An Overview of SBA Contracting Programs

1. An Overview of SBA Contracting Programs

2. SBA Washington Metropolitan Area District • District of Columbia • Montgomery County, MD • Prince George’s County, MD • Fairfax County, VA • Loudoun County, VA • Arlington County, VA • Cities of Alexandria & Fairfax

3. Contracting Support U.S. Government: Federal Contracts = The World’s Largest Customer over $500 Billion + per year (FY2013)

4. Contracting Goals PROCUREMENT TARGETS: Small Businesses: 23% Service-Disabled Vets: 3% SDB: 5% $500 Billion + per year Women-owned: 5% HUBZone: 3%

5. General SBA Size Standards • Manufacturing 500 to 1,500 employees • Wholesaling 100 employees • Servicing $4.5 Million/ $35.5 Million • Retailing $7 Million / $35.5 Million • Construction $7 Million /33.5 Million • Agriculture $750,000 / $17.5 Million

6. Types of Contracting Certification Self-Certified: Small Disadvantaged Businesses Service Disabled Veteran-Owned Businesses Women-Owned Small Businesses SBA-Certified: HUBZone Empowerment Contracting Program 8(a) Business Development Program

7. Determining Economic Disadvantage SBA will examine: • Personal income for the past three years • Personal net worth • Fair market value of all assets • Spouse’s financial condition, in certain circumstances *when married, separate statements from each spouse to show each individual’s joint or community property shares and separate property

8. Small Disadvantaged Business (SDB) Eligibility Requirements • Self-certifying program through the System for Award Management(no application) • The firm must be 51% or more owned and control by one or more disadvantaged persons. • The disadvantaged person or persons must be socially disadvantaged and economically disadvantaged. • The firm must be small, according to SBA’s size standards

9. SmallDisadvantaged Veteran Owned Business (SDVOB) • Service-disabled veteran means a veteran with a disability that is service-connected. Size: Must be small according to SBA size standards Ownership: Must be at least 51% directly and unconditionally owned and controlled by one or more service-disabled veterans Documentation: Owner(s) must have rating letter from VA Status: Owner(s) must have Form DD-214 indicating honorable discharge

10. Benefit of SDVOB Program • Provide procuring agencies the authority to set acquisitions aside through CFR) 13 C.F.R. § 125.8-125.10) • Set Aside Requirements and Exemptions • The requirement is not exempted from SDVO contracting • Reasonable expectation that at least two responsible SDVO SBC will submit offers / at a fair market price. • Sole Source Contracts • If the requirement is not exempted from SDVO contracting and cannot be set-aside. • The CO does not have a reasonable expectation that at least two responsible SDVO SBCs will submit offers.

11. Women OwnedSmall Business Program • 51% owned • 83 Industry NAICS Codes • 157 Industries “Under Represented” • 217 Industries substantially under-represented • Economically Disadvantaged Women Owned Small Business (EDWOSB) • Eligible for set-aside contracts. • The next 8(a)! Section 8(m)

12. An Economically-Disadvantaged Woman-Owned Small Business (EDWOSB) is a WOSB which is owned by a woman or women whose: Personal Net Worth < $750,000 Average Annual Income < $350,000 Total Assets < $6,000,000 (including primary residenceand business) WOSB Program: EDWOSB

13. HUBZone Empowerment Contracting Program HUBZone = HistoricallyUnderutilizedBusinessZone HUBZones are defined by Census Tract, and are redefined after every 10-year National Census

14. HUBZone Requirements • Must be a small business • Concern must be owned and controlled only by US citizens • Principal office of the concern must be located in a HUBZone; and • At least 35% of the concern’s employees must reside in a HUBZone

15. HubZone and SBA’s Role • Determines which businesses are eligible to receive HUBZone contracts • Maintains a listing of qualified HUBZone small businesses that agencies can use to locate vendors • Adjudicates protests of eligibility to receive HUBZone contracts • Reports to the Congress on the program's impact on employment and investment in HUBZone areas.

16. Benefits of HUBZone • Competitive set-aside award if: • At least two responsible HUBZone small businesses will submit offers; • and the resulting contract can be awarded at a fair market price. • Sole Source contract award if: • no reasonable expectation two or more qualified HUBZone small businesses will submit offers • determines that the qualified HUBZone small business is responsible and at a fair price.

17. Benefits of HUBZone • Full and open competition witha price evaluation preference. • HUBZone concern considered lower providing that the offer is not more than 10 percent higher. For Help: • Tuesdays and Thursdays from 2-3pm ET call • Phone: 1-888-858-2144 Access Code 3061773# • Status of HubZone Application: email hubzone@sba.gov

18. 8(a) Business Development Program 9-year business development program that helps eligible socially and economically disadvantaged business owners grow and sustain their companies The 8(a) program provides: • Training in business management & marketing • Support for teaming with other companies • Access to set-aside contracting opportunities

19. 8(a) Eligibility • United States citizen • Socially & economically disadvantaged • Own unconditionally at least 51% of concern • Control & manage concern on full-time basis • Good character - not debarred, suspended, parole or probation • Two (2) years business history in primary industry classification, as shown with tax returns (may sometimes be waived) • Business must be small per SBA’s size standards

20. 8(a) Eligibility Criteria • Owner income not any greater than $250,000 • (which must not exceed $350,000) • Business owner net worth many not exceed $250,000. (which must not exceed $750,000) • Personal Net Worth less Equity in primary residence less Equity in business equals Adjusted Net Worth (which must not exceed $6,000,000) *when married, separate statements from each spouse to show each individual’s joint or community property shares and separate property.

21. For more information and to keep informed of events go to: www.sba.gov/dc