# Presentation: 011848

## U.S. Small Business Administration

**8(a) Program Certification**
**& **
**How to Win a Federal Government Contract**** **

## 8(a) Program Objectives 

**To promote business development among small business concerns owned and controlled by **_**socially**_** and **_**economically**_** disadvantaged individuals**

## 8(a) Program Eligibility

**U.S. Citizens**
**Applicant must own at least 51% of the business**
**Owner must conduct 100% of the business**** operations**
**Determined by SBA Socially & Economically disadvantaged                         criteria**
**Firm established for two years with Tax Returns and Revenues based on Primary NAICS Code****    **
**Two (2)-Year Waiver Eligibility**
**    ****	****	****Five conditions must be met per 13 CFR 124.l07 (b) (1)**
**	**

***8(a) Program Eligibility***

##  Socially disadvantaged

**U.S. Citizen who have been subjected to prejudicial practices because of their identity as members of designated groups as:**
**Black American**
**Asian American/Pacific Islander **
**Hispanic American – (includes  Spanish & Portuguese descent)**
**Native American**
**Subcontinent Asian American**

## MEMBERS OF NON-DESIGNATED GROUPS

**Rejection letters of Job applications**
**Denials of credit applications**
**Rejection of contract offers, i.e. Bids Abstracts or Solicitations**
**Personnel Records**
**Payroll Records**

**MUST ESTABLISH SOCIAL DISADVANTAGE ON THE BASIS OF THE “PREPONDERANCE OF THE EVIDENCE” SUCH AS:**

## Economically disadvantaged

**Those individuals socially disadvantaged and whose prejudicial experiences have resulted in impairment of access to capital, credit and markets.**

## Net worth criteria:After excluding the individual’s equity in the firm and equity in the primary residence, net worth may not exceed $250,000.00

***Net worth criteria:***After excluding the individual’s equity in the firm and equity in the primary residence, net worth may not exceed** **_$250,000.00_

- 		**NET WORTH**
**less****	****	****equity in primary residence**
**less****	****	**_**equity in business **_
**equals****	****adjusted net worth**                 	 		(***which must not exceed $250,000*****)**

## Term of ParticipationSTART = date of approval

-    Year	1
- 		2				**Developmental**
- 		3				        **Stage****	**
- 		4
-    Year	5
- 		6				**Transitional**
- 		7				      **Stage**
- 		8
- 		9

## Obtain a DUNS Number

- Obtain a Data Universal Number System (DUNS) Number

- Call D&B at 1-866-705-5711 to obtain a free DUNS number for federal CCR registration. The process takes about 10 minutes.  Or, you can register online at:
_*https://eupdate.dnb.com/requestoptions/government/ccrreg/*_* *

**Notes:**
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 $500,000 (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. 

## Central Contractor Registration (CCR)
   	www.ccr.gov 
	A CCR registration worksheet is available at:
	http://www.dlis.dla.mil/ccr/PDFs/central_contr_reg_form.pdf 
Dynamic Small Business Search Registration
   	When successfully registered in CCR, you’re given the option to create a profile in SBA’s small business database.

- Central Contractor Registration (CCR)
-    	_*www.ccr.gov *_
*	*A CCR registration worksheet is available at:
*	*_*http://www.dlis.dla.mil/ccr/PDFs/central_contr_reg_form.pdf*_* *
- Dynamic Small Business Search Registration
-    	When successfully registered in CCR, you’re given the option to create a profile in SBA’s small business database.

**Notes:**
CCR registration is a must if you want to do federal procurement.  Begin at the website and get registered.  If you would like to gather your information together before going in to do the CCR registration, link to the registration worksheet, print it out, fill it out, and then begin the registration process.  At the end of the CCR registration, you will receive a message that you have the option of creating a profile in SBA’s small business database.  Follow the instructions to register in the Dynamic Small Business Search, a powerful search engine used by contracting personnel to locate small businesses.

By having a profile on Dynamic Small Business, 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. Dynamic Small Business is open to all small firms seeking federal, state and private contracts. 

 Businesses profiled on the Dynamic Small Business Search can be searched by NAICS codes; key words; location; quality certifications; business type; ownership race and gender; EDI capability, etc. 

