SmallBusinessFederalGovernmentContractingCertifications 5-6-2020(Atch 2)....pptx

Small Business Federal Government Contracting Certifications

Course Objectives

Introductions 8(a) Business Development Program HUBZone Certification Woman-Owned Small Business (WOSB) Certification Other Programs

8(a) Business Development Program

Introductions

YOUR

NAME

NAME OF COMPANY

YEARS IN BUSINESS

LOCAL, STATE OR GOV’T CONTRACTS?

Presenter Tip: Use only if the group is smaller than 15 people. Otherwise, ask for a show of hands to learn more about the audience.

How many of you have been in business for a year or less? 2-5 year? More than 5 years?

How many have experience with local or state government contracts? Federal contracts?

Set-Aside for Certification Programs and Socio-Economic Categories Targeted set-asides and acquisition goals:

Women-Owned Small Businesses (5%) Small Disadvantaged Businesses (including 8(a) certified) (5%) HUBZone Businesses (3%) Service-Disabled Veteran-Owned Small Businesses (3%) Set-asides are reserved for small business between $3,500 (Micro- purchase Threshold) to $250,000 (Simplified Acquisition Threshold)

Targeted Set-asides and Acquisition Goals Women-owned small businesses - (5%) Small disadvantaged businesses including 8(a) certified - (5%) HUBZone - (3%) Service-disabled veteran-owned small businesses - (3%) Overall small business goal of 23% Set-asides are reserved for small business between the Micro-purchase Threshold and the Simplified Acquisition Threshold.

8(a) Business Development Program

8(a) Business Development Program

Access to business development support

Build capacity and grow through contracts

Nine-year program available once per lifetime

Designed to assist socially and economically disadvantaged owned small businesses compete in the federal marketplace.

A certified firm has the potential to receive sole source contracts (no competition) up to $4 million for goods and services, including construction, and $7 million for manufacturing requirements.

The Federal Government has specified annual prime contracting goals for designated small businesses. For Small Disadvantaged Business, (which includes the 8(a) program) it is 5%.

A certified firm has only one 9-year tenure in this program. The first 4 years are considered a development stage and the last 5 years are considered a transitional stage.

Continuation in the program is dependent upon the firm’s continuing eligibility as a socially and economically disadvantaged firm with day-to-day management control by the individual upon whom eligibility is based.

The program provides business development support such as technical and management assistance, financial assistance, subcontracts and prime contracts.

8(a) Business Development Program Objectives

Assistance Management and technical assistance to help companies compete for business opportunities

Government Contracting Helps thousands of entrepreneurs understand and succeed in government contracting

Ability to Thrive Assist and graduate firms to allow them to thrive competitively

(Sec. 204 of Public Law 100-656) The 8(a) Program offers a broad scope of assistance to firms that are at least 51% owned and controlled by socially and economically disadvantaged individuals.

Helps thousands of aspiring entrepreneurs gain a foothold in government contracting.

Goal is to assist and graduate firms, so they will thrive in a competitive environment.

Is the 8(a) Certification Appropriate for You?

Commercial and government balance

Marketing ability Proper NAICS codes Net worth requirements

Diminished ability to compete Socially and economically disadvantaged

Presenter Tip: Provide some information on why the 8(a) business development program may or may not be appropriate for the business owner. Use specific examples of firms who may benefit from the program.

The potential business must:

Be in business for at least two years in its primary NAICS Code. This will be verified by federal tax returns to demonstrate their potential for success.

Be able to maintain a balance between their commercial business and government business.

Be able to market the firm’s business.

Be a small business concern in its primary industry classification (NAICS Code), determined by revenue or employees.

At least 51% unconditionally and directly owned by one or more socially and economically disadvantaged individuals who are citizens of the United States, except for concerns owned by Indian tribes, Alaska Native Corporations, Native Hawaiian Organizations or Community. development Corporations.

Socially and economically disadvantaged firms whose ability to compete in free enterprise has been impaired due to diminished capital and credit opportunities. As well as those who have been subjected to racial or ethnic prejudice or cultural bias within American society because of their identification as members of groups without regard to their individual qualities.

For initial 8(a) eligibility, the net worth of an individual claiming disadvantage must be less than $250,000. For continued 8(a) BD eligibility after admission to the program, net worth must be less than $750,000.

In determining such net worth, SBA will exclude the ownership interest in the applicant or Participant and equity in the primary personal residence.

8(a) Program Expectations

Setting Expectations

Progress measurement

Is a business development program

Not suited for all firms

Limited total dollar value of contracts

Presenter Tip: Add some language to lead into this slide – present the idea that the 8(a) Business Development Program has certain expectations that must be met during the 9-year period.

Is the 8(a) Program right for you?

Is a business development program.

8(a) Participants are not in any way guaranteed or entitled to receive federal contracts Not suited for all firms:

Not yet in business or less than 2 years in business Too small to effectively pursue federal prime contracts No experience in public contracting (local, state or federal) May produce a service/product not purchased through prime contracts 8(a) BD Program Goals and Requirements (CFR 124.104) Maintain a balance between your commercial and government business.

Limit on total dollar value of 8(a) contracts that a firm can receive in program:

(1) for a firm having a average annual receipts-based primary NAICS Code, $100 million and

(2) for a firm having an employee-based primary NAICS code, the limit is $100 million.

