“SBA 1 st First Wednesday Virtual Learning 2016”

1. “SBA 1st First Wednesday Virtual Learning 2016” “Exceeding Your Goals” • “Supporting Service-Disabled Veterans with Federal Contracts” • Keith Waye, Procurement Center Representative SBA Office of Government Contracting, Area I, New England sbalearning@sba.gov

2. Presenter: Keith Waye • Procurement Center Representative (PCR) SBA Office of Government Contracting, Area I • Augusta, ME 04330 • (207) 622-8554 • Keith.Waye@sba.gov • Dwight A. Johnson, PCR SBA Office of Government Contracting, Area IV, Omaha sbalearning@sba.gov (402) 221-7206 • Janis Kaiser, PCR SBA Office of Government Contracting, Area IV, Chicago janis.kaiser@sba.gov (312) 353-7442

3. SBA Area Directors, Office of Government Contracting(https://www.sba.gov/content/pcr-area-directors Size protests FAR Part 19.3 SBA staff FAR Part 19.4 Certificates of Competency FAR Part 19.6 Subcontracting plans FAR Part 19.7 Reminders: Use the correct NAICS codes for Women-Owned Small Business set-asides. Check www.sba.gov/wosb. SBA approves JVs for 8(a) only. Caution.“There are firms that offer fee for services to assist small businesses in a variety of ways. Registration in SAM, proposal preparations, certifications (not authorized by SBA) assistance in getting on GSA Federal Supply Schedules and so forth. No government official should be promoting any individual business’ services or products as this implies endorsement of one firm over all others. The government has to remain impartial.  If you come across something that you think is great, encourage that firm to market itself, but do not market on their behalf.  The government, through the Department of Defense established the Procurement Technical Assistance Program (PTAP) who have centers throughout the country that do provide this and many other services – most of which are at no cost to a firm.”  

4. Welcome to “SBA Virtual Learning 2016” • Questions answered during the final 10 minutes. Or contact sbalearning@sba.gov any time. • Technical problems? Contact the moderator with a note or call AT&T Connect Support at 1-888-796-6118. • Page numbers stated for those working of hard copies of the program. • We cover the “SBA Quick Reference” as time allows. • Participation is limited to federal acquisition and related staff, SBA, and Procurement Technical Assistance Center (PTAC)staff. Your nearest PTAC: (http://www.aptac-us.org/)

5. Association of Procurement Technical Assistance Centers - Beta site for hosting past “1st Wednesday” programing Check this out for past programs: http://www.aptac-us.org/for-contracting-officers-sba-webinar-library/ Contracting officer resources: “How PTACs partner with federal agencies”: http://www.aptac-us.org/federal-partners/

6. 1102 FIRST WEDNESDAY VIRTUAL LEARNING SERIES 2016”9:30 to 10:30 Central Time

7. One Continuous Learning Point • Self-service: Fill in your name on the certificate slide and save. • Phoning in only? Send an email immediately to sbalearning@sba.gov to verify your participation. If you listen in groups, send emails fo participants in an excel document. • Post program email. This contains a time sensitive .wmv recording, a transcript of the program, along with another copy of the program PowerPoint. • Welcome and thank-you for your support of small business.

8. What we are going to cover • It is a matter of control: Program eligibility requirements • Subcontracting and joint ventures • SDVOSB contract types • How size and status protests work

9. SDVOSB Legislative Background • Public Law 106-50 (1999) • Required Agencies to Establish 3% SDVOSB Goal • Public Law 108-183 (2003) • Established Set-Asides for SDVOSBS • Executive Order 13360 (2004) • Support SDVOSB Contracting Opportunities • Mandated Federal Agency Strategic Plan

10. A Service-Disabled Veteran Owned Small Business definition • FAR 2: “Service-disabled veteran-owned small business concern”— • (1) Means a small business concern— • Not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more service-disabled veterans; and • The management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case of a service-disabled veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran. • 2) Service-disabled veteran means a veteran, as defined in 38 U.S.C. 101(2), with a disability that is service-connected, as defined in 38 U.S.C. 101(16).

11. Control 13 CFR 125.9: Who does SBA consider to own an SDVOSB? (a) Ownership must be direct. Ownership by one or more service disabled veterans must be direct ownership. A concern owned principally by another business entity that is in turn owned and controlled by one or more service-disabled veterans does not meet this requirement.

12. Control 13 CFR 125.10: Who does SBA consider to control an SDVO SBC? (a) General. To be an eligible SDVO SBC, the management and daily business operations of the concern must be controlled by one or more service-disabled veterans.. Control by one or more service-disabled veterans means that both the long-term decisions making and the day-to-day management and administration of the business operations must be conducted by one or more service-disabled veterans...

13. Control 13 CFR 125.10: Who does SBA consider to control an SDVO SBC? (b) Managerial position and experience. A service-disabled veteran... must hold the highest officer position in the concern (usually President or Chief Executive Officer) and must have managerial experience of the extent and complexity needed to run the concern.

