SBA Surveillance Review Best Practices Summary of GSA

SBA Surveillance Review & Best Practices Summary of GSA Regional Findings whose review has been accomplished to date.

SBA Surveillance Review Most Common Findings SBA Description/Recommendation SBA Finding 1. Lack of Adequate Market Research • • • Lack of, or flawed, market research which resulted in problematic or questionable procurement strategies. Provide guidance and training to contracting personnel on how to conduct market research, evaluate the data, and document the results. All required coordination and approvals should be obtained before proceeding with the solicitation stage. GSA Response/Action Step • GSA OSBU compiled Best Practices for Market Research which includes market research tips and coordination suggestions, as well as reminder of required approvals from GSA OSBU and SBA PCR as required by policy. OSBU distributed the Best Practices to all regions and it is posted on GSA OSBU Insite page: insite. gsa. gov/ SBacquisitiontopics 2

SBA Surveillance Review Most Common Findings SBA Finding 2. Lack of Subcontracting Plan SBA Description/Recommendation • GSA Response/Action Step Lack of subcontracting plan • or improperly executed subcontracting plan, as required by FAR 19. 7. • • GSA OSBU finalized a Subcontracting Desk Guide and it is posted on GSA OSBU Insite page: insite. gsa. gov/SBacquisition topics. Assists COs with policies, procedures and best practices of Subcontracting Program and requirements, including reporting in e. SRS. OSBU training of COs is being held in all regions upon request. Webinar training is currently being 3 developed for later release.

SBA Surveillance Review Most Common Findings SBA Description/Recommendation SBA Finding 3. Evaluation of Large Business’ Performance Under a Subcontracting Plan • • • Large business contractor’s • performance under a subcontracting plan is not reviewed or evaluated. On all new future procurements, subcontracting program past performance data should be included as an evaluation • factor. Contracting personnel should include Electronic Subcontracting Reporting system (e. SRS) reports in contract files. GSA Response/Action Step The Subcontracting Desk Guide provides contracting personnel with guidance on reviewing/evaluating a large business’ performance under an approved subcontracting plan and the e. SRS system. e. SRS reports, and approval of those reports, are already electronically captured in e. SRS. If required, COs can make a general note to file to “See e. SRS for required reports “ 4 and approvals.

SBA Surveillance Review Most Common Findings SBA Finding 3. Evaluation of Large Business’ Performance Under a Subcontracting Plan (Cont'd) SBA Description/Recommendation • - GSA Response/Action Step • GSA is reinvigorating its effort to better evaluate, track and assess the performance of our prime contractors’ subcontracting reports. OSBU is participating in a national performance measure to monitor our subcontracting achievements. • GSA follows FAR 52. 219 -9, which requires Primes report subcontracting achievements into e. SRS on an semi-annual or annual basis, depending on the type of subcontracting plan approved. 5

SBA Surveillance Review Most Common Findings SBA Finding 4. Subcontracting Goal Should be Acquisition. Specific SBA Description/Recommendation • • FAR 19. 705 -4, GSAM • 519. 705 -3(b)(c) and (d), and GSAM 519. 705 -4 require COs assess the reasonableness and the acceptability of proposed • subcontracting goals. Misconception GSA regionwide subcontracting goals are the target goals for every subcontracting plan, without regard for the nature of the acquisition • (e. g. technology, construction, supplies, services). GSA Response/Action Step GSA understands one uniform goal across regions would be arbitrary and not in compliance with the regulations. Regions will communicate to contracting personnel that subcontracting goals should be established in close negotiation with prime awardees based on the nature of the work. GSA’s subcontracting goals are posted at http: //insite. gsa. gov/wps/ 6 portal.