Monitor and measure progress of participants through annual reviews, business planning, systematic evaluations.

Proactive Self-Marketing

Identify federal buyers and get to know them

Identify the agency contracting procedures and those who make buying decisions

Focus on areas in your niche and prioritize

Make contacts through small business events and network your business

Presenter Tip: Discuss the requirements for the business to have a marketing plan and/or strategy to proactively self-market their programs or services in order to succeed in the program.

Determine which federal agencies buy your product/service and get to know them.

Identify the contracting procedures of those agencies and the personnel who make buying decisions.

Focus on opportunities in your niche and prioritize.

Make contacts—attend small business events and network your business to gain exposure to key agencies.

Find out if your target agencies require you to register in their database in order to do business with them.

Registering your business is not enough to obtain a federal contract: ultimately you are responsible for your own success and you will need to market your business to attract attention from federal agencies.

When Should You Apply?

Are You Ready… 8(a) Is One-time Only Do you have the CAPACITY to deliver on federal contracts?

Do you have sufficient CASH FLOW?

Do you have demonstrated CAPABILITY (past performance)?

Can you demonstrate successful PAST PERFORMANCE?

Are you open to ADVICE on growing your business?

Presenter Tip: Talk about the appropriate timing for a business to enter the 8(a) business development program in order to be successful. Highlight the factors to be considered before applying and provide case studies of success and failures based on timing.

The 8(a) program is a one-time only, 9-year program.

Think about WHEN to apply to the program so you can make the most of the limited time and increase your chances of winning contracts.

Ask yourself these questions and be honest with yourself.

If you’re a single-person company who has never done a contract larger than $X, you may want to focus on building your business a bit more before applying for the program.

Presenter Tip: Talk about the appropriate timing for a business to enter the 8(a) business development program in order to be successful. Highlight the factors to be considered before applying and provide case studies of success and failures based on timing.

The 8(a) program is a one-time only, 9-year program.

Think about WHEN to apply to the program so you can make the most of the limited time and increase your chances of winning contracts.

Ask yourself these questions and be honest with yourself.

If you’re a single-person company who has never done a contract larger than $X, you may want to focus on building your business a bit more before applying for the program.

8(a) Business Development Program Benefits

SBA

Assistance

Mentor-Protégé Agreement v v

Effective Strategy Joint Ventures Proven

ROI

The 8(a) program offers a broad scope of assistance to firms that are at least 51% owned and controlled by socially and economically disadvantaged individuals.

Helps thousands of aspiring entrepreneurs gain a foothold in government contracting.

Goal is to assist and graduate firms, so they will thrive in a competitive environment SBA supports small disadvantaged firms with management and technical assistance to help you compete for contracts and other business opportunities.

Participants can potentially receive 8(a) sole-source contracts, up to a ceiling of $4 million for goods and services, and $7.0 million for manufacturing.

8(a) firms are also able to form Joint Ventures to bid on contracts or form a Mentor-Protégé Agreement which allows the small business to learn the ropes from other more experienced businesses.

Designated Socially Disadvantaged Criteria Designated Groups

Black American Asian Pacific American Hispanic American Native American Subcontinent Asian American

Non-Designated Group Criteria Preponderance of evidence Race, ethnicity, gender, physical handicap, long-term environmental issues Chronic and substantial Negative impact to business advancement

Designated Socially Disadvantaged Groups Black American Asian Pacific American Individuals with origins from Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Japan, China, Taiwan, Laos, Cambodia, Vietnam, Korea, The Philippines, U.S. Trust Terr. of the Pacific Islands, Rep. of the Marshall Islands. Fed. States of Micronesia, Comm. of the Northern Mariana Islands, Guam, Samoa, Macao, Fiji, Tonga, Kiribati, Tuvalu, or Nauru Hispanic American Individuals of Spanish and Portuguese descent Native American Alaska Natives, Native Hawaiians, or enrolled members of Federally or State recognized Indian Tribe. If not an enrolled member of a Federally or State recognized Indian Tribe an individual must meet the “Preponderance of the Evidence” standard.

Subcontinent Asian-American Individuals with origins from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, the Maldives Islands, or Nepal.

Some businesses believe that if their firm is approved for Disadvantaged Business Enterprise (DBE) certification by their state or other entity, the firm automatically is eligible for SBA’s certification. This is not so. Each agency's definition and qualification requirements are different.

Non-designated Group Criteria A “Preponderance of the Evidence;”

May stem from race, ethnic origin, gender, physical handicap, long term environmental isolation, or other similar causes;

Personally suffered disadvantage in the United States;

Must be chronic & substantial;

Discrimination must have negatively impacted on business advancement.

Economically Disadvantaged Requirements to Qualify

Personal net worth (assets minus liabilities) less than $250,000

Three year average income is $250,000 or less

Fair market value of all assets is $4 million or less

Economically Disadvantaged Requirements to Qualify Personal net worth (assets minus liabilities) must be less than $250,000 excluding:

Net Worth:

Must be IRA or other official retirement account that is unavailable until retirement age without significant penalty.

Applicant must provide, for each retirement account, information regarding the terms and restrictions; and certification that the account is legitimate.

