# Presentation: 209204

**By Order of the President – Support Service-Disabled Veterans**
**Prepared for the Mid-Atlantic Regional Council Meeting **
**January 18, 2006**

## 	            WHAT WILL WE DO TODAY?

**Review **the President’s Order
**Summarize** Federal SDVOSB Accomplishments
**Identify** Best Practices among Federal Agencies to Improve SDVOSB Performance
**Discuss** Current Issues

**Notes:**
All duties are legislated in either PLs 105-135,  106-50, 106-554 or 108-183

## 	Support for Veterans in Business

- _Direct Employment_:  Businesses file DOL VETS-100 Reports
- _Large Prime Contractors_:  Written Supplier Outreach Plans
- Agency contractors must spend 3% of subcontract $ with SDVOSBs
- Agency contractors must have written VOSB goals
- _Federal Agencies_:
**Coordinate resources & offer opportunities**
**3% Federal procurement goal for SDVOSBs**
- _VA_ :  7% Voluntary VOSB prime goal

**Notes:**
Business population estimates are from the Bureau of the Census, as published in FAC #97-20 and 97-28.  

48K known VOSBs and 4K known SDVOSBs in Federal contracting (from Pro-Net/CCR data.)  

Concern:  aging service-disabled population; declining veteran population

## Federal Business Definitions

**Veteran** –
- US Military; other than dishonorable discharge
- Activated Reservists & National Guard members
**Service-Connected Disability** –
- 0% - 100% Rating
- Documentation:  VA letter or DoD documents
**Small Business** – defined by SBA; details online
**51% Owned and Controlled** – for significantly injured, spouse or personal caregiver may run daily ops

**Notes:**

Accomplishments:
Conferences: 345 events Feb 2001-Feb 2005 as exhibitor and/or speaker
Federal Web Portal:   VetBiz.gov; 1.3M visits 2004; cited in the 100 Best Resources for Small Business for 2004, 2005  
MGIB Pocket Guide: CVE insert reaches all TAP personnel
COLA Mailing: 100% touch annually of all C&P veterans; 2001-4
Champions of Veterans Enterprise Annual Awards Programs: 2002-4
Secretary’s VOSB Program Improvement Task Force Report: 2003
Partnerships: APTAC, ASDBC, USAF,  TVC, Federal Agencies, MasterCard
Media Interactions: 
5 Opportunity Showcase Cable Programs: 7.5 M viewers, 37 regions, 18 states 
298 radio spots and print publications

We decided to cut-back on the Public Relations Campaign in Summer 2001 since we broke our phone system with too much demand.
Champions program honors individuals and organizations who go above and beyond.  It includes awards for Federal, Support Sector, Corporations, Individuals and our Showcase Award – the Enterprising Veteran of the Year.  Here is a 6-minute video of this year’s Enterprising Veterans.
Our Director is in great demand as a speaker.  
The MGIB and COLA mailings are no charge to us.  The MasterCard partnership is no charge to us.  
Our partnerships are very successful – DLA, USAF, Army, DoT, GSA and SBA have asked us to co-sponsor events.  Our prinicipal outreach partnership is with APTAC.  We have hosted events with TVC staff also.
Our web portal was created in April 2001.  About a year later, SBA modified their web page and adopted a similar functional approach.  We developed it in-house, but have recently hired a SDVOSB contractor to take-over this function. Our principal media access has been through the USAF Outreach Program Office.  They have a bigger budget and have been our greatest ally.  We are currently participating in a Road Show to Air Force bases this Summer to promote the program.

## Population Set

**Veteran-owned Small Businesses** –
- Acronym:  **VOSB**
- 4-5.5 Million estimated owners
- 80,000 identified owners
**Service-Disabled Veteran-owned Small Businesses**–
- Acronym:  **SDVOSB**
- 100,000 – 300,000 estimated owners
- 9,000 identified owners
- Total SC-Vet population is 2.3M

