2016 midwest small business government contracting symposium · government contracting symposium ....
TRANSCRIPT
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2016 Midwest Small Business
Government Contracting
Symposium
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Mr. Kenyata Wesley
Acting Director DoD Office of
Small Business Programs
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Mr. John Shoraka
Associate Administrator of Government Contracting and
Business Development Small Business Administration
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Mr. Tommy Marks
Director, Army Small Business Programs
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OSBP Brief
May 25, 2016
Mr. Tommy Marks Director, Office of Small Business Programs
Office of the Secretary of The Army
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2
Rock Island Small Business Spending
Although, Overall Spending has decreased, Rock Island continues to be a strong supporter of Small Businesses. Over the past 5 years, Rock Island awarded almost $281 Million to Small Businesses, with over $34 Million obligated in FY15. For FY16, the total is already at $22.2 Million, and is on pace to eclipse the total from the previous year.
$417.9 M
$280.9 M
$0.0 M
$50.0 M
$100.0 M
$150.0 M
$200.0 M
$250.0 M
$300.0 M
$350.0 M
$400.0 M
$450.0 M
OTHER THANSMALL BUSINESS
SMALL BUSINESS
FY11 - FY15
$72.9 M
$34.1 M
$0.0 M
$10.0 M
$20.0 M
$30.0 M
$40.0 M
$50.0 M
$60.0 M
$70.0 M
$80.0 M
OTHER THANSMALL BUSINESS
SMALL BUSINESS
FY15
$4.8 M
$22.2 M
$0.0 M
$5.0 M
$10.0 M
$15.0 M
$20.0 M
$25.0 M
OTHER THANSMALL BUSINESS
SMALL BUSINESS
FY16 YTD
**As of 19 MAY 2016
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Rock Island Small Business Spending,
5 Year Summary
3
Rock Island Spending Breakdown by Business Size, FY11 – FY16YTD
FY11 FY12 FY13 FY14 FY15 FY16YTD
Total $ Percent Total $ Percent Total $ Percent Total $ Percent Total $ Percent Total $ Percent
OTHER THAN SMALL BUSINESS
$102.8 M 55.6% $135.2 M 53.2% $49.3 M 66.1% $57.5 M 73.7% $72.9 M 68.1% $4.8 M 17.8%
SMALL BUSINESS $82.2 M 44.4% $118.8 M 46.8% $25.3 M 33.9% $20.5 M 26.3% $34.1 M 31.9% $22.2 M 82.2%
**As of 19 MAY 2016
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55.59% 53.23%
66.09%
73.74% 68.14%
44.41% 46.77% 33.91%
26.26% 31.86%
0%
10%
20%
30%
40%
50%
60%
70%
80%
FY11 FY12 FY13 FY14 FY15
Yearly Spending Percentage By Business Size Classification
OTHER THAN SMALL BUSINESS SMALL BUSINESS Goal
4
Rock Island Small Business Spending
Rock Island has consistently performed well compared to the Army-wide goal for Small Business Spending. Currently, Rock Island is on pace to out-perform the previous 5 years and award a majority of dollars to Small Businesses.
YTD spending
FY15: 30.1%
FY 16: 82.15%
**As of 19 MAY 2016
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5
Rock Island Small Business Spending By State
Rock Island local spending has varied from year to
year. Illinois and Iowa rank near the top from
FY11 – FY15, but military heavy states, such as
Florida and Virginia, have received large amounts
of Small Business Spending. In FY16, Local
spending has surged, as Illinois and Iowa have
been received a combined $9M of the $22M
Small Business dollars awarded.