** Select purposes are for that individual’s education, medical expenses or other essential support or to family member in recognition of special event.

Note: Contingent liabilities do not reduce net worth.

Supplemental Requirements Adjusted gross income average over three years is $250,000 or less excluding:

Income reinvested or used to pay taxes of business Fair market value of all assets is $4 million or less excluding:

Funds reinvested in IRA or other official retirement account.

SBA Requirements for 8(a) Small Business Size Standard Ownership Control and Management Business Requirements Character

Ineligibility Criteria

Presenter Tip: Talk about SBA’s qualification requirements for an 8(a) firm.

Small Business Size Standard Firms must be a small business based on the applicant’s primary NAICS Code; including affiliates.

Small business size standards are generally determined by:

Average annual receipts (averaged for 3 years) Number of employees (manufacturers, dealers, wholesalers) See 13 CFR 121 Size Regulations or visit our website: www.sba.gov/size The firm must be small at the time of application and remain small during the firm’s participation.

Size eligibility is not limited to looking at just the firm. SBA also looks at the firm’s and principal’s relationships with other businesses and other individuals through: contractual relationships, prior relationships, family ties, common investments.

Ownership At least 51% unconditional ownership by the disadvantaged individual is required:

Partnership Limited Liability Company Corporation SBA will review: Partnership agreement or operating agreement (if LLC); Stock certificates and ledger (if corporation); IRS 1040 Schedule E, if applicable; Firm’s tax returns.

Control and Management Hold the highest position Highest compensated individual Full-time devotion to 8(a) concern (40 hours+) Ability to Hire and Fire Set Policies Ability to commit firm to contracts Ability to control budget and disbursements Business Requirements Two years in operation as verified by business tax returns Financial capability Management and Technical capability Ability to perform on Federal contracts Character What shows a lack of good character?

Adverse information regarding criminal conduct;

Any principal who is incarcerated or on parole or probation;

Violations of any SBA regulations;

Debarred or suspended individuals or firms;

Lack of business integrity;

Knowingly submitting false information during the application process;

Any firm or any of its principals that fail to pay financial obligations to the Federal Government (current on tax installment plans and student loans).

CHECK YOUR BUSINESS AND PERSONAL CREDIT REPORTS: All liens and/or judgments must be released and/or satisfied, or documentation must be provided to show the payment arrangements.

Ineligibility Ineligible businesses include: brokers*; debarred or suspended persons or concerns; nonprofit organizations.

Any person who has used his/her disadvantaged status to qualify another firm shall be regarded as non-disadvantaged.

If the applicant firm has obtained 50% or more of its assets from a former 8(a), it is not eligible.

Waiver of the Two-Year Rule SBA requires a business to be operating for 2 years in order to qualify for the 8(a) program.

SBA may waive the two-year rule if:

Business management experience

Technical expertise

Adequate capital

Successful past performance

Ability to meet requirements

SBA requires a business to be operating for 2 years in order to qualify for the 8(a) program.

Waiver of the 2-year Rule Substantial and demonstrated business management experience;

Technical expertise to carry out its business plan;

Adequate capital to carry out its business plan;

Successful past performance on contracts;

Ability to timely obtain the requirements needed to perform contracts.

Note: If the firm has not generated revenue, you will be unable to waive the two-year rule.

8(a) Application Process

Register for a DUNS number Identify NAICS code(s) Register with SAM

BEFORE APPLICATION

Review application guide Gather supporting documentation Apply online at

APPLY FOR CERTIFICATION

Access resources on the Knowledge Base For assistance, contact

RESOURCES

Presenter Tip: Provide tips and resources for the 8(a) application process.

Before Applying Register for a DUNS number Identify applicable NAICS code(s) Register with SAM.gov Applying for Certification Review the application guide Gather documentation Apply online at certify.sba.gov Resources Access resources on the certify.sba.gov Knowledge Base Certify Quick Start Guide for Firms 8(a) Business Development Program Preparation Checklist Connect your Business with Certify MPIN and SAM Explained Common Error Notices Not Receiving Confirmation Email If you are unable to find help using the Certify Knowledge Base feature, please email the Help Desk at help@certify.sba.gov. Please include your company name and DUNS number in your inquiry.

Certification

SBA Certification Portal SBA’s certification portal where businesses can submit documents to seek SBA certifications Automatic Migration Pulls business information from SAM.gov Online Forms Forms are completed online. No longer required to upload certain SBA forms

Presenter Tip: Provide the level of detail needed based on the audience in discussing the Certify system. It may be appropriate to schedule a demonstration of the site with a Q&A session.

SBA’s certification portal where businesses can submit documents to seek SBA certifications.

Pulls business information from SAM.gov.

SBA plans to add other certification programs to certify.SBA.gov in the future.

Forms are completed online - No longer required to upload WOSB Program Certifications (SBA Forms 2413 and 2414) and Personal Financial Statement (SBA Form 413).

Certification questions are filtered by business organization.

Must complete WOSB or EDWOSB certification questionnaire (or application) and add documents to the question when prompted – To be reviewed by CO when in line for award.

Only owner/officer authorized to certify on behalf of company should create account.