**Notes:**

Accomplishments:
Conferences: 345 events Feb 2001-Feb 2005 as exhibitor and/or speaker
Federal Web Portal:   VetBiz.gov; 1.3M visits 2004; cited in the 100 Best Resources for Small Business for 2004, 2005  
MGIB Pocket Guide: CVE insert reaches all TAP personnel
COLA Mailing: 100% touch annually of all C&P veterans; 2001-4
Champions of Veterans Enterprise Annual Awards Programs: 2002-4
Secretary’s VOSB Program Improvement Task Force Report: 2003
Partnerships: APTAC, ASDBC, USAF,  TVC, Federal Agencies, MasterCard
Media Interactions: 
5 Opportunity Showcase Cable Programs: 7.5 M viewers, 37 regions, 18 states 
298 radio spots and print publications

We decided to cut-back on the Public Relations Campaign in Summer 2001 since we broke our phone system with too much demand.
Champions program honors individuals and organizations who go above and beyond.  It includes awards for Federal, Support Sector, Corporations, Individuals and our Showcase Award – the Enterprising Veteran of the Year.  Here is a 6-minute video of this year’s Enterprising Veterans.
Our Director is in great demand as a speaker.  
The MGIB and COLA mailings are no charge to us.  The MasterCard partnership is no charge to us.  
Our partnerships are very successful – DLA, USAF, Army, DoT, GSA and SBA have asked us to co-sponsor events.  Our prinicipal outreach partnership is with APTAC.  We have hosted events with TVC staff also.
Our web portal was created in April 2001.  About a year later, SBA modified their web page and adopted a similar functional approach.  We developed it in-house, but have recently hired a SDVOSB contractor to take-over this function. Our principal media access has been through the USAF Outreach Program Office.  They have a bigger budget and have been our greatest ally.  We are currently participating in a Road Show to Air Force bases this Summer to promote the program.

## Executive Snapshot

**FY 2001** was first year for data.
- Among Cabinet Departments, only Dept of State has achieved the 3% goal
- Locate agency accomplishments online
- _[http://www.sba.gov/GC/goals/](http://www.sba.gov/GC/goals/)_

**Notes:**
#1 – Reserve contracts – 14 sub-tasks
#2 – Market VA – 9 sub-tasks
#3 – Primes – 9 sub-tasks
#4 – Train – 3 sub-tasks
#5 – Publicize VA Needs – 9 sub-tasks
(44 total sub-tasks)

## Spend Targets

_**SDVOSB Federal Goal**_:   **$8-9 Billion** Yearly
- FY 2004:  $1.1B
- Object:  Move some of the $69M in SB $ to SDVOSB
- VA VOSB Annual Goal: **$622 Million Yearly**
- Achievements:
- Federal SDVOSB goal has not been met
- VA has not met VOSB or SDVOSB goals
- Opportunities Abound for Good Performers

**Notes:**
We’re pleased to report that SBA and OFPP have endorsed our VetBiz Vendor Information pages.
Accomplishments  
VetBiz Vendor Information Pages: OFPP & SBA endorse
Annual Mailings to Veterans in Business: 2000-4
Benchmarking: data reports for Director

## SDVOSB AccomplishmentsGoal is at least 3.0% of Total Procurement Dollars

| Fiscal 
Year | Federal Gov % | VA % |
| --- | --- | --- |
| 2001 | 0.25 | 0.22 |
| 2002 | 0.13 | 0.42 |
| 2003 | 0.20 | 0.41 |
| 2004 | 0.38 | 1.36 |

**Notes:**
FY 2004 Data is from the Federal Procurement Report, dated March 25.  Figures have not been released to the public as yet.  Internal VA data show a FY 2004 SDVOSB accomplishment of 1.22%

## 	SDVOSB Federal Agency Accomplishments

##      By Order of the President (1)

**EO 13360**** (Oct 2004) – **
- More effectively support 3% goal _AND_ use set-aside authority
- _All_ Agencies shall
- Develop a formal strategy and make it publicly available
- Annually report implementation actions to SBA
- Designate a Senior Level Responsible Official
- Measure key executives’ performance as “significant element”

**Notes:**
106-50 Purpose:  To expand existing & establish new assistance programs for veterans who own or operate small businesses. (Established TVC; cooperative agreements between SBA, DOL, ASBDC, VA)

Related Federal Legislation:
     P.L. 105-135 (Dec 1997), Title VII, Service Disabled Veterans Program – Veterans Business Outreach Program; national study by SBA
     P.L. 106-554 (Dec 2000), Sections 803 and 808 – extended funding for TVC and created two separate subcontracting categories (VOSB and SDVOSB)
  PL 108-183 (Dec 2003) – created discretionary set-aside authority for SDVOSBs (in some cases, noncompetitive awards); approved GI Bill funding for business development courses through TVC, ASBDC

