SBAs Certificate of Competency COC Program First Wednesday

SBA’s Certificate of Competency (COC) Program First Wednesday Virtual Learning Series 2018 www. sba. gov 1

Hosts Christopher Eischen, Procurement Center Representative SBA Office of Government Contracting, Area IV, Kansas City, MO christopher. eischen@sba. gov (816) 426 -4911 Deborah Crumity, Procurement Center Representative SBA Office of Government Contracting, Area IV, Rock Island Arsenal deborah. d. crumity. civ@mail. mil (309) 782 -5734 2

Welcome to “SBA Virtual Learning 2018” 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 3

Association of Procurement Technical Assistance Centers (APTAC) Procurement Technical Assistance Centers are a vital resource partner. • APTAC posts past “First Wednesday” programing at this link: http: //www. aptac-us. org/for-contracting-officers-sba-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 4

1 st WEDNESDAY VIRTUAL LEARNING SERIES 2018 SCHEDULE 1: 00 to 2: 00 Central Time FY 2018 Date Topic 1 October 4, 2017 Non-Manufacturer Rule 2 November 1, 2017 About SBA 3 December 6, 2017 SBA Programs You May Not Know About 4 January 10, 2018 Historically Underutilized Business Zones 5 February 7, 2018 Certificate of Competency Program 6 March 7, 2018 Woman Owned Small Business 7 April 4, 2018 Size and Affiliation 8 May 2, 2018 Subcontracting Tools 9 June 6, 2018 SDVOSB 10 July 11, 2018 SBA Legislative Update 11 August 1, 2018 Mentor/ Protégé Program Natural Resources Assistance/Disaster Assistance The program schedule above is for information only and is subject to change. 5

One Continuous Learning Point 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. 6

Speakers • Marina Laverdy GC Area VI COC Coordinator/Commercial Market Rep marina. laverdy@sba. gov (818) 552 -3306 • Aaron Parra Procurement Center Representative, Area VI aaron. parra@sba. gov (818) 552 -3297 7

SBA’s Certificate of Competency (COC) Program First Wednesday Virtual Learning Series 2018 www. sba. gov 8

What is the Certificate of Competency (COC) Program? • A small business’s second chance at winning a contract. The small business must: – be in line for award of contract • Only one firm can in be in line for award at a time – be found responsive, but not responsible to perform on the contract for reasons of: • Credit – Capacity – Credit & Capacity - Tenacity – Perseverance - Integrity 9

What is the Certificate of Competency (COC) Program? • The small business must be referred to the SBA for a COC by the Contracting Officer; • The small business must apply for the COC; • SBA performs its own independent analysis of the Small Business’s responsibility; • If SBA agrees with the Contracting Officer’s assessment of the firm, a COC will not be issued and the Contracting Officer can move forward with the procurement. 10

What is the Certificate of Competency (COC) Program? • If SBA’s analysis finds the firm to be responsible, SBA will issue a COC to the Contracting Officer and the Contracting Officer must award the contract to the small business (with some exceptions). • Each COC is specific to the contract for which it was referred. 11

Basic COC Information • The COC Program is covered in 13 C. F. R. § 125. 5 and FAR subpart 19. 6. • The COC Program is applicable to all government acquisitions. • The COC Program is triggered by a Contracting Officer’s determination that a business is “nonresponsible. ” • Responsibility is not the same as responsiveness. 12

Responsibility FAR § 9. 104 -1 To be considered responsible, a prospective contractor must: (a) Have adequate financial resources to perform the contract, or the ability to obtain them…; (b) Be able to comply with the required or proposed delivery or performance schedule, taking into consideration all existing commercial and governmental business commitments; (c) Have a satisfactory performance record … (d) Have a satisfactory record of integrity and business ethics; (e) Have the necessary organization, experience, accounting and operational controls, and technical skills, or the ability to obtain them (including, as appropriate, such elements as production control procedures, property control systems, quality assurance measures, and safety programs applicable to materials to be produced or services to be performed by the prospective contractor and subcontractors)…; (f) Have the necessary production, construction, and technical equipment and facilities, or the ability to obtain them… ; and (g) Be otherwise qualified and eligible to receive an award under applicable laws and regulations. ” 13

Versus Responsiveness In order to be considered responsive, a bid must: • conform to the specifications, terms, and conditions set forth in the invitation for bids (IFB); and be • the most advantageous bid considering only price and other pricerelated factors set forth in the invitation for bids (fair and reasonable price). • Bidders should be given a chance to cure any deficiency resulting from a minor informality or irregularity. These deficiencies are usually a matter of form. For instance, minor deficiencies may include: bid not signed; failure to acknowledge receipt of an amendment; wrong number of copies of the bid; missing attachments (financial statements, compliance reports, certificates, licenses, etc. ); – missing information in the company profile (bidder's identification number, number of employees, client references, etc. ) – – 14

