# Presentation: 148406

## U.S. Department of the InteriorOffice of Small and Disadvantaged Business Utilization

**Mark Oliver, Director**

## OSDBU RESPONSIBILITIES

- Advise Department on Implementing Laws Concerning Small Business Program
- Afford Equitable Opportunity for Small Businesses to Provide Quality Goods and Services at the Best Value
- Enhance Ability of Small Businesses and Designated Socioeconomic Groups to Participate in DOI Contracting

## Provide Policy Guidance, Education and Direction to the DOI Acquisition Community

Establish Challenging Small Business Goals for the Bureaus

Achieve Results

- Establish Challenging Small Business Goals for the Bureaus
- Achieve Results

**OSDBU RESPONSIBILITIES**

## SDVOSB Legislative Background

**Public Law 106-50 (1999)**
- Required Agencies to Establish 3% SDVOSB Goal
**Public Law 108-183 (2003)**
- Established Set-Asides for SDVOSBS
**Executive Order 13360 (2004)**
- Support SDVOSB Contracting Opportunities
- Mandated Federal Agency Strategic Plan

## SDVOSB STRATEGIC PLAN

- Spearhead Innovative Initiatives in Support of Business Opportunities for SDVOSBs
- Educate Acquisition Work Force and SDVOSBs
- Conduct Outreach to Increase SDVOSB Base
- Increase Contracting Opportunities for SDVOSBs

## Focus on Long-Term Business Development of SDVOSB Program

Strategic Partnerships with Federal Agencies and Veteran Organizations 

Align Resources

- Strategic Partnerships with Federal Agencies and Veteran Organizations
- Align Resources

**SDVOSB STRATEGIC PLAN**

## WHAT IS A SERVICE DISABLED VETERAN (SDV)?

- Served on Active Duty
- Other Than Dishonorable Discharge
-               Injury Incurred/Aggravated While on Active 	 Duty
- 		 Rating 0 – 100%
- Self-Certify
- Must Have Disability Proof From U.S. Department of Veterans Affairs

## Slide 8

## WHAT IS A SERVICE-DISABLED VETERAN OWNED SMALL BUSINESS (SDVOSB)?

- Must Be A Small Business
- 51% Ownership and Control - One or More SDVs
- Management and Daily Operations Controlled by One or More SDVs
- Spouse/Caregiver if SDV is Permanently or Severely Disabled
- At Least 51% Stock (for Publicly Owned Business) Must be Owned by One or More SDVs
- Penalties for Misrepresentation

## ...And Now The Rest

- of The Story...

## SDVOSB STAKEHOLDERS

**DOI **
**Leadership**

**Acquisition **
**Workforce**

**Federal **
**Agencies**

**SDVOSBs**

**Nation’s **
**Economy**

## SDVOSB PROCUREMENTS

_**Set-Aside**_
- “Rule of Two”
- No Upward $ Limit
- Can’t Consider if FSS, UNICOR, JWOD or 8(a)

_**Sole Source**_
- Up to $3M
-     (Non Manufacturing)
- Up to $5M (Manufacturing)
- Can’t consider if FSS, UNICOR, JWOD or 8(a)

## LIMITATIONS OF SUBCONTRACTING

_**General Construction**_
- 	15% of Cost of Contract on Own Employees or Employees of Other SDVOSBS

_**Supplies**_
- 	50% of Manufacturing Cost (Excluding Materials) on Own Employees or Employees of Other SDVOSBS

_**Services**_
- 50% of Personnel Costs on Own Employees or Other SDVOSB Employees

_**Special Trade Construction**_
- 25% of Cost of Contract (Excluding Materials) with Own Employees or                                                                                                         Employees of Other SDVOSB

## JOINT VENTURES (JV)

- 13 Code of Federal Regulations 125.15(b)
- SDVOSB May Enter into J/V with One or More Small Businesses
- Each Concern Must be Small for Applicable Size Standard Relative to NAICS Assigned to Procurement
- J/V Must Perform Applicable Percentage of Work
- SBA Does Not Approve J/V Agreements

## PROTESTS	

- Competitive Set-Asides
-     	Any Interested Party May Protest      	SDVOSB Status
- Sole Source Procurements
-       	SBA or Contracting Officer May   	Protest SDVOSB Status

## SIMILIARITIES TO HISTORICALLY UNDERUTILIZED BUSINESS ZONES (HUBZone)

**SDVOSB **
**(FAR 19.14)**
**MAY** set aside if Contracting Officer Expects:
- 2 or More Offers at Fair Market Price
- No Price Evaluation Preference

**HUBZone **
** ****(FAR 19.13)**
**MUST** set aside if Contracting Expects:
- 2 or More Offers at Fair Market Price
- Price Evaluation Preference

