SBA – Government Contracting - North Carolina Military Business

SBA’s Government
Contracting Programs
North Carolina District Office
6302 Fairview Road
Suite 300
Charlotte, NC
(704)344-6563
www.sba.gov/NC
Rev. 12/16/15
The Small Business Champion
The U.S. Small Business Administration (SBA)
was created in 1953 as an independent agency
of the federal government to aid, counsel, assist
and protect the interests of small business
concerns, to preserve free competitive enterprise
and to maintain and strengthen the overall
economy of our nation.
AGENDA
- Definition – What is a Small Business
- Why A Small Business Program
- Let’s Talk Federal Contracting
Certifications
8(a) Business Development Program
*Small Disadvantaged Business
HUBZone Empowerment Contracting
Program
*Women-Owned Small Business
*Veteran-Owned Small Business
*Self-Certification
What is a Small Business?
According to Federal Acquisition Regulation
(FAR 19.001)
•  Concern: Any business entity organized for profit with
a place of business located in the U.S.
•  Small Business Concern: A concern, including its
affiliates, that is independently owned and operated,
not dominant in the field of operation in which it is
bidding on government contracts, and qualified as a
small business under the criteria and size standards in
13 CFR Part 121.
What is a Small Business?
The U.S. Small Business Administration defines a "small business“
in terms of…
- The number of employees over the past year
- Average annual receipts over the past three years
Size Standards Vary by Industry
Federal Contracting Facts
DID YOU KNOW…
• The world’s largest buyer of goods and services is the
Federal Government.
• Historically, The Federal Government purchases
totaling an average of $500 Billion Per Year.
• Contracts exist for every item imaginable, from paper
clips to armored tanks
• Federal agencies are required to establish contracting
goals, with at least 23 percent of all government buying
targeted to small firms.
Prime Contracting Government-Wide Procurement Goals
SDV 3%
HubZone 3%
8(a) / SDB 5%
WOSB 5%
Other Small
Other than Small
Get Registered
To Conduct Business with the Government MUST register in h&ps://www.sam.gov database -­‐  Obtain a “DUNS Number” at website (FREE) to iden=fy your business to the federal government. -­‐ AEer comple=ng SAM (System for Award Management), UPDATE the SBA Profile Link in Dynamic Small Business Search (DSBS) Dynamic Small Business Search
Veteran-Owned Small Business
Service-Disabled Veteran-Owned Small Business Concerns
(SDVOSBC)
Purpose of SDVOSBC Program
Provides procuring agencies with authority to set
acquisitions aside for exclusive competition among
service-disabled veteran-owned small business concerns.
Provides authority to make sole source awards to servicedisabled veteran-owned small business concerns.
Veteran-Owned Small Business
Additional Points to Remember
Ø  Unique contracting opportunities with the VA
SDVOSB
VOSB
Ø  VA determines service disability - SBA determines
size, if protested.
Ø  The Veterans First Contracting Program applies
only to purchases made by the Dept of Veterans
Affairs.
- Only VOSB & SDVOSB are eligible
- Must be certified by the Dept of Veterans affairs
&
listed in the VA’s Vendor Information Pages
(VIP database).
The federal government has a goal of awarding
3% of all dollars for federal prime contracts to
Service Disabled Veteran small business concerns
Veteran-Owned Small Business
Procurement hierarchy within VA for open market procurements was
created which places their highest priority
with SDVOB followed by VOSB
Go to
http://
www.VetBiz.gov
and click “Apply for
Verification”
8(a) Business Development Program
What is the 8(a) Business Development
Program?
•  Section 8(a) of the Small Business Act of 1953.
•  A business development program created to assist small
disadvantaged businesses to self-market and compete
in the American economy and access the federal
procurement market.
