1. Small Business Support Programs
Robert B. Gahagan
Chief Executive Officer & President
CCSI-Corporate Consulting Services, Inc.
Oakton, Virginia, USA
CCSI
© 2004 Corporate Consulting Services, Inc.

2. 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
© Corporate Consulting Services, Inc.

3. 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
© Corporate Consulting Services, Inc.

4. 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
© Corporate Consulting Services, Inc.

5. 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
© Corporate Consulting Services, Inc.

6. 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
© Corporate Consulting Services, Inc.

7. 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
© Corporate Consulting Services, Inc.

8. 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
© Corporate Consulting Services, Inc.

9. 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
© Corporate Consulting Services, Inc.

10. 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
© Corporate Consulting Services, Inc.

11. 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
© Corporate Consulting Services, Inc.

12. 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
© Corporate Consulting Services, Inc.

13. 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
© Corporate Consulting Services, Inc.

14. 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.

15. 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
© Corporate Consulting Services, Inc.

16. 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
© Corporate Consulting Services, Inc.

17. 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.

18. 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
© Corporate Consulting Services, Inc.

19. 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.

20. 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
© Corporate Consulting Services, Inc.

21. 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
© Corporate Consulting Services, Inc.

22. 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
© Corporate Consulting Services, Inc.

23. 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
© Corporate Consulting Services, Inc.