1 The 8a Business Development Program SBA 1

1 “The 8(a) Business Development Program” SBA 1 st First Wednesday Virtual Learning 2017

Hosts 2 Jan Kaiser, Procurement Center Representative SBA Office of Government Contracting, Area IV, Chicago janis. kaiser@sba. gov (312) 353 -7442 Deborah Crumity, Procurement Center Representative SBA Office of Government Contracting, Area IV, Rock Island Arsenal deborah. d. crumity. civ@mail. mil (309) 782 -5734

Welcome to “SBA Virtual Learning 2017” 3 1. Questions answered during the final 10 minutes. 2. Technical problems: Contact the moderator with a note or call AT&T Connect Support at 1 -888 -796 -6118 3. Page numbers stated for those working off hard copies of the program. 4. We cover the “SBA Quick Reference” as time allows. 5. For more SBA training visit the SBA Learning Center website https: //www. sba. gov/tools/sba-learning-center/search/training

4 Association of Procurement Technical Assistance Centers posts past “First Wednesday” programing • Check this link for past programs: http: //www. aptac-us. org/for-contracting-officerssba-webinar-library/ • Contracting officer resources: “How PTACs partner with federal agencies”: http: //www. aptac-us. org/federal-partners/ • Find your nearest Procurement Technical Assistance Center at http: //www. aptac-us. org

FIRST WEDNESDAY VIRTUAL LEARNING SERIES – 2017 SCHEDULE 9: 30 to 10: 30 Central Time 5 FY 2017 Date Topic 1 October 5, 2016 Non-Manufacturer Rule 2 November 2, 2016 Market Research: Using FPDS & DSBS 3 December 7, 2016 New All SB Mentor-Protégé Program 4 January 11, 2017 SBA Surveillance Reviews 2017 5 February 1, 2017 Certificate of Competency Program 6 March 1, 2017 Historically Underutilized Business Zones 7 April 12, 2017 Subcontracting Plan Compliance 8 May 3, 2017 Woman Owned Small Business 9 June 7, 2017 Size and Affiliation 10 July 12, 2017 Consolidation and Bundling 11 August 2, 2017 8(a) Business Development The program schedule above is for information only and is subject to change.

6 Thank You to our 2017 audience We will return on OCT 4, 2017 for the 2018 First Wednesday Learning Series with the revised afternoon time of 2: 00 – 3: 00 p. m. Eastern.

One Continuous Learning Point 7 v Self-service: Using the Power. Point that was sent with your invitation for this training event, fill in your name on the certificate slide and save. Download the certificate and print for your records. You submit your request for training credit IAW your agency policy, i. e. FAITAS. v Phoning in only: If you listen in groups and you want all attendees to be included on the future mailing list, send email addresses of participants in an excel document to sbalearning@sba. gov.

Presenters 8 Van Tran, Director Office of Certification & Eligibility Office of Business Development & Government Contracting van. tran@sba. gov (202) 205 -7567 K. A. Perkins, Business Management Specialist Office of Management & Technical Assistance Office of Business Development & Government Contracting kanika. perkins@sba. gov (202) 205 -6294 Laura Foster, Attorney Advisor Office of General Counsel laura. foster @sba. gov (202) 205 -6473

Certification & Eligibility 8(a) Business Development (BD) Program Overview 9

8(a) Application Process 10

SBA REGULATIONS 13 CFR § 124 *www. ecfr. gov U. S. Citizens 13 CFR § 124. 101 Size 13 CFR § 124. 102 Social Disadvantage 13 CFR § 124. 103 Economic Disadvantage 13 CFR § 124. 104 Ownership 13 CFR § 124. 105 Control and Management 13 CFR § 124. 106 Potential for Success 13 CFR § 124. 107 Other: Good Character, One-Time Eligibility, & Federal Financial Obligations 13 CFR § 124. 108 *Click “Title 13”, Then “Part 124” Eligibility Requirements 11

Van Tran Director Office of Certification & Eligibility Office of Business Development & Government Contracting Small Business Administration 202 -205 -7567 van. tran@sba. gov For 8(a) Continuing Eligibility Questions… 12

