Integrity Service Excellence

Small BusinessPrograms Overview

Ms Carol WhiteHQ AFMC/SB

3 Sep 09

Air Force Materiel CommandAir Force Materiel Command

Small Business Program Overview

• Why a small business program?

• What is a small business?

• Air Force small business program

• Role of field small business offices– MAJCOM and Units

• Using the small business program

• SB Program Developed by Law – Ensure “Fair Proportion” of Federal Acquisitions are

placed with small business concerns (prime & subcontracts)

– Broaden Nation’s Industrial Base/National Defense

• Small Business Administration (SBA) and Agency SB Offices Created to Carry Out Policies and Directives Mandated By the Law

REF: FAR 19.000 & 19.201

Why a Small Business Program?

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What is a Small Business?

Who are they?

What do they do?

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Type Requirement NAICS Code Size Standard Aircraft Airframe Parts 336413 1000 Employees Electronic Warfare Parts 334511 750 Employees Comm/Institutional Construction 233320 $33.5 Million Engineering Services 541330 $27.0 Million (military/aerospace equip/military weapons) R&D (physical engineering) 541472 A/C 1500 Employees (involves product delivery) A/C equip/parts 1000 Employees

• Independently Owned and Operated• Not dominant in its field of operations• Qualify under one or more Size Standards established by SBA

– North American Industry Classification System (NAICS) Codes• Size Differs for Supplies: Number of Employees• Size Differs for Services: Preceding 3 Years Average Annual Receipts

REF: 13 CFR 121, FAR 19.001, 19.101 & 19.102

NAICS: http://www.census.gov/epcd/www/naics.html Size Standards: http://www.sba.gov/size/indextableofsize.html

13 CFR 121

A Small Business Concern

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Types of Small Business Concerns

Small Business Categories

Woman OwnedSmall Business

Small Disadvantaged Business (Minority Business) 8(a) Program Alaska Native Corp

Historically UnderutilizedBusiness Zone (HubZone)

REF: FAR 19.001, 19.8, & 19.13

Service Disabled Veteran-Owned/Veteran OwnedSmall Business

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NOT in Small Business ProgramAbility OneNIB/NISH

Historically Black Colleges & Universities/ Minority Institutions (HBCU/MI)

• Objectives

– Maximize contracting opportunities for Small Business via acquisition policies, procedures and practices

– Promote effective Outreach Program

• Who’s Responsible for Implementing? – COMMANDERS are responsible for effectively implementing

small business programs within their activities. • Ensure contracting and technical personnel maintain

knowledge of small business program requirements• Take all reasonable actions to increase small business

participation in activities’ contracting processes

AIR FORCE SMALL BUSINESS PROGRAM

REF: AFI 64-201

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Small Business Program Offices established at MAJCOM and field unit offices. Report to Commanders; manage program on behalf of Commanders

• Senior Leaders (Federal)– DOD SB Programs, AF (agency) SB Programs

• AFMC SB Programs comprised of field SB programs– AFRL (research & development)– Product Centers (acquisition)– Air Logistics Centers (sustainment)– Test Centers (test & evaluation)– Specialized Units

• AF Global Logistics Support Center (Supply Chain)• AF Security Assistance Center (foreign military sales)• AF Nuclear Weapons Center

REF: FAR 19.2

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Small Business (SB) Program Participants

Early acquisition involvement MUST involve Integrated Product Team participation– Small Business specialists, requirements generators, program

managers, contracting, engineers, financial managers, etc.

Role of SB Office

• Maximize SB Participation– Review acquisitions, make set-aside recommendations,

and provide sources – Attend program reviews/acquisition strategy panels– Publicize SB programs– see website: U.S. Air Force Small Business

• Counsel Contractors– Provide process guidance and insight into Opportunities – Coordinate inquiries/guidance requests– Interface with Command/Center Staff offices,

including Wings, Groups and Squadrons

• Manage Outreach Program– Federal/Agency/Local SB Conferences– Contractor Capability Briefings

REF: AFI 64-201, DFARS 219.2019

• Evaluate Subcontracting Plans

• Recommend SB Goals to the Commander – Small Business Plan (qualitative and quantitative objectives)– Goal Areas: Small Business Awards, SDB Awards, WOSB

Awards, HUBZone Awards, SDVSB Awards, & HBCU/MI Awards

• Education– Awareness & Training Sessions– Advise & Assist

• Source Development– Market Research– Recurring Contracts List– Long Range Acquisition Estimates (LRAE)

REF: FAR 19.7, AFR 64-201, DFARS 219.201, AFMCFARS 5309.205, FAR 10 10

Role of SB Office (cont’d)

– 8(a) Set-Aside– HUBZone 8(a)– Other 8(a)

– HUBZone Set-Aside Competition– HUBZone Sole Source– SDVOB Competition– SDVOB Sole Source – Small Business Set-Aside– Full & Open Competition– Sole Source

• Market research should be conducted continually to

find small businesses that meet the government’s need

• Order of Precedence

REF: FAR 19.800(e) & 19.1305(a)

Using the SB Program

If a requirement is already in the 8(a) program, it has first precedence. SBA must authorize release from the 8(a) program. HUBZone and SDVOB have parity if a requirement is already within the 8(a) program.