## For  Each Firm:
	SBA 1010  - “Eligibility”
For each person claiming disadvantage and each officer, director, shareholder with more than 10% holding, proprietor, partner and each person claiming disadvantage:
		SBA 413 - Personal Financial Statement
		SBA 912 - Personal History
Additional required documentation is listed on the SBA Form 1010

- 	**SBA 1010  - “Eligibility”**
**For each person claiming disadvantage and each officer, director, shareholder with more than 10% holding, proprietor, partner and each person claiming disadvantage:**
- 		**SBA 413 - Personal Financial Statement**
- 		**SBA 912 - Personal History**
**Additional required documentation is listed on the SBA Form 1010**

***Application***

##  Where To FileApplications for the 8(a) program are filed with the SBA Division of Program Certification & Eligibility (DPCE)San Francisco DPCE  455 Market Street, 6th Floor  San Francisco, CA  94105 (415) 744-0328

## Application Process

**DPCE reviews application for completeness within 15 days.**
**If incomplete, corrections submitted within 15 days and DPCE makes determination within 10 days**
**Applicant advised of outcome within 90 days from the date application was accepted.**
**If declined, applicant can ask reconsideration within 45 days of date of decline.**
**Reapplication:  Mandatory 12 month wait from final decision date.**

## Federal Government Contract Process

**A requirement is offered to the 8(a) program by federal procuring agencies as a result of **_**aggressive self-marketing**_** on the part of the 8(a) firms. **

## Nature of contracts:  Contracts are awarded by procuring agencies to SBA as the prime contractor.  SBA subcontracts to the named 8(a) firm.  Special contract clauses delegate administration responsibility to the procuring agency. 
Competitive threshold:  When the estimated value (including options) exceeds $3.5 million for services and construction and $5.5 million for manufacturing, requirement will be competed among 8(a) firms.

_**Competitive threshold**_**:****  ****When the estimated value (including options) exceeds $3.5 million for services and construction and $5.5 million for manufacturing, requirement will be competed among 8(a) firms.**

***Contract Process***

## 8(a) Contract Process

**SBA plays a role at the beginning of contract process by verifying/approving the requirement/contract for the 8(a) firm. The verification is provided to the federal agency with an acceptance letter.**
**Upon acceptance from SBA, the federal agency will issue the 8(a) firm a Request for Proposal (RFP) at which time the firm begins the preparation of its technical and cost proposal needs to be discussed with the contracting officer.**
**Actual administration of the contract is delegated to the procuring agency.**

## Marketing the 8(a) Program

**Identify who buys your Products or                                                                                                                                                                                                      Services... (**_**www.fpdc.gov**_**)**
**Know your NAICS Codes (www.sba.gov)**** **
**Register in Government Procurement**
**       ****1.  **_**www.fedbizopps.gov   **_
**	****2.  **_**www.fedbid.com   **_
**	****3.  **_**web.sba.gov/subnet**_** **
**	****4.  **_**www.ccr.gov  **_** **
**             ****(a pre-requisite for certification)**

## Various Programs to Assist You

- Small businesses located in areas identified as historically underutilized business zones, and with 35% of employees coming from HUB Zones, eligible to receive competitive and ‘sole source’ awards.
**Small Disadvantaged Business (SDB) Program**
- Three-year certification for small, socially and economically disadvantaged firms eligible to receive prime and subcontract preferences.

***Various Programs to Assist You***

**Notes:**
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.  
The 3 formal certifications will be discussed in more detail.  Check our website at sba.gov for further information on all certifications.

## Know the Federal Contract Certifications

- 	Small Business – NAICS Codes
- 	Woman-owned Small Business (WOSB)
- 	Veteran-owned Small Business (VOSB)
- 	Service Disabled Veteran-owned Small Business
-                (SDVOSB)
-   Formal Certification Programs
- 	8(a) Business Development
- 	HUBZone Empowerment Contracting
- 	Small Disadvantaged Business (SDB)

***Know the Federal Contract Certifications***

**Notes:**
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.  
The 3 formal certifications will be discussed in more detail.  Check our website at sba.gov for further information on all certifications.

## Finding Prime Contract Opportunities

-   **Research Past Purchases**
-   Federal Procurement Data System – Next Generation  _*https://www.FPDS.gov*_*   *
- Register, Read “First Time Using Reports”, Obtain standard, special, or customized award data.
-   **Identify Current Opportunities**
-   Federal Business Opportunities _*www.fedbizopps.gov*_* *
*	*Identify your product and/or service codes & search.
*  ***Obtain Agency Forecasts**** **from sites like
_*http://www.womenbiz.gov/forecasts.html*_* ** *

**Notes:**
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 “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 email notice from FedBizOpps to alert you to new postings daily.