Construction & Bona Fide Offices The What, When, Where, Why, and How for Contracting Professionals 13

• • Authority Bona Fides Defined Bona Fide Determinations of Eligibility Offer Letters Geographical Boundaries Exercises Agenda 14

AUTHORITY 15

This statutory provision is intended to promote efficiency and cost-effectiveness in fulfilling construction requirements. Because of the capital intensity of construction projects (i. e. , equipment, etc. ), costs should be lower the closer the contractor is to the construction project. SOP 80 05 5, Chapter 4 D – Construction & Bona Fide Offices Authority 16

“[T]o the maximum extent practicable, 8(a) construction requirements should be awarded to an 8(a) Participant firm within the county or State where the work is to be performed. Section 8(a)(11) of the Small Business Act (15 U. S. C. § 637(a)(11)) Authority 17

BONA FIDES DEFINED 18

“[F]or purposes of 8(a) construction procurements, means a location where a Participant regularly maintains an office which employs at least one full-time individual within the appropriate geographical boundary. The term does not include construction trailers or other temporary construction sites. 13 CFR § 124. 3 What is a Bona Fide Place of Business? 19

Meaning Evidence • “…conducting business activities as an on-going business concern from a fixed location on a daily basis. ” • Third Party Transactions 13 CFR § 124. 3 • • Lease Agreements Payroll Records Advertisements Bills Correspondence Local Licensing or Filings Construction License “Regularly Maintains” 20

Meaning Evidence • “…conducting business activities of the Participant during normal business hours” • Individual may not work for any other person/entity during normal business hours • Employees obtained from temporary employment agencies and the like may be considered employees • • Employee Agreements Payroll Records Tax Documentation Employee Benefits Documentation 13 CFR § 124. 3 & SOP 80 05 5, Chapter 4 D “Full-Time Individual” 21

BONA FIDE DETERMINATIONS 22

Participant Wants Bona Fide Office in a Designated Geographical Area Servicing DO Processes Package Servicing DO Submits Package to DO in Designated Geographical Area Participant Either Receives a Bona Fide Letter or Denial is Escalated to OMTA DO Has Five (5) Working Days to Make Bona Fide Office Determination DO Has 10 Working Days to Conduct Site Visit Bona Fide Determinations: Overview 23

If DO Grants the Bona Fide If DO Denies the Bona Fide • DO Will Issue the Participant an Official Letter • The Letter is Valid as Long as there are no Material Changes • DO may Reevaluate Status at Any Time • The DO Must Submit Bona Fide to OMTA for AA/BD Approval • The Participant Bears the Burden of Proof • A Participant may Reapply at Any time Bona Fide Determinations 24

ELIGIBILITY DETERMINATIONS 25

1 a small business under the requirement's NAICS code Eligibility is based on 8(a) BD program criteria, including whether the Participant is… 13 CFR § 124. 507(b)(2) 2 in compliance w/ its competitive business mix target, as applicable 3 in the development stage if restricted in solicitation 4 a concern with a bona fide place of business in applicable geographical area (construction) Eligibility Determination: Factors 26

Request to Servicing DO How will SBA Determine Participant Eligibility in Sealed Bid vs. Negotiated Acquisitions? 5 Days to Determine Eligibility First Low Offer (Sealed Bid) Eligibility Determination: Overview Apparent Successful Offeror (Negotiated) 27

Request to Servicing DO 5 Days to Determine Eligibility First Low Offer (Sealed Bid) Apparent Successful Offeror (Negotiated) • Determining eligibility continues until an eligible offeror is identified • If procuring agency believes apparent successful offeror is not responsible, SBA must conduct a COC Eligibility Determination: Overview 28

Request to Servicing DO 5 Days to Determine Eligibility First Low Offer (Sealed Bid) Apparent Successful Offeror (Negotiated) • Servicing DO conducts eligibility determination • Eligibility determination includes bona fide place of business status • Servicing DO must rely on reviewing DO’s place of business status determination Eligibility Determination: Overview 29

