Presentation on theme: "Small Business Liaison Officer (SBLO) 101 and 102 Training"— Presentation transcript:
1Small Business Liaison Officer (SBLO) 101 and 102 Training DoD Western Regional Council for Small Business Education and AdvocacyRaul AlvaradoSBLO – The Boeing Company
2SBLO 101 SBLO 102 AGENDA AGENDA Common Acronyms Why? Categories of Small BusinessesReporting RequirementsSmall Business Subcontracting PlansAGENDASmall Business Subcontracting PlansSmall Business Compliance ReviewsDLA 640SBA Preparation ChecklistManagement CommitmentTraining
3Common Acronyms NAICS SIC SB LB SDB WOSB HUBZONE VOSB SDVOSB FAR DFAR SBAID/IQ
4WHY 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 agencyRedefined minority firms as “Socially and Economically Disadvantaged Small Business Concerns”Established subcontracting plan for large businessesReserved all awards under $25,000 for small business
5WORLD OF SMALL BUSINESS SMALL DISADVANTAGED BUSINESS (SDB)WOMAN OWNEDHUBZoneVETERAN OWNED8(a) SMALL BUSINESSSERVICE DISABLED VETERAN OWNED BUSINESSHistorically Black Colleges & Universities and Minority Institutions (HBCU/MI)Javits-Wagner O’Day (JWOD)AbilityOne
6SMALL DISADVANTAGED (SDB) 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.Socially DisadvantagedPresumed to be socially, racially, ethnically, or culturally disadvantaged or subjected to racial or ethnic prejudice or cultural biasAfrican AmericansHispanic AmericansNative AmericansAsian Pacific AmericansSubcontinent Asian AmericansOther minorities as defined by the SBA13 CFREconomically disadvantagedIndividuals denied access to capital and credit opportunities because of their identification as a member of a specific groupPersonal Net worth must be less than $750,000 exceptingOwnership by the principal(s) in the firmEquity in the primary personal residence
7SMALL DISADVANTAGED BUSINESS To represent itself as a SDB for Federal contracting, a firm must have:Submitted application to the SBAReceived certification from the SBA that it is a SDBFor 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.FAR deviation
8SBA’s 8(a) BUSINESS DEVELOPMENT PROGRAM Two-stage program:Developmental stageFirst 4 yearsEmphasis on sole source contractsStrengthen financial & managerial skillsImprove access to marketsTransitional stageLast 5 yearsEmphasis on competitionOvercome remaining elements of economic disadvantagePrepare to graduate programNOTES:THE OBJECTIVE OF THE PROGRAM IS TO ASSIST SDB. FIRMS IN ENTERING THE FEDERAL CONTRACTING ARENA AND IN OBTAINING CONTRACTUAL EXPERIENCE WITH FEDERAL AGENCIES.A FIRM CAN STAY IN THE SECTION 8(a) PROGRAM FOR NINE YEARS. THE DEVELOPMENT STAGE IS FIVE YEARS. IN THIS STAGE THEY RECEIVE MAINLY SOLE SOURCE CONTRACTS BUT ARE ENCOURAGED TO COMPETE..9993887
9WHO 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 disadvantagedPersonal & business finances examinedAccess to capital/creditEntry level - less than $250,000 in personal net worthRises as they progress in programNOTES:NATIVE AMERICANS: AMERICAN INDIANS, INDIAN TRIBES, ESKIMOS, ALEUTS, NATIVE HAWAIIANSASIAN PACIFIC AMERICANS: JAPAN, CHINA, PHILIPPINES, VIETNAM, KOREA, SAMOA, GUAM, LAOS, CAMBODIA, TAIWAN, BURMA, THAILANDSUBCONTINENT ASIAN AMERICANS: ASIAN INDIAN - INDIA, PAKISTAN, BANGLADESH, SRI LANKA, BHUTAN, NEPALOTHER MINORITIES: DETERMINED ON AN INDIVIDUAL BASIS - CAN INCLUDE CERTAIN HANDICAPPED PEOPLE AND IN SOME CASES VETERANS OF THE VIET NAM ERA.ECONOMIC DISADVANTAGE: SOCIALLY DISADVANTAGED INDIVIDUALS WHO WERE DENIED ACCESS TO CREDIT OPPORTUNITIES BECAUSE OF THEIR IDENTIFICATION AS MEMBERS OF THESE GROUPS. PERSONAL NET WORTH: LESS THAN $250,00 AT ENTRY -AMOUNT CAN RISE TO $500,000 IN DEVELOPMENT STAGE AND $750,000 IN TRANSITION STAGE.101010410108
10WOMAN OWNED BUSINESS (WOSB) DEFINITION - A WOSB is small business firm that is 51% owned, operated and managed on a daily basis by individuals who are women.Congress has mandated that DoD award 5% of contract dollars to WOSB.The Small Business Reauthorization Act of 2000 (P.L ) allows WOSB set-asides (permissive, but not mandatory).Implementing regulatory guidance is currently being examined by the SBA.
11Historically Under-Utilized Business Zones (HUBZone) Four Requirements to be a qualified HUBZone :Must be a registered small businessConcern must be owned and controlled only by US citizens 51% owned and controlled by US citizensThe principal office of the concern must be located in a HUBZone; andAt least 35% of the concern’s employees must reside in a HUBZoneThe HUBZone Empowerment Contracting Program is a community-based economic development program designed to stimulate: Job creation and Capital investment -- in distressed areas
12VETERAN OWNED SMALL BUSINESS (VOSB) 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.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.
