Presentation on theme: "Integrity Service Excellence"— Presentation transcript:
1 Integrity Service Excellence Small BusinessOverview.Mary S UreyESG/SB SA OL27 July 2011Integrity Service Excellence
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3 Enterprise Sourcing Group (ESG) Organizational Overview New organization aligned to Air Force Material Command (AFMC) to execute enterprise-wide strategic sourcing located at Wright Patterson AFBContracting and Small Business resources currently supporting Air Force Center for Engineering and the Environment (AFCEE), Air Force Civil Engineering Support Agency (AFCESA), Defense Technical Information Center (DTIC), and the Air Force Medical Enterprise all realigned under the ESGRealignment was phased from 28 Oct Mar 11AFCEE Contracting & Small Business realigned 1 Jan 11AFCESA Contracting realigned 31 Mar 11Technical resources did NOT realign to ESG
4 What this means for AFCEE/SB AFCEE/SB resources realigned under and report to ESG/SBOfficially ESG/SB San Antonio Operating Location (OL)New office symbol is ESG/SB and is no longer AFCEE/SBWill continue to support current organizations & gain new onesESB/SB OL supports both contracting and technicalAs AFCEE/SB we supported only AFCEE (contracting & technical)As ESG/SB will support AFCEE, ESG Business Support OL, Medical, Force Protection Commodity Council, and AFCESAAFCEE support continued as it wasESG Business Support OL support was effective 1 Nov 10Medical support was effective 1 Jan 11Force Protection Commodity Council effective 17 Feb 11AFCESA support effective 31 Mar 11
5 ESG/SB OL CustomersAFCEE Contracting designated as 772d Enterprise Sourcing Squadron (ESS)Currently located at Port San AntonioAFCESA Contracting designated as 772 ESS OL (772 ESS/PKH)Reports to 772 ESS at Port San AntonioCurrently located, and will remain, at Tyndall AFB772 ESS and 772 ESS OL provide enterprise-wide strategic sourcing support to enhance and further the Air Force Civil Engineer mission to provide, operate, maintain, and protect sustainable installations as weapon-system platforms through engineering and emergency response services
6 ESG/SB OL Customers cont’d Air Force Medical Enterprise Contracting designated as 773 ESSFormerly AFMSA and AFMOAAir Force Medical Support AgencyAir Force Medical Operation AgencyContracting resources were located at Falls Church, VA and Port San AntonioAll will be located at Port San AntonioProvides enterprise-wide medical acquisition to the Air Force Medical Service (AFMS) and the warfighter to improve customer support, reduce purchase cost of services, reduce variation in service contracts by increasing standardization, accelerate delivery responsiveness and provide lifecycle management support
7 ESG/SB OL Customers cont’d Air Force Force Protection Commodity CouncilContracting resources located at Lackland AFBStrategically sourcing force protection equipment for 30,000 Active Duty, Guard and Reserve Security Forces Airmen located at every Air Force installation and deployed location770th Business Support Squadron OLCurrently located at Port San AntonioProvides general support functions to organizations aligned to the ESG, manages business operations including resources and information technology, and provides acquisition support to the organization’s strategic sourcing process
9 Small Business Specialist 4/6/2017ESG/SB San Antonio OLMary UreyDirectorGrace ElizaldeSmall Business SpecialistEsmeralda RodriguezVacantxxxxScott EarleContracting InternSBA Procurement Center RepresentativeFred LagunasOrganizational
10 ESG/SB SA OLMission: ESG/SB SA OL partners with industry and the acquisition community to execute the Air Force Small Business program while accomplishing the ESG strategic sourcing mission.Customers: ESG, 770 BSS OL, 772 ESS, 773 ESS, FPCC, AFCEE, AFCESA, AFMOA, AFMSA, and Security ForcesWhat does this mean to you?We are really busyLots of new customers - no new staffWe are harder to reach by phone than ever beforePlease trust that we will eventually return s and phone calls – we have had no change in our work ethic
11 ESG/SB SA OL Goals & Actuals (772 ESS (AFCEE) less 772 ESS/PKH (AFCESA))
12 Sources Sought Synopsis or Request For Information (RFI) Sources sought synopsis = your opportunity to influence acquisition strategyQuestions on NAICS code, small business goals, teaming, number of contracts, costing typeContracting Officer reviews and prepares market research reportCoordinates with small business office and acquisition strategy is finalizedTwo or more in a size category to have a set-asideCannot merely answer yes or no and expect it to countTypically these are for new contracts, but you may see RFIs at the task order levelBelieve that the government is serious about getting your input
13 SB Competitiveness Demonstration Program This program limited opportunities for small business contractors in eleven industries where they excelled. Construction was one of the elevenParticipating agencies are required to reinstitute use of small business set-asides whenever contract awards fall below 40% under in any of the designated industry groupsAt this conference in 2009 I told you:FY07 DoD fell below the 40% requirement under construction NAICS codes and small business set-asides were reinstitutedBut if DoD fell above the 40% requirement in the future small business set-asides may not be allowedRemains to be seen what happens in futurePotentially could impact HERC re-compete to allow for small business set-asidesSmall Business Jobs Act of 2010 eliminated program effective 27 Sep 10Repeal applied first full fiscal year after date of enactmentDFARS became obsolete on 1 Oct 11
14 Parity (PRIOR TO Small Business Jobs Act of 2010) 4/6/2017FAR (e) – Before deciding to set-aside an acquisition IAW subpart 19.5, or 19.14, CO should review for offering under the 8(a) program. SBA regulations give first priority to HUBZone 8(a) concerns. (13 CFR (b))FAR (a) – CO shall consider HUBZone set-asides before considering HUBZone sole source or other small business set-asidesFAR (a) – CO may set-aside requirement for competitive SDVOSB13 CFR (b) – if 13 CFR does not apply, CO shall set-aside for HUBZone, 8(a), or SDVOSB before setting aside as small business set-aside13 CFR (b) – may not make available for a HUBZone if requirement is currently being performed under the 8(a) program or if SBA has accepted requirement into 8(a) program, unless SBA consents to release from the 8(a) program.
