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SBA’S CERTIFICATION PROGRAMS
HALLOT E. WATKINS, JR. SMALL BUSINESS ADMINISTRATION BALTIMORE DISTRICT OFFICE Good morning ladies and gentlemen! My name is XXXX. It is my pleasure to be here today to provide you with information on federal contracting opportunities. The SBA works to create an environment for maximum participation by small businesses as federal prime contractors and subcontractors.
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First Thing To Do Obtain a Data Universal Number System (DUNS) Number
DUNS Number can be obtained free-of-charge at time of CCR registration For Federal Prime Contract Opportunities: You need to be aware of the following: The Department of Defense (DOD) buys its goods and services through procurement centers located throughout the country. Every center has a Small & Disadvantaged Business Utilization Specialist (SADBU) assigned to help you do business with that specific agency. The major civilian agency that buys for the federal government is the General Services Administration (GSA). GSA manages the Federal Supply Schedules (FSS) Program. FSS are indefinite quantity contracts that allow federal agencies to order commercial products and services from approved vendors. The FSS systems is an excellent way for small businesses to obtain contract purchase orders from federal agencies. Large Prime Federal Subcontracts Awards are also good opportunities for small businesses. For all procurement actions exceeding $100,000 prime contractors are required to make a “best effort” attempt to use small businesses as subcontractors. For procurement actions expected to exceed $550,000 (one million dollars for construction) prime contractors are required to provide the agency contracting officer with a written subcontracting plan that establishes small business subcontracting goals.
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Register Your Business
Central Contractor Registration Database (CCR) Keep Current (Update yearly at minimum) Dynamic Small Business Search (DSBS, formally Pro Net) CCR registration is a must if you want to do federal procurement. Begin at the website and get registered. Then, check out the Dynamic Small Business Search portion of CCR. By having a profile on CCR, you have the ability to present your company’s capability to anyone using the Dynamic Small Business Search Tool on the CCR homepage. This is where the contracting personnel, small business advisors and other decision-makers will go when they need to find out whether small businesses can do the work they have in mind. It is free to federal and state government agencies as well as prime and other contractors seeking small business contractors, subcontractors and/or partnership opportunities. CCR is open to all small firms seeking federal, state and private contracts. Businesses profiled on the CCR system can be searched by NAICS codes; key words; location; quality certifications; business type; ownership race and gender; EDI capability, etc. You must also register in the Online Representatives and Certifications Application (ORCA) website and update the information each time you submit a bid.
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Register Your Business
CCR Seeking Federal Contracts Download CCR Handbook DSBS Search Engine for Contracting Agencies Marketing Tool for Small Businesses The different program categories carry with them different rules. Some involve formal applications and certifications; others simply require that you review the regulations and make a decision about whether you qualify. For government procurements you will be asked to certify as to the type of business you are, as well as certify which special programs you are entitled to. I’ll be discussing the 3 formal certifications in more detail. Check our website at sba.gov for further information on all certifications.
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Small Business Size Standards
Firms must be small based on their primary NAICS Code, including affiliates. Size is determined by either: Average 3 years revenues Number of employees The different program categories carry with them different rules. Some involve formal applications and certifications; others simply require that you review the regulations and make a decision about whether you qualify. For government procurements you will be asked to certify as to the type of business you are, as well as certify which special programs you are entitled to. I’ll be discussing the 3 formal certifications in more detail. Check our website at sba.gov for further information on all certifications.
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Small Business Size Standards
Manufacturing: Maximum number of employees may range from 500 to 1,500 Wholesaling: Maximum number of employees may range from 100 to 500 Services: Annual sales may not exceed $2.5 to $31million The different program categories carry with them different rules. Some involve formal applications and certifications; others simply require that you review the regulations and make a decision about whether you qualify. For government procurements you will be asked to certify as to the type of business you are, as well as certify which special programs you are entitled to. I’ll be discussing the 3 formal certifications in more detail. Check our website at sba.gov for further information on all certifications.
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Small Business Size Standards
General Construction: Annual sales may not exceed $31 million Special Trade Construction: Annual sales may not exceed $13 million The different program categories carry with them different rules. Some involve formal applications and certifications; others simply require that you review the regulations and make a decision about whether you qualify. For government procurements you will be asked to certify as to the type of business you are, as well as certify which special programs you are entitled to. I’ll be discussing the 3 formal certifications in more detail. Check our website at sba.gov for further information on all certifications.
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Contract Certifications
Know the Federal Contract Certifications Self-Certifications Small Business – NAICS Codes Woman-owned Business Veteran-owned Business Service Disabled Veteran-owned Business Formal Certification Programs 8(a) Business Development HUBZone Small Disadvantaged Business (SDB) The different program categories carry with them different rules. Some involve formal applications and certifications; others simply require that you review the regulations and make a decision about whether you qualify. For government procurements you will be asked to certify as to the type of business you are, as well as certify which special programs you are entitled to. I’ll be discussing the 3 formal certifications in more detail. Check our website at sba.gov for further information on all certifications.
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Formal Certifications
Requires SBA Approval 8(a) - Socially and economically disadvantaged firms enrolled in a 9-year business development program. HUBZone - Small businesses located in areas identified as historically underutilized business zones,and with 35% of its employees living in HUBZones. SDB - Three-year certification for small, socially and economically disadvantaged firms eligible to receive prime and subcontract preferences. First the formal certifications: There are three, briefly defined here, which the SBA is actively involved in certifying small businesses as participants.
