How To Build Your Business On Government Contracts Tim Jacquet Apple Capital Group Agenda Tonight I. Meet and Greet with Meal II. Recap of Government Contacting III. The Power of Certifications (Grant) a: 8(A) & SDB Certification (SBA) b. Hubzone (SBA) c. Department of Transportation (SBA) d. Women Certification (SBA) e. North Central Texas Regional Certification Agency (State) f. Dallas/Fort Worth Minority Supplier Council (National/State) g. HUB Certification Process (State) h. Find Opportunities IV. Credit Profiling and Financing Options V. Questions and Answers Development Federal Contacting Facts The Government is the largest buyer in the US. The Government buys over $1 trillion in products and services annually The Government buys all types of supplies and services, including construction The Government is reliable, continuous source of business How To Sell To The Federal Government Small-business Size Standards www.census/gov/naics Based on your primary NAICS code Specified by revenue averages or number of employees Services firm size is based on a three- year revenue average Product firm size is based on number of employees Small-business Size Standards What is NAICS? NAICS Stands for North American Industrial Classification Systems Replaces Standard Industrial Codes (SIC) in 1997 Developed jointly by the United States, Canada, and Mexico to provide new comparability in statistics. QUESTIONS? Why NACIS Is Important Identifies opportunities suitable for you Establishes if you are a small business Let’s you speak the same language as future “customer” Customers seek sources based on NAICS codes Reading NAICS ex. 561710 First 2 digits indicate industry sector 3rd digit is subsectors 4th digit is industry group 5th digit is NAICS industry 6th digit is nationals NACIS Example Industrial Code 56 Waste Management and Remediation Services Subsector 1 administrative and Support Services 561110 – Office Administrative Services 561210 – Facility Support Services 561310 – Employment Placement The Importance of Specificity www.census/gov/naics NAICS searches can provide many different and diverse categories A search on “computer” can result in everything from cabling to furniture Choose your primary code based on your core competencies Small-business Classifications Woman-owned small business Small Disadvantaged Business (SDB) 8(a) small business HUBZone Small Business Veteran-owned small business Service-disabled, veteran-owned small business Certifications Grants from the government 8(a) Small Business Must meet small business size standard At least 51% owned and controlled by U.S. citizens who are socially and economically disadvantaged Must demonstrate potential for success Owner’s personal net worth must be less that $500,000 Benefits of SDB Certification Eligible for a price adjustment of up to 10% when bidding on federal contracts Federal agencies have 6% goal of contract dollars to SDB firms Large government contractors have 5% goal of subcontract dollars to SDB firms Benefits 8(a) Small Business 9 year program/non-renewable Eligible for sole source federal contracts up to $3 million (good and services or %5 million (manufacturing) Eligible for Small Business Administration (SBA) assistance and training. Small Disadvantaged Business (SDB) 51% owned and controlled by socially and economically disadvantaged person(s) All persons must have a net worth of less than $750,000, with some exclusions Must meet applicable size standard Require formal application SBA 8(a) and SDB Website: https://www.sba.gov/category/navigationstructure/8a-business-development-program To Apply: https://eweb.sba.gov/gls/dsp_sbabanner.cfm?C FID=14486785&CFTOKEN=ed106a30d53fed5b -2AB4BC2E-0C77-C373C7ABC4CA083DDF2F&jsessionid=9a303bd4d8 bca77dfad086343694f7402c54 HubZone HUBZone Small Business Must meet small business size standard Principal office must be locate in a HUBzone Owned and controlled by U.S. citizen(s) At least 35% of employee must live in a HUBzone Requires formal application Benefits of HUBZone Certification Eligible for set asides and sole source May receive 10% prices preference on contracts awarded through Full & Open Competition Large government contractors have goal of awarding 2% of subcontract dollars. Hubzone Hubzone https://www.sba.gov/cate gory/navigationstructure/contracting/cont racting-support-smallbusinesses/smallbusiness-cert-0 Hubzone Map http://map.sba.gov/ hubzone/maps/ Apply http://map.sba.gov/ hubzone/maps/ Business Resources For Veterans Veteran owned Small Business 51% owned by armed services veteran Day-o-day operations managed by veteran Self certification, no paperwork necessary Services disabled Veteran owned Small Business 51% owned by service disabled veteran Disability certified by Department of Veterans Affairs Day-to-day operations managed by services disabled veteran Self certification, no paperwork