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SBA Procurement Update and Surety Bonding U.S. Small Business Administration Syracuse District Office Septemb

SBA Procurement Update and Surety Bonding U.S. Small Business Administration Syracuse District Office September 20, 2011. Background. SBA was created in 1953 Syracuse DO and Elmira BO serve 34 counties of NYS SBA provides federal programs for: Financing Business counseling

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SBA Procurement Update and Surety Bonding U.S. Small Business Administration Syracuse District Office Septemb

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  1. SBA Procurement Update and Surety Bonding U.S. Small Business Administration Syracuse District Office September 20, 2011

  2. Background SBA was created in 1953 • Syracuse DO and Elmira BO serve 34 counties of NYS • SBA provides federal programs for: • Financing • Business counseling • Internet resources • www.sba.gov • Government contracting

  3. Federal Self Certifications • Self-Certifications • Small Business – NAICS Codes • Woman-owned Business (WOSB) • Economically Disadvantaged Woman- owned Small Business (EDWOSB) • Minority owned • Veteran-owned Business • Service Disabled Veteran-owned Business

  4. Formal Certifications • Requires SBA Approval • 8(a) - Socially and economically disadvantaged firms enrolled in a 9-year business development program. • HUBZone - Small businesses located in areas identified as historically underutilized business zones, and with 35% of its employees living in HUBZones.

  5. 8(a) Business Development • Must be certified by the SBA • Application starts at www.sba.gov • Processed in King of Prussia, PA • Must be a small business • Potential for success criteria • Includes record of contract performance • Must be in business for 2-years - waiver is possible. • 8(a) firms are serviced by local district office and are reviewed annually for program eligibility. • 9-year term - no renewals.

  6. 8(a) Business Development • Must be 51% owned and controlled by a U.S. citizen who is socially and economically disadvantaged • Designated minority groups are presumed to be socially disadvantaged, others must demonstrate by preponderance of the evidence • Economically disadvantaged: • Net worth less than $250,000 • Average income less than $250,000 • Total assets less than $4.0 Million • Disadvantaged owner must have highest position in firm, be highest paid individual, and provide day-to-day full time management

  7. 8(a) Business Development • Sole-source and competitive set asides benefits • 8(a) firm self markets to agencies. • Agencies send Offering letter to district office for review for sole source ($4.0 million or $6.5 million mfg.) or competitive award for 8(a) firms only. • Sole source letter to firm’s SBA servicing office if a specific firm is nominated. • Open and competitive letters to office where agency is located. • Construction open and competitive to office where work will be performed. • Geographic limitation will apply.

  8. 8(a) Business Development • Sole-source and competitive set asides benefits (continued) • SBA issues Acceptance letters for eligible 8(a) firm or competitive requirement. • Agency and 8(a) firm negotiate contract. • SBA does not execute contract documents as long as MOU in place – delegated authority. • Agency send copy of executed contract/award to SBA servicing office. • Agencies monitor compliance with subcontracting requirements. • Notify SBA if violation of ostensible contractor rule.

  9. HUBZone Program • Historically Underutilized Business Zones (HUBZone) • Must be certified by SBA - no term limits • Principal office must be in a HUBZone • www.sba.gov/hubzone has mapping system • 35% of employees must live in a HUBZone • 51% owned and controlled by a U.S. citizen • Full documentation required • HUBZone HELP desk 202-205-8885 • Parity with other procurement preference programs

  10. HUBZone Program HUBZone areas: • A qualified census tract (QCT) – based on an IRS provision for low income housing in conjunction with HUD. HUD designates the qualified census tracts. • A qualified county(QNMC) – not located in a metropolitan statistical area in which median household income is below a calculated rate derived from Bureau of Labor Statistics data. • A qualified Indian reservation – Indian Country as defined by BIA. • A former military base closed by the Base Realignment and Closure Act (BRAC).