Request to Servicing DO 5 Days to Determine Eligibility First Low Offer (Sealed Bid) Apparent Successful Offeror (Negotiated) • Eligibility of competitive construction requirements are determined as of the date of a Participant’s initial offer, including price • Eligibility of sole-source construction requirements are determined as of the date SBA accepts the requirement Eligibility Determination: Overview 30

OFFER LETTERS 31

Sole Source Submit to the Servicing DO of that Concern Competitive Where you submit an offering letter depends on the requirement Submit to the DO Serving the Geographical Area of Procuring Activity All Construction (Except Overseas) Submit to the DO Serving the Geographical Area Where the Work is Performed Overseas Construction Submit to SBA Business Development at Headquarters Where to Send Your Offer Letter: Sole Source 32

Sole Source Competitive Under SAT • 5 Working Days to Accept or Reject • Acceptance Includes Size Verification & Eligibility Determination • If No Response, Agency May Assume Acceptance After 5 Working Days • 2 Working Days from CO’s Request to Issue Eligibility Determination • No Offer/ Acceptance Required • 2 Working Days to Accept or Reject • A Negative Eligibility Determination is Submitted to Procurement Activity & Participant • If No Response, Contractor Performance is Authorized After 2 Working Days Processing Offer Letters 33

Competitive 8(a) Sole Source 8(a) Open Sole Source • Must Submit the Offer Letter to the DO Where the Work is to be Performed • If the Work is in More than one Geographical Area, Choose the DO where Most of the Work Will be Performed • In this case, OMTA Makes Final Determination • Must Submit the Offer Letter to the DO Where the Work is to be Performed • The DO will nominate an eligible participant • Priority of finding an eligible firm starts at the DO level, the surrounding DO, Regional, National, and may be referred to AA/BD if eligible Participant can’t be found Competitive & Open Sole Source 34

GEOGRAPHICAL BOUNDARIES 35

• If the work will be performed in more than one area, the requirement will be offered to the DO servicing the geographical area where the majority of the work is to be performed • The DO must immediately forward the requirement to the AA/BD or designee via the D/MTA so that a geographical determination can be conducted GB: The Basics 36

When an agency believes there’s enough competition to limit the geographical boundary… • OMTA within SBA Headquarters makes the determination • SBA will consider the number of firms within the DO’s portfolio with the capacity to perform the requirement • When competition appears insufficient, SBA will consider expanding the geographical boundaries • Only those Participants with bona fide places of business within the established geographic boundary are eligible to submit offers GB: The Approval Process 37

EXERCISES 38

True or false. All 8(a) Participants must have a bona fide place of business as part of the 8(a) BD Program. Exercise 1 False. Construction 8(a) Participants must have a bona fide place of work in the applicable geographical area of the requirement. 39

True or false. The purpose of the bona fide office requirement is to promote efficiency and costeffectiveness in fulfilling construction requirements. Exercise 2 True. 40

True or false. Although trailers with wheels not bona fide offices, trailers without wheels are. The wheels signify the intent to move. Exercise 3 False. 13 CFR § 124. 3 makes the distinction between temporary and fixed places of business but does not make an exception for trailers without wheels. 41

True or false. Once a reviewing DO receives a bona fide package from the servicing DO it has 10 days to make a determination. Exercise 4 False. The reviewing DO has 10 days to perform a site visit and then five (5) days to make a determination. 42

True or false. Once a reviewing DO denies a prospective bona fide package, SBA Headquarters must review the package to make a determination. If SBA Headquarters agrees, the Participant can re-submit its package at any time. Exercise 5 True. 43

True or false. For all construction requirements except overseas construction, the agency must submit its offer letter to the district office where the work will be performed. Exercise 6 True. 44

True or false. SBA has five working days to approve/reject solesource, competitive, and under-SAT offer letters. Exercise 7 False. Although agencies are not required to submit offer letters for under-SAT requirements, SBA has two (2) days to approve/reject and five (5) days to approve/reject solesource and competitive offer letters. 45

True or false. SBA will consider the number of firms within the DO’s portfolio with the capacity to perform the requirement. Exercise 8 True. 46