15 Parity (AFTER Small Business Jobs Act of 2010) 4/6/2017FAR (e) – Before deciding to set aside an acquisition in accordance with subpart 19.5, the contracting officer may consider offering the acquisition to a small business under the 8(a) Program in accordance withFAR (a) – CO may set aside acquisitions exceeding the micro-purchase threshold for competition restricted to HUBZone small business concerns and shall consider HUBZone set-asides before considering HUBZone sole source awards or small business set-asidesFAR (a) – CO may set-aside acquisitions exceeding the micro-purchase threshold for competition restricted to SDVOSB concerns and shall consider SDVOSB set-asides before considering SDVOSB sole source awards or small business set-asidesFAR (a) - CO may set-aside acquisitions exceeding the micro-purchase threshold for competition restricted to EDWOSB or WOSB concerns eligible under the WOSB Program in those NAICS codes in which SBA has determined that WOSB concerns are underrepresented or substantially underrepresented in Federal procurement, as specified on SBA's Web site at
16 Relationship Among SB Programs (as of 24 Jul 11) 4/6/2017FAR (a) - There is NO order of precedence among the 8(a) Program, HUBZone Program, SDVOSB Program, or the WOSB ProgramFAR (b) - At or below the simplified acquisition threshold. The requirement to exclusively reserve acquisitions for small business concerns at does not preclude the contracting officer from awarding a contract to a small business under the 8(a) Program, HUBZone Program, SDVOSB Program, or WOSB Program.FAR (c) - Above the simplified acquisition threshold. The CO shall FIRST consider an acquisition for the 8(a), HUBZone, SDVOSB, or WOSB programs BEFORE using a small business set-aside.However, if a requirement has been accepted by the SBA under the 8(a) Program, it must remain in the 8(a) Program unless SBA agrees to its release in accordance with 13 CFR parts 124, 125 and 126.FAR (d) - Small business set-asides have priority over acquisitions using full and open competition.
17 Woman Owned Small Business Set-Aside History 4/6/20171994 – Overall goal of 5% goal set for WOSBDecember Congress passed the "Equity in Contracting for Women Act of 2000“ to allow contracts, in industries historically underrepresented by WOSB, to be reserved for competition by WOSBOctober 2004 – SBA had not completed the required study or the regulations required to implement the program and US Woman’s Chamber of Commerce brought suit against the SBADecember 2005 – SBA filed motion to dismiss but Court deniedMarch 2006 – SBA notified court it would complete disparity study within 9 monthsDecember SBA published proposed ruleFebruary 2007 – US Woman’s Chamber of Commerce petitioned court for a status report from SBAApril 2007 – Rand Corporation study on Utilization of Woman Owned Small Business in Federal Contracting releasedOctober US Woman’s Chamber of Commerce asks court to hold a status hearing
18 WOSB Set-Aside History cont’d 4/6/2017December 2007 – SBA publishes second proposed rule citing 4 underutilized industries and saying each agency must make a finding of discriminationOctober 2008 – SBA publishes final rule but it was never implemented in FARJuly 2009 – President Obama proposes to implement Woman Owned Small Business Contracting ProgramMarch 2010 – SBA publishes new proposed rule citing 83 underutilized industries and eliminating the requirement for each agency to make a finding of discrimination . SBA also withdrew October 2008 rule.May U.S. Senators Olympia J. Snowe and Kirsten Gillibrand introduce the Fairness in Women-Owned Small Business Contracting Act of 2010 to address deficiencies in the SBA WOSB contracting program
19 WOSB Set-Aside4/6/2017Last year at this conference I told you that after16 years of the goal being set, there are still no provisions which allow for a WOSB set-asideToday we have FAR (a) - CO may set-aside acquisitions exceeding the micro-purchase threshold for competition restricted to EDWOSB or WOSB concerns eligible under the WOSB Program in those NAICS codes in which SBA has determined that WOSB concerns are underrepresented or substantially underrepresented in Federal procurementCO may set-aside contracts for WOSB and EDWOSB if:NAICS code is in an industry which SBA has assigned to programComplete list of NAICS codes can be found atThere is reasonable expectation 2 or more will submit an offerAnticipated award price, including options, does not exceed the statutory threshold of $5M for manufacturing or $3M for other contractsContract can be awarded at fair market price