Business Development Assistance Available to Program Participants

Orientation 8(a) orientation upon approval into the program

Referrals and Training Resource Partner referrals 7(j) Program with one-on-one counseling

Marketing Invitations to 8(a) business development events and other marketing assistance

Surety Bonds Increased contract value eligibility and assistance

Presenter Tip: Share the various types of assistance available and their benefits.

Getting the Most Out of Your 8(a) Certification

Qualify for set-aside or sole source contract awards – helping agencies achieve success

Opportunity to build capacity and grow by establishing Joint Ventures and participating in the Mentor-Protégé Program

Access to management and technical assistance programs, guaranteed loans and bonding assistance

Presenter Tip: Share with the audience the greatest benefits of the 8(a) certification and provide case study examples of businesses who have succeeded in the program.

Sole source awards vs. competition.

Most popular/most used contracting vehicle in government.

Identify in System Award Management (SAM) as an 8(a) firm.

Contract opportunities which are only available for 8(a) firms.

Eligible to compete for contracts reserved for 8(a) competition.

Eligible to receive sole source contract awards up to $4 million for supplies and services, including construction, and $7 million for manufacturing.

Available to obtain a Mentor and waive affiliation for purposes of competing on larger federal contracts as a joint venture.

Take advantage of specialized training, counseling, marketing, technical and management assistance, and high-level executive development provided by SBA and our resource partners.

Marketing + Business Development + Sales = 8(a) Success Eligible for 7(j) management and technical assistance program.

Eligible to participate in Mentor-Protégé programs during the 9 years and after you graduate.

Eligible for assistance in obtaining access to surplus government property and supplies, SBA guaranteed loans and bonding assistance.

My First Template

Participation and Continued Eligibility Participation Starts at Date of Approval

Developmental Years 1-4

Transitional Years 5-9 To maintain eligibility:

Submit 8(a) annual update on time Inform SBA of all material and business changes (prior approval required) Maintain SAM and DSBS profiles

Participation Participation in the program is divided into two phases over nine years: a four-year developmental stage and a five-year transition stage.

Continuation in the program is dependent on staying in compliance with program requirements.

Participation is ONE TIME ONLY for firms and individuals.

Continued Eligibility Timely submission of 8(a) Annual update; access to individual and business records; including submission of year-end financial statements and tax returns.

Inform SBA of all material changes.

SBA’s prior written approval is required on business structure changes, ownership changes, name changes and management changes. (A firm can be terminated from the program by not gaining SBA’s prior written approval.)

Maintain System for Award Management (SAM) and Dynamic Small Business Search (DSBS) profiles, at all times.

Know the Rules for 8(a) Certification

13 CFR

part 124 Eligibility

FAR 19.8

8(a) Contracts

Citizenship & Size Disadvantaged Criteria Ownership Control and Management Potential Character Contract Information Small Business Programs

13 Code of Federal Regulations (CFR) 124 Regulations regarding 8(a) BD Status Determinations (for initial and continued eligibility).

Good Character, One-Time Eligibility Federal Financial Obligations Federal Acquisition Regulations (FAR) 19.8 Apply to and government 8(a) contracts. Other key parts of the FAR include:

Subpart 8.4 – Federal Supply Schedules Part 13 – Simplified Acquisitions Part 14 – Sealed Bidding Part 15 – Contracting by Negotiation Part 16 – Types of Contracts Part 19 – Small Business Programs

HUBZone Certification

Historically Underutilized Business Zone (HUBZone) Certification

Stimulate capital investment

Build capacity and grow

Access HUBZone set-aside contract dollars

Presenter Tip: Based on the audience determine the level of detail needed from this slide. Skim over details that may not be applicable to the audience.

The purpose of the HUBZone (Historically Underutilized Business Zone) is to:

Provide federal contracting assistance to qualified small firms located in HUBZone areas Stimulate capital investment Empower communities through economic leveraging HUBZone areas or designations are typically areas of low to median household incomes, high unemployment or both. They provide employment opportunities for the underserved.

The Federal government has specified annual prime contracting goals for designated small businesses. For the HUBZone program it is 3%.

The SBA does not have the authority to decide without supporting data that a particular area should or should not be a designated HUBZone.

All areas that were listed as "Re-designated" on 12/12/17 now have their re-designation period extended to December 2021 as a result of the National Defense Authorization Act for FY 2018.

Existing HUBZone areas including Qualified Census Tracts, Qualified Non-Metropolitan Counties, and Re-designated Areas will maintain their designations until December 2021.

Please check www.sba.gov/content/hubzone-maps for the latest updates on qualified areas.

You’ll need to re-certify for the HUBZone program every three years.

There is no limit to the length of time a business can continue to re-certify as long as it continues to qualify.

There are 6 kinds of HUBZones:

Qualified non-metropolitan county - Can become re-designated when HUBZone eligibility ceases. Re-designation lasts 3 years. These maps were frozen on December 12, 2017 and will maintain their designations until December 31, 2021.

Qualified Census Tract - Can become re-designated when ceases HUBZone eligibility. Re-designation lasts for 3 years. These maps were frozen on December 12, 2017 and will maintain their designations until December 31, 2021.

Indian land.

Qualified base closure area.

Qualified disaster area.

Predesignated area.

Must establish business in area identified as a HUBZone.