SBA Surveillance Review Most Common Findings SBA Finding 4. Subcontracting Goal Should be Acquisition. Specific (Cont'd) SBA GSA Response/Action Step Description/Recommendation • Believe misconception • Should evaluate proposed comes from the GSA’s goals by considering the many model subcontracting plan, aspects of the proposed advising of GSA subcontracts, such as what subcontracting goals which some procurement teams products and services the may interpret as precompany is planning to established goals across acquire, what work effort will projects. However, GSA, as be self performed, the known an agency, has goals for subcontracting. Those available pool of eligible goals are just that, goals, subcontractors, etc. , to and are not to be confused determine if the goals are with what we are realistic. negotiating with contractors to achieve on • The objective is attain goal contracts where realism. Goals should be subcontracting plans are reasonable and challenging. applicable. 7

SBA Surveillance Review Most Common Findings SBA Finding 5. Copy of Subcontracting Plan to SBA Area Director and SBTA SBA Description/Recommendation • • Send copy of the • subcontracting plan to the SBA Area Director, Office of Government Contracting where the contract will be performed, as required by FAR 19. 705 -6(a). • Provide GSA SBTA with a copy of the award and the subcontracting plan within five days of the contract award or contract modification, as required by GSAM 519. 705 -6. GSA Response/Action Step GSA OSBU sent out an award notification template (now included in an Acquisition Alert) to all regions, so that all he regions are following the same method. When requested, the region or OSBU’s office will provide subcontracting plan training to applicable contracting personnel on the requirements of subcontracting plans. 8

SBA Surveillance Review Most Common Findings SBA Finding 6. Goaling Methodologies SBA Description/Recommendation • GSA OSBU establishes the goals for all regions nationwide. However, the reasonableness of the goals assigned to a region is questionable because they do not appear to consider past achievements in establishing goals. (More below) GSA Response/Action Step • GSA improved its goalsetting methodology to include consideration of previous years’ socioeconomic achievements, in addition to the annual forecast of contracting opportunities. GSA’s FY 09 and FY 10 portfolios are markedly different than in previous years due to the capital projects under ARRA. Basing regional goals on the forecast and the achievement history, is 9 now part of the process.

SBA Surveillance Review Most Common Findings SBA Finding 6. Goaling Methodologies (Cont’d) SBA Description/Recommendation • • GSA OSBU, the office responsible for establishing each region's procurement preference goals, should take into consideration the previous year(s) socio-economic achievements. Procedures should be developed to establish realistic socioeconomic goals for each fiscal year and thereafter. Continual historical retrospective of recent achievements should resolve this issue. GSA Response/Action Step - 10

SBA Surveillance Review Most Common Findings SBA Description/Recommendation 7. Set asides for Task and • In accordance with FAR • Delivery Orders Under 19. 502 -2 (Total Business Set IDIQs Aside), consider set asides for task and delivery orders under multiple award IDIQs. SBA Finding • • GSA Response/Action Step GSA follows FAR 16. 505(b)(2) requiring fair opportunity be provided for all awardees on a multiple award contract to compete for delivery order awarded under these contracts. FAR 19. 502. 2 is not an exception to the fair opportunity process. GSA encourages setting aside IDIQs at inception for small business when two or more can compete. Once IDIQ awards have been made, orders against the IDIQ must provide all awardees 11 fair opportunity to compete.

SBA Surveillance Review Most Common Findings SBA Finding 8. ORCA Verification SBA Description/Recommendation • In accordance with FAR 4. 1201(c), the contracting officer must either reference the date of ORCA verification, or include a paper version in the contract file. GSA Response/Action Step • The region notified the contracting officers involved of the deficiencies and the need to take corrective action, and training will be provided. 12

SBA Surveillance Review Most Common Findings SBA Finding 9. GSA Form 2689 SBA Description/Recommendation • • GSA Response/Action Step GSAM 519. 502 -70 requires • GSAM 519. 502 -70 GSA Form 2689, Small references a $150, 000 Business Analysis Record, threshold for requiring be coordinated with the small business set aside. SBTA and SBA PCR for All projects valued at less acquisitions expected to than $150, 000 are to be exceed $150, 000 that reserved for small business cannot be set aside for unless no small businesses small business. are capable of performing the work. Each region should ensure required coordination and documentation of the GSA (More below) Form 2689 and/or other coordination methods with the SBTA and SBA PCR 13 for all procurements.

SBA Surveillance Review Most Common Findings SBA Finding 9. GSA Form 2689 (Cont’d) SBA Description/Recommendation - GSA Response/Action Step • GSA assumes that projects valued at less than $150, 000 shall be set aside for small business per SAT, thus precluding the need for a GSA Form 2689. HOWEVER: • GSA issued Acquisition Letter MV-1102 advising awards less than $150, 000 are to be set aside for SB. Exceptions greater than $150, 000 should be documented and approved 14 using the GSA Form 2689.