20 WOSB Set-Aside cont’d To be an eligible WOSB a company must: 4/6/2017To be an eligible WOSB a company must:Be a small business that is at least 51% percent unconditionally and directly owned and controlled by one or more women who are United States citizensHave a woman manage the day-to-day operations, make long-term decisions for the business, hold the highest officer position in the business and work at the business full-time during normal working hoursTo be an eligible EDWOSB, a company must:Be a WOSB that is at least 51% owned by one or more women who are “economically disadvantaged”Have an economically disadvantaged woman manage the day-to-day operations, make long-term decisions for the business, hold the highest officer position in the business and work at the business full-time during normal working hours.A woman is presumed economically disadvantaged if she has a personal net worth of less than $750,000 (with some exclusions), her adjusted gross yearly income averaged over the three years preceding the certification less than $350,000, and the fair market value of all her assets is less than $6 million.
21 WOSB Set-Aside cont’d4/6/2017There are two ways to certify for the WOSB programSelf certification and third party certificationBoth require supporting documentation (which is different from other self certification programs)Supporting documentation includes:Copies of birth certificates, naturalization papers or unexpired passports for owners who are womenFor LLC’s: articles of organization and any amendments and operating agreementCopy of joint venture agreement if applicableFor corporations: articles of incorporation and any amendments, by-laws and any amendments, all issued stock certificates, stock ledger, and voting agreements if anyFor partnerships: partnership agreement and any amendmentsAssumed/fictitious name (doing business as) certificatesCopy of WOSB Program CertificationFor EDWOSB, in addition to above, SBA Form 13, Personal Financial Statement and copy of WOSB Program Certification – EDWOSB instead of WOSB Program CertificationCopy of third party certification if applicable
22 WOSB Set-Aside cont’d4/6/2017A WOSB/EDWOSB may submit an offer as a joint venture with another small business if the following are met:Combined annual receipts or employees must meet NAICS code unless exception in 13 CFR (h)(3) appliesEDWOSB/WOSB must be managing venturerEDWOSB/WOSB employee must be project manager responsible for performanceEDWOSB/WOSB must receive 51% of net profitsJoint venture agreement must be in writingJoint venture must meet subcontracting limitationsJoint venture agreement does not have to be approved by SBA
23 Updates to 8(a) Program (not all inclusive) If disadvantaged individual owner(s) of an 8(a) called to active military status SBA will no longer terminate firm from the programFirms may elect to be suspended (time added to program term upon return of individual) or continue to participate if another disadvantaged individual can control the firmJoint venture agreement requirements tightened so that non-disadvantaged firms do not unduly benefit from 8(a) programJoint venture agreement may be informal or formal but now it must be in writing regardless of which it isJoint venture can be unpopulated or populated (own separate employees)Each have their own set of rulesJoint venture can submit as many proposals over a 2 year period that it wants but no more than 3 contracts awarded over 2 year periodPreviously joint venture could only submit 3 proposals and then have to form another joint venture
24 Updates to 8(a) Program (not all inclusive) cont’d 8(a) firm many have a bona fide place of business in more than one location (competitive construction efforts)Participant must submit request for a business determination to SBA district office servicing the firmSBA district office serving the geographic area of that location must determine if that location qualifiesNon-profit firms may now be mentors in SBA Mentor Protégé ProgramMentors can have up to 3 protégés at a timeProtégé can have second mentor corresponding to an unrelated secondary NAICS codeFirm cannot be a mentor and a protégé at the same timeAssistance provided by mentor must be tied to the protégés SBA approved business planMentor Protégé Agreement must be approved by SBA before firms can submit joint venture offer
25 Updates to 8(a) Program (not all inclusive) cont’d SBA approved mentor protégé joint ventures are small businesses for DOE subcontracts (DOE only)If a mentor protégé agreement is declined by the SBA, there is a specific reconsideration process requiredIf a mentor does not provide agreed to assistance there are consequencesSBA may terminate the agreementMentor is ineligible to participate for 2 yearsSBA may recommend a stop work order for each contract the mentor and protégé are performing on as a joint venture and where they have receive the exclusion from affiliationSBA may authorize substitution of the protégé firm for the joint ventureFailure to provide the agreed upon assistance may constitute grounds for government wide suspension or debarment