14. 13 CFR 125.15. What requirements must an SDVO SBC meet to submit an offer on a contract? • Representation of SDVO SBC status. An SDVO SBC must submit the following representations with its initial offer (which includes price) on a specific contract: (1) It is an SDVO SBC; (2) It is small under the NAICS code assigned to the procurement; (3) It will meet the percentage of work requirements set forth in Sec. 125.6; (4) If applicable, it is an eligible joint venture; and (5) If applicable, it is an eligible nonmanufacturer.

15. What we are going to cover • It is a matter of control: Program eligibility requirements • Subcontracting and joint ventures • SDVOSB contract types • How size and status protests work

16. Wrong one for SDVOSB: Limitations on subcontracting for SB set-asides, 8(a), and WOSB: FAR 52.219-14 (Nov 2011) (referenced at FAR 19.508) - 13 CFR 125.6 Responsibility compliance” SBA Certificate of Competency: 13CFR §125.5. FAR 19.6

17. Correct at 52.219-27: Notice of Total Service-Disabled Veteran-Owned Small Business Set-Aside (NOV 2011) Responsibility compliance” SBA Certificate of Competency: 13CFR §125.5. FAR 19.6

18. Small business joint venture (JV) definition: • An association of individuals and/or concerns with interests in any degree or proportion by way of contract, express or implied, • Consorting to engage in and carry out no more than three specific or limited-purpose business ventures for joint profit over a two year period (“3-2 rule”: Three JV submissions in two years.) • Combining efforts, property, money, skill, or knowledge, • But not on a continuing or permanent basis for conducting business generally. SBA size regulations: 13 CFR 121.103(h)

19. And furthermore - A small business joint venture – • Represents the formation of a new small business • Consists only of small businesses • Self-certifies that it is “small” • Is subject to the regulations as they govern small business – just like any other small business • Is reviewed by the contracting officer, not SBA. (Except for 8(a)).

20. Is the business or JV small? • NAICS (North American Industry Classification System) code for the acquisition • SBA size standard: Three year average annual revenues • SBA size standard: Number of employees over the last 12 months • Combine total revenues or employees determine size.

21. Exceptions to every rule Size regs at 13 CFR 121.103(h)(3): • Where the procurement is too large for small business to compete. (Bundling). • Large procurements - size standards: • Greater than half of the size of the revenue-based size standard. • Over $10 million for employee-based size standard.

22. SDVOSB joint venture eligibility • SDVOSB must manage the venture. Managing partner. (Control.) • SDVOSB receives at least 51% of profits • See 13 CFR 125.15(b)(2) for SDVOSB JV content

23. Any small business must be registered in SAM/Dynamic Small Business Search as it is required to do business in the name of the JV 13 CFR 121.103(h)…. For purposes of this provision and in order to facilitate tracking of the number of contract awards made to a joint venture, a joint venture must be in writing and must do business under its own name….

24. May 2014 FAR change to validate size: FAR 4.18—Commercial and Government Entity Code and clauses – JV must be registered in SAM/DSBS https://www.federalregister.gov/articles/2014/05/30/2014-12387/federal-acquisition-regulation-commercial-and-government-entity-code • FAR 52.204-16, provides information on obtaining CAGE codes and requires the offeror to include its CAGE code with its proposal. • FAR 52.204-17 requires the offeror to identify if it is owned by another entity and, if so, to provide the legal name and CAGE code of such entity. • FAR 52.204-18, provides instructions on maintaining accurate CAGE information in the CAGE file and requires the contractor to inform its contracting officer if its CAGE code changes.

25. Parity among programs Parity among small business programs means set-aside choice is a business decision based upon market research and goals: FAR 19.203  Relationship among small business programs. (d) In determining which socioeconomic program to use for an acquisition, the contracting officer should consider, at a minimum— (1) Results of market research that was done to determine if there are socioeconomic firms capable of satisfying the agency's requirement; and (2) Agency progress in fulfilling its small business goals.

26. Parity, continued

27. Set-aside requirements • The contracting officer considers setting aside the requirement for 8(a), HUBZone, or SDVOSB participation before considering setting aside the requirement as a small business set-aside. • There is a reasonable expectation that at least two responsible SDVO SBCs will submit offers (Rule of Two). • The award can be made at a fair market price. May award if only 1 firm responds If no offers, cancel and do a SB set-aside 13 CFR § 125.19/FAR Part 19.1405(a) – (b)

28. Exclusions • Federal Prison Industries • Javits-Wagner-O’Day Organizations • IDIQ Task Orders • Federal Supply Schedule Sources. * • Requirements Currently in 8(a) Program, unless SBA releases the requirement from the 8(a) Program * See FAR 8.405-5 for set-aside procedure

29. SDBVOSB and VOSB comes first under Vet First link:http://www.vip.vetbiz.gov/general_user/help/about.asp Vet First registration applies only to VA acquisitions