8(a) Eligibility Criteria
ü  2 Years in Business in primary NAICS code
ü  A Small Business
ü  Potential for Success
ü  Socially & Economically Disadvantaged
ü  U.S. Citizen
ü  51% or More Ownership
ü  Good Character
SBA May Waive the Two-Year Rule if:
•  Have substantial and demonstrated business
management experience;
•  Demonstrated technical expertise;
•  Adequate capital to carry out its business
plan;
•  Successful performance on contracts from
governmental and nongovernmental;
•  Ability to obtain personnel, facilities,
equipment, and any other requirements
needed to perform such contracts.
Social Disadvantage
Individuals are presumed to be socially
disadvantaged if they are a U.S. Citizen
and a member of one of the following
groups:
•  Black American •  Asian Pacific American •  Hispanic American (includes individuals of Spanish & Portuguese descent) •  Na=ve American •  Subcon=nent Asian American Determining Factors of Preponderance
ü  Disadvantage may stem from race, ethnic origin,
gender, physical handicap, long term environmental
isolation, or other similar causes;
ü  Must have personally suffered disadvantage in the
United States;
ü  Must be substantial & chronic;
ü  Must have negatively impacted on business
advancement.
Net Worth Criteria
After excluding the individual’s equity in the firm
and equity in the primary residence, net worth
may not exceed $250,000
NET WORTH less legi=mate IRA/re=rement acct value(s) less equity in primary residence less equity in business Equals = adjusted net worth Must not exceed $750,000 for Continued Eligibility
Funds invested in an Individual Retirement Account (IRA) or other
official retirement account that are unavailable to an individual until
retirement age without a significant penalty will not be considered in
determining an individual's net worth.
The Disadvantaged Individual MUST:
ü  Hold the posi=on of President or Chief Execu=ve Officer, Managing Partner or LLC Managing Member ü  Be the highest compensated individual ü  Have managerial/technical exper=se ü  Have the ability to: -­‐ Hire and Fire -­‐ Set Policies -­‐ Commit firm to contracts -­‐ Control Budget and Financial Disbursement ü  Devote Full-­‐=me to the opera=on Benefits of the 8(a) Business Development Program
Business Development Assistance
Federal Contracting Opportunities
•  Simplified Acquisition - Under $150,000
•  Sole Source threshold- $4 Million (Services &
Construction) and $7 Million (Manufacturing)
•  Competitive 8(a) Contracting Opportunities above the
Sole Source threshold amounts
•  Mentor/Protégé Opportunities
•  Joint Venturing Opportunities
The federal government has a goal of awarding
5% of all dollars for federal prime contracts to
8(a)-certified small business concerns
Where to Send Application
APPLICATIONS ARE ACCEPTED
ON-LINE
http://www.sba.gov/8abd
SBA will process your application within 90 days of
receipt of a complete application package.
13 CFR 124.202
Self Certification - SDB
What is the SDB Program?
Created to assist small disadvantaged businesses
benefit in Federal procurement and subcontracting
with Prime Contractors.
“SELF- CERTIFY”
Small Disadvantaged Business - SDB
SDB - Eligibility Criteria
• 
• 
• 
• 
• 
A Small Business
Socially & Economically Disadvantaged
U.S. Citizen
51% or More Ownership
Good Character
Eligibility Exception for SDB
•  Personal Net Worth - $750,000
•  Full-Time Devotion To Business Not
Required
•  2-Year in Business Excluded
Benefits of SDB Self-Certification
•  Federal Agencies & Prime Contractors have
established goals to award contracts to SDB
firms.
•  Large Prime Contractors with subcontracting
plans will receive credit when using “certified”
SDB’s as subcontractors.
-----------------------NOTE: 8(a) CERTIFIED FIRMS ARE
“CERTIFIED SDB”
How To Self-Certify
https://www.sam.gov
HUBZONE Empowerment Contracting Program
Enacted into law as part of the Small
Business Reauthorization Act of 1997
Created to stimulate economic development
and create employment opportunity in urban
and rural communities by providing
contracting preferences to small businesses.
