# Presentation: 875272

## Glenn DelgadoOffice of the Secretary of the Navy Small & Disadvantaged Business Utilization OfficeAtlantic CityJanuary 9 , 2006

## Service-Disabled Veteran-Owned Small Business (SDVOSB) Program Strategic Plans

## DoD and DoN SDVOSB Strategic Plans

- To support the Presidential Executive Order 13360, and in order to significantly increase contract and subcontract opportunities for SDVOSBs, the Department of Defense (DoD) & the Department of the Navy (DoN) developed strategic plans.

## DoD SDVOSB Strategic Plan

- The DoD strategic plan was signed by the Honorable Michael W. Wynne, the Under Secretary of Defense for Acquisition, Technology, and Logistics, on May 16, 2005 and Frank M. Ramos, the Director for the Office of Small and Disadvantaged Business Utilization on May 9, 2005.
- The DoD long-term strategy is a five (5) year plan. The six (6) objectives of the strategic plan outline DoD’s approach to meet the plan’s goal.

## DoD’s Objectives for SDVOSBs 

- Below are the six objectives for the DoD strategic plan.
- Increase:
- Number of SDVOSBs in Central Contractor Registration (CCR)
- 	_Description:_
- 	Collaborate with veteran service organizations (VSOs) to increase the supplier base of SDVOSBs in CCR for use by contracting officers and DoD prime contractors
- 	_Impediment:_
-  	Lack of understanding and knowledge by organizations and individual SDVOSBs of prerequisite to register in CCR

## DoD’s Objectives for SDVOSBs 

- Training and outreach of acquisition community to increase use of sole source and restricted competition
- 	_Description:_
- Collaborate with Defense Procurement and Acquisition Policy (DPAP) to inform senior level acquisition community leadership of final rule in FAR 19.14
- Coordinate with DPAP to inform acquisition community of training opportunities
- Coordinate with Defense Acquisition University (DAU), military services and ODAs on training opportunities for acquisition community

## DoD’s Objectives for SDVOSBs 

- 	_Description (con’t):_
- Encourage military services and ODAs to initiate credible and aggressive metric based, sole-source and restricted competition awards to SDVOSBs
- Encourage large DoD Prime contractors to subcontract with SDVOSBs
- Include in the military service’s and ODA’s annual reports the number of personnel trained in FAR 19.14
- 	_Impediment:_
-  	None

## DoD’s Objectives for SDVOSBs 

- Increase SDVOSB participation in DoD Mentor-Protégé Program
- 	_Description:_
- 	Collaborate with military services and ODAs to develop an initiative to fund select SDVOSBs for consideration in Mentor Protégé Program (MPP)
- 	_Impediment:_
- 	None

## DoD’s Objectives for SDVOSBs 

- Increase large prime contractor subcontracting with SDVOSBs
- 	_Description:_
- Collaborate with six selected DoD large prime contractors by identifying a pool of qualified SDVOSBs and matching them with subcontracting opportunities
- Negotiate increased SDVOSB subcontracting goals with the selected prime contractors
- Use the data and techniques developed above to negotiate subcontracting goals with all prime contractors
- 	_Impediment:_
- 	Availability of qualified SDVOSBs to meet large prime contractor subcontracting goals

## DoD’s Objectives for SDVOSBs 

- Increase Surety Bonding Capacity for SDVOSBs in Construction and Environmental Industries to meet anticipated set-aside solicitations
- 	_Description:_
- 	Increase the capacity for bid bonds, payment bonds and performance bonds for SDVOSBs to increase contracting and subcontracting awards for anticipated set-aside solicitations under DFARS
- 	_Impediment:_
- Market forces have reduced the amount of bonding capacity at all levels -- large prime construction contractors, as well as small primes and subcontractors
- Several Treasury listed bonding companies have ceased to write surety bonds

