Federal Aviation
Administration
Small Business Development
Program Hot Topics
Presented to: Procurement Achievement
Reporting System Advisory Council
Location: Washington, D.C.
Presented by: Fred Dendy, Director, FAA
Small Business Development
Date: April 16, 2013
Who Are We?
Small Business Development Program
April 16, 2013
Federal Aviation
Administration
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What We Do…
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Establish FAA-wide prime and subcontract goals for small business contract awards;
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Develop and publish the FAA’s annual procurement forecast
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Execute, develop and establish agency small business policy/guidance
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Maintain small business database “Source-Net” to help identify potential sources for
set-aside decisions
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Provide counseling/outreach/training to the small business community seeking or
doing business with FAA via small business expositions/marketplaces, conferences,
seminars and symposiums
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Provide counseling, assistance and guidance to product/service teams and other FAA
procurement decision makers to identify prime contract and subcontract opportunities
for small business
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Provide guidance and advice to FAA’s small and disadvantaged business utilization
specialists in each service area and center
Small Business Development
April 16, 2013
Federal Aviation
Administration
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Basis for FAA Acquisition Management System
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In 1996 DOT Appropriations Act, FAA was directed to develop an acquisition
system and exempted from all acquisition-related laws and regulations
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Legislation stated the following provisions of Federal acquisition law shall not
apply to the new acquisition management system:
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Title III of the Federal Property and Administration Services Act of 1949
The Office of Federal Procurement Policy Act
The Federal Acquisition Streamlining Act of 1994
The Small Business Act, except that all reasonable opportunities to be awarded contracts shall be provided
to small business concerns and small business owned and controlled by socially and economically
disadvantaged individuals.
The Competition in Contracting Act.
Subchapter V of Chapter 35 of Title 31, relating to the procurement protest system.
The Brooks Automatic Data Processing Act
The Federal Acquisition Regulation and any laws not listed above providing authority to promulgate
regulations in the Federal Acquisition Regulation.
FAA Acquisition Management System (AMS) issued April 1996
Small Business Development
April 16, 2013
Federal Aviation
Administration
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Key Themes of AMS Procurement
 Minimizes “how to” and encourages tailoring to circumstances
 Relies on business judgment - but must have a rational basis
supported by substantial evidence
 Aligns procurement methods to complexity of requirement
 Emphasizes empowerment and collaborative decision-making
 Eliminates non-value added activities and arbitrary thresholds
Small Business Development
April 16, 2013
Federal Aviation
Administration
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Key Features of AMS Procurement
 Competition is preferred
 Streamlined source selection, delegated to lower levels in FAA
 Flexible processes and access allowing increased communication
with vendors
 Simplified/commercial procurement process
 Direct, competition-based small business utilization program
 Internal FAA Office of Disputes Resolution
 Ethical standards for FAA employees and contractors
Small Business Development
April 16, 2013
Federal Aviation
Administration
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General Benefits of AMS to Vendors
 AMS strongly encourages communication with vendors
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Provides vendors better understanding of FAA needs and FAA insight
into vendor capabilities
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Promotes transparency in source selection processes and decisions
 Streamlined source selection and “down-select” decisions save
vendor bid and proposal costs
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Vendors unlikely to receive award are notified early during source
selection process
Small Business Development
April 16, 2013
Federal Aviation
Administration
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General Benefits of AMS to Vendors – cont.
 Internal FAA Office of Disputes Resolution for Acquisition
 Protests and disputes resolved through alternate disputes resolution
 Saves cost and time of adjudication through formal boards or courts
 AMS contract clauses based largely on Federal Acquisition
Regulation clauses
 Vendors do not have to become expert in a different set of contract
clauses; history of interpretation and case law applies to AMS clauses
Small Business Development
April 16, 2013
Federal Aviation
Administration
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General Benefits of AMS to Vendors – cont.
 All information comprising AMS is online and in one location - FAA
Acquisition System Toolset (FAST) located at (http://fast.faa.gov)
 AMS written in plain language which improves ability to understand
what AMS requires
Small Business Development
April 16, 2013
Federal Aviation
Administration
9
Small Business Contracting
 Overarching policy is to provide small business reasonable
opportunities for prime contracts and subcontracts
 FAA must consider a small business set-aside before pursuing an
unrestricted contract
 For requirements over $100,000, product/service teams must
coordinate with the cognizant FAA Small Business Office staff
 FAA makes set-aside determination and contracts directly with small
business, 8(a), socially and economically disadvantaged business;
and service disabled veteran owned small business and Small
Business Administration is not involved
Small Business Development
April 16, 2013
Federal Aviation
Administration
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Small Business Development Program
April 16, 2013
Federal Aviation
Administration
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Small Business Development Initiatives
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Set-asides (first consideration):
– Small business (self-certification)
– Very small businesses (self-certification)
– 8(a) businesses certified by Small Business Administration
– Service-disabled veteran-owned small businesses (SDVOSB)
(self-certification and verified in the vetbiz database)
•
Non-competitive awards to 8(a) certified firms and SDVOSB
•
Contract Bundling Reviews
•
Encourage Teaming (i.e., Joint Ventures, Mentor-Protégé,
Subcontracting)
•
Marketing Resources
Small Business Development
April 16, 2013
Federal Aviation
Administration
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Small Business Development Initiatives
BUSINESS PLANNING:
• Core Business Measure:
- Small Business and Corporate Citizenship
• Core Business Initiative:
- Award Procurement Dollars to SB, SDB & WOSB
• Core Activity Target:
- Outreach and 25% Small Business Direct Goal Linked to
Performance and Compensation
Small Business Development
April 16, 2013
Federal Aviation
Administration
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Major Procurement Program Goals vs. Accomplishments
(Direct Contracts to Small Business)
Total Dollars
Obligated
FY 02
FY 03
FY 04
FY 05
FY 06
$4.2B
$3.2B
$2.9B
$2.5B
$3.1B
FY 07
$3.3B
FY 08
FY 09
$3.4B
$3.5B
FY 10
$3.8B
Goal
Actual
FY 11
$3.9B
Small Business Goals & Accomplishments
35%
30%
25%
20%
15%
10%
5%
0%
FY01
FY02
FY03
Small Business Development
April 16, 2013
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
Federal Aviation
Administration
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FY-12 Major Procurement Program Goals
Agency Goals vs. Accomplishments
(10/01/11 – 9/30/12)
($4B Total Obligations Awarded)
%
Small Business Development Program
April 16, 2013
FY-13 Major Procurement Program Goals
Agency Goals vs. Accomplishments
(10/01/12 – 04/05/13)
($1B Total Obligations Awarded)
%
Federal Aviation
Administration
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MARKETING RESOURCES
• Marketing Package
Lakisha Davis (lakisha.davis@faa.gov)
• Business Plans
https://www.faa.gov/about/plans_reports/
• Contracting Opportunities
https://faaco.faa.gov
• Small Business Development Program Group
https://www.sbo.faa.gov
Small Business Development
April 16, 2013
Federal Aviation
Administration
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Questions?
Small Business Development Program
April 16, 2013
Federal Aviation
Administration
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