Hubzones and 8a

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U.S. Small Business
Administration

Government Contracting
Assistance



WWW.SBA.GOV/GC

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
.

SBA’s Goal is to:


Increase small business
participation


Level the playing field

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



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.

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


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



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


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


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





HUBZone Empowerment
Contracting Program


A community
-
based economic
development program to stimulate:


Job creation


Capital Investment


--

in
distressed

localities

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.”

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


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


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


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


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

HUBZone Sole Source

Contract 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

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


Subcontracting

Requirements


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


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


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.

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.

Why the 8(a) Program?



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

Benefits of 8(a) Program Participation

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/

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






Questions?


Rachael Roderick, SBA NH District Office


(603) 225
-
1603


Rachael.Roderick@SBA.gov