# Presentation: 245494

## SBA Update

**MARC Winter Meeting**
**January 2006**

## Overview

- Comments Due
- Gulf Coast Help
- Guidance Moved
- Cascading SAs

- Comp Demo Pgm
- Size Issues
- Odds and Ends

**Current Issues**

## Proposed Changes

***Federal Register***** proposed changes:**
- Micro-purchase threshold - $2500 to $3000;
- FPDS reporting threshold - $2500 to $3000;
- Prime Contractor **Subcontracting Plan threshold** - $500K to $550K
- 	(construction – no change);

## Proposed Changes

**More***** *****proposed changes:**
- Bundling justifications (FAR 7.107(b)) - $75m to $85m & $7.5m to $8.5m;
- Coordinating Acquisition Strategies with SBA - $7.0m to $7.5m;
**Evaluating SDB participation** in unrestricted acquisitions - $500K to $550K;

## Proposed Changes

**And, more proposed changes:**
- Cost & Pricing data threshold - $550K to $600K;
- J&A Approval thresholds (various);
- Other: subcontracting with suspended or debarred contractors; requiring subcontractor cost or pricing data; commercial items test program; definition of DOD major system.

## Comments Due 2-10

**What didn’t change:**
- Simplified acquisition threshold remains  $100,000;
- The synopsis threshold remains $25,000.
*Federal Register*, December 12, 2005, Vol 70, No. 237.
**Why?**  PL 108-375 requires adjustment every 5 years of certain acquisition-related thresholds.

**Notes:**
PL 108-375 requires adjustment every 5 years of certain acquisition-related thresholds, except Davis-Bacon Act, Service Contract Act, and trade agreements.

## Gulf Coast Help

- www.sba.gov/gulf/gulfstates_bmm.html
- SBA’s initiative to assist small businesses whose primary customer base has been greatly decreased, displaced or in some cases eliminated by the affects of Hurricane Katrina.
- Includes CCR registration and opportunities matching.

**Notes:**
SBA’s initiative to assist small businesses whose primary customer base has been greatly decreased, displaced or in some cases eliminated by the affects of Hurricane Katrina. 
Includes registration during an eight-day mobile tour and subsequent matching with procurement organizations from federal, state, city government agencies, prime contractors and major corporations

## Gulf Coast Help

- November:  Matchmaking Tour – LA, MS, AL;
- December:  follow-up phone calls;
- December:  letter to prime contractors;
- Receiving initial feedback from SBLOs;
- Finalizing list of SBs, ensuring accuracy.
**How can you help?**
- Make an effort to include SBs from Gulf Coast states when adding sources for an effort.

## DFARs Changes

**HBCU/MI** guidance relocated from 226.70 to 226.3.  Deleted 226.7000 and 7002.
**Base Realignment & Closure** subpart at 226.72 was deleted; considered duplicative.
- Procedures at 226.103 to obtain incentive payments for contractors under 52.226-7001, **Utilization of Indian Organizations & Indian-Owned Economic Enterprises** was deleted.  Guidance moved to PGI 226.103 at www.acq.osd.mil/dpap/dars/pgi

**Notes:**
HBCU/MI guidance relocated from 226.70 to 226.3.  Deleted information on percentage goals and infrastructure assistance (formerly 226.7000 and 7002).
Base Realignment & Closure subpart at 226.72 was deleted; considered duplicative.
Procedures at 226.103 to obtain incentive payments for contractors under 52.226-7001, Utilization of Indian Organizations & Indian-Owned Economic Enterprises was deleted.  Guidance moved to DFARs Procedures, Guidance & Information (PGI 226.103) at www.acq.osd.mil/dpap/dars/pgi

## Cascading SA Update

- Defense Bill, as of Jan 3, includes restrictions on Cascading Set-asides:
- Must have performed and documented **adequate Market Research**;
- Market Research must be inconclusive and **documented** by contracting officer as to why.
- Goal:  Don’t use cascade in place of making a set-aside decision.

## FAR 19.1005

**Landscaping and Pest Control Services added** to the designated industry groups (DIGs);
- Emerging small business reserve remains unchanged ($25K for all except A&E services which is $50K);
- Acquisitions outside the reserve will not be set-aside for small businesses, unless agency determines it to be necessary to meet goals.

**Small Business Competitiveness Demonstration Program**

**Notes:**
Others: construction, refuse systems and related services, nonnuclear ship repair, A&E;

## Comp Demo Program

**Reminders:**
- All Designated Industry Group acquisitions must continue to be considered for:
- 		8(a) reservation,
- 		HUBZone program, and
- 		Service Disabled Veteran Owned Small 	Business program.

**Notes:**
Doesn’t apply to awards made against FSS, to nonprofit/educational, or to other Gov’t entities.

## Comp Demo Program

**Also includes Targeted Industry Categories:**
- Expand small business participation in 10 TICs through continued use of set-aside procedures, increased attention, and specifically tailored acquisition procedures.
- For DOD, see DFARs 219.1005(b).

