U.S. Small Business Administration Government Contracting Assistance WWW.SBA.GOV/GC

1. U.S. Small Business AdministrationGovernment Contracting AssistanceWWW.SBA.GOV/GC

2. Doing Business with the Government • The U.S. Federal Government is the largest buyer of products and services in the world. The Federal Government: • Makes more than 20 million sales transactions annually. • Spends more than $200 billion each year on goods and services. • The Federal Government has special goals to purchase goods and services from small businesses. These goals flow down to large prime contractors providing subcontracting opportunities for small business contractors.

3. SBA’s Goal is to: • Increase small business participation • Level the playing field

4. What is a small business? • Organized for profit, with a place of business in the United States, and which operates primarily within the United States or makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor.  Further, the concern cannot be dominant in its field, on a national basis.  Finally, the concern must meet the numerical small business size standard for its industry.  SBA has established a size standard for most industries in the U.S. economy.  The most common size standards are as follow: • 500 employees for most manufacturing and mining industries • 100 employees for all wholesale trade industries • $6 million for most retail and service industries • $28.5 million for most general & heavy construction industries • $12 million for all special trade contractors • $0.75 million for most agricultural industries • Visit www.sba.gov/size/indextableofsize.html to research your business size standard

5. Preparing to Enter Government Contracting • Know your customer – Research and market federal agencies and prime contractors and demonstrate how your product or service can help THEM be successful • Know your competition – Research the strengths and weaknesses of your competitors and how your company compares. • Be patient – Building relationships takes time. Be prepared for a lot of work with little results in the first few years. Also, the federal procurement process takes time and it will take some time before you hear the results of an award. Be careful to plan accordingly when expending resources to respond to solicitations.

6. Preparing to Enter Government Contracting (continued) • Educate yourself – Learn the rules and regulations of federal contracting ahead of time and know what is expected of you if you are the successful bidder • Get your business ready • Have an established commercial customer base • Be adequately capitalized • Have established quality control measures • Demonstrate through past experiences that your company can deliver a quality product/service on time and at a fair price • Internet access and capability is a MUST

7. Prime Contract Program • SBA procurement center representatives (PCRs) • Review contracting actions for possible set-asides • Review subcontracting plans • Recommend small business contractors • Counsel small businesses • For a list of PCRs nationwide visit:www.Sba.Gov/gc/pcr.Html

8. Subcontracting Assistance Program • SBA commercial market representatives (CMRs) • Identify opportunities for small business • Conduct program reviews • Counsel small businesses • For a list of CMRs nationwide visit: www.Sba.Gov/gc/indexcontacts-cmrs.Html

9. Certificate of Competency (COC) Program • Appeal process for small business on a specific contract • SBA conducts independent review (technical and financial) • Contracting Officer must accept decision • Contact: Janette Fasano, Area Director • Phone: (617) 565-5662 • Email: janette.fasano@sba.gov

10. Size Determination Program • Set-asides and programs rely on honor system • Program provides a check & balance system • SBA conducts independent review when questioned: • Protest must be timely • SBA Decision is Final • Contact: Janette Fasano, Area Director • Phone: (617) 565-5662 • Email: janette.fasano@sba.gov

11. HUBZone Empowerment Contracting Program A community-based economic development program to stimulate: Job creation Capital Investment -- in distressed localities

12. Purpose of the HUBZone Program • Provide Federal contracting assistance to qualified small business concerns located in distressed areas or HUBZones to: • Increase employment opportunities • Stimulate capital investment in those areas • Empower communities through economic leveraging and the “multiplier effect.”

13. Qualified Areas Three categories -- Urban, Rural, Native American • Urban = Metropolitan Area Census Tracts (HUD) - 7,000 • Rural = Non-metropolitan Counties - 900 • Median household income is less than 80% of the non-metropolitan state level (Census) • Unemployment rate that is greater than 140% of the state-wide average (BLS) • Native American = All federally recognized Indian reservations as defined by external boundary

14. How do you qualify? • Meet these four requirements: • Must be a small business • Primary business location must be located in an identified census tract or county • 35% of employees must reside in an identified HUBZone area • Business must be owned at least 51% by US Citizens, Community Development Corp., or Indian Tribe

15. The Certification Process • Visit www.sba.gov/hubzone to apply for a Userid and Password for SBA’s General Login System (GLS) • You must have: • An active up-to-date Dun and Bradstreet profile and DUNS number • An active CCR profile that establishes a primary NAICS Code • Logon to HUBZone online application with GLS userid and password • Processing time - 30 days maximum

16. Types of Contract Assistance for HUBZone Firms • Set-aside awards • Sole source awards • Awards through full and open competition after application of a price preference in favor of the HUBZone SBC • Subcontracting Opportunities

17. HUBZone Set-Aside Procedures • HUBZone set-asides to be considered before HUBZone sole-source awards or small business set-asides • Contract officer may set-aside acquisitions exceeding the Micro Purchase and below the Simplified Acquisition Threshold • If contract officer declines set aside for HUBZone above $100K, then SBA procurement staff can launch appeal process

18. HUBZone Sole SourceContract Awards • Anticipated award price, including options will not exceed: • $5 million - manufacturing • $3 million - all other NAICS Codes • Two or more qualified HUBZone firms are not likely to submit offers • A HUBZone firm is a responsible contractor to perform the proposed contract

19. Full and Open Competition Price Evaluation Preference • A HUBZone firm can displace the apparent low offeror (other than another small buisness) if its price is not more than 10% higher than the otherwise lowest, responsive and responsible offeror

20. SubcontractingRequirements • There is no specified HUBZone goal for subcontracting, however... • For most large contracts (over $500,000 or $1 million construction), large business contractors must create a subcontracting plan reflecting HUBZone firm participation • Factors into the firm’s ‘Past Performance’ analysis on future contracting actions

21. Other SBA Certifications • 8(a) Program • SBA Certification program for small businesses owned by “socially and economically disadvantaged” business owners • Contract benefits: Set-Aside or Sole Source Contracting • For more information, visit www.sba.gov/8abd • For access to the on-line application and guide, visit https://sba8a.symplicity.com/applicants/guide

22. What are the 8(a) Participant Requirements? • Must be a small business concern that demonstrated potential for success (minimum of 2 years of operation) • Must be 51% unconditionally owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of the U.S. • Social disadv.- refers to individuals who (beyond their control) have been subjected to racial or ethnic prejudice or cultural bias because of their group membership identity • Economically disadv. – refers to socially disadvantaged individuals with an impaired ability to compete in the free enterprise system because of diminished capital and credit opportunities. Personal net worth must be less than $250,000 excluding equity in personal residence and business • Firms that have not been in business for 2 years do not meet potential for success, but may seek a waiver of the requirement by meeting certain conditions.

23. Term of 8(a) Participation • Companies can participate in the program for a maximum of 9 years, in two stages: • DEVELOPMENTAL STAGE -the first 4 years -assist 8(a) certified firms overcome their economic disadvantage by providing business development assistance; • TRANSITIONAL STAGE -the next 5 years -designed to prepare participant firms for the competitive marketplace.

24. Support for Government Contractors Access to capital Management and technical assistance Access to Surplus Property One-on-one counseling assistance Marketing and Outreach assistance Procurement assistance Participation in the Mentor/Protégé Program Why the 8(a) Program? Benefits of 8(a) Program Participation

25. Resources • CCR “Dynamic Small Business Search” • Internet-based vendor database with over 200,000 companies • Integrated with SBA’s Pro-Net System • Registration is required if you want to do business w/govt • Contains company profile (goods, services provided and contact info), EFT information, and past performance. • Marketing tool for small business • Resource for contracting officers • To register your business on CCR visit: www.ccr.gov • SUB-Net • Listing of subcontracting opportunities • Identifies concrete opportunities for small businesses to pursue • To view the current list visit: http://web.sba.gov/subnet/

26. SBA Partner • NH-Procurement Technical Assistance Program (NH-PTAP) • Partnership between State of NH and Dept of Defense • Training & Counseling • Bid Matching • http://www.nheconomy.com/nheconomy/ptac • Contact: • Chris Way, Program Manager cway@dred.state.nh.us • Martha Keene – Business Counselor Mkeene@dred.state.nh.us • Holly Wheatley – Training Coordinator Hwheatley@dred.state.nh.us • (603) 271-7581

27. Questions? • Rachael Roderick, SBA NH District Office • (603) 225-1603 • Rachael.Roderick@SBA.gov