  11. HUBZone Program Contracting • Sole Source Awards – only 1 HUBZone firm available, price must be fair/reasonable, price of contract is less than $6.5 million for manufacturing or $4.0 million for all others. • Set-aside Awards – competition restricted to HUBZone firms if contracting officer has reasonable expectation that 2 or more HUBZone firms will submit offers and award at fair market price. • Full/Open Competition – HUBZone firm has a 10% price preference over a large business. • Subcontracting Opportunities – no statutory percentage goal, usually set at 3% annual goal.

  12. HUBZone Program Changes • Redesignated HUBZones changes effective 10/1/2011 • “Grandfathered” by Congress in 2004 until 2010 census data released. • E-mail sent Sept 1 to HUBZone firms advising of changes • 10/1/2011 all certified QCT & QNMC firms located in a redesignated HUBZone that has expired will be proposed for decertification – 30 days to respond. • Firms will be able to complete HUBZone contracts in progress • A firm must be qualified at time of initial offer and at time of award to be eligible for HUBZone contract (FAR clauses 51.219-3 and 52.219-4)

  13. Service-Disabled Veteran-Owned Small Business Procurement Program • Created by Veterans Benefit Act of 2003 • Applies to purchases over $3,000 • Self Certified on CCR • VA determines Service Disability • VA website (vetbiz.gov) hosts the Vender Information Pages (VIP) database for firms eligible for VA’s Veteran-Owned Small Business Program • No term limits • Competitive and sole source program benefits • Sole source only when one SDVOSB can satisfy requirement • Acquisitions may be set aside for competition among SDVOSB if two or more firms can compete and award at fair market price • Subcontracting and Prime Contracting goals

  14. Women-Owned Small Business Final Rule – effective 2/4/2011 • 83 Four digit NAICS codes are eligible • WOSB • Woman/Women Directly Own (51% or more), Control & Manage Daily Operations • Woman/Women must be U.S. Citizens • Must hold highest officer position &manage full time • Economically Disadvantaged WOSB • Plus • Net Worth < $750,000 • Income not exceeding $350,000 (3-year average) • Fair market value all assets not exceeding $6.0 million • Spousal assets must be reviewed

  15. Women-Owned Small Business CERTIFICATIONS • Self Certification • Must register in CCR and ORCA certifications • Upload required documents to the WOSB Repository • Contracting officer will have 120 days to verify (FAR 19.15) • Third Party Certifier • National entity approved by SBA • SBA does not certify firms • Contracting – Federal agencies may set aside a requirement for WOSB or EDWOSB for competition if less than $4.0 million ($6.0 if mfg.) • www.sba.gov/wosb • Contracting Officer’s Guide

  16. SBA Surety Bond Guarantee • SBA does not issue bonds directly to a contractor. SBA guarantees bonds issued by a surety company. • Contractor must select a participating surety company or bonding agent (who represents a surety company). List available at www.sba.gov. • Individual contracts of $2.0 million or less are eligible for bond guarantee. • Surety/agent underwrites bonds and decides whether to or not apply to SBA. • Final and bid bond applications have a processing fee.

  17. SBA Surety Bond Guarantee Two types of guarantee programs: • Prior Approval program • Submit applications by paper or electronically through the E-Application (E-App) • Available 24 hours a day and seven day a week. • Preferred Program • Paper only application • Contact surety or agent directly to discuss application requirements

  18. SBA Surety Bond Guarantee Electronic bond application (E-App) process • Prior to inputting your first application you must be associated with a participating surety bond agency or surety branch office. The association is done by the agent/branch and is the “contractor initialization”. • Register for account in SBA’s General Log-in System (GLS). • Contractors Welcome screen displays for 1st Bond Application for set up and submission of business, principal, bond and contract information. • Save and Submit application to agent. • Print sign and mail to agent. • Agent submits application to SBA in Denver, CO.

  19. More Information www.sba.gov • 8(a) BD and HUBZone applications start in site • WOSB and SDVOSB information • Contracting tab has information for Contracting Officials: • Size • Non-manufacturer waivers • Report fraud, waste, and abuse • Protests • Small Business goaling • And more

  20. Contact Information James Quackenbush Business Development Specialist Syracuse District Office 315-471-9393, x252 james.quackenbush@sba.gov

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