Small Business Liaison Officer (SBLO) 101 and 102 Training DoD Western Regional Council for Small Business Education and Advocacy Raul Alvarado SBLO – The Boeing Company

SBLO 101 SBLO 102 AGENDA 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

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

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

WORLD OF SMALL BUSINESS SMALL DISADVANTAGED BUSINESS (SDB) WOMAN OWNED HUBZone VETERAN OWNED 8(a) SMALL BUSINESS SERVICE DISABLED VETERAN OWNED BUSINESS Historically Black Colleges & Universities and Minority Institutions (HBCU/MI) Javits-Wagner O’Day (JWOD) AbilityOne

SMALL 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 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

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. FAR deviation

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 stage Last 5 years Emphasis on competition Overcome remaining elements of economic disadvantage Prepare to graduate program NOTES: 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.. 9 9 9 3 8 8 7

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 NOTES: NATIVE AMERICANS: AMERICAN INDIANS, INDIAN TRIBES, ESKIMOS, ALEUTS, NATIVE HAWAIIANS ASIAN PACIFIC AMERICANS: JAPAN, CHINA, PHILIPPINES, VIETNAM, KOREA, SAMOA, GUAM, LAOS, CAMBODIA, TAIWAN, BURMA, THAILAND SUBCONTINENT ASIAN AMERICANS: ASIAN INDIAN - INDIA, PAKISTAN, BANGLADESH, SRI LANKA, BHUTAN, NEPAL OTHER 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. 10 10 10 4 10 10 8

WOMAN 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. 106-554) allows WOSB set-asides (permissive, but not mandatory). Implementing regulatory guidance is currently being examined by the SBA.

Historically Under-Utilized Business Zones (HUBZone) Four Requirements to be a qualified HUBZone : Must be a registered small business Concern must be owned and controlled only by US citizens 51% owned and controlled by US citizens The principal office of the concern must be located in a HUBZone; and 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

VETERAN 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.

SERVICE 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).

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.

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

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 Was Semi-Annual – ** New ** UPDATED in Federal Register To DCMA, SBA, Washington, DC October 1, 2008 – All Agencies on e-SRS

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)

CCR

CCR

How Many DUNS Do You Have?

www.esrs.gov

ISR = Individual Subcontract Report (FKA SF294) New Acronyms DRT = Draft PEN = Pending REJ = Rejected ISR = Individual Subcontract Report (FKA SF294) SSR = Summary Subcontractor Report (FKA SF295)

Small Business Subcontracting Plans Plans – SBLO 101 Small Business Subcontracting Plans Types Comprehensive Commercial Master Individual

Comprehensive Commercial Test Program through 2014 Negotiated annually 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

Contains all required elements of an individual plan except goals 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)

SBLO 102 1

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

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 2

Exceptions to this requirement for plans? 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 3

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

Sample Subcontracting Plan SBA Handbook for Small Business Liaison Officers - Appendix C – also has a Sample Subcontracting Plan

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 HUBZone VOSB SDVOSB 6

Major elements of a subcontracting plan… 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. 7

Major 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 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 10

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”

Small Business Compliance Reviews – SBLO 102 Outstanding Highly Successful Acceptable Marginal Unsatisfactory

Small Business Compliance Reviews – SBLO 102 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

Small Business Compliance Reviews – SBLO 102 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

Small Business Compliance Reviews – SBLO 102 Management Commitment Policy Letter SBLO Appointment Policy & Procedures Awareness of Small Business Programs

Small Business Compliance Reviews – SBLO 102 Training Procurement Contracts Program Office Proposal Teams Outreach Conferences Referrals Assistance to Small Businesses

Small Business Compliance Reviews – SBLO 102 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

REPORTING 1

http://www.esrs.gov/

SPECIAL PROGRAMS 1

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.

Types of Mentor-Protégé Agreement Cost Reimbursable Credit

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

For your time and attention SBLO 101 and 102 THANK YOU For your time and attention