K. A. Perkins Business Management Specialist Office of Management & Technical Assistance Office of Business Development & Government Contracting Small Business Administration 202 -205 -6294 kanika. perkins@sba. gov For 8(a) Contracting Questions… 47

QUESTIONS 48

49 ”SBA Quick Reference”

Dynamic Small Business Search 50

Summary of CFR Regulations 51 SBA Size Regulations 13 CFR Part 121 HUBZone Regulations 13 CFR 126. 616 SBA Certificate of Competency 13 CFR 125. 5 Service-Disabled Veteran 13 CFR 125. 15(b) 8(a) and SDB Regulations 13 CFR 124. 513 Small Disadvantaged Business 13 CFR 124. 1002(f) WOSB Program 13 CFR 127 SBA Prime Contracting 13 CFR 125. 2 SBA Subcontracting 13 CFR 125. 3

Types of SBA Contacts and Offices 52 A. SBA Government Contracting Area Offices 1. SBA Procurement Center Representatives (PCRs) 2. SBA Commercial Market Representatives (CMRs) B. SBA District Offices 1. Business Opportunity Specialists (BOS) C. SBA Regional Offices D. SBA Headquarters

Six SBA Government Contracting Areas at hyperlink: https: //www. sba. gov/content/pcr-directory 53

A. SBA Quick Reference - SBA Area Offices 54 1. Size protests (with recertification) FAR 19. 302 13 CFR 121. 1001 13 CFR 121. 1010 2. Locating nearest SBA staffer FAR 19. 4 3. Certificate of Competency FAR 19. 6 13 CFR 125. 5 4. COC Limitations on Subcontracting Compliance FAR 19. 601 13 CFR 125. 6(f) 5. Receiving copies subcontracting plans FAR 19. 705 -6

B. SBA Quick Reference SBA Procurement Center Representatives (PCRs) 55 FAR 19. 402 Small Business Administration procurement center representatives. (a)(1) The SBA may assign one or more procurement center representatives to any contracting activity or contract administration office to carry out SBA policies and programs… (2) If a SBA procurement center representative is not assigned to the procuring activity or contract administration office, contact the SBA Office of Government Contracting Area Office…. . (b) Upon their request and subject to applicable acquisition and security regulations, contracting officers shall give SBA procurement center representatives…. access to all reasonably obtainable contract….

B. SBA Quick Reference SBA PCRs, cont. 56 1. SBA PCR coordination records FAR 19. . 501(b) 13 CFR 125. 2 2. Small business set-aside appeals FAR 19. 505 13 CFR 125. 2(b)(7) 3. HUBZone set-aside appeals FAR 19. 1305 FAR 19. 1306 13 CFR 126. 61 4. SDVOSB set-aside appeal FAR 19. 1405 FAR 19. 1406 13 CFR 125. 22 5. Reporting bundling to SBA (MATOCs) 6. SBA subcontracting plan reviews-copies 7. SBA subcontracting program review 8. Small business TFD 9. Surveillance review of agency contracting FAR 19. 202 -1(e)(1) 13 CFR 125. 2 FAR 19. 705 -5(3) 13 CFR 125. 2(b)(6)(iii) FAR 19. 705 -6(c) 13 CFR 125. 2(b)(6)(iii)(C) FAR 19. 707(4) 13 CFR 125. 2(b)(6)(iii)(C) FAR 49. 402 -3 (e)(4)) (Termination for default) FAR 19. 402(c)(5)

Small Business Coordination Forms Sent To SBA PCRs Agency Form Title 1 Commerce CD 570 Small Business Set-aside Review 2 Defense 2579 Small Business Coordination Record 3 Energy 4220. 2 Small Business Review Form 4 GSA 2689 Small Business Analysis Record 5 HHS 653 Small Business Review Form 6 Homeland Security 700 -22 Small Business Review Form 7 Interior 1886 Acquisition Screening and Review Form 8 Labor DL 1 -2004 Small Business Procurement Determination 9 NASA NF 1787 Small Business Review Sheet 10 State DS-1910 Small Business Clearance Form 11 Transportation 4250 Small Business Program Review Form AD-1205 Small Business Program – Procurement Review 2268 Procurement Request Review For Small Business… 57 12 13 USDA VA