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For new requirements, 8(a), HUBZone and SDVOBhave parity within theorder of precedence

• Section 8(a) program– Business Development Program for SDB– Administered by SBA – Nine-year term– Allows 8(a) firms to receive Sole Source contracts (subject

to established dollar thresholds)

• How does an 8(a) firm get a contract?– SB specialists makes recommendation to meet SB goals– 8(a) firms engaged in self-marketing to SB specialists,

program managers, contracting officers– 8(a) firms search Federal Business Opportunities via website:

http://www.fedbizopps.gov

REF: FAR 19.8 12

Small Business Administration (SBA)Section 8(a) Program

– SBA requests

• Letter on behalf of specific 8(a) firm• Requires a response

– Familiar with the contractor and their capabilities?– If not--make an informed judgment?– Ask for specific references on previous/on-going work– Ask for a capabilities presentation

• 8(a) requirements offered to SBA for acceptance - Direct award made to 8(a) firm

REF: FAR 19.8 13

Small Business Administration (SBA)Section 8(a) Program (cont’d)

• Does An 8(a) firm get a contract?

• How can the 8(a) Program help you?– If you find a qualified 8(a) firm:

• Can be Sole Source up to thresholds of $3M services; $5M non-services

– No J&A, sole source justification, or synopsis required• Use eligible firms for follow-on contracts

• SBA’s 8(a) Mentor-Protégé Program– Enhance ability of young 8(a) firms– Graduated/transitional 8(a)s mentor ‘developmental 8(a)s’ – Agreements approved by SBA– Offers seamless transition of support;

keeps work in 8(a) Program

REF: FAR 19.805-1, 5.202(a)(4), 6.204(b), 6.302-5 14

Small Business Administration (SBA)Section 8(a) Program (cont’d)

• HUBZone Program– Federal contracting assistance for HUBZone firms– Increase employment/capital investment– SBA certifies all firms– No time limit for remaining on SBA List if criteria met

• How does a HUBZone firm get a contract?– HUBZone Set-Aside Competition

• Reasonable expectation at least two HUBZone firms will submit offers and award can be made at fair market price

– HUBZone Sole Source• Acquisition > $100,000• Anticipated award will not exceed certain dollar thresholds

($5M for manufacturing; $3M for all others)• Firm is responsible and award can be made at fair price

REF: FAR 19.13 15

HubZone Program

• How can the HUBZone Program help you?– Sole Source to HUBZone Firm:

• J&A required

• SBA website of certified HUBZone firms

– https://eweb1.sba.gov/hubzone/internet/general/approved-firms.cfm– Query SBA Dynamic Small Business Search database

• http://dsbs.sba.gov/dsbs/dsp_dsbs.cfm

REF: FAR 19.13 16

HubZone Program (cont’d)

• SDVOB Program– Federal contracting assistance for service-disabled veterans– Increase employment/capital investment– No SBA certification

• How does a SDVOB firm get a contract?– SDVOSBC Set-Aside Competition

– Reasonable expectation at least two SDVOSBC firms will submit offers and award can be made at fair market price

– SDVOB Sole Source– Anticipated award will not exceed certain dollar thresholds

($5M for manufacturing; $3M for all others)– Firm is responsible and award can be made at fair price

REF: FAR 19.14 17

SDVOB Program

• How can the SDVOB Program help you?– Sole Source to SDVOB firm:

– J&A required – Continue to use eligible firm for follow-on contract

• SBA website of certified SDVOB firms– Query SBA Dynamic Small Business Search database

– http://dsbs.sba.gov/dsbs/dsp_dsbs.cfm– www.sba.gov/VETS/

REF: FAR 19.14 18

SDVOB Program (cont’d)

• Why use the Small Business Program?

– Not just because the law says to…

• Small Businesses can offer Value– Quality Products/Services– Timely Delivery– Cost Savings

• Check out AF Small Business News

Reviews: http://www.airforcesmallbiz.org

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Key Take-Away

- For Federal acquisitions, “business concerns” are defined by Size Standards, NAICS Codes, and Ownership Percentage.

- The Objectives of the Air Force SB Program parallel the “Intent of Public Law” in Maximizing Contracting Opportunities for Small Businesses in support of the Air Force mission.

- The SB Specialist is the Liaison in Implementation of SB policies set forth in Public Law and Federal regulations.

- Air Force performance dependent upon MAJCOM results. DoD performance contingent upon Agency achievements. AFMC goals assigned by Air Force. AFMC assigns goals, in turn, to Centers. Centers may, in turn, assign goals to subordinate units. Centers’ SB achievements consolidated to arrive at overall AFMC performance.

- Small Businesses can offer exceptional value to warfighter – agility, innovation and cost control.

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Key Take-Aways

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Any Questions?