**Notes:**
Expand small business participation in 10 TICs through continued use of set-aside procedures, increased management attention, and specifically tailored acquisition procedures, as implemented through agency procedures.

## Size Standards Update

***Federal Register*** Dec 6, 2005, Vol 70, No. 233, Interim Final Rule – Effective
- Last update Feb 2002; current action **updated dollar-based standards** only.
- General price increase has been 8.7%.
- Applies to acquisitions issued on or after **January 5, 2006**, except 8(a).  Will apply to 8(a) offers sent to SBA on or after Jan 5.

**Notes:**
Federal Register December 6, 2005, Vol 70, No. 233, Interim Final Rule – Effective Immed
Last update was Feb 2002; current action updated dollar-based standards only.
General price increase has been 8.7%.
Applies to acquisitions issued on or after January 5, 2006, except 8(a).  Will apply to 8(a) offers sent to SBA on or after January 5.

## Size Issues

- Expected to **restore SB status** to firms losing status due to inflation.
- Estimated that 11,600 newly designated SBs will result.  Biggest gains:
- Professional Services (Sec 54): 2,674 new SBs;
- Retail Trade (Sec 44-45): 2,159 new SBs;
- Real Estate (Sec 53): 1,846 new SBs;
- Health Care (Sec 62): 1,171 new SBs.

*Updates at www.sba.gov/size/sizetable2002.html*

**Notes:**
“Anchor” size standard of $6.0 million average annual receipts increased to $6.5 million.

## Size Issues

- NAICS/Size Standard required for **all buys over micro-purchase** threshold.
- Determines who is small;
- Benefits ex: set-aside eligibility, cost accounting standards, subcontracting plan submittal, contract financing, and contract admin procedures.
- ORCA requires assignment of NAICS/Size Std.  **FAR 52.204-8 revised to allow**.

**NAICS Codes and Size Standards**

**Notes:**
NAICS/Size Standard required for all buys over micro-purchase threshold.
Determines who is small to receive benefits; 
Benefits examples: set-aside eligibility, cost accounting standards applicability, subcontracting plan submittal, contract financing, and various contract administration procedures.

52.204-8 revision – added place for NAICS/Size Standard to the notice of ORCA applicability.

## GAO Case Study

- “*Where an agency ****fails to provide pre-award notification**** of the identity of the prospective awardee on a small business set-aside , and the awardee is found by the Small Business Administration to be other than small based on a size protest filed after award, ****the agency should terminate the contract and obtain the services from a small business offeror****.” – B-297320.2 & B-297320.3, Dec 2005*

**Pre-award Notices for Size Challenge**

- SBSAs require pre-award notice identifying awardee to allow others to challenge size.

## GAO Case Study

- Contracting Agency determined that award had to be made to protect **public interest** – GAO:  denied.
- Agency argued that it **took SBA 14 days** (not 10) to render a decision – GAO:  if pre-award notice had been sent it might have only taken 10 days – denied.
*“**In the absence of countervailing reasons, it is inconsistent with the Small Business Act...to permit a large business, which was ineligible under the terms of the solicitation, to continue to perform the contract.”*

**Notes:**
GAO determined that the contracting activity could have continued to obtain services under the interagency agreement they had been using up to that point, so denied the public interest determination.

## Odds & Ends - eSRS

*Email:  Pamela.Fenderson@sba.gov*

**The eSRS Web Based Training Classes** will be held every Wednesday in January from 11:00 a.m. to 12:30 p.m. Each session will be limited to approximately 90 participants, and advance registration is required.
**The current schedule****:**January 11th and 25th for Government users; January 18th and February 1st for contractors. The training will be continued and/or additional sessions will be added if the demand warrants. For further information, contact Pam Fenderson at SBA.

**Notes:**
Training Announcement:Contractors who were unable to participate in the December 16th class will be given first priority for the class on January 4th. All sessions require advance registration. Please contact SBA to register.

The word to us is that too many government personnel were trying to join in the contractor training session.  Government personnel have been asked not to do this for future sessions.  

## Odds & Ends - eSRS

**December Problems****:****  M**ore attendees than anticipated dialed-in; moderator did not know that there was a limit to the number of lines available (94).
**Delay****:**  Once filled, the session would not allow the moderator to join the conference, resulting in significant delay to the start time.
**Resolution****:**  Registration will be required, to ensure sufficient lines will be available; training sessions will be offered as long as needed to provide adequate training.

**Notes:**
Training Announcement:Contractors who were unable to participate in the December 16th class will be given first priority for the class on January 4th. All sessions require advance registration. Please contact SBA to register.

The word to us is that too many government personnel were trying to join in the contractor training session.  Government personnel have been asked not to do this for future sessions.