## DoD’s Objectives for SDVOSBs 

- Use Teaming Agreements and Joint Ventures to enhance capacity and capability of SDVOSBs
- 	_Description:_
- 	Encourage the use of teaming and joint venture agreements to enhance capacity and capability of SDVOSBs to successfully bid on larger contracts for prime contracting and subcontracting
- 	_Impediment:_
- 	Reluctance of acquisition community to accept small business teaming and joint venture agreements for use in federal contracting and subcontracting

## DoN SDVOSB Strategic Plan 

- The Navy established the IPT to develop a strategic plan to supplement the DoD SDVOSB plan.
- The team discussed the various strategic plans from the various agencies that were available and the research completed by the SBA Office of Advocacy.
- The IPT initially decided on a potential of eight objectives for the DoN strategic plan.  These eight objectives support five of the six objectives outlined in the DoD strategic plan.

## DoN’s Objectives for SDVOSBs 

- The seven objectives are described below:
- Complete a data analysis to determine the NAICS codes the department is _strong_ in providing opportunities to SDVOSBs.
- Complete a data analysis to determine the NAICS codes the department is _the weakest_ in providing opportunities to SDVOSBs.
- Draft a letter for signature by SECNAV supporting the public laws and the executive order and requesting the senior leadership of the HCAs to support the programs.

## DoN’s Objectives for SDVOSBs 

- Provide training to the acquisition community on the SDVOSB program.
- Focused outreach to the SDVOSB community.
- Increase SDVOSB participation in the DoN Mentor-Protégé Program.
- Establish an award program to recognize accomplishments in the SDVOSB program.

## Dollars Awarded to SDVOSBs

- The Dollars Awarded To Veteran-Owned Small Businesses Dramatically Increased Between FY- 04 to FY- 05:
- 		**FY-04****	****	****FY-05        % Increase  ****	****$ Increase**
- SDVOSB	$122.1M	$184.4M	50.96%	$ 62.2M
- VOSB		$547.0M	$881.7M	61.18%	$396.9M
**Total ****	****	****$669.1M****	****$1.1B****	****  ****	****59.31%    ****	****$459.1M**** **

## Number of Contract Actions

- The Number Of Contract Actions Increased Dramatically from FY- 04 to FY- 05:
- 		**FY-04****	****	****FY-05        % Increase**
- SDVOSB	1,122		1,353		21%
- VOSB		7,234		11,132	54%
**Total ****	****	****8,356****	****	****12,485****	****49%**

## DoN SDVOSB Program

- FY 2005 Top Areas of Participation
_**NAICS**__**	**__**	**__**Description**__**	**__**	**__**	**__**	**__**	**__**	**__**	**__**	**__**	**__**	**__**	**__**  Dollars**__**	**__**   **__**	**__**Actions**_
- 541330		Engineering Services (Facilities)	 				$61,968,352	   281
- 541710		R&D (Physical, Engineering, Life Sciences)   	   		  19,243,724	  	40
- 336413		Other Aircraft Parts and Auxiliary Equip Mfg	    8,991,541	  	18
- 334516 		Analytical Laboratory Instrument Mfg			    8,230,104		11
- 541512 		Computer Systems Design Services	     		    6,282,464	  	12
- 236210 		Industrial Building Construction					    5,095,706	  	13
- 541519		Other Computer Related Services	     			4,748,617	15

## Departmentof the Navy

- Mentor-Protégé Program

## Agenda

- Mentors
- Protégés
- General Policies and Procedures
- Proposal Content
- Evaluation Process
- Program Requirements
- DoN Contacts

## Program Overview

- The Department of Defense (DoD) Pilot Mentor-Protégé Program was established under Section 831 of Public Law 101-510, the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2302 note). The program has been extended through 2010 for new agreements.
- Effective October 1, 2003 the Mentor-Protégé Program was transitioned from the Office of the Secretary of Defense (OSD), Small & Disadvantaged Business Utilization (SADBU) level to the Military Services and Other Defense Agencies delegating them full authority to approve and fund Mentor-Protégé agreements.