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Formal Certifications
8(a) $10.5 billion (3.33%)* HUBZone $6.1 billion (1.94%)* SDB $21.7 billion (6.92%)* *Awarded in FY 2005 First the formal certifications: There are three, briefly defined here, which the SBA is actively involved in certifying small businesses as participants.
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Self Certifications Small Business $79. 6 billion (25.36%)*
Women Owned $10.5 billion (3.34%)* Service Disabled Veteran Owned $1.9 billion (.61%)* *Awarded in FY 2005 * First the formal certifications: There are three, briefly defined here, which the SBA is actively involved in certifying small businesses as participants.
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8(a) & SDB SBA 8(a) program SDB program Applies to all purchases
Must be certified by the SBA Non-competitive and competitive program 9-year term - no renewals All 8(a) firms are SDBs Award must be made at fair market price FAR 19.8 SDB program Applies over $100,000 Must be certified by the SBA Competitive program 3-year term with renewals Not all SDBs are in 8(a) program 10% price evaluation credit (limited to select agencies) FAR and 19.12 Let’s compare 8(a) and SDB – two which are often confused with each other.
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HUBZone Program HUBZone Program Applies to purchases over $3,000;
Must be certified by SBA - no term limits; Recertification required every 3 years; Competitive and sole-source program benefits; 10% price evaluation preference Principal office must be in a HUBZone 35% of employees must live in a HUBZone FAR 19.13 Two main objectives of the HUBZone program are to stimulate job creation and capital investment in designated communities. This slide includes the basics of the HUBZone program.
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Service Disabled Veteran Owned Small Business
Veteran’s Program Service Disabled Veteran Owned Small Business Applies to purchases over $3,000 Self Certified on CCR VA determines Service Disability No term limits Competitive and sole-source program benefits Subcontracting and Prime Contracting goals FAR 19.14
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Know the Rules Federal Acquisition Regulations (FAR)
Subpart 8.4 – Federal Supply Schedules Part 13 – Simplified Acquisitions Part 14 – Sealed Bidding Part 15 – Contracting by Negotiation Part 19 – Small Business Programs The common goal throughout the rules and regulations is this – allow the maximum practicable opportunity for small businesses. In some situations, it may seem to be hard to locate that opportunity; we hope what we share with you today will give you some help in that search. This slide shows you some of the main chapters to reference when considering federal procurements.
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Contract Opportunities
Finding Prime Contract Opportunities Research Past Purchases GSA Federal Procurement Data Center Identify Current Procurement Opportunities Federal Business Opportunities (FBO) Researching past purchases and looking for active buys is the best way to target your niche in the federal procurement world. A good example is the the “Government Purchasing and Sales Directory.” This is a text book which lists alphabetically, all of the products and services purchased by the Federal Government. These products and services are then matched up to specific buying activities. Active buys valued at $25,000 or more can be found at the Federal Business Opportunities website. You can build your own notice from FedBizOpps to alert you to new postings daily.
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Identify Opportunities – Follow the Money
FedBizOpps Identify Opportunities – Follow the Money When you want to review the current federal buys, this site is where I suggest you begin your search. In addition to current buys, you can look at the archives section to see what was bought in the past. This can help you to identify potential marketing sites. You will be “following the money” and getting to know where to introduce yourself for future buys.
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This website can also help you to identify potential marketing opportunities.
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Finding Subcontracting Opportunities
Directory of Large Prime Contractors SUB-Net Many firms find the subcontracting world as a beneficial place to do business. But, finding subcontracting opportunities can be a challenge. You need to identify which large federal prime contractors need what you can provide. Use the directory on our web-site along with actual subcontract postings on SUB-Net to help you in that process. Each large prime contractor has a Small Business Liaison Officer (SBLO) who serves as a contact point for companies wishing to sell to them. They are identified in the subcontracting directory. Many of the large prime federal contractors post subcontracting opportunities and notices on SBA’s Sub-net. Solicitations can be searched there.
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SUB-Net http://web.sba.gov/subnet/
Here’s how the Sub-Net home page looks. Start here to find a small business liaison officer at a large business by clicking on subcontracting opportunities. Or, view actual subcontracting opportunities posted by major federal prime contractors by clicking on the Search for Solicitation button.
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Find online business counseling and training at:
E-Business Institute The E-Business Institute is where you can find free training courses, workshops and counseling resources designed to assist entrepreneurs. The Institute makes SBA's business management resources available anytime and anywhere. It is a dynamic learning center designed to help small businesses compete in a constantly changing, global environment. This slide shows some of the courses and guides available online. Find online business counseling and training at:
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Helpful Web Sites DOD Small & Disadvantaged Business Utilization Office Procurement and Technical Assistance Centers Small Business Development Centers The department of defense has specific people at each buying activity to assist small businesses. Find the right point of contact through resources on their website. Should you require in-depth counseling in seeking federal or state government contracts, there are many Procurement and Technical Assistance Centers and Small Business Development Centers to assist you. They can help your firm register with the Central Contractor Registration (CCR) and obtain a DUNS number. Many times, they also can match your firm’s capability with procurement opportunities, as well as help you obtain military and federal specifications and drawings.
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More Helpful Web Sites SBA’s Home Page: www.sba.gov
Government Contracting: Site includes links to all major government contracting programs discussed here plus much, much more. It is impossible for me to properly address all that SBA’s Government Contracting programs can offer in the short time we have together. So, please visit the websites listed here to learn more.
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Thank You Questions? In summary, you can be a success selling to the Federal Government with careful planning, research, and solid performance. I’d be happy to take your questions.
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