COCs and Limitation on Subcontracting • If an acquisition with a value greater than $150, 000 is set-aside or reserved, a small business offeror must agree to comply with applicable limitations on subcontracting requirements. • Agreeing to comply with limitations on subcontracting requirements is a matter of proposal acceptability and an important requirement for COC eligibility. • Being able to comply with limitations on subcontracting requirements is a matter of responsibility and is thus an issue that may be addressed with a certificate of competency. • There is an important distinction between agreeing to comply and being able to comply with limitations on subcontracting requirements. This distinction is unique to the COC program. 15

COCs and Limitation on Subcontracting • On Solicitations issued prior to June 30, 2016 the “old” LOS rules apply – – Supplies/Services – Offeror is required to perform 50% of the cost of contract incurred for personnel with its own personnel. – Construction Services – Offeror must perform at least 15% of the cost of contract incurred for personnel with its own personnel. – SDVOSB Contracts – Offeror must perform 15% of the cost of contract incurred for personnel with its own personnel, or, the personnel of another SDVOSB. 16

COCs and Limitation on Subcontracting • On Solicitations issued after June 30, 2016, the “new” LOS rules apply (13 CFR 125. 6)– Offeror cannot spend more than 50% of the total cost of contract on subcontractors – Services – Offeror will not pay more than 50% of the amount paid by the government to firms that are not similarly situated. Any work that a similarly situated subcontractor further subcontracts will count towards the 50% subcontract amount that cannot be exceeded. 17

COCs and Limitation on Subcontracting – Supplies/Products (other than from a non-manufacturer of such supplies)- Offeror will not pay more than 50% of the amount paid by the government to firms that are not similarly situated. Cost of materials are excluded and not considered to be subcontracted. – General Construction – Offeror will not pay more than 85% of the amount paid by the government to firms that are not similarly situated. Cost of materials are excluded and not considered to be subcontracted. – Special Trade Contractors – No more than 75% of the amount paid by the government to the prime may be paid to firms that are not similarly situated. Cost of materials are excluded and not considered to be subcontracted. 18

What Must a COC Referral Include? SBA must be in receipt of a complete COC referral package in order to begin processing a COC referral. AN ORIGINAL REFERRAL PACKAGE AND ONE DUPLICATE SHOULD BE SUBMITTED TO THE GC AREA OFFICE WHERE THE OFFEROR’S HEADQUARTERS IS LOCATED. • A complete COC referral package must be in hard copy, single sided, unstapled and should include the following information: – A letter of referral from the contracting agency which should include: • • • The firm name, address and DUNS number; Name of a firm official, title, phone number and email address; Reason for referral (Capacity, Credit & Capacity, Integrity, Tenacity, and Perseverance); The firm’s bid price (base period of the contract); Solicitation number and the name of the item or service being procured; 19

What Must a COC Referral Include? • The NAICS code assigned to the solicitation; • Indicate whether the solicitation has been set aside for small business or is a full and open competition; and • Contracting Officer’s address, phone number and email address. • A copy of the solicitation, IFB or RFP; • Any amendments to the solicitation; • Offer submitted by the concern whose responsibility is at issue for the procurement (its best and final offer for a negotiated procurement); 20

What Must a COC Referral Include? • Abstract of Bids, where applicable, or the Contracting Officer’s price negotiation memorandum; • Pre-award Survey (most recent, no older than 180 days); • Contracting Officer’s written Determination and Finding of Non-responsibility (D&F) (must be a separate document from the referral letter and must be signed by a warranted Contracting Officer); 21

What Must a COC Referral Include? o The D&F is the core of the COC case. It should include as much information as possible. SBA shares this information with the offeror. • Technical data package (including drawings, specifications, and Statement of Work); and • Any other justification and documentation used to arrive at the non-responsibility determination. 22

How Long Does the COC Process Take? • “Contract award must be withheld by the contracting officer for a period of 15 working days (or longer if agreed…) following receipt by the appropriate Area Office of a complete referral which includes all required documentation. ” 13 CFR § 125. 5(c)(2) – An applicant small business concern is given 6 working days to submit its application; – The SBA specialists have 6 working days to complete their surveys and reports, – The COC Review Committee has 3 working days to review the files and to make a recommendation to the Area Director. • If the business declines to apply, the referral is closed and the CO can make award to the next firm in line for award. • Extensions are within the contracting officer’s sole discretion; may be requested by company or SBA. 23

What is SBA’s COC Process? • A complete referral is received, logged in and the small business concern is contacted – the COC clock starts running. • Files are sent to an Industrial Specialist and a Financial Specialist in the field. • Each specialist receives the company’s application materials, • The Specialist surveys the applicant’s business and its ability to perform in light of the contracting officer’s objections. – evaluations address every aspect of the applicant’s business from past performance to credit ratings, from technical expertise and quality control to available financial resources, etc. • Each specialist then writes a report and issues a recommendation for the COC Review Committee in the Area Office. 24

COC Application Materials Applicant Small Business Concerns must submit a completed: – SBA Form 1531 (Application for COC); – SBA Form 355 (Application for Size Determination); – Questionnaire for manufacturing or services, as appropriate; – Monthly cash flow projection, if applicable; – All other requested information; and – Any additional information that the applicant believes will demonstrate its ability to perform on the subject procurement. 25