## FedBizOpps

***FedBizOpps***

**1.  Select Procurement **
**Code, NAICS **
**and/or**
**Buying Activity**

- The following postings have been made on FBO:
- DLA
- Logistics Operations Defense Distribution Center
- 49 -- ICE MACHINE MAINTENANCE AT DEFENSE DISTRIBUTION DEPOT
- Synopsis
- _[http://www.fbo.gov/spg/DLA/J3/DDC/SP3100%2D06%2D0061/listing.html](http://www.fbo.gov/spg/DLA/J3/DDC/SP3100%2D06%2D0061/listing.html)__ _

**2.  Receive **
**daily links **
**to buys**

**Notes:**
To register for the Vendor Notification Service, go to www.fedbizopps.gov and click on "Vendor Notification Service". The Vendor Notification Service will send out email notifications for synopses, modifications, and uploaded documents (solicitations, amendments, etc.). 
You can register to receive notification for: 
       1 -  Particular solicitation numbers
       2 -  Selected organizations and product service classifications or NAICS Code
       3 -  All notices
We recommend that you choose option # 2, as this will assist you in narrowing the number of listings you receive from the notification service. 

## Finding Subcontracting Opportunities

- Subcontracting Opportunities
- 	Directory of Large Prime Contractors
-     _*www.sba.gov/GC/indexcontacts-sbsd.html *_
- SUB-Net
- 	_*http://web.sba.gov/subnet *_
- FedBizOpps - Find Business Opportunities, Search for: Awards

**Notes:**
Many firms find the subcontracting world 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.
As part of the Integrated Acquisition Environment (IAE) using the Electronic Subcontracting Reporting System (eSRS), all federal subcontractors will be required to be registered on the Central Contractor Registration.
Finally, the FedBizOpps “Find Business Opportunities” search page allows you to narrow your search to only see award notices.

## Investigate Joint Venture/Teaming Arrangements
Excluded from affiliation – 13 CFR 121.103(f)(3)
“bundled” requirement
other than a “bundled” requirement
Consider Mentor-Protégé Programs
SBA – limited to 8(a) firms;
DOD, US Navy, Air Force, FAA, Dept of State, Dept of Energy, & more – check individual small business programs for details.

**Investigate Joint Venture/Teaming Arrangements**
- Excluded from affiliation – 13 CFR 121.103(f)(3)
- “bundled” requirement
- other than a “bundled” requirement
**Consider Mentor-Protégé Programs**
- SBA – limited to 8(a) firms;
- DOD, US Navy, Air Force, FAA, Dept of State, Dept of Energy, & more – check individual small business programs for details.

**Notes:**
Many small businesses are looking into joint venture and teaming arrangements to better compete for federal contracts.
Make sure you understand the rules behind joint ventures and teams if this looks like the best way for you to maximize your potential.

## Market Your Firm

**One on One**** ****- **Present your capabilities directly to the federal activities and large prime contractors that buy your products and services
- Attend** ****procurement conferences** and business expos
- Attend **Business Matchmaking** events
**Add details**** to DSBS** your Dynamic Small Business Search profile (e.g., GSA schedule number, commercial customers, federal customers, special capabilities).

**Notes:**
There are many ways to “narrow down” the federal marketplace.  But, once you know where your products or services are being procured, make an effort to market your capabilities to those sites.

## Request or download a bid package
Obtain copies of relevant specifications 
    & drawings
Understand relevant purchasing regulations
Federal Acquisition Regulations:
Contract clauses

- Request or download a bid package
- Obtain copies of relevant specifications
-     & drawings
- Understand relevant purchasing regulations
- Federal Acquisition Regulations:
- Contract clauses

**Notes:**
When you are familiar with the rules, the terms, and know your market, it is time to consider preparing a quote, a bid or a solicitation.
Understanding the rules behind each method will ensure your success – for example, buys valued at less than $100,000 usually result in a purchase order instead of a contract.  Your particular area of interest may fall within the micro-purchase threshold, making government credit cards an important issue for you.
In addition, always read the contract clauses cited in anything for which you quote.  Be sure to know what you are promising to provide before you sign and submit any type of offer.

## 3 Rules for a solicitation:
	-Read it...Read it...Read it!!!
Request a Procurement History
Attend Pre-Bid Meetings 
   & Walk-Throughs
Get clarification of ambiguities
Proofread your proposal
Submit it on time!

- 3 Rules for a solicitation:
- 	-*Read it...Read it...Read it!!!*
- Request a Procurement History
- Attend Pre-Bid Meetings
-    & Walk-Throughs
- Get clarification of ambiguities
- Proofread your proposal
- Submit it on time!

**Notes:**
Some other pointers to remember as you prepare your offer.

## Contract Award

-   Are you Responsive?
-   Are you Responsible?
- Pre-Award Survey:  Technical capability
- & production capability
- Financial: accounts receivable, net worth, cash flow
- Accounting System
- System for Qualifying Suppliers
- Packaging, Marking, Shipping

**Notes:**
The contracting officer will take all offers received and make an award decision.  This list shows some of the areas a contracting officer may evaluate.

