Changes in Federal Small Business Programs

Presentation toHASBAT

7 December 2006

More to think about

Changes in Federal Small Business Programs

• Changes in the Small Business Administration

• Changes in Small Business Policy• Changes in Small Business Regulations• Local Changes in Small Business

Changes in Federal Small Business Programs

• Changes in the Small Business Administration– SBA was created in 1953 under the Eisenhower

administration• Established SIC (now NAICS) related SB standards • Established Set-aside programs

– Was significantly changed in 1978 with the SBA Act of 1978

• Created 8(a) programs • Created SADBU position• Small Purchases restricted to Small Businesses

Changes at SBA New Administrator and Team

• Steven Preston– Investment Banker- most recently EVP for Service Master—Confirmed unanimously by Senate as 22nd administrator

• Jovita Carranza nominated for Deputy Administrator—VP for Air operations of UPS and President of Latin American Operations

• Joel Szabat is Chief of Staff [Mr. Inside– mostly Federal Government background]

SB FY 2005 Contract Performance

• In FY 2005 the total Federal Government awarded $314 Billion in contracts

• SBs received 79.6 Billion or 25.4% • In FY 2005 DoD awarded $53.8Billion or

24.6% of its contracts to SBs

SBA’s main focus is on SB Loan Programs

Regulatory ChangesFour major regulatory changes in the past year --all effective June 30, 2007 (Federal Register 15

November 2006) 1. Annual Recertification under Online

Representations and Certifications Application (ORCA)

2. Must recertify 120 days before end of 5 year contract. OR 120 days before an option is exercised. OR when asked by PCO before Task Order or Delivery Order is awarded.

3. Don’t have to start Large Business Clauses during contract performance if change in SB status.

4. Pro-net moved to CCR.

More Regulatory Changes--for Buying Agencies

• When small businesses can no longer certify their small business size status, regardless of contract length, agencies can no longer count awards toward small business goals. When size status changes occur, agencies and contractors must revise records in all applicable federal contract databases.

Do you know what’s going on around you?

What’s happening locally

• Most of the local agencies are not meeting their Small Business Goals—especially in light of the recent status changes for prominent local formerly small businesses.

• Few known 8(a) firms in area (perception of buyers and Primes)

What can you do?

• Quickest Results– Look for subcontracting opportunities– Don’t forget that GSA contract

• Quick Results– Look outside of local area

• Next Year Results– There are several large support solicitations

due to be released soon– Get ISO 9000 and CMMI Certified

Key Words to look for• COMPETIVE SOURCING– All Federal agencies

will continue to do out-sourcing reviews and Teaming opportunities.

• GSA Schedules and other Government Wide Acquisition Contracts (GWAC) and Teaming opportunities.

• Alaskan Native Corporations (ANC) and Teaming opportunities.

• HBCU/MI (no limit on their subcontracting) and Teaming opportunities.

What can you do?

• Anticipate the budget growths in Federal contracting– Probably no new Army production programs

except Future Combat Systems, or parts of it—FCS will be 50% of procurement budget

– Only ARES project for NASA– USA COE is still focusing on Katrina rebuild

MDA/SMDC

The big print giveth and the small print taketh away

[FY2007 appropriation act]SEC. 844. PROHIBITION ON EXCESSIVE PASS-THROUGH CHARGES.(a) REGULATIONS REQUIRED- Not later than 120 days after the date of the enactment

of this Act, the Secretary of Defense shall prescribe regulations prohibiting excessive pass-through charges on contracts or subcontracts (or task or delivery orders) that are entered into for or on behalf of the Department of Defense that are in excess of the simplified acquisition threshold, as specified in section 4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(11)).

(b) SCOPE OF REGULATIONS- The regulations prescribed under this section shall not apply to any firm, fixed-price contract or subcontract (or task or delivery order) that is--

(1) awarded on the basis of adequate price competition; or(2) for the acquisition of a commercial item, as defined in section 4(12) of the Office of

Federal Procurement Policy Act (41 U.S.C. 403(12)).(c) Definitions- In this section:(1) The term `excessive pass-through charge' means a charge by a covered contractor or

subcontractor for overhead or profit on work performed by a covered lower-tier contractor (other than charges for the direct costs of managing lower-tier contracts and overhead and profit based on such direct costs...

There is opportunity everywhere

Do you know?

• Do you know your Senators?• Do you know your Representatives?• Do you know their staffers? (Personal

Staffers)• Do you know Committee staffers?

(Professional staffers)

Senate Appropriations Committee

Senator Shelby is currently on these SAC sub-committees

• Commerce, Justice, and Science (Chairman)• Defense • Homeland Security• Labor, HHS, and Education• State and Foreign Operations• Transportation• Treasury• Judiciary• HUD & Related Agencies

SASC Committee MembersCurrent Congress

REPUBLICANS John Warner (Virginia)Chairman

• John McCain (Arizona)James M. Inhofe (Oklahoma)Pat Roberts (Kansas)JEFF SESSIONS (Alabama)Susan M. Collins (Maine)John Ensign (Nevada)James M. Talent (Missouri)Saxby Chambliss (Georgia)Lindsey O. Graham (South Carolina)

Elizabeth Dole (North Carolina)John Cornyn (Texas)John Thune (South Dakota)

• DEMOCRATS Carl Levin (Michigan)Ranking Member

• Edward M. Kennedy (Massachusetts)Robert C. Byrd (West Virginia)Joseph I. Lieberman (Connecticut)Jack Reed (Rhode Island)Daniel K. Akaka (Hawaii)Bill Nelson (Florida)E. Benjamin Nelson (Nebraska)Mark Dayton (Minnesota)Evan Bayh (Indiana)Hillary Rodham Clinton (New York)

•

Two good web sites• the Federal Register web site:

http://www.archives.gov/federal-register/the-federal-register/indexes.html

• www.business.gov– Helps businesses find compliance information and

services by searching multiple government Web sites and by organizing the information into industry and topic categories.

– Reduces businesses’ time and effort by consolidating compliance information onto one Web site and offering a consistent way to find them.

– Minimizes business expenses in the form of time savings or cost avoidance