30. SDVOSB sole source • Considered along with 8(a) and HUBZone, before small business or unrestricted. • There is not a reasonable expectation that at least two responsible SDVOSBs will submit offers. • The award can be made at a fair market price. • The anticipated award price of the contract, including options, will not exceed. $6.5M for manufacturing requirements $4.0M for all other requirements/ 13 CFR § 125.20 FAR 19.1406

31. Sole source set-aside limitations for 8(a) and HUBZone - $7M and $4M

32. Market Research – try harder • Where are the SDVOSB businesses? • Check http://web.sba.gov/pro-net/search/dsp_dsbs.cfm •  Service Disabled Veteran Owned Veteran Owned (including Service Disabled Veteran Owned) • Use NAICS codes or keywords to begin the search

33. Market Research, Continued • FEDBIZOPS - at WWW.FBO.GOV • Has this been purchased in the past? • Review the interested vendors list? • Was there an award announced? Who was it awarded to and for what amount? • FBO is only one market research tool

34. Market Research, continued • Federal Procurement Data System FPDS-NG • Good source for finding past awards • Can drill down to SDVOSB and VO Businesses to target • Can search by NAICS and description • Fpds.gov

35. Market Research, Continued • Systems for Award Management at www.sam.gov • Use the advanced search screen to target SDVOSB businesses and than use the NAICS code to further discriminate • Thomas on-line registry www.thomasnet.com • Do searches by suppliers or product sourcing

36. Non-manufacturers (FAR 19.102(f)) SDVOSB: • Does not exceed 500 employees • Is primarily engaged in the wholesale or retail trade • Sells to the general public • Supplies the end item of a small business (unless requirement is waived by the SBA Administrator) • Compliance: CoC at FAR 19.6 13 CFR § 125.15(c) 13 CFR 121.406(b)(1) FAR Part 19.1403(d)

37. VA coordination with SBA through form 2268 FAR 19.402:  Small Business Administration procurement center representatives.

38. What we are going to cover • It is a matter of control: Program eligibility requirements • Subcontracting and joint ventures • SDVOSB contract types • How size and status protests work

39. SBA Protests: Both size and SDVOSB status - Procurement specific Filed by interested parties – other offerors Must contain justification for the protest Filed within close of fifth business day Forwarded to contracting officer Contracting officer forwards to SBA SBA and contracting officer may protest at any time

40. Size Protests Regulations: FAR 19.302(c) (1) and 13 C.F.R. 121.1002 Size protests are decided by the SBA's Government Contracting Area Office serving the geographical area where the protested firm is located. Check - http://www.sba.gov/aboutsba/sbaprograms/gc/contacts/index.html

41. SDVOSB status protests Regulations at FAR 19.302 and 13 CFR § 125.25 (d) Submitted to the SBA in Washington

42. Vets First Contracting handles its own status protests as it does its own certification at: http://www.va.gov/OSDBU/entrepreneur/vetsFirst.asp

43. Subcontracting plans contain a goal for veterans-owned small business* FAR 52.219 (d). The offeror’s subcontracting plan shall include the following: Goals, expressed…for the use of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns as subcontractors. *Remember to send plans to the SBA Area Office

44. “SBA 1st First Wednesday Virtual Learning 2016” “Exceeding Your Goals” • “Supporting Service-Disabled Veterans with Federal Contracts” • Keith Waye, Procurement Center Representative SBA Office of Government Contracting, Area I, New England sbalearning@sba.gov

45. ”SBA Quick Reference: Whom to Contact for What”

46. Dynamic Small Business Search Dynamic Small Business Search is alive and well. Link: http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm

47. Summary of CFR regulations • SBA size regulations 13 CFR Part 121 • HUBZone regulations 13 CFR 126.616 • SBA Certificate of Competency 13 CFR 125.5 • Service-disabled veteran 13 CFR 125.15(b) • 8(a) and SDB regulations 13 CFR 124.513 • Small disadvantaged business 13 CFR 124.1002(f) • WOSB Program 13 CFR 127 • SBA Prime Contracting 13 CFR 125.2 • SBA Subcontracting 13 CFR 125.3

48. A. SBA Government Contracting Area Offices B. SBA Procurement Center Representatives (PCRs) C. SBA Commercial Market Representatives (CMRs) D. SBA District Offices E. SBA Headquarters FIVE TYPES OF SBA CONTACTS & OFFICES

49. Six SBA Government Contracting Areas at https://www.sba.gov/content/pcr-directory

50. A. SBA Quick Reference - SBA Area Offices 1. Size protests (with recertification) FAR 19.302 13 CFR 121.1001 13 CFR 121.1010 2. Locating nearest SBA staffer FAR 19.4 3. Certificate of Competency FAR 19.6 13 CFR 125.5 4. COC Limitations on Subcontracting Compliance FAR 19.601 13 CFR 125.6(f) 5. Receiving copies subcontracting plans FAR 19.705-6 50