Federal Business Small Business Liaison Officer (SBLO) 101 and 102 Training DoD Western Regional...

Federal Business

Small Business Liaison Officer (SBLO) 101 and 102 Training

DoD Western Regional Council for Small Business Education and Advocacy

Raul AlvaradoSBLO – The Boeing Company

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SMALL BUSINESS TRAINING

SBLO 101 SBLO 102

• AGENDA• Common Acronyms• Why?• Categories of Small

Businesses• Reporting Requirements• Small Business

Subcontracting Plans

• AGENDA• Small Business

Subcontracting Plans• Small Business Compliance

Reviews• DLA 640• SBA Preparation

Checklist • Management

Commitment• Training

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Common Acronyms

• NAICS• SIC• SB• LB• SDB• WOSB• HUBZONE• VOSB• SDVOSB• FAR• DFAR• SBA• ID/IQ

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WHY SMALL BUSINESS

• Amendment to SB Act (PL 95-507) - Passed in 1978 • Required Federal agencies to establish small business

goals and provide an explanation to Congress when goals were not met.

• Established a OSDBU Office at each contracting agency• Redefined minority firms as “Socially and Economically

Disadvantaged Small Business Concerns” • Established subcontracting plan for large businesses• Reserved all awards under $25,000 for small business

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WORLD OF SMALL BUSINESS

SMALL BUSINESS

SMALL DISADVANTAGED

BUSINESS (SDB)

VETERAN OWNED

WOMAN OWNED

HUBZone

8(a) SMALL BUSINESS

SERVICE DISABLED

VETERAN OWNED BUSINESS

Historically Black Colleges & Universities and Minority

Institutions (HBCU/MI)

Javits-Wagner O’Day (JWOD)

AbilityOne

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SMALL DISADVANTAGED (SDB)

• Socially Disadvantaged• Presumed to be socially, racially, ethnically, or culturally disadvantaged

or subjected to racial or ethnic prejudice or cultural bias• African Americans• Hispanic Americans• Native Americans• Asian Pacific Americans• Subcontinent Asian Americans• Other minorities as defined by the SBA

13 CFR 124.1002

• Economically disadvantaged• Individuals denied access to capital and credit opportunities because of

their identification as a member of a specific group

• Personal Net worth must be less than $750,000 excepting• Ownership by the principal(s) in the firm• Equity in the primary personal residence

DEFINITION - A SDB is small business firm that is 51% owned, operated and managed on a daily basis by individuals who are socially and economically disadvantaged.

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SMALL DISADVANTAGED BUSINESS

• To represent itself as a SDB for Federal contracting, a firm must have:• Submitted application to

the SBA

• Received certification from the SBA that it is a SDB

• For reporting purposes, a firm may not self-certify as a SDB -- if the SDB firm is NOT in the SBA’s database (http://dsbs.sba.gov/dsbs/dsp_dsbs.cfm), then the firm is not counted as SDB.

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SBA’s 8(a) BUSINESS DEVELOPMENT PROGRAM

Two-stage program:• Developmental stage

• First 4 years• Emphasis on sole source contracts• Strengthen financial & managerial skills• Improve access to markets

• Transitional stageTransitional stage• Last 5 yearsLast 5 years• Emphasis on competitionEmphasis on competition• Overcome remaining elements of economic disadvantageOvercome remaining elements of economic disadvantage• Prepare to graduate programPrepare to graduate program

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WHO IS ELIGIBLE FOR THE 8(a) PROGRAM?

• Individuals who have been certified by the SBA as socially disadvantaged (refer to the previous SDB statement) and,

• Economically disadvantaged• Personal & business finances examined• Access to capital/credit• Entry level - less than $250,000 in personal net worth• Rises as they progress in program

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WOMAN OWNED BUSINESS (WOSB)

• Congress has mandated that DoD award 5% of contract dollars to WOSB.

• The Small Business Reauthorization Act of 2000 (P.L. 106-554) allows WOSB set-asides (permissive, but not mandatory).

• Implementing regulatory guidance is currently being examined by the SBA.

DEFINITION - A WOSB is small business firm that is 51% owned, operated and managed on a daily basis by individuals who are women.

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Historically Under-Utilized Business Zones (HUBZone)

Four Requirements to be a qualified HUBZone :

1. Must be a registered small business2. Concern must be owned and controlled only by US citizens

51% owned and controlled by US citizens3. The principal office of the concern must be located in a

HUBZone; and4. At least 35% of the concern’s employees must reside in a

HUBZone

The HUBZone Empowerment Contracting Program is a community-based economic development program designed to stimulate: Job creation and Capital investment -- in distressed areas

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VETERAN OWNED SMALL BUSINESS (VOSB)

• Veteran - A person who served in the active military, naval, or air service, and was discharged or released from service under conditions other than dishonorable.

DEFINITION - A VOSB is small business firm that is 51% owned, operated and managed on a daily basis by one or more veterans. In the case of publicly owned businesses, at least 51% of the stock must be owned by veterans.

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SERVICE DISABLED VETERAN OWNED SMALL BUSINESS (SDVOSB)

• Service Disabled Veteran - A veteran with a disability veteran with a disability that is service connected as defined in Title 38 U.S.C. that is service connected as defined in Title 38 U.S.C. Section 101(16)Section 101(16).

DEFINITION - A SDVOSB is small business firm that is 51% owned, operated and managed on a daily basis by one or more service disabled veterans. In the case of publicly owned businesses, at least 51% of the stock must be owned by service disabled veterans.

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HBCU/MIs

• Historically Black Colleges and Universities (HBCUs):Term used to identify accredited institutions of higher education established prior to 1964 with a principal mission of educating African-Americans.

• Minority Institutions (MIs):Term used to identify institutions, in addition to HBCU, having significant minority enrollments. Designated minority groups include African-Americans, Asian-Americans, Alaskan Natives, Hispanic/Latino-Americans, Native Americans, and Pacific Islander-Americans.

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NATIVE AMERICAN FIRM

• Ownership can be:• Individual – where the majority owner(s) are of Native American descent• Tribal - any Native American tribe, band, pueblo, or community, including native

villages and native groups as defined in the Alaska Native Claims Settlement.• Native American firms are not a SB category in the “standard” set of

categories to these firms• Native American includes American Indians, Eskimos, Aleuts, and Native

Hawaiians. • Thus Alaska Native Corporations (ANC), Native Hawaiian Organizations

(NHO), and Tribal Corporations (TC), are all considered Native American Firms

• There are nuances associated with Alaskan Native, Tribal-Owned and Hawaiian Native Organizations that affect

• Eligibility rules• Procurement rules

DEFINITION – An Indian-owned enterprise is commercial industrial or business activity established for profit with at least 51% Indian ownership

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Reporting – SBLO 101

• ISR (SF294) – Report on Individual Contracts• FAR 52.219-9 (d)(10)(iii)• Semi-Annual• To DCMA, SBA, Contracting Officer

• SSR (SF295) – Report on Agency Contracts• FAR 52.219-9 (d)(10)(iii)• Was Semi-Annual – ** New ** UPDATED in Federal Register• To DCMA, SBA, Washington, DC

October 1, 2008 – All Agencies on e-SRS

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Reporting – SBLO 101

• Opt312 – or equivalent – ** New ** UPDATED by FAR Deviation• Yearly with SSR (SF295)• With Final ISR (SF294)

• Other• As requested by Customer or Agency• Semi-Annual Mentor-Protégé• FAR 52.219-9(d)(10)(ii)

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CCR

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CCR

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How Many DUNS Do You Have?

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www.esrs.gov

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New Acronyms

• DRT = Draft• PEN = Pending• REJ = Rejected• ISR = Individual Subcontract

Report (FKA SF294)• SSR = Summary Subcontractor

Report (FKA SF295)

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Plans – SBLO 101

• Small Business Subcontracting Plans• Types

• Comprehensive• Commercial• Master• Individual

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Plans – SBLO 101

• Comprehensive• Test Program through 2014• Negotiated annually

• Commercial• Products sold to general public or industry

at established catalog or market prices• Contractor’s fiscal year

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Plans – SBLO 101

• Master Plan• Contains all required elements of an individual

plan except goals• Must be approved by

• Corporate Administrative Contracting Officer (CACO)

• Company Authorized Signature• Covers a period of 1 to 3 years

• Individual Subcontracting Plan• In conjunction with a Master Plan• Specific to a contract – covers entire POP• Has goals based on Offeror’s planned subk effort• Prorated allocation of indirect cost allowed (if

applicable)

Federal Business

SBLO 102

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• Why do we have these plans?• What is a subcontracting plan?• What are the required elements of a

plan?• Developing the Subcontracting Plan – the

Process, tips

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Why do we have these plans?

• “It is the policy of the United States that SB, SDB, WOSB, VOSB, SDVOSB, HUBZONE concerns have the maximum practicable opportunity to participate in the performance of contracts awarded by any federal agency. Other-than-small business (OTSB) contractors are legally obligated to carry out this policy when awarding subcontracts to the fullest extent consistent with the efficient performance of their contracts.” SBA Handbook for Small Business Liaison Officers

• FAR 19.702 and 19.702(1)• Any solicitation over $650k requires a clause for subcontracting plans. • If a negotiated award value (including options) is anticipated to be over

$550k, any large business being considered for award, is required to submit a subcontracting plan as part of their proposal.

• $1 million for construction

• The Small Business Act (added by P.L. 95-507)• Implementation is in FAR 19.700• Clause is in FAR 52.219-9• Additional implementation and clauses in FAR Sups

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• FAR 19.702(2)(b)• Small Businesses• Contracts being performed entirely outside of the U.S.

(including U.S. possessions – meaning it’s states or territories. Washington, DC and Puerto Rico are INCLUDED)

• Modifications to contracts which do not contain clause 52.219-8

Exceptions to this requirement for plans?

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What is a subcontracting plan?

• “A subcontracting plan is a document setting forth how a contractor will provide SB, SDB, WOSB, VOSB, SDVOSB, and HUBZONE SB concerns with the maximum practicable opportunity to participate in the performance of a contract or subcontract.” SBA Handbook for Small Business Liaison Officers

• A document submitted by a prime contractor which details what they will subcontract on large prime contracts. Specifically, what will be subcontracted to SB, SDB, WOSB, HUBZSB VOSB, & SDVOSB.

• FAR 19.704

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Sample Subcontracting PlanSample Subcontracting Plan SMALL BUSINESS, SMALL DISADVANTAGED BUSINESS, HUBZONE SMALL BUSINESS, AND WOMEN-OWNED SMALL BUSINESS SUBCONTRACTING PLAN DATE:_________ CONTRACTOR:_______________________________________________ ADDRESS:__________________________________________________ SOLICITATION OR CONTRACT NUMBER:__________________________ ITEM/SERVICE:_____________________________________________ The following, together with any attachments, is hereby submitted as a Subcontracting Plan to satisfy the applicable requirements of Public Law 95-507 as implemented by OFPP Policy Letter 80-2 and detailed in current version of FAR 52.219-9. 1. (a) The following percentage goals (expressed in terms of a percentage of total planned subcontracting dollars) are applicable to the contract cited above or to the contract awarded under the solicitation cited. NOTE: If the solicitation contains options, the contractor must provide separate statements and goals for all option quantities and or years to comply with FAR 19.704(c). (i) Small Business concerns:______% of total planned subcontracting dollars under this contract will go to subcontractors who are small business concerns. (ii) HUBZone small business concerns:_______% of total planned subcontracting dollars under this contract will go to subcontractors who are HUBZone small business concerns. This percentage is included in the percentage shown under 1.(a)(i) above, as a subset. (iii) Small Disadvantaged Business Concerns:______% of total planned subcontracting dollars under this contract will go to subcontractors who are small business concerns owned and controlled by socially and economically disadvantaged individuals. This percentage is included in the percentage shown under 1.(a)(i), above, as a subset. (iv) Women-owned small Business Concerns:________% of total planned subcontracting dollars under this contract will go to subcontractors who are women-owned small business concerns. This percentage is included in the percentage shown under 1.(a)(i) above, as a subset. (b) The following dollar values correspond to the percentage goals shown in (a) above. (i) Total dollars planned to be subcontracted to small business concerns: $_____________. (ii) Total dollars planned to be subcontracted to HUBZone small business concerns: $_____________. This dollar amount is included in the amount shown under 1.(b)(i), above, as a subset. (iii) Total dollars planned to be subcontracted to small disadvantaged business concerns: $___________. This dollar amount is included in the amount shown under 1. (b)(i), above, as a

SBA Handbook for Small Business Liaison Officers

- Appendix C – also has a Sample

Subcontracting Plan

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Major elements of a subcontracting plan…

• FAR 52-219-9 (d)(1) thru (11)

• Goals must be expressed as percentages of total planned subcontracting dollars

• A statement of total dollars planned to be subcontracted to:

SB SDB WOSB HUBZoneVOSB SDVOSB

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• Description of the principal supplies and services to be subcontracted, and• Identify the SB, SDB, WOSB, HUBZSB, VOSB, & SDVOSB’s

that the products and services will be subcontracted to.

• A description of the method used to develop the subcontracting goals.

• A description of the method/process used to identify potential sources for solicitation• Source lists, SBA Dynamic Small Business Database (FKA

ProNet), Trade Associations, etc.

• A description of the efforts you will make to assure that SB, SDB, WOSB, HUBZSB, VOSB & SDVOSB have an equitable opportunity to compete for subcontracts.

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• Assurance that you will: • Include the clause “Utilization of Small Business Concerns”

in all subcontracts that offer subcontracting opportunities and require all subcontractors (except SB) who receive subcontracts in excess of $650k ($1.5 M construction) to adopt a plan that is in compliance with the FAR.

• Cooperate in studies and surveys as required

• Submit periodic reports to allow the government to determine compliance with the plan

• Submit ISR (Individual at Prime Contract level) and SSR (Summary at Agency level) Subcontracting Reports

• Ensure its subcontractors submit ISR and SSR

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Small Business Compliance Reviews – SBLO 102

• Prepare utilizing the DCMA Form 640• Prepare utilizing the SBA Checklist• May be joint audit by DCMA and SBA

• DCMA – DoD Contracts• SBA – Non-DoD (NASA, DOE, EPA, etc.)

• Annually for “Acceptable” and “Highly Successful”; Bi-Annually for “Outstanding”

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• Outstanding• Highly Successful• Acceptable• Marginal• Unsatisfactory

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• Common Issues• Areas of weakness

• No documentation of assistance being provided to SB firms

• Size certifications not being updated– Should be done annually on all, not just new

• Policy & Procedures not updated to include new programs

• Back-up for dollars reported on ISR/SSR• Training

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• Management Commitment• Policy Statement

• Issued by current senior management• Disseminated throughout the company• Indicate that Small Business subcontracting is a

company policy and is the responsibility of each person in the company having procurement or requirement responsibilities

• Outlines authority for implementing SB program• Identify distribution and assure policy provides

objectives of National Small Business policy

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• Management Commitment• Policy Letter• SBLO Appointment• Policy & Procedures• Awareness of Small Business Programs

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• Training• Procurement• Contracts• Program Office• Proposal Teams

• Outreach• Conferences• Referrals• Assistance to Small Businesses

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EXAMPLES OF OUTREACH

• National Veteran’s Conference• SB Local or National Association Meetings• SBA Week – April/May• DoD Western Regional Council for SB Education &

Advocacy – 4 times per year• Navy Gold Coast – August• NMSDC – October • MEDWeek

Federal Business

REPORTING

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http://www.esrs.gov/

Federal Business

SPECIAL PROGRAMS

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Purpose of the Mentor-Protégé Program

The Mentor-Protégé Program is designed to provide incentives for Prime Contractors to assist Small Disadvantaged and Woman-owned Businesses to enhance their business and technical capabilities and to increase their participation as subcontractors and suppliers.

The program shall also foster the establishment of long-term, mutually beneficial business relationships between protégé’s and mentors.

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Types of Mentor-Protégé Agreement

• Cost Reimbursable

• Credit

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Agencies that have Mentor-Protégé Programs:

• Army• Navy• Air Force• DISA – Defense Information Systems Agency• DLA - Defense Logistics Agency• DOD• Energy• EPA – Environmental Protection Agency• FAA• Homeland Security• NASA

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SBLO 101 and 102

THANK YOUFor your time and

attention

Federal Business Small Business Liaison Officer (SBLO) 101 and 102 Training DoD Western Regional...

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