##      By Order of the President (2)

**SBA** shall:
- Coordinate with VA Center for Veterans Enterprise
- Advise Agencies about Implementing Order
- Train business owners
**GSA** shall
- Establish a Special Contract Schedule for SDVOSBs
- Help owners with Federal Supply Schedules

**Notes:**
106-50 Purpose:  To expand existing & establish new assistance programs for veterans who own or operate small businesses. (Established TVC; cooperative agreements between SBA, DOL, ASBDC, VA)

Related Federal Legislation:
     P.L. 105-135 (Dec 1997), Title VII, Service Disabled Veterans Program – Veterans Business Outreach Program; national study by SBA
     P.L. 106-554 (Dec 2000), Sections 803 and 808 – extended funding for TVC and created two separate subcontracting categories (VOSB and SDVOSB)
  PL 108-183 (Dec 2003) – created discretionary set-aside authority for SDVOSBs (in some cases, noncompetitive awards); approved GI Bill funding for business development courses through TVC, ASBDC

##    By Order of the President (3)

**DoD**** shall train Federal officials**
**VA** shall:
_**Assist**_ agencies through CVE support
_**Verify**_ the accuracy of contractor databases
_**Modify**_ Transition Assistance Program information with Dept of Labor
- Order & Implementing Strategies posted on VetBiz.gov

**Notes:**
106-50 Purpose:  To expand existing & establish new assistance programs for veterans who own or operate small businesses. (Established TVC; cooperative agreements between SBA, DOL, ASBDC, VA)

Related Federal Legislation:
     P.L. 105-135 (Dec 1997), Title VII, Service Disabled Veterans Program – Veterans Business Outreach Program; national study by SBA
     P.L. 106-554 (Dec 2000), Sections 803 and 808 – extended funding for TVC and created two separate subcontracting categories (VOSB and SDVOSB)
  PL 108-183 (Dec 2003) – created discretionary set-aside authority for SDVOSBs (in some cases, noncompetitive awards); approved GI Bill funding for business development courses through TVC, ASBDC

##                         There’s a New Sheriff in Town		    Deputy Secretary Gordon H. Mansfield

- VA’s SDVOSB Program Oversight Executive
- President’s Management Council SDVOSB Champion
- Decorated Combat Veteran
- A Real Straight Shooter      (air rifle competitor)

##  EO 13360 Strategy Template

- February 2005
- Use SDVOSB set-asides
- Encourage SDVOSBs to Market Agencies
- Monitor Prime Contractors’ SDVOSB #s
- Train, TRAIN then TRAIN AGAIN
- Publicize Needs

**Notes:**
106-50 Purpose:  To expand existing & establish new assistance programs for veterans who own or operate small businesses. (Established TVC; cooperative agreements between SBA, DOL, ASBDC, VA)

Related Federal Legislation:
     P.L. 105-135 (Dec 1997), Title VII, Service Disabled Veterans Program – Veterans Business Outreach Program; national study by SBA
     P.L. 106-554 (Dec 2000), Sections 803 and 808 – extended funding for TVC and created two separate subcontracting categories (VOSB and SDVOSB)
  PL 108-183 (Dec 2003) – created discretionary set-aside authority for SDVOSBs (in some cases, noncompetitive awards); approved GI Bill funding for business development courses through TVC, ASBDC

##  Federal Agency Best Practices (1) 

**Energy** – 20 Year Model
**NASA** –
- Specialized Owner Training
- Access to Decisionmakers
- Targeted Publications
**DHS** –
- Identified classes of set-aside requirements

**Notes:**
106-50 Purpose:  To expand existing & establish new assistance programs for veterans who own or operate small businesses. (Established TVC; cooperative agreements between SBA, DOL, ASBDC, VA)

Related Federal Legislation:
     P.L. 105-135 (Dec 1997), Title VII, Service Disabled Veterans Program – Veterans Business Outreach Program; national study by SBA
     P.L. 106-554 (Dec 2000), Sections 803 and 808 – extended funding for TVC and created two separate subcontracting categories (VOSB and SDVOSB)
  PL 108-183 (Dec 2003) – created discretionary set-aside authority for SDVOSBs (in some cases, noncompetitive awards); approved GI Bill funding for business development courses through TVC, ASBDC