Not to be confused with the State HUB
program
HUBZONE Eligibility Criteria
ü  It must be a small business by SBA standards.
ü  It must be owned and controlled at least 51% by
U.S. citizens, or a Community Development
Corporation, an Agricultural Cooperative or an
Indian Tribe.
ü  Its principal office must be located within a
“Historically Underutilized Business Zone,” which
includes lands considered “Indian Country” and military
facilities closed by the Base Realignment and Closure
Act.
ü  At least 35% of its employees must reside in a
HUBZone. Employees must live in a primary residence
within that area for at least 180 days or be a
currently registered voter in the area.
Are YOU in a HUBZONE?
http://map.sba.gov/hubzone/maps/
Benefits of HUBZone Program
ü  Federal Contracting Opportunities
Sole Source
Competitive
Full & Open
ü  10% Price Evaluation Preference in full and open contract
competitions, as well as subcontracting opportunities.
ü  Large Federal Prime Contractors with subcontracting plans
will receive credit when using “certified” HUBZone
subcontractors.
ü  Firms in federal empowerment zones and enterprise
communities may also benefit from various tax incentives.
The federal government has a goal of awarding
3% of all dollars for federal prime contracts to
HUBZone-certified small business concerns
Apply for HUBZone On-Line
http://www.sba.gov/hubzone
For Assistance, Please Contact
Hubzone@sba.gov
SBA Answer Desk 1-800-827-5722
Application processed in Washington, DC
Minimum Turn Around Time 45-60 Days
Women-Owned Small Business Program
Program Overview
The Women-Owned Small
Business (WOSB) program
authorizes Contracting Officers to
set aside certain federal
contracts for eligible:
•  Women-Owned Small
Businesses (WOSBs) or
•  Economically Disadvantaged
Women-Owned Small
Businesses (EDWOSBs)
The rule for this program became effec=ve in the Federal Acquisi=on Regula=on (FAR) on April 1, 2011 IMPACT of this Program
•  Levels the playing field
for WOSBs to compete
for and win federal
contracts
•  Provides procuring
agencies a tool to help
meet their WOSB
contracting goal
•  Ultimately, the program
helps create and retain
more jobs for WOSBs
The Federal government
must award 5% of its
prime contracting goal to
WOSB’s
WOSB & EDWOSB Set Aside Requirements
Contrac=ng officers may set aside contracts for WOSBs and EDWOSBs if they meet the following requirements: WOSB Set Aside A complete list of
applicable
NAICS codes
can be found at
www.sba.gov/wosb
Industries •  NAICS code assigned to solicita=on, IFB or quote is in an industry in which WOSBs are substanEally underrepresented EDWOSB Set Aside •  NAICS code assigned to solicita=on, IFB or quote is in an industry in which WOSBs are underrepresented (45 4-­‐Digit NAICS Designated) (38 4-­‐Digit NAICS Designated) Rule of Two •  Contrac=ng Officer has •  Contrac=ng Officer has reasonable expecta=on that reasonable expecta=on that 2 2 or more WOSBs will or more EDWOSBs will submit submit an offer an offer * Note: All EDWOSBs are WOSBs Award Price * Note: Not all WOSBs are EDWOSBs The Na=onal Defense Authoriza=on Act (NDAA) removed the dollar value caps on WOSB / EDWOSB contract awards. The SBA’s regula=on change was effective May 7, 2013. As of
Oct. 14, 2015 WOSB is eligible for Sole Source
Contracts •  Contract must be awarded at fair market price Eligibility Requirements for
•  Meet small business size standard for primary NAICS
code and contract
•  At least 51% unconditionally and directly owned by
women who are U.S. citizens*
•  The woman must manage the day-to-day operations
•  The woman must make the long-term decisions for
the business
•  A woman must hold highest officer position
•  The woman must work at the business full-time during
normal working hours
•  No minimum amount of time the business has been
operational
*Community property laws are not considered when looking at ownership. Eligibility Requirements for EDWOSBs