SBA Surveillance Review Most Common Findings SBA Finding SBA Description/Recommendation 10. Small Business Competitive • Demonstration Program (SBCDP) 11. Limitations on Subcontracting Requirement • GSA Response/Action Step SBA raised various findings • regarding the SBCDP. Contracting Officer’s responsibility determination (pre- and post-award) should address monitoring the compliance of Limitations on Subcontracting. • No longer applicable since the Small Business Competitiveness Demonstration Program (SBCDP) (FAR 19. 10) was repealed for GSA, effective January 31, 2011. FAR Subpart 9. 1 briefly addresses pre-award Limitations on Subcontracting requirement but no specific post-award compliance review guidance is found in 15 FAR/GSAM.

SBA Surveillance Review Most Common Findings SBA Finding 12. Training SBA Description/Recommendation • GSA Response/Action Step Should schedule training • sessions on small business programs (e. g. , 8 a, HUB Zone, Service-Disabled Veteran-Owned, Women. Owned, contract bundling, • Certificate of Competency, size protest procedures, etc. ) annually. • GSA OSBU developed a Subcontracting Desk Guide posted on: insite. gsa. gov/Sbacquisitio ntopics Assist COs with policies, procedures and best practices of Subcontracting Program and requirements. OSBU training of COs offered in all regions upon request. Webinar training is currently being developed. 16

SBA Surveillance Review Most Common Findings SBA Finding SBA Description/Recommendation GSA Response/Action Step 12. Training (Cont’d) 17

- Best Practices to Prepare for an SBA Surveillance Review 18

Best Practices to Prepare for an SBA Surveillance Review Strategy • Emphasis placed on small business as the first source of supply for all contract actions. • A procurement culture that consistently identifies ways for including small, minority, women-owned, HUBZone, and service disabled veteran-owned small businesses. • Take the approach, “If not small business, why not? ” • Regional Administrator (RA) support of small business should be routinely emphasized by the RA. 19

Best Practices to Prepare for an SBA Surveillance Review Strategy (cont’d) • Consider establishing a regional Small Business Program Executive (SPBE) who is independent of PBS and FAS Regional Acquisition Offices, and have them report directly to the Regional Commissioner. • The independence allows the SPBE to challenge decisions of the Contracting Officers, or Program Managers not cooperating with the COs, without repercussion. • Typically this role can also be performed by the Regional Small Business Technical Advisor located in the Regional Office of Small Business Utilization (OSBU). 20

Best Practices to Prepare for an SBA Surveillance Review Communication • Encourage the recording of small business success stories from our networking events and counseling sessions and sharing them regionally and with Central Office’s OSBU. We are asked for these often, so best to be ready with a pre-established repository. • Provide a Calendar of Events at all of our networking events to encourage participation in all opportunities. We are asked for these often, so best to be ready with a pre-established repository. • Use a template developed for responding via e-mail to businesses requesting assistance in doing business with GSA to ensure 21 consistency.

Best Practices to Prepare for an SBA Surveillance Review Networking/Training • The regional OSBU should meet with the contracting officers at the beginning of each fiscal year and on a quarterly basis to discuss forecasted projects and ensure publication of these forecasts to the Forecast web site quarterly. • Provide relevant training at events to assist contractors in doing business with the government. For example, bring a laptop with mobile internet to events so that small businesses interested in doing business with the federal government can be shown the agencies that have a possible need for what the small businesses are providing. 22

Best Practices to Prepare for an SBA Surveillance Review Networking/Training (cont’d) • Provide relevant training at events to assist contracting officers in doing business with small businesses. Provide individualized training based on the needs of a service area or branch office. OSBU will assist in training. • Partner with the Procurement Technical Assistance Centers (PTACs), SBA, and other small business resource partners to share knowledge through e-mail and training sessions. • If possible, have the SBA’s Procurement Center Representative for 23 a region be located in the same office as the GSA OSBU staff, and

Best Practices to Prepare for an SBA Surveillance Review Networking/Training (cont’d) • Utilize cross-training within the regional OSBU office so that several individuals are aware of how to keep assignments moving even if the primary OSBU POC is unavailable. Cross-training facilitates responsiveness to contracting officers’ and vendors’ concerns. • Contact your Regional OSBU for possible Details into their office. (Current need for immediate Details in R 9, R 10 and NCR – Contact the Regional OSBU Director, or me, for information) 24