## Program Overview

- Types of agreements:
- Credit
- A credit agreement provides the mentor credit against applicable subcontracting goals established under contracts with DoD and other Federal agencies. For more information, contact DCMA.
- Reimbursable
- A reimbursable agreement provides monetary reimbursement only for the cost of developmental assistance incurred by the mentor firm provided to a protégé firm in accordance with the approved agreement.

## Mentors

- Prior to participation, mentor firms must complete and submit a mentor application to the Office of the Secretary of the Navy (OSN), SADBU Director, for approval as a mentor firm under the program (DFARS Appendix I-105).
- The Application may be submitted concurrently with the proposed Mentor-Protégé agreement.
- A mentor may have several Mentor-Protégé relationships; However, a protégé may have only one mentor at any given time.
- A separate Mentor-Protégé agreement must be submitted for each Mentor-Protégé relationship.

## Mentors 

- Mentor considerations when selecting a protégé:
- Protégé’s geographic location to the mentor;
- Capabilities of the protégé and how they interface with the mentor;
- Commitment to the relationship;
- Stability of the protégé’s management and financial status;
_**Subcontracting expectations;**__** **_

## Benefits to Mentors 

- The incentives for large businesses to participate in this program are:
- Assist small businesses as defined in the Defense Federal Acquisition Regulations (DFARS) 219.7102(b) in enhancing their capabilities and to increase participation of such firms in Government and commercial contracts.
- Mentors receive compensation for costs associated with Mentor-Protégé agreements in the form of direct reimbursement.

## Benefits to Mentors

- Funded by DoD to nurture and develop long-term relationships with qualified small business vendors.
- Teaming opportunities with the Protégé to win new contracts and/or subcontracts

## Protégés 

- Must be eligible to participate as a protégé firm as defined in DFARS 219.7102 and DFARS Appendix I-102(b).
- Small Disadvantaged Business (SDB)
- Indian Tribe
- Native Hawaiian
- Native Alaskan
- Woman-Owned Small Business (WOSB)

## Protégés 

- Service-Disabled Veteran-Owned Small Business	(SDVOSB)
- HubZone
- Entity employing at least 20% severely disabled

## Benefits to Protégés 

- The incentives for small businesses to participate in this program are to:
- Open doors
- Use as a marketing tool
- Pursue business with other prime contractors
- Receive assistance from a major prime contractor
- Develop long-standing business relationship

## Benefits to Protégés 

- May receive non-competitive subcontracts under cost-type contracts, see FAR 52.244-5, Competition in Subcontracting and DFARS Appendix I-106(d)(2).
- Teaming opportunities with the mentor to win new contracts and/or subcontracts.

## General Policies & Procedures

- Prior to initiating the development of a Mentor-Protégé agreement, the Mentor and Protégé shall complete a needs assessment (as defined in DFARS, Appendix I-106(b)) to:
- Identify the developmental needs of the Protégé
- Come to a mutual agreement between the Mentor and Protégé regarding the developmental assistance to be provided to the Protégé to address those needs
- Enhance the Protégé’s ability to perform successfully under prime contracts and/or subcontracts

## General Policies & Procedures

- Mentor-Protégé agreements are formalized contractually by adding a separately priced line item to an existing Navy contract.  Guidance for selection of appropriate contractual vehicle:
- Mentor-Protégé agreements must be added as a line item to an existing contractual instrument.
- It is the Mentor’s responsibility to obtain permission from the Program Manager of the contractual vehicle to add the agreement to the contract.
- A new contract instrument cannot be issued for the sole purpose of establishing a Mentor-Protégé agreement.

## General Policies & Procedures

- New  Proposals should be structured as follows:
- base year
- priced option for out years
- agreement shall not exceed three (3) years

|  | Proposal Amounts | Not-To-Exceed Amounts |
| --- | --- | --- |
| Non-Manufacturing Per Year | $175K - $250K | $500K |
| Non-Manufacturing Per Agreement | $750K | $1.5M |
| Manufacturing Per Year | $750K | $950K |
| Manufacturing Per Agreement | $2.25M | $2.85M |

## General Policies & Procedures

- All Navy Mentor-Protégé agreements must contain the following four elements:
- The Mentor-Protégé agreement as defined in DFARS Appendix I-107. To access the agreement template, go to _[http://www.acq.osd.mil/sadbu/mentor_protege/participate/aaat.htm](http://www.acq.osd.mil/sadbu/mentor_protege/participate/aaat.htm)_
- A separate statement outlining the ***major*** benefits of this agreement to the DoN and/or DoD.