No expiration or revenue restriction No limit on number of businesses Services disabled Veteran owned Small Business 51% owned by service disabled veteran Disability certified by Department of Veterans Affairs Day-to-day operations managed by services disabled veteran Self certification, no paperwork No expiration or revenue restriction No limit on number of businesses Resources for Women Entrepreneurs WOSB Contracting Program CERTIFICATIONS Self Certification With documentation SBA developing WOSB Program Repository 3rd Party Certifiers 8A Women Owned Program Participants DOT Women Owned DBE Certification Others entities that SBA approve (future) WOSB Contracting Program Set-Asides WOSB In Underrepresented NAICS Codes EDWOSB In Substantially Underrepresented NAICS Codes However, Final Rule—SBA Administrator Waived EDWOSB Set-Asides (SBA will keep track of EDWOSBs for future assessment of NAICS codes) All 83 NAICS codes available for Set-Asides WOSB Contracting Program Contracting Officer’s Responsibilities Reasonable Expectation of 2 or More Offers by WOSBs Anticipated Award Price must not exceed: $5M – Manufacturing $3M – All other (May be increased for inflation) WOSB Contracting Program Final Rule WOSB Woman/Women Directly Own, Control & Manage Daily Operations Woman/Women must be U.S. Citizens Economically Disadvantaged WOSB Plus Net Worth $750,000 Income not exceeding $350,000 Assets not exceeding $6m WOSB Contracting Program Final Rule Establishes 83 Industries 4-digit NAICS Codes (373 6-Digit NAICS Codes) 216 Underrepresented 157 Substantially Underrepresented 373 6 digit NAICS codes List at www.sba.gov/wosb Women Owned Small Business (WOSB) Contracting Program Final Rule Published October 7, 2010 (75 FR 62258) Implements PL 85-536 as amended Helps ensure a level playing field so WOSBs can compete for Contracting Opportunities Sets forth Contract Requirements Applies to Prime Contract, not Subcontract Allows Eligibility Exams Explains Protest Procedures WOSB Contracting Program Final Rule Effective Date: February 4, 2011 FAR Implementation IAE Changes WOSB Contracting Program Contracting Officer’s Responsibility Must check that WOSBs must have proper certification in ORCA Must Certify he/she checked the WOSB repository that all required documents are in the system (including certifications by 3rd Party certifiers) WOSBs will give Contracting Officers 30 days authorization to review repository documents WOSB Contracting Program www.sba.gov/wosb The Final Rule & History FAQs Fact Sheet NAICS codes for the program Compliance Guide for Small Entities Contact Information 1-800-U-ASK-SBA (1-800-827-5722) WOSB Contracting Program More to Come at www.sba.gov/wosb Link to the Repository Listing of Required Documents Instructions for accessing the Repository Women-owned Small Business 51% women Owned Day-today operations managed by a woman or women. Self certification, no paperwork necessary WOSB Apply: http://map.sba.gov/hubzone/maps/ http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm Dynamic Small Business Search State Certifications North Central Texas Regional Certification Agency Purpose to get your certificated and maximum practical opportunities to participate in contracting and purchasing activities. DBE – Disadvantage Business Enterprise MBE – Minority Business Enterprise WBE – Woman-owned Business Enterprises Free application Website: http://www.nctrca.org/ North Central Texas Regional Certification Agency Purpose to get your certificated and maximum practical opportunities to participate in contracting and purchasing activities. DBE – Disadvantage Business Enterprise MBE – Minority Business Enterprise WBE – Woman-owned Business Enterprises Website: http://www.nctrca.org/ North Central Texas Regional Certification Agency Purpose to get your certificated and maximum practical opportunities to participate in contracting and purchasing activities. DBE – Disadvantage Business Enterprise MBE – Minority Business Enterprise WBE – Woman-owned Business Enterprises Webiste: http://www.nctrca.org/ North Central Texas Regional Certification Agency Requirements MBE/WOBE – Minority Business Enterprise and Women-owned Business Enterprise Firm must be at least 51% owned and controlled by a minority or women individual (s) The minority or women owner(s) must be a United State or lawfully permanent resident of the United States Firm must be organized as a for-profit business. All ethnic female owned firms are classified as MBEs. Only firms owned by Caucasian females are classified as WBEs. NCTRCA NCTRCA 624 Six Flags Drive, #100 Arlington, TX 76011 (817) 640-0606 (Office), (817) 640-6315 (Fax) Email: mail@nctrca.org North Central Texas Regional Certification Agency Requirements DBE – Disadvantaged Business Enterprise and Airport Concessionaire Disadvantaged Business Enterprises Firm must be at least 51% owned and