Best Practices to Prepare for an SBA Surveillance Review Ongoing Goal Achievement Monitoring and Communication • Have the Regional Acquisition Officer(s), with assistance from the regional OSBU, review and monitor acquisition strategies on a quarterly basis to ensure that contracting opportunities for small business are being considered. • Coordinate with the regional OSBU to provide regular updates regarding progress against small business goals. 25

Best Practices to Prepare for an SBA Surveillance Review Market Research • Look in Federal Acquisition Service’s Schedule e. Library for small business schedules available for your services or supply needs: http: //www. gsaelibrary. gsa. gov • Post “Sources Sought” Notices in Fed. Biz. Opps to help you identify small businesses capable of performing the work (be sure to follow-up if no response is received), require capability statements, and allow sufficient time based on the complexity of the project: https: //www. fbo. gov 26

Best Practices to Prepare for an SBA Surveillance Review Market Research (cont’d) • Conduct searches in the System for Award Management (SAM) applications which integrates CCR and ORCA for companies with the acquisition-appropriate NAICS code: www. sam. gov • Use the SBA’s Dynamic Small Business Search (DSBS) site to locate small businesses capable of performing the work and utilize this site for “Sources Sought” notices by using the small business’ e-mails for scope of work distributions: http: //dsbs. sba. gov/dsbs/search/dsp_dsbs. cfm 27

Best Practices to Prepare for an SBA Surveillance Review Market Research (cont’d) • When in doubt, verify business size using the “Reps and Certs” selection of a company’s Entity Record through the SAM application www. sam. gov • Document, document results of market research. 28

Best Practices to Prepare for an SBA Surveillance Review Acquisition Planning • The local SBA Procurement Center Representative and GSA Regional Small Business Technical Advisor should be included to help ensure small businesses, when appropriate, are located/included. • Submit to the local SBA Procurement Center Representative’s and GSA Regional Small Business Technical Advisor’s for review the following, before a project is advertised: • Acquisition plans for any award of $6 million or more; and • GSA Forms 2689 for any award that exceeds $150, 000. • Set aside for task and delivery orders where possible. 29

Best Practices to Prepare for an SBA Surveillance Review Small Business Set Asides and Preferences • Provide regional training (or at minimum, Regional Acquisition Officers should send) on a quarterly basis to remind contracting personnel of set aside requirements: 8(a), HUBZone, SDVOSB, WOSB, and small business. • When set asides are not feasible, consider the inclusion of socioeconomic category as a non-price evaluation factor. • For Schedule buys, consider evaluating socio-economic status when making a best value determination for award. • Use small business IDIQs, when possible. 30

Best Practices to Prepare for an SBA Surveillance Review Contract Award • Upon award, correctly code the small business category in FPDS-NG. Remember to indicate in FPDS-NG if an award requires a Subcontracting Plan submission to ensure transfer into the Electronic Subcontracting Reporting System (e. SRS). • Provide notification of award information to the regional OSBU and SBA Area Director, so that subcontracting training can be accomplished if needed. 31

Best Practices to Prepare for an SBA Surveillance Review Subcontracting • Provide the contractors needing to prepare plan a Subcontracting Plan the GSA Template that already incorporates all of the required FAR/GSAM elements to assist large businesses. Include this Template in the solicitation when ever possible. The most current Templates are available from the Regional SBTA or OSBU or are posted on GSA OSBU Insite page: insite. gsa. gov/SBacquisitiontopics • Notify regional OSBU and the SBA Area Director of award and provide final contract details, including the contract number and final approved subcontracting plan. The SBA Area Director should follow up with contractors to train on e. SRS and reporting requirements. 32

Best Practices to Prepare for an SBA Surveillance Review Subcontracting (cont’d) • Encourage the establishment of aggressive subcontracting goals that exceed minimum goal requirements, where possible. • Include past performances on subcontracting and planned subcontracting efforts as part of the technical evaluation factors used to select contractors. • Host networking events to match prime contractors with small businesses prior to issuing a solicitation, when possible. • Review and accept subcontracting reports in e. SRS in a timely fashion. 33

- Karen Poole Senior Policy Advisor Central Office OSBU 202. 694. 2989 34