## General Policies & Procedures

- A technical proposal that details the development program described in the Mentor-Protégé agreement DFARS Appendix I-107(f).
- A detailed cost proposal of the technical proposal presented in 12-month increments as cited in DFARS Appendix I-108(a)(4).

## Agreement Content

- DFARS Appendix I-107: All fifteen (15) elements of Section I-107 **MUST** be addressed separately.
- A separate statement citing the benefits of this agreement and or the Return On Investment of this agreement to the Navy and/or DoD must be submitted on a separate page, which is clearly identified.

## Technical Proposal Content

- The technical proposal should be constructed so it easily tracks to the cost proposal;
- The hours associated with each task described in the technical proposal should be visible in the cost proposal;
- A very strong technical proposal is imperative;

## Technical Proposal Content

- The minimum hours associated with technology transfer should be approximately 70% of the proposed hours and the remaining 30% should be related to business development tasks.
**Emphasis on technology transfer is very important.**** **
- The technical proposal must also include a milestone chart (DFARS Appendix I-107(g)) that tracks the proposed technical assistance to be provided.

## Cost Proposal Content

- Cost Proposals for reimbursement must comply with the following:
**Do Not Include Any Type of Fee or Profit**
- Labor/Salary reimbursement must be for employees on the mentor’s payroll only.  Consultant costs are **unallowable**.

## Cost Proposal Content

- Incidental costs (other direct costs) _**cannot**_ exceed **10%** of the total proposal cost.
- Incidental costs include all costs other than direct labor, overhead, and General and Administrative (G&A) costs associated with direct labor.
- Examples of incidental costs include travel, training, equipment and software, etc.
- The _only_ protégé expenses to be reimbursed by the Government are for travel expenses relating to training only, _not_ marketing.

## Cost Proposal Content

- Tasks to be completed by a Historically Black Colleges or Universities or Minority Institutions (HBCUs/MIs), a Procurement Technical Assistance Center (PTAC), or a Small Business Development Center (SBDC) are allowable and are _**not**_ included in incidental costs.
_**The use of these resources for training is encouraged.**_

## Evaluation Process

- The Navy M-P Program Manager will accept Mentor-Protégé agreements submitted during the following four cycles:
*August 30**th** *
*November 30**th*
* *
*February 28**th** *
*May 31**st** *

## Evaluation Process

- All proposals shall be submitted to and endorsed by a Navy Head Contracting Agency (HCA). The Navy HCA shall review all proposed agreements for accuracy and completion, and will then forward them to the DoN Mentor-Protégé Program Manager for final review by an evaluation board.
- Your firm will be notified by DoN SADBU letter as to approval or rejection of your submitted proposal.
- It is the Navy Program Manager’s intention to endorse the highest rated agreements from each submission cycle.

## Evaluation Process

- All agreements that are not endorsed and forwarded to DoN SADBU Director for approval and funding will be returned to the mentor with a copy of the cover letter sent to the cognizant Navy HCA Small Business Office.
- If the initial proposal is returned to the mentor, it may be resubmitted a maximum of two more times. (A total of three (3) submissions).