Denial of COC • If SBA does NOT issue a COC, the Contracting Officer may still award to the company referred (i. e. , direct award) if he/she concludes the company is, in fact, responsible. 13 CFR § 125. 5(n) (FAR § 19. 602 -4(a) • The small business cannot appeal SBA’s decision • Firms cannot apply for a COC on their own initiative. • SBA may review areas of responsibility not cited by the Contracting Officer. • The results of a COC are specific to that solicitation for which the referral was made. 26

Issuance of COC • If SBA does issue a COC, the contracting officer may – Accept the COC and award the contract – Ask the SBA Area Director to suspend the case • The Contracting Officer must then either – Ask to review a detailed written rationale for decision – Ask to meet in person to review all documentation – Submit information the Contracting Officer believes the SBA did not consider (possibly new information) – Appeal the proposed COC issuance to SBA HQ 27

Appeal Options • Contracts valued at less than $100, 000 – The decision of the SBA Area Office is final. The contracting officer cannot appeal • Contracts valued between $100, 000 and $25 million – The contracting officer can appeal the Area Office’s decision to SBA HQ • Contracts exceeding $25 million – The SBA Area Office must refer the case to SBA HQ, which will convene its own review committee to make the final decision – Contracting agency may meet with SBA HQ prior to final decision 28

SBA Area Offices & Jurisdictions If the Headquarters of the offeror is located in: CT, MA, ME, NH, NJ, NY, RI, VT DC, DE, MD, PA, VA, WV AL, FL, GA, KY, MS, NC, SC, TN The COC will be handled by: AREA I Boston Dianne Nolan, Industrial Specialist U. S. Small Business Administration 10 Causeway Street, Room 265 Boston, MA 02222 AREA II Washington, DC Adrian Groth, COC Manager U. S. Small Business Administration 409 Third Street, SW Washington, DC 20416 AREA III Redstone Arsenal Gary Heard, PCR/COC Coordinator U. S. Small Business Administration Office of Government Contracting Building 5303, Room 3135 Redstone Arsenal, AL 35898 IA, IL, IN, KS, MI, MN, MO, NE, OH, WI AREA IV Chicago David Gordon, COC Coordinator U. S. Small Business Administration 500 W. Madison Street, Suite 1150 Chicago, IL 60661 AR, CO, LA, MT, ND, NM, OK, SD, TX, UT, WY AREA V Denver Mia Fagley, COC Coordinator U. S. Small Business Administration 721 19 th Street, Suite 426 Denver, CO 80202 -2517 AK, AZ, CA, HI, ID, NV, OR, WA, Guam AREA VI Los Angeles Marina Laverdy, COC Coordinator U. S. Small Business Administration 330 N. Brand Blvd. , Suite 1200 Glendale, CA 91203 (617) 565 -5570 dianne. nolan@sba. gov (202) 205 -6840 adrian. groth@sba. gov (256) 842 -6240 gary. heard@sba. gov (312) 353 -7674 david. gordon@sba. gov (303) 927 -3487 mia. fagley@sba. gov (818) 552 -3306 marina. laverdy@sba. gov 29

Contact Information Aaron Parra Procurement Center Representative (818) 552 -3297 aaron. parra@sba. gov Marina Laverdy GC Area VI COC Coordinator/Commercial Market Representative (818) 552 -3306 marina. laverdy@sba. gov www. sba. gov https: //www. sba. gov/contracting-officials/certificatescompetency 30

Questions 31

”SBA Quick Reference”

Dynamic Small Business Search 33

Summary of CFR Regulations 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 34

Types of SBA Contacts and Offices 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 35

Six SBA Government Contracting Areas at hyperlink: https: //www. sba. gov/content/pcr-directory 36

A. SBA Quick Reference - SBA Area Offices 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 37

B. SBA Quick Reference SBA Procurement Center Representatives(PCRs) 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…. 38

B. SBA Quick Reference SBA PCRs, cont. 1. SBA PCR coordination records 2. Small business set-aside appeals 3. HUBZone set-aside appeals 4. SDVOSB set-aside appeal 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. . 501(b) 13 CFR 125. 2 FAR 19. 505 13 CFR 125. 2(b)(7) FAR 19. 1305 FAR 19. 1306 13 CFR 126. 61 FAR 19. 1405 FAR 19. 1406 13 CFR 125. 22 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) 39

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 Programs and Contract Bundling 12 13 USDA VA

Document that you have provided SBA Area Directors with copies of subcontracting plans 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 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 Link to district offices at: http: //www. sba. gov/about-offices-list/3

D. SBA Quick Reference - SBA District Offices, cont. 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 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*

NMR Waiver Notes: If you find no class waivers, an SBA individual waiver to the Nonmanufacturer Rule (NMR) may help you to achieve small business goals if: • ind no class waivers, an SBA individual waiver to th 20170710 e q A WAIVER FOR A SET-ASIDE IS NOT NEEDED WHEN: 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 q GSA SCHEDULE: USE THE CLOSEST CODE LISTED ON THE SCHEDULE. THEN SAME AS ABOVE IF NO CLASS WAIVER. q 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 small business goals if*: