Breakout Session # 704 Patricia Downing GSA Account Manager Aronson & Company Date April 26, 2005 Time 11:00 –

2. Ways Large Businesses Can Make the Grade in Small Business Utilization Breakout Session # 704 Patricia Downing GSA Account Manager Aronson & Company Date April 26, 2005 Time 11:00 – 12:00 NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

3. FAR Small Business Subcontracting Plan Requirements • FAR Part 19 and the Small Business Act (Public Law 85-836) contain regulations that require large business compliance • Federal Government procurements that exceed $500,000 ($1,000,000 for construction) require a small business subcontracting plan from large businesses NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

4. What are the small business subcontracting program compliance requirements? • Proposal Stage – Plan • Award Stage: • Tracking • Reporting • Good Faith Efforts • Closeout Stage – Final Reports NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

5. Small Business Subcontracting Plan • Must demonstrate • the contractor’s commitment to utilize small businesses of all types • The contractor’s willingness to provide opportunities for the specific small businesses targeted in the plan • Detail the contractor’s interpretation of good faith efforts NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

6. Small Business Subcontracting Plan • Plan Model – varies by agency • Generally includes the following: • Type of plan • Commercial, Individual or Master • Plan Period • Base, Option or Life of Contract • Goals • Dollars and Percentages of Total Subcontracted Value NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

7. Small Business Subcontracting Plan • Primary NAICS codes • For each subcontracting entity • Generally identified in the RFP • Matrix • Lists each subcontracting entity • Shows each small business category under which the entity is qualified • May list services or products the entity will provide • Indirect costs • included or excluded from plan dollars NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

8. Small Business Subcontracting Plan • Identification of Program Administrator • Duties of Program Administrator • Reporting Requirements • Record Keeping • Good Faith Efforts • List activities to demonstrate efforts • References Liquidated Damages Clause invoked when goals are not met and a good faith effort is not evident NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

9. Small Business Subcontracting Plan • Plan submitted with proposal • Plan may have an evaluation factor • Plan must be accepted prior to award • Plan is open to negotiation prior to award • Contract will not be awarded if a plan that is acceptable to both parties cannot be agreed upon NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

10. Award Stage – Reporting • Goal achievement is reported semi-annually to the Federal Government • SF 294 is the standard reporting mechanism utilized by most Federal agencies • Due 30 days after the end of the reporting period • Due dates: April 30 and October 30 NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

11. Award Stage – Reporting • SF 294 includes the following: • Dollars expended during the specified 6 month period • Cumulative dollars expended over the life of the contract including the current reporting period • Percentages of total dollars for each category NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

12. Award Stage – Reporting • SF 295 – Due Annually • 30 Days after the end of the Government Year • Due October 30th • A cumulative report of all subcontracted dollars • One report per agency • Agency is highest level of agency for example: • NIH, CDC, NCI should all roll up into one report for DHHS NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

13. Award Stage – Reporting • OF 312 - Optional Form 312 • If listed as a contract requirement….. It is NOT optional! • Due upon Contract completion • Reports Goal Achievements by NAICS over life of contract • Closeout • Final reports should be submitted for the SF294, SF295 and OF 312 (if required) as soon as the contract ends NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

14. Award Stage – Reporting & Tracking • In order to report – you must track • Tracking begins at the Proposal Stage • All proposed subcontractors shall self-certify their size status during the proposal stage • All business that state they are either a HUBZone or SDB must be certified by SBA • Self-certification is not acceptable for these two small business categories NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

15. Award Stage – Reporting & Tracking • Re-certification of each business’s size classification should be done as often as the contract or regulations require • This can be as often as annually • Business size certification can be as complicated as an officially signed Representations and Certifications document or as simple as a signed statement on company letterhead NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

16. Award Stage – Reporting & Tracking • The mechanism chosen for businesses to self certify should contain the following: • Small business types that must be reported • Penalty clause for providing false information • Point of contact • Signature of party providing information NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

17. Award Stage – Reporting & Tracking • Certification documents should be updated at regular intervals • Certification documents should be retained in a central location in either hard copy form or electronically • Documents should be readily available for audit by SBA and/or other agencies NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

18. Award Stage –Reporting & Tracking • Documents will be checked by SBA for: • Consistency of data collection • Data reporting across all vendors • The information collected by these documents should be entered either into a database or the accounting system for ease of reporting NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

19. Award Stage – Reporting & Tracking • Any vendor used on a contract can be reported on the SF 294 and SF295 whether or not they were included in the original plan • Each vendor/subcontractor’s dollars may be reported multiple times • If a business qualifies as a SDB & WOSB their dollars will be reported under each category NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

20. Award Stage – Reporting & Tracking The “Remarks” section of SF 294 should be used as a place to report successes and especially difficulties the contractor has faced in meeting the goals of their plan. This can play an important role when faced with failure to meet the established goals. NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

21. Good Faith Efforts Protect yourself and your company: DOCUMENT! DOCUMENT! DOCUMENT! NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

22. Good Faith Efforts • Paper your files with documentation on the following: • Basis of subcontract awards: • Competitive bids, sole source, etc. • Justifications for sole source awards • Justifications for not awarding to small businesses • Resources used to locate a business • Reasons for not using a small business that appears to meet the requirements NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

23. Good Faith Efforts • Other necessary documentation includes: • Completing the “Remarks” section of the SF294 each reporting period with notes on progress or lack of progress in meeting goals • Any contact with the various resources available, i.e. CMR, SBA, OSDBU, etc. NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

24. Good Faith Efforts Failure to meet goals and failure to demonstrate “Good Faith Efforts” will result in the application of the Liquidated Damages clause. “The amount of damages attributable to the contractor’s failure to comply shall be an amount equal to the actual dollar amount by which the contractor failed to achieve each subcontracting goal.” FAR 19.705-7(b) NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

25. Other Ways to Gain a Competitive Edge • Become active in Business Organizations such as: • Your local Chamber of Commerce • Professional Groups that share your businesses interests and goals • Local small business outreach centers NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

26. Other Ways to Gain a Competitive Edge Contact the SBA Contact the OSDBU at each agency where you have a working relationship Offer to help small business become subcontractors with your company or others Participate in Mentor-Protégé programs Establish Joint Ventures NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

27. Policies • Establish written policies and procedures for: • Procurement • Training of purchasing personnel • Documentation • Tracking and reporting of Goal Achievement NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

28. A+ Follow these guidelines and your organization can make the grade in Small Business Utilization! NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

29. Resources • SBA website: http://www.sba.gov • AcqNet: http://www.arnet.gov • CCR: http://www.ccr.gov • DoD OSDBU: http://www.acq.osd.mil.sadbu • Matthew J. Downs, Esq. (301) 838-9500, matthewdwns@aol.com Patricia Downing Aronson & Company(301) 222-8227 NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”