Must ensure that at least 35% of its employees reside in the HUBZone.

Must be eligible at the time of bid and award.

Maintaining compliance is very difficult-Be Careful!

At any given time, there are about 5,000 firms certified in the HUBZone program.

Mechanisms:

HUBZone set-aside contracts - most commonly used, accounts for approximately 91% of contract dollars.

Full and open competition contracts, when the HUBZone business price offer is not more than 10% higher than the offer (applies only to the large businesses, and not to small businesses) - accounts for approximately 7% of contract dollars.

HUBZone sole source contracts (awarded without competition) - accounts for approximately 2% of contract dollars.

HUBZone Program Purpose

What is a HUBZone?

Historically Underutilized Business Zone

EMPLOYMENT OPPORTUNITIES

CAPITAL INVESTMENT

ECONOMIC LEVERAGE

HUBZone

What is a HUBZone?

A HUBZone is a historically underutilized business zone Provide Federal contracting opportunities to firms certified as qualified HUBZone small business concerns, to:

Increase community employment opportunities, Stimulate community capital investment, and, Empower communities through economic leveraging.

Is the HUBZone Certification Appropriate for You?

51% ownership requirement Located in a HUBZone 35% employee requirement SBA size standards NAICS code requirements Exceptions for certain groups No minimum time in business

Presenter Tip: Discuss the requirements for HUBZone certification and how the certification can provide value to the business.

A HUBZone firm must be:

A HUBZone Small Business Concern and must meet the SBA’s size standard for Its primary NAICS Code as determined by revenue and employees.

As of May 25, 2018, at least 51% owned and controlled by persons who are U.S. Citizens. Concerns owned by U.S. citizens, ANCs, NHOs or CDCs must be at least 51% unconditionally owned and controlled by persons who are U.S. citizens.

A small business whose principal office is located within a designated HUBZone and be the location where the greatest number of the firm’s employees perform their work. For service and construction, the determination of principal office excludes the concern’s employees who perform the majority of their work at job site locations.

A small business with at least 35% of its employees residing in a HUBZone. The company must be eligible at time of offer and award.

At the time of application for certification, a HUBZone Small Business Concern must meet SBA’s size standards for its primary NAISC code.

At the time of initial contract offer, a HUBZone Small Business Concern must be small for the size standard corresponding to the NAICS code assigned to the contract.

Different rules apply to firms owned by Tribal Governments, Alaskan Native Corporations, Community Development Corporations, Small Agricultural Cooperatives and Native Hawaiian Organizations.

SBA HUBZone Responsibilities

Implements and Regulates Program

Determines and Adjudicates Eligibility Streamlines Certification Process

Maintains Certification Listing

SBA Responsibilities SBA regulates and implements the HUBZone Program:

Determines which businesses are eligible, Maintains a listing of qualified HUBZone small business concerns, to fulfill requirements (published on the internet Dynamic Small Business Search (DSBS) page), and Adjudicates protests of eligibility for HUBZone contracts.

Streamlines Certification SBA is in the process of re-automating the on-line application system for the HUBZone Program.

Certification documentation requirements have been reduced.

Standing re-certification process has been substantially automated; you will receive 30-60 days advance notice.

HUBZone Eligibility and Requirements

Ownership 51% owned by U.S. Citizens

Principal Office Located in a HUBZone

35% Residency 35% of employees in HUBZone

Size SBA size standards

HUBZone Location Review HUBZone locations

Ownership by Individuals The concern must be at least 51% unconditionally and directly owned and controlled by persons who are United States Citizens [13 CFR § 126.200(b)(1)(i)] Citizen means a person born or naturalized in the United States. SBA does not consider holders of permanent visas and resident aliens to be citizens [13 CFR § 126.103] Person means a natural person [13 CFR § 126.103] Effective May 25, 2018: A HUBZone small business concern must be at least 51% owned and controlled by U.S. Citizens. (83 FR 12852); removing the words “unconditionally and directly.” In other words, if an entity other than a US citizen owns a firm, that’s okay, so long as the parent entity is owned by a U.S. citizen.

Principal Office Principal office must be located within a designated HUBZone:

Principal office means the location where the greatest number of the concern's employees at any one location perform their work [13 CFR § 126.103] For concerns whose “primary industry” is service or construction, the determination of principal office excludes the concern's employees who perform the majority of their work at job-site locations to fulfill specific contract obligations [13 CFR § 126.103] 35% Residency At least 35% of its employees must reside in a HUBZone:

Employee means all individuals employed on a full-time, part-time, or other basis, so long as that individual works a minimum of 40 hours per month. This includes employees obtained from a temporary employee agency, leasing concern, or through a union agreement or co-employed pursuant to a professional employer organization agreement [13 CFR § 126.103] Volunteers (i.e., individuals who receive deferred compensation or no compensation, including no in-kind compensation, for work performed) are NOT considered employees [13 CFR § 126.103] Size At the time of application for certification a HUBZone Small Business Concern (SBC) must meet SBA's size standards for its primary industry classification as defined in 13 CFR § 121.201.

At the time of the initial contract offer, a HUBZone SBC must be small for the size standard corresponding to the NAICS code assigned to the contract. 13 CFR § 126.601(b).