Document that you have provided SBA Area Directors with copies of subcontracting plans 58 19. 705 -6 Postaward responsibilities of the contracting officer. …: (a) Notifying the SBA of the award by sending a copy of the award document to the Area Director, Office of Government Contracting, in the SBA area office where the contract will be performed. (c) Giving to the SBA procurement center representative…. a copy of— (1) Any subcontracting plan submitted in response to a sealed bid solicitation; and (2) The final negotiated subcontracting plan that was incorporated into a negotiated contract or contract modification. (d) Notifying the SBA procurement center representative…. of the opportunity to review subcontracting plans in connection with contract modifications.

C. SBA Quick Reference - SBA Commercial Market Representatives (CMRs) link at: https: //www. sba. gov/content/cmr-directory 59 1. Prime contractor portfolio management 13 CFR 125. 3 2. Reviews of subcontracting plan holders 13 CFR 125. 3 3. Matchmaking 13 CFR 125. 3 4. SBA SUB-Net link at: http: //www. sba. gov/content/sub-net 5. SBA Subcontracting Opportunities Directory link at: http: //www. sba. gov/subcontracting-directory 6. “SBLO Handbook” link at: http: //www. sba. gov/content/smallbusiness-liaison-officer-handbook

D. SBA Quick Reference – SBA Regional and District Offices 60 Link to district offices at: http: //www. sba. gov/about-offices-list/3

D. SBA Quick Reference - SBA District Offices, cont. 61 To locate SBA 8(a) business development servicing office, check Dynamic Small Business Search at the link: http: //dsbs. sba. gov/dsbs/search/dsp_dsbs. cfm and then local resources at the link http: //www. sba. gov/tools/localassistance/districtoffices

E. SBA Quick Reference - SBA Headquarters 62 1. HUBZone status protests FAR 19. 306 13 CFR 126. 801 2. NAICS code appeal FAR 19. 30 3 13 CFR 121. 1103 3. Non-manufacturer rule waivers FAR 19. 102(f)(1)-(7) 13 CFR 121. 1204 4. SDVOSB status protest FAR 19. 307 13 CFR 125. 23 5. WOSB Program status protest FAR 19. 308/13 CFR 1275. 600

FAR 19. 102 (f ): No class waiver to NMR? Check out an individual waiver* 63

A. If you find no class waivers, an SBA individual waiver to the Nonmanufacturer Rule (NMR) may help you to achieve small business goals if*: 64 B. A WAIVER FOR A SET-ASIDE IS NOT NEEDED WHEN: . A 1. ONE SMALL BUSINESS MANUFACTURER: * SMALL BUSINESS SET-ASIDE 2. SMALL BUSINESS MANUFACTURER, BRAND SPECIFIC OF ANY DOLLAR SIZE WITH FAR 6 JUSTIFICATION: * SMALL BUSINESS SET-ASIDE 3. LARGE BUSINESS, BRAND SPECIFIC (OR BRAND EQUIVALENT) REQUIREMENT $25, 000 OR LESS WITH FAR 6: * SMALL BUSINESS SET-ASIDE C. GSA SCHEDULE: USE THE CLOSEST CODE LISTED ON THE SCHEDULE. THEN SAME AS ABOVE IF NO CLASS WAIVER. D. EXCEPTION TO “NMR” IF PROCUREMENT $25, 000 OR LESS. * (FAR 19. 102 (f)(7)(B)) *NOTE: THE FAR HAS NOT BEEN UPDATED TO AGREE WITH THE SBA’S CHANGE IN MAY 2016 TO $150 K OR LESS IN 13 CFR 125. 6

NMR Program Office 65 The preferred and most expeditious method for asking questions and submitting waiver requests is by e-mail to nmrwaivers@sba. gov.

66 Find your PCR at https: //www. sba. gov/content/pcr-directory SBA 1 st First Wednesday Virtual Learning 2017