Same requirements as WOSBs (on previous page) PLUS: §  Personal net worth (assets minus liabili=es) is less than $750,000 excluding: •  Ownership in business and primary personal residence •  Income reinvested or used to pay taxes of business •  Funds reinvested in IRA or other re=rement account* •  Transferred assets within two years if to or on behalf of immediate family member for select purposes** * Must be IRA or other official reErement account that is unavailable unEl reErement age without significant penalty ** Select purposes are for that individual’s educaEon, medical expenses or other essenEal support or to family member in recogniEon of special event
Eligibility Requirements for EDWOSBs
§  Adjusted gross income average over three years is $350,000 or less excluding: •  Income reinvested or used to pay taxes of business §  Fair market value of assets is $6 million or less excluding: •  Funds reinvested in IRA or other official re=rement account WOSB Program Certification
Self CerEficaEon
There are two ways to cer=fy for the WOSB program: •  Self CerEficaEon with suppor=ng documents, or •  Third Party CerEficaEon with suppor=ng documents FREE, no cost •  Register in h&ps://www.sam.gov as WOSB or EDWOSB •  Compile and upload all required documents to the repository •  NEW!! WOSB Portal! Certify.SBA.GOV • 
Third Party Certification
Register in SAM as WOSB or EDWOSB •  Obtain cer=fica=on from an SBA-­‐approved Third Party Cer=fier •  Compile and upload all required documents to the repository •  Represent status in SAM • 
*** SBA has approved four (4) third party cerEfiers. The approved third parEes are listed on our website at www.sba.gov/wosb
WOSB Program Certification
The SBA has approved four (4) organizations to act as
Third Party Certifiers under the WOSB Program. The
four organizations and contact information are:
El Paso Hispanic Chamber of Commerce
National Women Business Owners Corporation
(NWBOC)
US Women’s Chamber of Commerce
Women’s Business Enterprise National Council
(WBENC)
Women Owned Small Businesses may elect to use the
services of a Third Party Certifier to demonstrate
eligibility for the program, or they may self-certify. SBA
will only accept third party certification from these
entities, and firms are still subject to the same eligibility
requirements to participate in the program.
WOSB Program Repository – Overview
What is the WOSB Repository? • By statute, documents verifying a WOSB/EDWOSBs eligibility must be submiaed to the contrac=ng officer (CO) • Rather than have WOSBs submit documents to the CO, the SBA has created a document warehouse • A WOSB’s documents in the repository can be accessed only by the WOSB, SBA and the CO (only if the firm gives the CO permission to access the documents). How do I get to the Repository? • NEW!! WOSB Portal!
Certify.SBA.GOV WOSB Program Repository Welcome to certify.SBA.gov
The U.S. Small Business Administration (SBA) has
modernized the Women-Owned Small Business
(WOSB) Program certification process. Get started
online today and manage your eligibility documentation
or upload Third-Party Certifications directly from our
easy to use dashboard. GET STARTED TODAY!
Login
OR
Create Account
New Features
Experience a unified SBA contracting program
certification process and complete SBA forms directly
online. Upload and manage your documents across
multiple programs and receive email notifications such
as expiration and renewal notices.
Am I Eligible?
Does your company meet the criteria to participate in
the Women-Owned Small Business (WOSB) Program
as a Women-Owned Small Business (WOSB) or as an
Economically Disadvantaged Women-Owned Small
Business?
Find Out
Upcoming Activities
New programs will soon be incorporated onto
certify.sba.gov including 8(a) Business Development
Program (Fall 2016), HUBZone Program (Spring 2017)
and Dynamic Small Business Search (DSBS) (Spring
2017).
Certification - LLCs
Question: How is a concern certified as an EDWOSB or WOSB?
