Small Business Support Programs Robert B. Gahagan Chief Executive Officer & President CCSI-Corporate Consulting Services, Inc. Oakton, Virginia, USA E-mail: gahagan@ccsincorp.com CCSI © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs Government Small Business Assistance The Government Small Business Administration (SBA) SBA Small Business Special Categories & Requirements for Applicants Research and Development Other Small Business-Related Support CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs The Government Small Business Administration (SBA) Mission: To assist eligible small and small socially and economically disadvantaged businesses Role: To be sure that Government-wide small-business goals are established every year To monitor performance of government agencies CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs Determining Disadvantage Social Disadvantage: Racial or ethnic prejudice or cultural bias because of their identity as a member of these groups: - Black Americans, Native Americans, Hispanic Americans, Asian Pacific Americans, Subcontinent Asian Americans Economic Disadvantage: Must be in socially disadvantaged category limited ability to compete SBA determines financial condition Personal financial worth is considered CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs Definitions Set-aside A Government procurement reserved (set aside) for a certain small business category. Other companies cannot bid. Sole source A Government contract awarded to a single company only. No other companies can bid. Self-certification A company can self-declare certain small business status, such as “small.” (some other categories require formal certification by the SBA) CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs Definitions (continued) NAICS (North American Industrial Classification System) code 6-digit number used to describe products and services categories for companies Size Standards Established by SBA to define small business size by industry and NAICS code. Size determined by dollars of revenue or number of employees CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs SBA Small Business Special Categories - Certification: Formal SBA Certification Required Small Disadvantaged Business (SDB) SBA 8(a) Business Development Program Historically Underutilized Business (HUB) Zone small business Self-Certify Categories Small Business Enterprises (SBE) Small Women-Owned Business (SWOB) Other Service-Disabled-Veteran-Owned Small Business. (SDVOB) CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs Contracting goals for federal agencies set by category Small Business Category % Goal Prime Contracts Subcontracts All SBE 23% Prime - SDB & 8(a) 5% & 3% Prime & Sub - SWOB 5% - SDVOB 3% - HUB Zone CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs SBA Small Business Special Categories & Requirements Self-Certify Categories Small business enterprise (SBE) - A business whose NAICS code & associated size standard is considered small as measured by its revenues or number of employees. CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs SBA Small Business Special Categories & Requirements: Formal SBA Certification Required Small disadvantaged business (SDB) - At least 51% owned by one or more individuals (US citizens) who are both socially and economically disadvantaged Management and daily business is controlled by one or more such individuals 3 year duration CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs SDB program benefits Price evaluation adjustment: - Up to 10 % on competitive procurements over the simplified acquisition threshold - NAICS Code for the prime contract must be authorized Does not apply to 8(a) acquisitions and small business set-asides. Evaluation factor: - Prime contractors receive credit when using SDBs as subcontractors. - For competitive negotiated acquisitions over $500,000 - Does not apply to small business set asides, 8(a) acquisitions, or contracts performed entirely outside the United States. - Only allows credit for subcontractors in the NAICS codes CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs SBA Small Business Special Categories & Requirements (continued): Formal SBA Certification Required SBA 8(a) Business Development Program. Company must: Be owned & operated by socially and economically disadvantaged individuals with net worth <$250K Meet applicable small business size standards Be in business for at least two years Display reasonable success potential Display good character. Duration: 9 years from approval date CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs 8(a) certification vs. SDB certification - The 8(a) program is a business development program that offers a broad scope of assistance to socially and economically disadvantaged firms. - SDB certification only pertains to benefits in Federal procurement. 8(a) firms automatically qualify for SDB certification. CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs SBA Mentor-Protégé Program (MPP) Private-sector relationships to help new 8(a) SBA clients. Mentors provide a broad range of assistance to protégé Mentors can invest in the protégé company. Protégé company can obtain other SBA help. CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs SBA Small Business Special Categories & Requirements (continued): Self-Certify Categories  Small Women-owned business (SWOB) At least 51% owned by one or more individuals (US citizens) who are women Management and daily business is controlled by these individuals  Service-disabled-veteran-owned small business. (SDVOB) At least 51% owned by one or more individuals (US citizens) who are disabled due to US military service. CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs SBA Small Business Special Categories & Requirements (continued):  Historically Underutilized Business (HUB) Zone small business Program stimulates business activity in urban and rural communities. To qualify: - Must be a small business by SBA size standards; - Principal office must be located within a HUBZone, - Must be owned & controlled by one or more U.S. citizens - At least 35% of its employees must reside in a HUBZone. CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs  Research and Development Small Business Innovative Research (SBIR) Program  Description of SBIR Program Specific % of federal Research and Development (R&D) funds is reserved for small business Helps small business explore their technology potential Very competitive  Competitive Opportunity for Small Business: Small business can compete on same level as large. Encourages commercialization CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs Agencies with SBIR Programs: Federal agencies are required to reserve a portion of their R&D funds for SBIR award to small business. Departments of Agriculture, Commerce, Defense, Education, Energy, Health & Human Services, Transportation, Environmental Protection Agency, NASA, National Science Foundation - Agencies define R&D topics and accept proposals. CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs 3 Phases of SBIR Awards: Phase I - Startup. Awards up to $100,000; 6 months; assess feasibility of technology. Phase II – R&D. Awards of up to $750,000; up to 2 years; expand Phase I results. Evaluate commercialization potential. Only Phase I award winners are considered for Phase II. Phase III – Commercialization. SBIR funds do not support this phase. CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs SBIR Eligibility Requirements: - Must be American-owned and independently operated - At least 51 percent owned by United States citizens or lawfully admitted permanent resident aliens. - Place of business must be located in the United States - Must be a for-profit company - The Principal Researcher must be employed by the company - Company size limited to 500 employees CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs Other Small Business- Related Support GOVERNMENT - Office of Small and Disadvantaged Business Utilization (OSDBU) Interagency Council - Small and Disadvantaged Business Utilization (SADBU) specialists - Procurement Center Representatives (PCR) - Agency Contracting Officers INDUSTRY - Large Company (Prime Contractor) Small Business Liaison Office CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs 5 Ways to Make Contact  With Government Attend Government agency small business events Contact SADBU specialists Make sure the agency knows your company capabilities  With Industry Contact Small Business Liaison personnel Register on company vendor database CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.

Small Business Support Programs SUMMARY & REMINDERS  Special small business status is not a guarantee of any future business 2 important factors for success are: Company must understand the complex government procurement environment. Company must develop excellent communication skills to convince government or industry buyers why their solution is superior to all others. CCSI US Government Procurement Market Training Course © 2004 Corporate Consulting Services, Inc.