Contract Awards A certified firm must meet all eligibility requirements at the time it submits its initial offer and up until, and including, the time of contract award.

If a certified firm is performing on a HUBZone contract and submits an offer for another HUBZone contract, it cannot ‘attempt to maintain’ the HUBZone residency requirement. It must meet the requirement at the time it submits its initial offer and up until and including the time of award.

HUBZone Locations Visit https://maps.certify.sba.gov/hubzone/map for updates on qualified areas! Use Google Chrome or another modern browser to open the maps.

HUBZone Application Process

View the HUBZone Primer Register for a DUNS number Identify NAICS code(s) Register with SAM

BEFORE APPLICATION

Review application guide Gather supporting documentation Apply using the General Login System

APPLY FOR CERTIFICATION

Verify requested information Submit supporting documentation Update SAM profile once approved

DOCUMENTATION

Presenter Tip: Provide tips and resources for the HUBZone application process.

Before Applying:

View HUBZone Primer: https://www.sba.gov/media/training/hubzoneprimer/index.htm Register and obtain a free DUNS number: http://fedgov.dnb.com/webform Identify Primary NAICS Code: https://www.sba.gov/document/support--table-size-standards Register with System for Award Management (SAM) and update Dynamic Small Business Search (DSBS) profile: https://www.sam.gov/portal/SAM/ Applying for Certification:

Do not attempt to complete the actual online HUBZone application until you have reviewed the Application Guide and gathered all the Supporting Documentation.

Access SBA’s General Login System (GLS) and create user account https://eweb.sba.gov/gls/dsp_addcustomer.cfm Apply for HUBZone Certification Online You will have 10 business days to electronically verify the data is entered online.

You will have an additional 10 business days to upload the Supporting Documentation.

Supporting Documentation Requirements

Signed HUBZone Program Certification Signature Sheet

Principal Office

35% Residency Requirement

Ownership, Control and Structure

Size and Affiliation

Presenter Tip: Depending on the audience, provide information and examples to help them understand the documentation requirements for the HUBZone application.

Documentation Requirements Signed HUBZone Program Certification Signature Sheet Principal Office:

Deed, *Lease/Rental Agreement or property records – *Covers the date of electronic verification Utility Bill – Covers the date of electronic verification Firm Location List 35 percent:

Official Payroll – Covers the date of electronic verification HUBZone Maps of employee’s home address Valid (unexpired) Driver’s License, DMV ID, or Voter Registration cards for each employee residing in a HUBZone – Covers the date of electronic verification Most recent State and Federal Unemployment tax filing/report Employee List Ownership, Control and Structure:

Birth Certificate, Current Valid U.S. Passport, or Certification of Naturalization Trust, or Franchise Agreement (if applicable) Supporting Documentation requested will differ based on your ownership structure:

Corporation Articles of Incorporation Copies of stock certificates (front and back) Stock Ledger Corporate Bylaws and any amendments Certificate of Good Standing Limited Liability Company (LLC) Operating Agreement and any amendments Articles of Organization and any amendments Certificate of Good Standing Partnership Partnership Agreement and any amendments Sole Proprietor DBA (Doing Business As) or Trade Name Certificate Business Planning Incorporate HUBZone compliance into the business planning:

Try to maintain a HUBZone employee percentage significantly greater than 35%, perhaps 45 - 60%.

Maintain a list of potential hires in case one of your HUBZone residents quits.

Watch the HUBZone map for changes, and sign-up for email alerts on www.sba.gov. Changes in geographical eligibility can affect continuing eligibility in terms of location of principal office in a HUBZone and employment of HUBZone residents.

Size and Affiliation:

Most recent three (3) years of the corporate federal tax returns, including all schedules and attachments.

Most recent Federal Personal Income tax return for all individuals that own 20% or more of the applicant firm, including all schedules and attachments, and W2’s if applicable.

HUBZone Site Visits and Re-certification

Participate in site visits Meet HUBZone criteria Maintain SBA standards Recertify every 3 years

Presenter Tip: Provide your past experience with site visits and the recertification process.

Site Visits Site visits are unannounced and may include a visit to any of the firm’s location(s).

SBA may propose decertification on the basis of a failed site visit, when it cannot confirm that firm:

Is operating from the HUBZone principal office, or Meets the 35% HUBZone employee residency requirement.

Recertification To maintain HUBZone certification, the firm must recertify to SBA every three years that it is in compliance with all the HUBZone requirements.

Failure to timely re-certify will lead SBA to propose decertification.

Even though certification can potentially be indefinite, the median number of years in the program has been only four (4) years!

Getting the Most Out of Your HUBZone Certification

Qualify for set-aside or sole source contract awards – increasing prime and subcontracting opportunities

Opportunity to build capacity and grow by establishing Joint Ventures and participating in the All Small Mentor-Protégé Program

Access to training, management and technical assistance programs, guaranteed loans and bonding assistance

Presenter Tip: Share with the audience the greatest benefits of the HUBZone certification and provide case study examples of businesses who have succeeded in the program.

Free training is provided by the SBA through our nationwide network of resource partners, SBDCs, PTACs, Score and other contractors.

Explore forming HUBZone joint ventures with other small businesses to bid on HUBZone solicitations or form All Small Mentor-Protégé Program Joint Venture with any other than small business.

