When small business setasides change Small Business Competitiveness
“When small business setasides change: Small Business Competitiveness Demonstration, FAR 19. 10” A review
Points to be covered today: 1. What’s SBA got to do with it? 2. “CDP: ” How it came about 3. Designated Industry Groups and thresholds 4. Changing set-asides and market research 5. FAR clauses
Agencies • Department of Agriculture. • Department of Defense, except the National Imagery and Mapping Agency. (70%) • Department of Energy. • Department of Health and Human Services. • Department of the Interior. • Department of Transportation. • Department of Veterans Affairs. • Environmental Protection Agency. • General Services Administration. • National Aeronautics and Space Administration.
How it came about • Small Business Competitiveness Demonstration, FAR 19. 10” • Established as a pilot in 1988 • Made permanent in 1997
CDP Tests whether small businesses in certain industries Ø can compete successfully Ø with large businesses for federal contracts Ø on an unrestricted basis Ø by suspending set-asides. Do. D bundling and consolidation guide: http: //permanent. access. gpo. gov/lps 57820/www. acq. osd. mil/sadbu/news/guidebook. htm
Introduces a new set-aside Ø Emerging small business (ESB) is only in place for Comp Demo Ø Size is no greater than 50 percent of the applicable SBA’s small business size standard (FAR 19. 1002) Ø Self-certifying Ø But only in certain industries Ø And at or below certain thresholds/reserves
CDP goals Set-asides reinstated if a small business participation below 40% Emerging small business goal is 15 percent Agencies review goals annually
How CDP fits in • Exclusions: GSA schedules, awards to educational institutions, nonprofits, or government entities. FAR 19. 1006 • FAR 19. 10 supersedes simplified acquisition procedures (FAR 13. 003) which requires that acquisitions of under $100, 000 be reserved for small business concerns or some type of small business concern
1. What’s SBA got to do with it? FAR 19. 402 (a)(1) and (2) Small Business Administration procurement center representatives (PCRs). SBA assign a PCR to carry out SBA policies and programs If a PCR is not assigned, agencies locate the closest PCR at http: //www. sba. gov/GC/pcr. html
SBA PCRs § Review proposed acquisitions, including bundled procurements § Recommend requirements to be set aside for HUBZone, 8(a), service disabled vets and small business § Advise agencies small business on SBA programs § Initiate secretarial appeals
Focus on goal achievement Goal Small Business 23% Small disadvantaged business (8(a)) 5% Women-owned small businesses 5% HUBZone (Historically Underutilized Business Zone) 3% Service-disabled veterans 3% SBA goaling summaries: http: //www. sba. gov/idc/groups/public/documents/sba_home page/sbgr_fy_2006_small_businesspr. html
Small business, definitions, and set-asides SBA 8(a) SBA HUBZone “Underrepresented” “Geography” Self-certify as a small business Self-certify as SBA certifications: Women-owned http: //www. sba. gov/servi 51% ces/contractingopportuni ties/certifications/index. h tml Self-certify as Servicedisabled veteran 51%
3. Industries and thresholds 1. Construction (except sector 236) and others 2. Landscaping and Pest Control Services
Emerging small business thresholds for Designated Industry Groups ESB Reserve 1. Construction $30. 000 2. Landscaping and Pest Control Services $30, 000
Do. D memo of June 2, 2008 reinstates set-asides Air Force Code name Code Size standard 236 $31 M 237120 $31 M Architect and Engineering Services 541310 4. 5 M Geophysical Surveying and Mapping Services 541360 4. 5 M Surveying and Mapping (except Geophysical) Services 541370 4. 5 M Construction of Buildings Heavy and Civil Engineering Construction
Do. D memo of June 2, 2008 reinstates set-asides Army Code name Construction of Buildings Code Size standard 236 $31 M 237120 $31 M Architect and Engineering Services 541310 4. 5 M Specialty Trade - Electrical Contractors and other Wiring Installation Contractors 238110 $13 M Specialty Trade - Other Building Equipment Contractors 238290 $13 M Specialty Trade - Finish Carpentry Contractors 238350 $13 M Heavy and civil engineering construction
CDP comment • Targeted industry categories • Intended to target industries where agencies under achieve • FAR 19. 1007 (d): “Targeted industry categories” program is not in place
4. Changing set-asides and market research
Non comp demo acquisitions HUBZone 8(a) Service-Disabled Vet “shall” Small business Unrestricted competition
Comp demo above the reserve amount 8(a) HUBZone “shall” Service-Disabled Vet Unrestricted competition
Electrical contractors - NAICS 238210 Size standard: $13 million Project: $75, 000 Threshold or below Above Certification Emerging Y N self HUBZone Y Y SBA 8(a) Y Y SBA SDV Y Y self SB Y N self
Comp demo below the reserve amount by priorit Emerging 8(a) HUBZone Service-Disabled Vet SMALL BUSINESS Unrestricted competition
Electrical contractors - NAICS 238210 Size standard: $13 million Project: $25, 000 Threshold or below Above Certification Emerging Y N self HUBZone Y Y SBA 8(a) Y Y SBA SDV Y Y self SB Y N self #
ESB market research: Are there ESBs out there? Code South Dakota Size std. Number ESB % 238210 Electrical Contractors $13 M 59 56 95% 238320 Painting and Wall Covering Contr. $13 M 31 29 94% 238160 Roofing Contractors 25 25 94% 561730 Landscaping Services 42 30 71% $13 M $6. 5 M
Market research: www. naics. com
CCR Dynamic small business research
Example of and ESB synopsis
ESB procedures 19. 1007 Procedures. (c) Solicitations equal to or less than the ESB reserve amount. (1) Solicitations for acquisitions in the designated industry groups with an estimated value equal to or less than the emerging small business reserve amount must be set aside for ESBs, provided that the contracting officer determines that there is a reasonable expectation of obtaining offers from two or more responsible ESBs that will be competitive in terms of market price, quality, and delivery.
• If no such reasonable expectation exists, the contracting officer must— • (i) For acquisitions $30, 000 or less, proceed in accordance with Subpart 19. 5, 19. 8, 19. 13, or 19. 14; or • (2) If the contracting officer proceeds with the ESB set-aside and receives a quotation from only one ESB at a reasonable price, the contracting officer must make the award. • If there is no quote from an ESB, or the quote is not at a reasonable price, then the contracting officer must cancel the ESB set-aside and proceed in accordance with paragraph (c)(1)(i) or (ii) of this section.
Comp demo below the reserve amount by priorit Emerging 8(a) HUBZone Service-Disabled Vet SMALL BUSINESS Unrestricted competition
5. Competitiveness Demonstration Clauses CLAUSES: 52. 219 -19 Small Business Concern Representation for the Small Business Competitiveness Demonstration program, in all solicitations in the four designated industry groups.
Competitiveness Demonstration Clauses CLAUSES: 52. 219 -20 Notice of Emerging Small Business Set-Aside. As prescribed in 19. 1008(b), insert the following provision: Notice of Emerging Small Business Set-Aside Offers or quotations under this acquisition are solicited from emerging small business concerns only. Offers that are not from an emerging small business shall not be considered and shall be rejected.
Points to be covered today: 1. What’s SBA got to do with it? 2. “CDP: ” How it came about 3. Designated Industry Groups and thresholds 4. Changing set-asides and market research 5. FAR clauses
Dwight A. Johnson Procurement Center Representative SBA Office of Government Contracting, Omaha Iowa, Nebraska, North Dakota, South Dakota Dwight. Johnson@sba. gov (402) 221 -7206 – (202) 481 -1770 fax
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