$65.2 M
$43.2 M
$24.8 M $20.9 M
$15.6 M
$0.00 M
$20.00 M
$40.00 M
$60.00 M
$80.00 M
Small Business Spending by State FY11-FY15
$3.58 M $3.40 M $2.96 M $2.91 M
$2.66 M
$0.00 M
$1.00 M
$2.00 M
$3.00 M
$4.00 M
$5.00 M
Small Business Spending by State FY15
$6.3 M
$2.8 M $2.1 M $1.8 M $1.7 M
$0.00 M
$2.00 M
$4.00 M
$6.00 M
$8.00 M
Small Business Spending by State FY16 YTD
Iowa: 8th ($20.5M) Illinois: 7th ($2.5M)
**As of 19 MAY 2016
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6
Rock Island HUBZone and 8(a)
Small Business Spending
$7.76 M
$71.98 M
$0.0M
$10.0 M
$20.0 M
$30.0 M
$40.0 M
$50.0 M
$60.0 M
$70.0 M
$80.0 M
HUBZone 8(a)
FY11 - FY15
$1.36 M
$0.00 M $0.0M
$0.2 M
$0.4 M
$0.6 M
$0.8 M
$1.0 M
$1.2 M
$1.4 M
$1.6 M
HUBZone 8(a)
FY15
$0.58 M
$0.04 M
$0.0M
$0.2 M
$0.4 M
$0.6 M
$0.8 M
$1.0 M
$1.2 M
$1.4 M
$1.6 M
HUBZone 8(a)
FY16 YTD
$2.7 M
$1.6 M
$1.0 M
$1.1 M $1.4 M
$0.0 M
$0.5 M
$1.0 M
$1.5 M
$2.0 M
$2.5 M
$3.0 M
FY11 FY12 FY13 FY14 FY15
Yearly HUBZone Spending
$15.5 M
$49.9 M
$20.2 M
$6.9 M
$0.0 M $0.0 M
$10.0 M
$20.0 M
$30.0 M
$40.0 M
$50.0 M
$60.0 M
FY11 FY12 FY13 FY14 FY15
Yearly 8(a) Spending
**As of 19 MAY 2016
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7
Rock Island Summary
Top 5 Small Business NAICS
FY11-FY15 315990 - Apparel
Accessories and Other Apparel Manufacturing
561210 - Facilities Support Services
336992 - Military Armored Vehicle, Tank, and Tank
Component Manufacturing
541620 - Environmental Consulting Services
541611 - Administrative Management and
General Management Consulting Services
FY15 541990 - All Other
Professional, Scientific, and Technical Services
336390 - Other Motor Vehicle Parts
Manufacturing
332991 - Ball and Roller Bearing Manufacturing
313210 - Broadwoven Fabric Mills
333517 - Machine Tool Manufacturing
FY16YTD 561311 - Employment Placement Agencies
333515 - Cutting Tool and Machine Tool Accessory
Manufacturing
313210 - Broadwoven Fabric Mills
333517 - Machine Tool Manufacturing
332722 - Bolt, Nut, Screw, Rivet, and
Washer Manufacturing
**As of 19 MAY 2016
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Rock Island Socioeconomic Goals &
Services Portfolio FY15 Socioeconomic Goals
Category Goal Rock Island
SB 26.50% 31.86%
SDB 11.00% 24.11%
WOSB 4.80% 5.20%
SDVOSB 3.50% 0.78%
HUBZone 3.00% 1.27%
Service Portfolio 34.00% 22.68%
SAT 70.00% 88.73%
FY15 Service Portfolio Goals
FY16 YTD Socioeconomic Goals
Category Goal Rock Island
SB 26.00% 82.15%
SDB 11.00% 2.73%
WOSB 4.80% 0.69%
SDVOSB 3.50% 0.31%
HUBZone 3.00% 0.22%
Service Portfolio 43.52% 89.06%
SAT 68.00% 93.43%
FY16 YTD Service Portfolio Goals
Portfolio Total SB
FY16 YTD
FY16
Goal SB%
KBS $5,735,437 38.81% 99.47%
FRS $394,015 58.97% 36.76%
ECS $185,172 40.61% 73.41%
Portfolio Total SB
FY15
FY15
Goal SB%
KBS $3,257,387 30.32% 5.61%
FRS $257,243 46.07% 100.00%
ECS $151,406 31.72% 46.00%
9 **As of 19 MAY 2016
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9
FY15 Small Business
Small
Disadvantaged
Business
Woman Owned SB Service Disabled
Veteran Owned SB HUBZone SB
KBS $3,257,387.08 -$53,878.68 $3,466,176.41 $0.00 $0.00
FRS $257,243.12 $0.00 $0.00 $0.00 $0.00
ECS $151,405.99 $0.00 $0.00 -$5,000.00 $0.00
Total $3,666,036.19 -$53,878.68 $3,466,176.41 -$5,000.00 $0.00
FY16 YTD Small Business
Small
Disadvantaged
Business
Woman Owned SB Service Disabled
Veteran Owned SB HUBZone SB
KBS $5,735,437.42 $0.00 $0.00 $0.00 $0.00
FRS $394,014.54 $0.00 $3,295.00 $0.00 $0.00
ECS $185,172.00 $0.00 $0.00 $0.00 $0.00
Total $6,314,623.96 $0.00 $3,295.00 $0.00 $0.00
Rock Island Service Portfolio By Socioeconomic Category
**As of 19 MAY 2016
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10
Rock Island Summary
• From FY11 to FY15, Rock Island awarded 40.2% of obligations to Small
Businesses
– Over $280M awarded over the last 5 years
– In FY15, Small Businesses received 31.9% of obligations
– For FY16 YTD**, Small Businesses received 82.2% of obligations
• Over the last 5 years, Rock Island has awarded the 7th most Small
Business dollars in Iowa, and the 9th most in Illinois
• Rock Island has achieved the Army-wide goal for Small Business Spending
in 4 of the last 5 fiscal years.