##  Federal Agency Best Practices (2) 

**GSA**–
- Capture Purchase Card $$
- Post Prime Contractor Data on web
**DoD**
- Bonding
- Build Supplier Base – MP, JV, Teams
- Level of Specific Detail

**Notes:**
106-50 Purpose:  To expand existing & establish new assistance programs for veterans who own or operate small businesses. (Established TVC; cooperative agreements between SBA, DOL, ASBDC, VA)

Related Federal Legislation:
     P.L. 105-135 (Dec 1997), Title VII, Service Disabled Veterans Program – Veterans Business Outreach Program; national study by SBA
     P.L. 106-554 (Dec 2000), Sections 803 and 808 – extended funding for TVC and created two separate subcontracting categories (VOSB and SDVOSB)
  PL 108-183 (Dec 2003) – created discretionary set-aside authority for SDVOSBs (in some cases, noncompetitive awards); approved GI Bill funding for business development courses through TVC, ASBDC

##  Federal Agency Best Practices (3) 

**State** –
- “Seek Veteran Sources” policy
**Commerce** –
- Balanced Scorecard
- e-SRS monitoring of primes
- COMMITS Next Gen outreach
**Justice** – Award Fee Incentives

**Notes:**
106-50 Purpose:  To expand existing & establish new assistance programs for veterans who own or operate small businesses. (Established TVC; cooperative agreements between SBA, DOL, ASBDC, VA)

Related Federal Legislation:
     P.L. 105-135 (Dec 1997), Title VII, Service Disabled Veterans Program – Veterans Business Outreach Program; national study by SBA
     P.L. 106-554 (Dec 2000), Sections 803 and 808 – extended funding for TVC and created two separate subcontracting categories (VOSB and SDVOSB)
  PL 108-183 (Dec 2003) – created discretionary set-aside authority for SDVOSBs (in some cases, noncompetitive awards); approved GI Bill funding for business development courses through TVC, ASBDC

##           Federal SDVOSB Help Tools

- SDVOSB Set-Aside Authority
- Competition first
- In some cases, may negotiate with one
- Flexible teaming language
- Generous text on direct labor performance
- Defense Acquisition University is Training Source for Federal employees (online)
- SBA is training source for owners
- Read SBA _and_ FAR rules together

**Notes:**
8,000 firms currently registered; we are undertaking a telephone call campaign to remind firms to register.  

## SDVOSB Rule Limitations

- In FAR, 8(a) and HUB have higher priority.
- In SBA Rule, all subsets have parity
- Still some exclusions:
- JWOD
- NIB/NISH
- Existing Contracts
- In 8(a) requirements, COs may ask for release from future buys by sending letter to SBA DO
- Federal Supply Schedule competitions cannot *yet* be limited to just SDVOSBs or VOSBs

**Notes:**
8,000 firms currently registered; we are undertaking a telephone call campaign to remind firms to register.  

## Extra Help

**Specific Procedures Training** –
- DAU trains Federal employees via online course
- SBA trains vendors; material is online
- “**Rethink All Contract Actions**” –
- SBA & OFPP Letter 04/2004

## Perceived Program Impediments

- “Second Class status” for SDVOSBs
- General lack of support for SB programs by Federal buyers, program managers
- Large primes pay little attention; “good faith effort” is

## 	Bonding Capability Comparison

| Category | Number of Firms meeting criteria | Businesses in Contruction | Percentages by Category for Construction | Comments |
| --- | --- | --- | --- | --- |
| All Categories | 6,275 | 17,247 | 36.38% | Standard for Industry & CCR Population |
| WOSB | 1,045 | 4,451 | 23.48% | Sector Needs Improvement |
| 8(a) | 1,620 | 2,959 | 54.75% | Good |
| HUB | 2,080 | 4,550 | 45.71% | Good |
| SDVOSB | 321 | 885 | 36.27% | Sector Needs Minor Improvement |
| VOSB | 993 | 2,952 | 33.64% | Sector Needs Improvement |