The government has a mandate of awarding 3% of all prime contract dollars to HUBZone firms.

Set-aside (only if you are the only HUBZone that provides goods or services) and sole source contracting.

Increased subcontracting opportunities.

Eligible for 7(j) management and technical assistance program which encompasses a wide spectrum of business courses such as accounting, marketing, strategic and operational planning, financial analysis, business development, contract management, compliance and various business-related software applications.

A contract based on full and open competition, must deem the price offered by a qualified HUBZone SBC to be lower than the price offered by another offeror (other than another SBC) if the price offered by the qualified HUBZone SBC is not more than 10% higher than the price offered by the otherwise lowest, responsive, and responsible offeror.

For a best value procurement, the CO must apply the 10% preference to the otherwise successful offer of a large business and then determine which offeror represents the best value to the Government, in accordance with the terms of the solicitation. This does not apply if the HUBZone SBC will receive the contract as part of a reserve for HUBZone SBCs.

My First Template

Woman-Owned Small Business (WOSB) Certification

Women-Owned Small Business (WOSB) Program

Take advantage of annual prime contracting goals

Access set-asides for WOSB and EDWOSB

The WOSB Program allows contracting officers to set-aside contracts for WOSBs that also includes economically disadvantaged women-owned small businesses (EDWOSB).

The Federal government has specified annual prime contracting goals for designated small businesses. The prime contracting goal for WOSBs is 5%. Agencies can meet the 5% goal through contract awards made under the WOSB Program.

A WOSB or an EDWOSB is eligible for contract awards under other socio-economic programs for small business. The awards made under other programs will also be counted toward the 5% goal established for WOSBs.

As of December 2015, contracting officers have authority to make sole source awards to WOSBs including EDWOSBs. Sole source contracts are subject to thresholds - $6.5 million for manufacturing and $4 million for services.

WOSB Program is a self-certification program with an option for businesses to obtain certifications from SBA-approved third-party certifiers. Businesses are allowed to continue to self-certify until the SBA implements the NDAA of 2015 which it will do so in 2018 with an estimated launch in 2020 (earliest).

Is the WOSB Certification Appropriate for You?

51 % ownership requirements Highest officer position Proper NAICS codes Managerial experience Manage daily operations No minimum time in business

Presenter Tip: Depending on the audience, provide some information on when this may be an appropriate certification.

Must be a small business concern for the primary NAICS code or contract. WOSB/EDWOSB has limited NAICS codes.

At least 51% owned and controlled by one or more women who are U.S. Citizens. The 51% ownership must be direct and unconditional.

Women must manage daily business operations including:

A woman must hold the highest officer position within the business The woman must work at the business full-time during normal working hours The woman must have managerial experience required to run the business Women must make long-term decisions for the business No minimum amount of time for business to be operational

Eligibility Requirements for WOSBs SB Size Standard Time in Business 51% Ownership Management

To qualify as a WOSB, a business must meet the following requirements:

Meet small business size standard for primary NAICS code and contract Ownership: At least 51% unconditionally and directly owned by one or more women who are U.S. citizens Control: Management must be controlled by women who are U.S. citizens.

A woman must manage the daily business operations in the company.

A woman must hold the highest officer position within the company.

The woman holding the highest officer position must have managerial experience required to run the company.

The woman holding the highest officer position must devote her full-time attention to the company during normal working hours One or more women must make the long-term decisions for the business.

No minimum amount of time for the business to be operational.

Economically Disadvantaged Requirements to Qualify

Personal net worth (assets minus liabilities) less than $750,000

Three year average income is $350,000 or less

Fair market value of all assets is $6 million or less

Presenter Tip: Discuss the requirements and information required to qualify as economically disadvantaged.

In order to qualify as an EDWOSB, a business must meet all requirements for a WOSB and its owner(s) and highest officer must demonstrate economic disadvantage.

A woman is economically disadvantaged if:

Her personal net worth (assets minus liabilities) is less than $750K excluding:

Equity in business and primary residence Income received from an S-Corp or an LLC if reinvested or used to pay taxes of business Funds reinvested in retirement accounts if not available until retirement age without a significant tax penalty Her adjusted gross income averaged over three years is $350K or less excluding income received from an S-Corp or an LLC if reinvested or used to pay taxes.

Her fair market value of all assets is $6M or less excluding funds invested in retirement accounts.

If married, a woman must provide separate financial information for her spouse.

WOSB Eligibility Process

Register in SAM Update certify.SBA.gov Represent status Provide documentation

Step 1: Register in SAM The System for Award Management (SAM) is a registration system owned by GSA and located at www.SAM.gov SAM is where companies represent their eligibility for federal contracts (representations and certifications) In order to begin the process of certifying as a WOSB or EDWOSB, you must first establish a user account on the SAM site, and then register your entity in SAM.

Note: DO NOT represent as a WOSB or EDWOSB at this stage.