26 Recap of Delex Case4/6/2017Aug 03, Navy awarded multiple award, IDIQ contract to eight firms – four LB and four SB. Ceiling was $3B with eight year ordering periodContract awardees all had right to compete for delivery orders. Navy reserved the right to solicit individual delivery orders on small business set-aside basis to meet Commander’s small business goals22 May 08 delivery order RFP issued as small business set-aside and later changed to full and open competitionDelex complained to the Navy and received negative response from contract Ombudsman. Delex filed GAO protest.Navy contends FAR (b), which sets forth Rule of Two, does not apply to delivery orders. Navy view was that set-aside requirements apply only to initial contract awards
27 Recap of Delex Case cont’d 4/6/2017GAO sustained Delex protestRule of Two applies to all acquisitions over $100,000Task orders are properly viewed as acquisitionsRule of Two applies to task ordersTask orders must be set-aside for SB’s when reasonable expectation of receipt of two or more proposals and award can be made at fair and reasonable priceSet-aside, or not, determinations must be adequately supportedGAO decisions not binding on Federal Agencies without one of the following:FAR Interim RuleOffice of the Secretary of Defense (OSD) Policy MemoOffice of Federal Procurement Policy (OFPP) Policy Memo11 Feb 08 Army Office of Legal Counsel issued memo to DoD Office of Legal Counsel proposing FAR revision that states Rule of Two does not apply to task and delivery orders of DoD multiple award contracts
28 Recap of Delex Case cont’d 4/6/2017As of last year’s conference we had no guidance since November 2008 timeframeDelex case is being discussed with the legal communitiesDepartment of Justice May 2010 “Hot Topics: What’s New in Acquisition” presentation states nothing new on this topicBusiness as usual with sound determinations in the contract file when a task order is not set aside to small business contract holdersThat is where we stood last year at this time and that is where we stand this year at this time
29 Multiple Award Contracts 4/6/2017Small Business Jobs Act of 2010 was signed 27 Sep 10Part III – Acquisition Process, Section 1331 amended the Small Business Act and statedNot later than one year after the enactment of this subsection, OFPP and SBA shall establish guidance under which a Federal Agency may, at their discretion,Set aside part or parts of a multiple award contract for small business concerns, including subcategories of small business concernsNotwithstanding the fair opportunity requirements, set aside orders placed against multiple award contracts for small business concerns, including subcategories of small business concernsReserve 1 or more contract awards for small business concerns under full and open multiple award procurements, including subcategories of small business concerns
30 Multiple Award Contracts cont’d 4/6/2017Two slides ago I said :Business as usual with sound determinations in the contract file when a task order is not set aside to small business contract holders andThat is where we stood last year at this time and that is where we stand this year at this timeAlthough there has been a lot of traffic and a lot of talking this over, there is noFAR Interim RuleOffice of the Secretary of Defense (OSD) Policy MemoOffice of Federal Procurement Policy (OFPP) Policy MemoSo……we are still waiting to see what happens and we are continuing to document our contract files when we do not have a task order small business set-aside
31 Update on HUBZone Program 4/6/2017March 2009: House Committee on Small Businesses reviewed HUBZone ProgramHUBZone program was not only dysfunctional, it was riddled with fraudChairwoman Rep. Nydia Velázquez, recommended this program be scrappedSBA did not want program dropped; prefers additional oversight to correct the problemsSBA put new leadership in charge of the HUBZone officeStill problems but SBA says they are getting betterLegacy initiatives closed out with site visits and recertificationsMore than 1200 site visitsApproximately 5000 exam letters processedRequired firms to sign under penalty of perjury that they remain eligible or be decertifiedApproximately 70% remain certifiedAs of 11 May 11 approximately 606 cases in the application pipeline
32 Update on HUBZone Program cont’d 4/6/2017FY11 GoalsFocus on timeliness of applications for initial certificationMaximize percentage under 90 daysEnhance regulations and policiesRefine regulationsUpdate policiesRevamp standard operating proceduresConfirm certification annually rather than every 3 yearsUpgrade infrastructureCreate best staff possibleUpgrade maps technologyExtensive proactive monitoringFuture GoalsRequiring all firms to attest in writing under penalty of perjury they remain eligibleFull document reviews on all certified firmsCollection and review of documentation to verify eligibility at time of contract bid and/or awardUnannounced site visits by Field Operations Staff to verify principal office criterion