## 13 Code of Federal Regulations (13 CFR 121.405(b))

Less Than 500 Employees

Primarily Engaged in Retail/Wholesale

- Less Than 500 Employees
- Primarily Engaged in Retail/Wholesale

**NON-MANUFACTURER’S RULE FOR SDVOSBs**

## Normally Sells Type of Product Being Supplied

End Item Must Be Provided by Small Business; or

Obtain Waiver to Non-Manufacturer’s Rule

- End Item Must Be Provided by Small Business; or
- Obtain Waiver to Non-Manufacturer’s Rule

**NON-MANUFACTURER’S RULE FOR SDVOSB **

## CHALLENGES

- Consolidation/Bundling
- General Services Administration Schedules
- Insufficient Staffing in BUDS Offices
- Inconsistent BUDS Reviews
- Weak Enforcement of Subcontracting Plans

## DOI FY 06 BUSINESS & ECONOMIC DEVELOPMENT PROGRAM

## DOI SMALL BUSINESS AWARDS

## DOI SDVOSB AWARDS

## DOI SDVOSB TRENDS

## DOI – TOP 10 NAICS FOR FY 06

| Code | NAICS Description | Dollars |
| --- | --- | --- |
| 236220 | Commercial & Inst. Bldg. Construction | $241M |
| 541611 | Admin. Mgmt. & Gen. Mgmt. Consulting | $218M |
| 541330 | Engineering Services | $182M |
| 541710 | R&D / Physical, Eng. and Life Sciences | $181M |
| 541519 | Other Computer Related Services | $166M |
| 541512 | Computer Systems Design Services | $129M |
| 541511 | Custom Computer Programming Services | $128M |
| 237990 | Other Heavy & Civil Eng. Construction | $116M |
| 518210 | Data Processing, Hosting & Related Services | $110M |
| 443120 | Computer and Software Stores | $56M |

## DOI – TOP 10 NAICS FOR FY 06FOR SDVOSB

| Code | NAICS Description | Dollars |
| --- | --- | --- |
| 541611 | Admin. Mgmt. & Gen. Mgmt. Consulting | $6.9M |
| 541511 | Custom Computer Programming Services | $5.1M |
| 541512 | Computer Systems Design Services | $4.6M |
| 237990 | Other Heavy & Civil Eng. Construction | $2.1M |
| 611699 | All Other Misc. Schools and Institutions | $1.7M |
| 238160 | Roofing Contractors | $1.3M |
| 334111 | Electronic Computer Manufacturing | $1.1M |
| 236210 | Industrial Bldg. Construction | $0.6M |
| 315999 | Other Apparel Accessories / Manufacturing | $0.5M |
| 236220 | Commercial & Institutional Bldg. Construction | $0.5M |

## SUMMARY

- FAR 19.14
- Can Be Set-Aside More than $2,500
- Self Certification
- Veterans Administration Determines Disability
- Competitive and Sole Source Procurements
- $3M (Non-Manufacturing) and $5M (Manufacturing)
- No Term Limits – Need Not Reapply

## Department of Veterans’ Affairs
www.va.gov

Center for Veterans’ Enterprise
www.vetbiz.gov

The Veterans’ Corporation	
www.veteranscorp.gov

FedBizOpps			
www.fedbizopps.gov

Public Laws		
thomas.loc.gov/home/thomas.html

- www.va.gov
- Center for Veterans’ Enterprise
- www.vetbiz.gov
- The Veterans’ Corporation
- www.veteranscorp.gov
- FedBizOpps
- www.fedbizopps.gov
- Public Laws
- thomas.loc.gov/home/thomas.html

**WEBSITES**

## Code of Federal Regulations
	www.gpoaccess.gov/ecfr/

Small Business Administrations 
www.sba.gov

Federal Acquisition Regulations
www.arnet.gov/far

Centralized Contractor Registration
www.ccr.gov

DOD Procurement Technical Assistance
www.dla.mil/db/procurem.htm

- 	www.gpoaccess.gov/ecfr/
- Small Business Administrations
- www.sba.gov
- Federal Acquisition Regulations
- www.arnet.gov/far
- Centralized Contractor Registration
- www.ccr.gov
- DOD Procurement Technical Assistance
- www.dla.mil/db/procurem.htm

**WEBSITES**

## DOI OSDBU and Partners......

## Thank You!!!

- U.S. Department of the Interior
***Office of Small & Disadvantaged Business Utilization***
***Point of Contact: Barbara Gaines***
- 1849 C Street, NW – MS:2252
- Washington, DC 20240
- Phone:  **202.208.3493**
- Fax:  **202.208.7444**

**Thank You!!!**

- Q u e s t o n s ?