Step 2: Provide documents to Certify.SBA.gov Next, navigate to certify.sba.gov and create an account in the system Once you have created an account, associate this account with your business information in SAM by providing the following information:

Your primary DUNS number Your Marketing Partner ID Number, (MPIN) number (created in SAM) Your Taxpayer Identification Number, (TIN) number Then, complete any necessary forms and upload these documents to the repository Step 3: Represent Status in SAM Once you have uploaded all necessary documents on certify.SBA.gov, you will be able to represent your status as a WOSB/EDWOSB on the SAM site Check the boxes as appropriate to indicate your status as a WOSB and/or EDWOSB (please note that all EDWOSBs are also WOSBs) Note: All required documents must be uploaded before representing as a WOSB or EDWOSB – penalties for false representation are steep.

Certification SBA Certification Portal SBA’s certification portal where businesses can submit documents to seek SBA certifications Automatic Migration Pulls business information from SAM.gov Online Forms Forms are completed online.

No longer required to upload certain SBA forms

Presenter Tip: Provide the level of detail needed based on the audience in discussing the Certify system. It may be appropriate to schedule a demonstration of the site with a Q&A session.

SBA’s certification portal where businesses can submit documents to seek SBA certifications.

Pulls business information from SAM.gov.

SBA plans to add other certification programs to certify.sba.gov in the future.

Forms are completed online - No longer required to upload WOSB Program Certifications (SBA Forms 2413 and 2414) and Personal Financial Statement (SBA Form 413).

Certification questions are filtered by business organization.

Must complete WOSB or EDWOSB certification questionnaire (or application) and add documents to the question when prompted – To be reviewed by CO when in line for award.

Only owner/officer authorized to certify on behalf of company should create account.

Getting the Most Out of the WOSB Program

Qualify for set-aside or sole source contract awards – increasing prime and subcontracting opportunities

Opportunity to build capacity and grow by establishing Joint Ventures and participating in the All Small Mentor-Protégé Program

Access to training, management and technical assistance programs, guaranteed loans and bonding assistance

There are 444 NAICS codes eligible for set-aside or sole source awards under WOSB(364)/EDWOSB(80). The lists of eligible NAICS codes are available at www.sba.gov/wosb.

Both self-certified and third-party certified businesses must provide eligibility documents to Certify.SBA.gov demonstrating their status as a WOSB or an EDWOSB. A list of required documents is available at http://Certify.SBA.gov/prepare.

Businesses must update their information in Certify.SBA.gov as necessary or at least annually to ensure it is current, accurate and complete.

A WOSB or an EDWOSB may establish a joint venture with another small business to pursue a WOSB Program contract. SBA does not approve WOSB or EDWOSB joint venture agreements but will process protests challenging the eligibility of joint venture as a WOSB or an EDWOSB.

You are eligible for the 7(j) management and technical assistance program.

Perform market research to identify Federal agencies that purchase your products and services.

Review agency procurement forecasts and expiring procurements.

Market your firm’s capabilities to agencies.

Consider the All Small Mentor-Protégé Program and joint ventures to allow your firm to pursue larger contract opportunities.

My First Template

WOSB and EDWOSB Set-Aside Contracts

WOSB

NAICS code assigned to contract is in an industry where WOSBs are underrepresented

EDWOSB

Industry NAICS code assigned to contract is in an industry where WOSBs are substantially underrepresented

Industries Contracting officer has reasonable expectation that 2 or more WOSBs will submit an offer Rule of Two

Rule of Two Award Price Contract must be awarded at fair market price

Award Price Insert Text Here

Presenter Tip: Provide any relevant information on how set-aside contracts work within the WOSB certification.

WOSB and EDWOSB Sole-Source Contracts

Eligible NAICS Code WOSB and EDWOSB eligible NAICS code

Fair and Reasonable Price Awarded at a fair and reasonable price

Contract Value $6.5M for manufacturing or $4M for all others

Sole Source Only (1) WOSB/EDWOSB that can perform

In order to make a sole source award to a WOSB or EDWOSB, the following conditions must be met:

Is the contract in a WOSB/EDWOSB eligible NAICS code?

Is the contract (including options) valued at $6.5 million or less for manufacturing contracts or $4 million or less for all other contracts?

Can the contract be awarded to the WOSB/EDWOSB at a fair and reasonable price?

In the determination of the contracting officer, is there a reasonable expectation that there is only one WOSB/EDWOSB that can perform?

WOSB Program is a business development program without authority to make a direct award. Agencies are required to prepare and approve justification and approval.

Other Programs Service-Disabled Veteran-Owned Small Business All Small Mentor-Protégé Program Joint Ventures

Service-Disabled Veteran-Owned Small Business Program (SDVOSB)

Qualify for set-aside opportunities

Establish joint ventures

Presenter Tip: Provide general information on the certification level and the qualification requirements.

This program establishes the criteria to be used in federal contracting to determine Service-disabled veteran status, business ownership, control requirements guidelines for establishing sole source and set-aside procurement opportunities and protest appeal procedures for SDVOSB procurements.

In order to be eligible for the Service-Disabled Veteran-Owned Small Business Concern Program (SDVOSB), a business must be at least 51% owned and controlled by one or more service-disabled veterans (SDVs).

An SDV is a veteran with a service-connected disability that has been determined by the Department of Veteran Affairs or the Department of Defense and receives a letter issued by the DOD.

SDVOSB must be small under the NAISC code assigned to the procurement.

The 51% ownership must be at least 51% unconditionally…