## Evaluation Process

- Proposed agreements will be evaluated based on the following criteria (listed in descending order of importance):
- Merit of the technology transfer to the protégé firm;
- Perceived benefit/value of the agreement to Navy and/or DoD;
- Percentage of hours associated with technology transfer;

## Evaluation Process

- Subcontracting opportunities available to the protégé;
- Utilization of HBCUs/MIs, PTACs, or SBDCs;
- Proposed cost;

## Program Requirements

- Monthly expenditure reports are required to be submitted to the cognizant Small Business Office on the 20th of each month. _Inaccurate and late reports will have a negative impact on the decision for approval of your priced option._
- Extra emphasis is placed on the semi-annual reports that are required under this program. These reports are reviewed and are a major part of the decision-making process to determine if incremental funding will be approved.  _Inaccurate and late reports will have a negative impact on the decision for approval of your priced option._

## Glenn Delgado

***PROGRAM MANAGER****** ***
**Glenn Delgado**
- Small & Disadvantaged Business Utilization
- Office of the Secretary of the Navy
- Building 36, Room 207
- 720 Kennon Ave S.E.
- Washington Navy Yard, DC  20374-5015
- PHONE:  (202) 685-6485
-       FAX:  (202) 685-6865
- E-MAIL: _[glenn.delgado@navy.mil](mailto:glenn.delgado@navy.mil)__ _
- HOMEPAGE: _[http://www.hq.navy.mil/sadbu](http://www.hq.navy.mil/sadbu)__   _

## Contacts

- Nicole Vo
- (202) 685-6489
- _[nicole.vo@navy.mil](mailto:nicole.vo@navy.mil)__ _

## Contacts

*Naval Supply Systems Command*
- Mr. Mark Opilla
- 717-605-3575
- _mark.opilla@navy.mil_
- _http://www.navsup.navy.mil_
*Naval Inventory Control Point*
- Ms. Tamela Kozior
- 215-697-2587
- _tamela.kozior@navy.mil_
- _http://www.navicp.navy.mil_

## Contacts

*Office of Naval Research*
- Ms. Genesta Belton
- 703-696-4511
- _beltong@onr.navy.mil_
- _http://www.onr.navy.mil_
*Marine Corps Systems Command*
- Ms. Jeraline Artis
- 703-432-3798
- _[Jeraline.artis@usmc.mil](mailto:Jeraline.artis@usmc.mil)_
- _http://www.marcorsyscom.usmc.mil_

## Contacts

-  *HQ, U.S. Marine Corps*
- Ms. Julie Krnc
- 703-614-6810
- _krncjl@hqmc.usmc.mil_
- _http://www.hqmc.usmc.mil_
*Naval Sea Systems Command*
- S. Tatigian
- 202-781-3965
- _TatigianS@navsea.navy.mil_
- _http://www.navsea.navy.mil_

## Contacts

*Strategic Systems Programs*
- Ms. Pamala Bridges
- 202-764-1583
- _[pamala](mailto:pamala.bridges@ssp.navy.mil)__[.bridges@](mailto:pamala.bridges@ssp.navy.mil)__[ssp](mailto:pamala.bridges@ssp.navy.mil)__[.navy.mil](mailto:pamala.bridges@ssp.navy.mil)_
- _http://www.hq.navy.mil/sadbu/ssp.htm_
*Naval Air Systems Command*
- Ms. Emily Harman
- 301-757-9044
- _[emily](mailto:emily.harman@navy.mil)__[.](mailto:emily.harman@navy.mil)__[harman](mailto:emily.harman@navy.mil)__[@navy.mil](mailto:emily.harman@navy.mil)_
- _http://www.navair.navy.mil_

## Contacts

*Military Sealift Command*
- Mr. Brad Taylor
- 202-685-5565
- _Brad.taylor@navy.mil_
- _http://www.msc.navy.mil_
*Naval Facilities Engineering Command*
- Ms. Linda Wright
- 202-685-9129
- _linda.g.wright@navy.mil_
- _http://www.navfac.navy.mil_

## Contacts

*Space & Naval Warfare Systems Command*
- Susan Burrows
- 619-524-7701
- _susan.burrows@navy.mil _
- _[http://www.spawar.navy.mil](http://www.spawar.navy.mil/)_
*Defense Contract Management Agency*
*Mentor-Protégé Division*
- Sunny Thompson
- Division Chief
- 617-753-3643
- _[Melba.Thompson@dcma.mil](mailto:Melba.Thompson@dcma.mil)_