| Category | Total Firms | Only 1 Emp | Rev < $500K | > 15 Emps | Rev > $1M |
| --- | --- | --- | --- | --- | --- |
| All Business Categories | 373,384 | 93,669 | 199,063 | 109,780 | 144,820 |
| WOSB                    | 73,593 | 20,003 | 48,154 | 13,110 | 19,271 |
| VOSB       | 42,755 | 11,314 | 26,931 | 8,699 | 12,505 |
| HUB | 14,131 | 1,884 | 6,966 | 4,373 | 5,804 |
| SDB | 13,003 | 1,278 | 5,122 | 4,871 | 6,478 |
| 8(a) - SDB Subset | 9,550 | 767 | 3,723 | 3,499 | 4,708 |
| SDVOSB | 9,166 | 2,525 | 6,774 | 1,250 | 1,880 |

| Data are current as of 01/17/06 and are subject to change daily. Please visit www.ccr.gov for updated data. |
| --- |

**Population Comparison**

## Performance Watch – HOT Issues

- COs lack awareness of program
- Consistent application of rules
- Disability documentation confusion
- Eligibility “Rent a Vet” concerns
- Some COs not comfortable with Teaming Arrangements
- Set-Aside methodology – competition is first
- Vendor Readiness – Lack of Bonding Capacity
- Too Many Choices

## What’s Next?

- National Service Eligibility
- Successor ownership
- Formal Certification
- Universal VOSB Program

## Champions of Veterans Enterprise

- Annual Flag Day Ceremony Hosted by VA’s Deputy Secretary
- Honors Individuals and Groups Working to Create Opportunities for Veterans in Business
- Criteria – “Does that deserve an award?”
- “Enterprising Veteran Award” Honors Owners Who Embody our Theme: Veterans in Business – Still Serving America
- Past Honorees posted on VetBiz.gov portal
- Free Travel to Washington, DC!!

**Notes:**
8,000 firms currently registered; we are undertaking a telephone call campaign to remind firms to register.  

## CENTER FOR VETERANS ENTERPRISE – FY 2006   public ph: 866.584.2344 or 202.303.3260                 

**OSDBU DIRECTOR**
**Scott Denniston (V)**
**202.565.8124**

**Deputy Director**
**Gail Wegner x5239**

**Business Expansion**
- _Intergovernmental Affairs Officer _
**Bruce St. John  (V) x5247**
- _Corporate Opportunities Specialist_
**Chuck Southern  (V) x5241**
- _EO 13360 Compliance Officer_
**Karen Zhussanbay (V)**
**202.254.0122**
- _VetBiz Validation Analyst  & _
- _Global Commerce Specialist_
**Omar Morel Cruz  (V) x5245**

**Business Development**
- _Senior Business Advisor_
**Richard Ramirez  (V) x5234**
- _Community Liaison Officer_
**Patricia Gould  (V)**
**254..0234**
- Business Coaches are staff from
- other work units who provide
- telephone and one-to-one counseling
- for veterans

**Communications Group**
- _Chief Communications Officer_
**Wade Binion  x5237**
- _Deputy Chief Communications Officer_
**Beth Torres (V)  x5244**
- _VIP/APP Database Administrator_
**Tyrone Brown  (V)  x5248**
- _Telecommunications Specialist_
**Kelsey Mortimer (V) x5246**
- _Conference and Correspondence Specialist_
**Andrieka McCane  x5236**

**CENTER FOR VETERANS ENTERPRISE – FY 2006   public ph: 866.584.2344 or 202.303.3260                 **

**Operations**
- _Chief Operationing Officer_
**Nolita Pollard  x5235**
- _Chief Financial Officer_
**LaDonne Austin  (V)  x5243**
- _ __Performance Optimization Officer_
**Patrick Hyousse (V)  x5238**

**(V) = Veteran**

## VetBiz Trailblazers!

- Send us your story (200 words)
- Send us a military photo & a civilian photo
- You get a poster!
- We post to Web Portal
- Others are encouraged by your model
- We combine in CD-ROM for returning personnel in rehabilitation programs

**Notes:**
8,000 firms currently registered; we are undertaking a telephone call campaign to remind firms to register.  

## You Can Be A Champion Too!

**Anyone Can Share Their Story**
- Encourage and sustain others
- Send to _[VACVE@va.gov](mailto:VACVE@va.gov)_
- (Subj: Good Story) or Fax to: 202.303.3296

**Notes:**
8,000 firms currently registered; we are undertaking a telephone call campaign to remind firms to register.