• Did not finish below 26%
• Missed goal in FY14 by less than 0.25%
• Most common Small Business services include:
• Vehicle Parts and Tool Manufacturing
• Admin/General Management Consulting Services
• Environmental Consulting Services
**As of 19 MAY 2016
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
Big Changes for Small Businesses: 2016 Government Contracts Legal Update
Midwest Small Business Procurement Symposium
May 26, 2016
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
Presentation Overview
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
Presentation Overview
• SBA’s “Universal” Mentor-Protégé Program
• WOSB Program Changes
• The Kingdomware SDVOSB/VOSB Case
• Questions/Discussion
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
SBA’s “Universal” M/P Program
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
“Universal” Mentor-Protégé
• 2010 Small Business Jobs Act: – Congress authorizes (but does not require) SBA to
create mentor-protégé programs for SDVOSBs, HUBZones, and WOSBs
• 2013 NDAA:
– Congress authorizes (but does not require) SBA to create mentor-protégé programs for all small businesses
– Congress directs SBA to standardize other agencies’ mentor-protégé programs (except DoD)
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
“Universal” Mentor-Protégé
• SBA Proposal (Feb. 5, 2015):
– Create single, “universal” mentor-protégé program
– Any firm may qualify as protégé if it is small in its primary NAICS code
• Small business may obtain formal SBA size determination to verify eligibility as protégé
– Any for-profit business (large or small) may qualify as a mentor
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
“Universal” Mentor-Protégé
• SBA Proposal (Feb. 5, 2015):
– Mentors will usually have no more than one protégé, but may have up to three with SBA permission
– Protégés will generally have no more than one mentor, but may have up to two with SBA permission
– Company cannot serve as both mentor and protégé at same time
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
“Universal” Mentor-Protégé
• SBA Proposal (Feb. 5, 2015): – Mentor and protégé must enter into written
agreement approved by SBA • Changes must be approved by SBA
– Single mentor-protégé agreement limited to three years
– Mentor and protégé will not be deemed affiliated based on assistance provided by mentor to protégé • May still be deemed affiliated for other reasons
– Mentor and protégé may joint venture as a small business for any prime contract or subcontract for which the protégé qualifies as small
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
“Universal” Mentor-Protégé
• SBA Proposal (Feb. 5, 2015):
– Mentor-protégé JVs must adopt JV agreements containing certain mandatory provisions in order to benefit from affiliation exception
– Requirements very similar to those currently required for 8(a) JVs under 13 C.F.R. 124.513.