13SERVICE DISABLED VETERAN OWNED SMALL BUSINESS (SDVOSB) 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.Service Disabled Veteran - A veteran with a disability that is service connected as defined in Title 38 U.S.C. Section 101(16).
14HBCU/MIsHistorically 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.
15NATIVE AMERICAN FIRMDEFINITION – An Indian-owned enterprise is commercial industrial or business activity established for profit with at least 51% Indian ownershipOwnership can be:Individual – where the majority owner(s) are of Native American descentTribal - 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 firmsNative 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 FirmsThere are nuances associated with Alaskan Native, Tribal-Owned and Hawaiian Native Organizations that affectEligibility rulesProcurement rules
16Reporting – SBLO 101 ISR (SF294) – Report on Individual Contracts FAR (d)(10)(iii)Semi-AnnualTo DCMA, SBA, Contracting OfficerSSR (SF295) – Report on Agency ContractsWas Semi-Annual – ** New ** UPDATED in Federal RegisterTo DCMA, SBA, Washington, DCOctober 1, 2008 – All Agencies on e-SRS
17Reporting – SBLO 101Opt312 – or equivalent – ** New ** UPDATED by FAR DeviationYearly with SSR (SF295)With Final ISR (SF294)OtherAs requested by Customer or AgencySemi-Annual Mentor-ProtégéFAR (d)(10)(ii)
26Small Business Subcontracting Plans Plans – SBLO 101Small Business Subcontracting PlansTypesComprehensiveCommercialMasterIndividual
27Comprehensive Commercial Test Program through 2014 Negotiated annually Plans – SBLO 101ComprehensiveTest Program through 2014Negotiated annuallyCommercialProducts sold to general public or industry at established catalog or market pricesContractor’s fiscal year
28Contains all required elements of an individual plan except goals Plans – SBLO 101Master PlanContains all required elements of an individual plan except goalsMust be approved byCorporate Administrative Contracting Officer (CACO)Company Authorized SignatureCovers a period of 1 to 3 yearsIndividual Subcontracting PlanIn conjunction with a Master PlanSpecific to a contract – covers entire POPHas goals based on Offeror’s planned subk effortProrated allocation of indirect cost allowed (if applicable)
30Why 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
31Why 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 OfficersFAR and (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 constructionThe Small Business Act (added by P.L )Implementation is in FARClause is in FARAdditional implementation and clauses in FAR Sups2
32Exceptions to this requirement for plans? FAR (2)(b)Small BusinessesContracts 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 clause3
33What 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 OfficersA 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
34Sample Subcontracting Plan SBA Handbook for Small Business Liaison Officers- Appendix C – also has a Sample Subcontracting Plan
35Major elements of a subcontracting plan… FAR (d)(1) thru (11)Goals must be expressed as percentages of total planned subcontracting dollarsA statement of total dollars planned to be subcontracted to:SB SDB WOSB HUBZoneVOSB SDVOSB6
36Major elements of a subcontracting plan… Description of the principal supplies and services to be subcontracted, andIdentify 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 solicitationSource 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.7
37Major elements of a subcontracting plan… 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 requiredSubmit periodic reports to allow the government to determine compliance with the planSubmit ISR (Individual at Prime Contract level) and SSR (Summary at Agency level) Subcontracting ReportsEnsure its subcontractors submit ISR and SSR10
38Small Business Compliance Reviews – SBLO 102 Prepare utilizing the DCMA Form 640Prepare utilizing the SBA ChecklistMay be joint audit by DCMA and SBADCMA – DoD ContractsSBA – Non-DoD (NASA, DOE, EPA, etc.)Annually for “Acceptable” and “Highly Successful”; Bi-Annually for “Outstanding”
39Small Business Compliance Reviews – SBLO 102 OutstandingHighly SuccessfulAcceptableMarginalUnsatisfactory
40Small Business Compliance Reviews – SBLO 102 Common IssuesAreas of weaknessNo documentation of assistance being provided to SB firmsSize certifications not being updatedShould be done annually on all, not just newPolicy & Procedures not updated to include new programsBack-up for dollars reported on ISR/SSRTraining
41Small Business Compliance Reviews – SBLO 102 Management CommitmentPolicy StatementIssued by current senior managementDisseminated throughout the companyIndicate that Small Business subcontracting is a company policy and is the responsibility of each person in the company having procurement or requirement responsibilitiesOutlines authority for implementing SB programIdentify distribution and assure policy provides objectives of National Small Business policy
42Small Business Compliance Reviews – SBLO 102 Management CommitmentPolicy LetterSBLO AppointmentPolicy & ProceduresAwareness of Small Business Programs
43Small Business Compliance Reviews – SBLO 102 TrainingProcurementContractsProgram OfficeProposal TeamsOutreachConferencesReferralsAssistance to Small Businesses
44Small Business Compliance Reviews – SBLO 102 EXAMPLES OF OUTREACHNational Veteran’s ConferenceSB Local or National Association MeetingsSBA Week – April/MayDoD Western Regional Council for SB Education & Advocacy – 4 times per yearNavy Gold Coast – AugustNMSDC – OctoberMEDWeek
50Purpose 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.
51Types of Mentor-Protégé Agreement Cost ReimbursableCredit
52Agencies that have Mentor-Protégé Programs: ArmyNavyAir ForceDISA – Defense Information Systems AgencyDLA - Defense Logistics AgencyDODEnergyEPA – Environmental Protection AgencyFAAHomeland SecurityNASA
53For your time and attention SBLO 101 and 102THANK YOUFor your time and attention