Gov’t contracts >$10,000 • Amendment of Wagner-O’Day of 1971 • Included people with severe disabilities • Established JWOD program

  10. Historical Development • Revision of SB Act of 1978 (PL 95-507) • Required SubK plans for contracts in excess of $500K ($1M for construction) “Maximum practicable opportunities” for contracts over $100K • Established OSDBU’s • Made USPS and GAO exempt from provisions of SB Act

  11. Historical Development • National Defense Authorization Act (PL 99-661) • Established 5% minority business goal and SDB program • PL 100-180 of 1987 • Required primes to work toward 5% SDB goal in subcontracting plans • Allowed Government to withhold payment or future contracts if primes do not meet subcontracting plan goals.

  12. Historical Development • Business Opportunity Development Reform Act of 1988 (PL 100-656) • Established 20% SB goal and 5% SDB goal • Provided for assessment of liquidated damages for failure to meet goals • PL 101-144 of 1989 • Established 8% SDB goal for NASA • PL 101-189 of 1989 • Authorized Comprehensive Test Program for DoD

  13. Historical Development • National Defense Authorization act for FY1991 (PL 101-510) • Established Mentor-Protégé Program • Federal Acquisition Streamlining Act of 1994 • Established 5% WOSB goal • PL 105-56 of 1997 • Established DoD 5% Indian Incentive Program

  14. Historical Development • Small Business Reauthorization Act of 1997 (PL 105-135) • Established phased-in 3% HUBZone goal beginning with 1% in FY99 • Increased SB goal to 23% • Federal Acquisition Circular of 1998 • Made SDB certification by SBA mandatory • Mandated that primes track SDBs by SIC

  15. Historical Development • Veteran’s Entrepreneurship and Small Business Development Act of 1999 (PL 106-50) • Established SDVOSB (and VOSB) goal of 3% • Ronald W. Reagan National Defense Authorization Act for FY 2005 (PL 108-375) • Provided for adjustment every 5 years of acquisition-related thresholds (Section 807)

  16. Historical Development • Effective 04 Oct 2006, prime contractor subcontracting plan floor increased to $550,000 • Remains $1M for construction • Due to Sec 807, PL 108-375, providing for adjustments of acquisition-related thresholds every 5 years

  17. Historical Development - Summary * No goal, but SDVOSB counts + Credited in SDB goals

  18. Small Business Program Basics

  19. Small Business Program Basics • Small Business Liaison Officer • Appointed position • Duties defined in FAR 52.219-9

  20. Small Business Program Basics • SBLO Responsibilities • Concentrate on maximizing business opportunities for SB within corporation • Maintain contract, policy, and procedural compliance • Ensure awareness and understanding

  21. Small Business Program Basics • SBLO Basic Duties • Act as SB resource • Establish goals for organization and/or for subk plans • Issue reports on progress • Participate in outreach events • Develop corporate procedures • Maintain compliance • Develop source lists

  22. Small Business Program Basics • SB Program Development • Develop and post SB Policy • Devise method to capture/report SB data • Drive efforts to utilize and develop SB • Develop corporate training • Establish advocacy team

  23. Subcontracting Plans and Reporting

  24. Subcontracting Plan • Contractor plan to forecast anticipated procurement by SB type • Outline of procedures to achieve goals • Required for contracts >$550K (or >$1M for construction) – FAR 19.702 • Not required for SB or contracts performed entirely outside US and outlying areas

  25. Subcontracting Plan • Four types of plans • Individual plan • FAR 19.704 (a) • Covers entire contract period for specific contract • Master plan • FAR 19.704 (b) • Covers all contracts for 3 years • Specific goals negotiated by contract

  26. Subcontracting Plan • Four types of plans (cont’d) • Commercial plan • FAR 19.704(d) • Covers all production for company fiscal year • Comprehensive plan • DFARS 219.702(a) • Covers company wide goals for company fiscal year

  27. Subcontracting Plan • Subcontracting Goals • Projected goals listed in SubK plan • Statutory percentage goals established through PL • “Goaling Guidelines for the Small Business Preference Programs for Prime and Subcontract Federal Procurement Goals and Achievements (www.sba.gov/GC/goals/ggtotal71503.pdf)

  28. Subcontracting Plan • 11 Elements of Subcontracting Plan (FAR 19.7) • Goals • Subcontracted dollars • Supplies/services to be subcontracted • Method to develop goals • Method to identify sources for solicitation

  29. Subcontracting Plan • 11 Elements of Subcontracting Plan (cont’d) • Statement indicating whether indirect costs included • Name of program administrator • Description of efforts • Inclusion of flow-down clause • Reports • Records

  30. Reporting • Electronic Subcontracting Reporting System (eSRS) • Web-based reporting system to replace SF294 and SF295 • Government-wide • SBA = system steward • Linked to CCR, FPDS-NG, DUNS

  31. Reporting • Contract with subcontracting plan • Entered into FPDS-NG • Automatically received into eSRS • Reports covered • ISR (SF294) and SSR (SF295) • Year-end SDB Supplementary Reports • SDB Participation Report (SF312)

  32. Reporting • System Features • Calculates % of contract value • Calculates % of subcontracted value • Breaks out subcontracting data to buying activity level • Generates several standard reports • Generates reminders and delinquent notices

  33. Reporting • Troubleshooting eSRS • Email help@esrs.gov for technical questions regarding eSRS • SBA answers questions on SubK policy • Agency Coordinator of awarding agency addresses other problems or issues • CCR Assistance Center (888-227-2423) • Contracting Officer handles FPDS-NG issues

  34. Liabilities and Errors • Liquidated Damages • Willful or intentional failure to meet goal (19.701) • LD clause must be in contract (52.219-16) • Not applicable for Comprehensive plans • Damages equal to dollar amount by which goal was not achieved

  35. Liabilities and Errors • Common Errors • Missing goals • Calculated incorrectly • Goals for option years not included • Goals below required levels without justification

  36. Liabilities and Errors • Common Errors (cont’d) • No explanation why planned purchases to LB cannot go to SB • Failure to list all types of supplies and services • No assurance that SubK plans and reports will be required from qualifying subcontractors

  37. Summary • Small business program initiatives date back at least to 1938 • Current goals reflect changes due to many public laws • Small Business Program gives maximum practicable opportunities to SB’s

  38. Summary (continued) • Subcontracting plan content specified in FAR 19 • Reporting on SubK plan goals transitioning from SF’s 294 and 295 to eSRS • More to come in this exciting and important field!

More Related