– Protégé must perform at least 40% of JV’s work
– Procuring agency must take into account past performance of individual JV members
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
“Universal” Mentor-Protégé
• SBA Proposal (Feb. 5, 2015):
– Agencies (other than DoD) cannot continue existing M/P programs unless approved by SBA
– Other agencies will have one year from final rule to obtain SBA approval of existing M/P programs
– SBA questions whether other agencies’ M/P programs are necessary given universal M/P Program
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
“Universal” Mentor-Protégé
• SBA Update:
– Final rules expected Summer 2016
– Implementation expected Fall 2016
• For now, program is only a proposal, not a reality
• But now is the time to begin preparing to take full (and early) advantage)
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
WOSB Program Changes
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
WOSB Program Changes
• Sole Source Awards: – Authorized by 2015 NDAA
– Thresholds: $6.5 million (manufacturing); $4 million (other industries)
– Set-asides only allowed when agency does not have reasonable expectation of two competitive offers from WOSBs/EDWOSBs
– SBA final rule took effect October 14, 2015
– FAR recently updated to incorporate changes
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
WOSB Program Changes
• October 2014 GAO Report:
– WOSB set-asides have had “minimal impact”
– Although WOSB set-asides authorized in 2011, less than 1% of WOSB awards are set-asides
– Contracting officers dislike WOSB document repository
• Extra administrative burdens for a function COs believe should be performed by SBA
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
WOSB Program Changes
• 2015 NDAA:
– Congress deletes, without comment, self-certification authority for WOSB set-asides
– Regulations have yet to be amended—but can they be trusted?
– SBA is saying “business as usual” for self-certification.
• I am not so sure
• Third-party certification may be advisable
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
The Kingdomware Case
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
The Kingdomware Case
• History: – Veterans Benefits, Health Care and Technology Act
of 2006 requires VA to establish annual goals for SDVOSB/VOSB contracting and establishes the preference in 38 USC 8127(d)
– Many veterans believed that this requirement established an across-the-board “Veterans First” policy
– VA’s initial position: VA can buy off GSA Schedule without applying “Veterans First” preference
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
The Kingdomware Case
• The statutory section that spawned the case: (d) Use of Restricted Competition.— Except as provided in subsections (b) and (c), for purposes of meeting the goals under subsection (a), and in accordance with this section, a contracting officer of the Department shall award contracts on the basis of competition restricted to small business concerns owned and controlled by veterans if the contracting officer has a reasonable expectation that two or more small business concerns owned and controlled by veterans will submit offers and that the award can be made at a fair and reasonable price that offers best value to the United States.
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
The Kingdomware Case
• History: – GAO sustains protest of VA GSA Schedule buy
made without applying preference (Aldevra, B-405271, B-405524 (Oct. 11, 2011))
– VA refuses to follow GAO recommendation
– GAO subsequently sustains 17 more protests filed by Aldevra and others
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
The Kingdomware Case
• History: – Court of Federal Claims disagrees with GAO
(Kingdomware Technologies, Inc., v. United States, No. 12-173C (Fed. Cl. 2012))
• Court holds that statute must be construed in light of its goal-setting provisions and is “at best ambiguous” whether it mandates a preference when VA is meeting its goals.
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
The Kingdomware Case
• History: – Court of Federal Claims upholds COFC decision
on 2-1 vote
– Dissenting justice: “the statutory provision at issue could not be clearer. It provides that contracting officers ‘shall award contracts’ on the basis of restricted competition whenever the contracting officer has a reasonable expectation that the Rule of Two will be satisfied.’
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
The Kingdomware Case
• June 2015: Supreme Court “grants cert” and agrees to hear the case
• Case scheduled for oral argument on Nov. 9, 2015
• The issue supposedly before the Supreme Court: – Is the VA required to provide a “rule of two”
preference for SDVOSBs and VOSBs even when the VA is meeting its goals?
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
The Kingdomware Case
• October 1: Government abandons previously-successful “goal setting” argument
• Government’s new argument: FSS orders are not “contracts” to which preferences apply – But see: FAR 2.101 definition of “contract”
• February 2016: Oral argument held (first case without Justice Scalia)
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
The Kingdomware Case
• Supreme Court should issue decision by June 2016
• If Court rules in Kingdomware’s favor, it would significantly affect current VA contracting practices, to the benefit of SDVOSBs and VOSBs
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Steven Koprince 785-200-8919
www.koprince.com www.smallgovcon.com Twitter @StevenKoprince
For More Information
Steven J. Koprince
Managing Partner
(785) 200-8919
Visit www.smallgovcon.com to sign up for our free monthly electronic newsletter
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LUNCH SPONSOR:
Rock Island Arsenal Development Group
Mr. Tim Frye