## Contingency Plans
Have a back up plan if something goes wrong
Give yourself enough time to react
Anticipating Final Inspection
Make an appointment before shipping date
On-Time delivery
Establish a good track record

- Have a back up plan if something goes wrong
- Give yourself enough time to react
- Anticipating Final Inspection
- Make an appointment before shipping date
- On-Time delivery
- Establish a good track record

***Contract Performance***

**Notes:**
If you get the award, solid performance is your key to future contracts.

## Know the paperwork process
Keep good records
Know your options
Progress payments
Prompt Payment Act
EFT (electronic funds transfer)
Accept government credit cards

- Keep good records
- Know your options
- Progress payments
- Prompt Payment Act
- EFT (electronic funds transfer)
- Accept government credit cards

***Getting Paid***

**Notes:**
Navigating through the payment process can be an interesting experience.  Smooth the way by following these tips.

## Seek Additional Assistance

-   Procurement Technical Assistance Center
-     (PTACs)   _*www.dla.mil/db/procurem.htm *_
-   Small Business Specialists
-     _*www.acq.osd.mil/sadbu/doing_business/index.htm*__* *_
-   Procurement Center Representatives (PCRs)
-     _*www.sba.gov/gc/contacts.html *_
-   Commercial Marketing Representatives
-     (CMRs) _*www.sba.gov/gc/contacts.html *_

**Notes:**
You will have questions along the way.  This slide highlights a few of the most popular sources of free or low-cost assistance that’s available to you.
Each provides free counseling to small businesses and may host low-cost training workshops for specific interest areas.
SBA’s Procurement Center Representatives (PCRs) monitor federal agencies to ensure that a variety of procurements are reserved exclusively for small business participations.  These transactions are known as “small business set-asides.” 
Also SBA’s Commercial Marketing Representatives (CMRs) can assist you in marketing to large prime federal contractors.

## Federal Agency Contract Goal Program
Procurement Marketing (Dynamic Small Business Search & SUB-Net)
Prime Contract Program (PCRs)
Subcontract Program (CMRs)
Certificate of Competency Program (COC)
Size Program – NAICS Information
E-Business Institute

- Procurement Marketing (Dynamic Small Business Search & SUB-Net)
- Prime Contract Program (PCRs)
- Subcontract Program (CMRs)
- Certificate of Competency Program (COC)
- Size Program – NAICS Information
- E-Business Institute

***SBA Assistance Programs***

**Notes:**
Since the federal government spends approximately 200 billion dollars for purchases of goods and services from private firms each year, SBA assists small businesses seeking federal contracts and subcontracts by negotiating small business goals (in terms of a percentage of annual expenditure) with the various federal agencies.  The current negotiated goals are:
23% - SB, 5% - WOSB, 3% - SDVSBs, 5% - SDBs and 3% - HUBZone.
Listed here are a few of the ways that SBA is ready to assist you and your firm.

## Helpful Web Sites

**DOD Small & Disadvantaged Business Utilization Office**
-     	_*www.acq.osd.mil/sadbu/*_* *
**Procurement and Technical Assistance Centers**
-     	_*www.sellingtothegovernment.net *_
**Small Business Development Centers**
-     	_http://__*www.sba.gov/sbdc/*_* *
**SBA’s Home Page**: _*www.sba.gov *_* *
**Government Contracting****:** _*www.sba.gov/GC *_* *
- 	Site includes links to all major government contracting programs discussed here plus much,   much more.
**Find a**** ****Procurement Center Representative**
*   **	**	*_*www.sba.gov/GC/pcr.html  *_

**Notes:**
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.  

## Things To Remember

**  ****TARGET YOUR CUSTOMER:****  Who buys your ****	****product or service?     How do they buy?     **
**	****When do they buy?**
**  ****KNOW THE RULES:****  Federal Acquisition ****	****Regulations**
**  ****	****Contract requirements and specifications**
**  ****	****How to obtain Contract history**
**  ****PERFORM AS PROMISED****:  On-time delivery, **
** ****	****Good Quality, at a Fair Price**

**Notes:**
In summary, you can be a success selling to the Federal Government with careful planning, research, and solid performance.

## Ilene P. Rubio
Assistant District Director
8(a) Business Development Division
U.S. Small Business Administration (SBA)
South Florida District Office
Ilene.rubio@sba.gov – E-mail Address
www.sba.gov/fl/south - Web site address

- Assistant District Director
- 8(a) Business Development Division
- U.S. Small Business Administration (SBA)
- South Florida District Office
- _Ilene.rubio@sba.gov_ – E-mail Address
- _www.sba.gov/fl/south_ - Web site address

***Today’s Presenter***