controlled by a socially and economically disadvantaged individual(s) The disadvantaged owners must be an United States Citizen or lawfully admitted permanent resident of the United States Firm must be a small business that meets the Small Business Administration’s size standard and does not exceed $22.51 million in gross receipts for DBEs and $56.42 million in gross received for ACDBEs Personal Net Worth for all owners claiming disadvantaged status for the DBE and/or ACDBE program must not exceed $1.32 million. Firm must be organized as a for-profit business Texas Department of Transportation Texas Unified Certification Program The Texas Unified Certification Program is a certification process for the Federal Disadvantaged Business Enterprise (DBE) Programs in Texas. A business' DBE certification is valid at any Texas entity that receives U.S. Department of Transportation (DOT) funds and has a DBE Program. (See TUCP Participating Entities below.) NCTCA included Small businesses desiring DBE certification must submit an application and personal net worth statement to one of six certifying agencies within the state. The business' location determines which agency to contact. Firms certified by each of the six agencies are included in one consolidated and centralized DBE Directory. The TUCP is required by the U.S. Department of Transportation Dallas- Fort Worth Minority Supplier Development Council, Inc. The Dallas/Fort Worth Minority Supplier Development Council (D/FW MSDC) is a 501 (C) (3) privately funded, nonprofit, business organization, formed in 1973 by major corporations committed to fostering a business environment which promotes access and opportunity for minority-owned businesses. D/FW MSDC is one of 24 regional affiliates of the National Minority Supplier Development Council (NMSDC), the certification body of choice by corporate America and the recognized business link for over 3,500 buying organizations and 14,000 certified minority-owned businesses nationally. Application $250 Website: http://www.dfwmsdc.com/ Dallas- Fort Worth Minority Supplier Development Council, Inc. The Dallas/Fort Worth Minority Supplier Development Council (D/FW MSDC) is a 501 (C) (3) privately funded, nonprofit, business organization, formed in 1973 by major corporations committed to fostering a business environment which promotes access and opportunity for minority-owned businesses. D/FW MSDC is one of 24 regional affiliates of the National Minority Supplier Development Council (NMSDC), the certification body of choice by corporate America and the recognized business link for over 3,500 buying organizations and 14,000 certified minority-owned businesses nationally. D/FW MSDC buying entity partners report over $5.20 billion dollars in spending annually with minority-owned businesses. D/FW MSDC certified suppliers report over $23 million annually in spending with minority-owned businesses (MBE-to-MBE transactions Website: http://www.dfwmsdc.com/ Finding Opportunities HTTPS://MYCPA.CPA.STATE.TX.US/TPASSCMBLSEARCH/INDEX.JSP FedBizOpps Advanced Functions (cont.) Add Opportunity to Watchlist Add firm to Interested Vendors List 57 FedBizOpps Advanced Functions Search Agents. Save and schedule Search Agents (daily, weekly, etc.). Filter by NAICS Code, area , agency, etc. Interested Vendors List. Let primes, subs, suppliers know that you are interested in a project. Watch lists. Enables you to receive updates when an announcement or solicitation is amended. Things to Do Explore Subcontracting Opportunities as a first choice pursuit vs. "a settling for" strategy. Learn to Use FedBizOpps as a Management and Decision-making Tool. Visit DoD and ARMY Small Business Websites. Info on Small Business Programs, Resources, Events. Know the rules. Federal Acquisition Regulation (FAR). For USACE, additional supplements also apply (DFARS, AFARS, EFARS). Useful Links SAM – System For Award Management https://www.sam.gov/portal/SAM/#1 DUNS – Data Universal Numbering System http://fedgov.dnb.com/webform Fedbizopps – Federal Business Opportunities https://www.fbo.gov/ NAICS Search - North American Industry Classification System http://www.census.gov/eos/www/naics/ Find RFP – Find RFP, Bids and Contracts https://findrfp.com Fedbid: http://www.fedbid.com/ Small Business Size Standard http://www.sba.gov/contractingopportunities/officials/size/index.html Commercial Software (Paid) www.EZGovOpps.com -$79 and up www.FIND RFP.com - $39 Flat www.bidspeed.com -$195.00 www.Smartprocure.us www.governmentbids.com $97 and up ESBC http://esbd.cpa.state.tx.us/ Free Search www.fedbidopps.gov www.fedbid.com (auction site) DOD Army https://contracting.tacom.army.mil/cfdata/sol/sol01.cfm Coast Guard: http://www.seaport.navy.mil/default.aspx Navy: http://www.secnav.navy.mil/smallbusiness/pages/doingbusiness.aspx Contacts: Oscbu office: http://www.osdbu.gov/ Agency websites