See 13 CFR§127.300 (e) Non-Third Party Certification
For a firm to participate in SBA’s WOSB Federal Contracting Program, you must
have the following:
Limited Liability Companies (LLC)
ü  Copies of birth certificates, naturalization papers, or unexpired passports for owners
who are women
ü  Copy of the Joint Venture (JV) Agreement, if applicable
ü  SBA Form 2413 for WOSB (must be signed and dated by owner/managing member)
ü  *Operating Agreement and any Amendments
ü  The Assumed/Fictitious Name Certificate
ü  The Articles of Organization (also referred to as certificate of organization, or articles
of formation and any Amendments
Certification – Corps and Other Entities
Corporation, S Corp, Incorporated, and Other Business Entities
ü  Copies of birth certificates, naturalization papers, or unexpired passports for owners
who are women
ü  Copy of the Joint Venture (JV) Agreement, if applicable
ü  SBA Form 2413 for WOSB (must be signed and dated by owner/managing member)
ü  The Articles of Incorporation and any Amendments
ü  By-laws and any Amendments
ü  All stock certificates issued, front and back copies signed in accord with the by-laws
(also applies to cancelled stock certificates)
ü  Stock ledger
ü  Voting agreements
ü  The Assumed/Fictitious Name Certificate
Certification – Partnership
Partnership Agreement
ü  Copies of birth certificates, naturalization papers, or unexpired passports for the
concern in the agreement who is designated as the WOSB
ü  SBA Form 2413 for WOSB or SBA Form 2414 for the EDWOSB from the designated
WOSB/EDWOSB of the contract award
ü  Copy of the Partnership Agreement and any Amendments (WOSB/EDWOSB must
demonstrate 51% ownership/control of the contract award)
ü  Copy of the Joint Venture (JV) Agreement, if applicable
ü  All stock certificates issued, front and back copies signed in accord with the by-laws
ü  The Assumed/Fictitious Name Certificate
Certification - Sole-Proprietorship
Sole-Proprietorship
ü  Copies of birth certificates, naturalization papers, or unexpired passports for owners
who are women
ü  SBA Form 2413 (must be signed and dated by owner/managing member)
ü  The Assumed/Fictitious Name Certificate
ü  Three (3) years of current income tax (including all schedules and W-2s)
ü  SBA Form 413 – Personal Financial Statement
ü  IRS Form 4506-T Request for Tax Transcript from owner (and spouse, if applicable)
EDWOSB--Economic Disadvantage
Very Important Note: If a business concern wants to be considered economic
disadvantage and apply for EDWOSB status, the concern shall upload the required
documents according to their business sector above e.g. LLC, Corporations,
Incorporated, etc. IN ADDITION to the financial documents for eligibility.
ü  ⎫
ü  ⎫
ü  ⎫
ü  ⎫
SBA Form 2414 EDWOSB (must be signed and dated by owner/managing
member)
SBA Form 413, Personal Financial Statement
Three (3) years of Current Income Tax (including all schedules) and W-2’s
IRS Form 4506-T, Request for Tax Transcript-from you and your spouse (if
applicable)
*13 CFR § 127.402 Request for Information: SBA will request that the concern or
contracting officer provide documentations and information related to the concern’s
EDWOSB or WOSB eligibility. These documents will include those submitted under §
127.300 and any other pertinent documents requested by SBA at the time of eligibility
examination to verify eligibility, including but not limited to……
In other words, the SBA you may request a resume’ or copies of spouse’s financial
documents (if a woman is claiming economic disadvantage), separation agreement,
divorce agreement, etc.
Small Business Resources - Women
Resources available to help answer questions about the WOSB program:
www.sba.gov/wosb
wosb@sba.gov
You will find the latest information about the program on this site,
including the Contractor Officer’s Guide for the WOSB program
Two Women’s Business Centers in NC assist women in starting and
growing their own businesses.
} 
Women’s Business Center of North Carolina 919-956-8889
www.wbcnc.ncimed.org
} 
Women’s Business Center of Fayetteville 910-323-3377
www.wbcfay.org
Small Business Resources - SBTDC
The Small Business & Technology Development Center (SBTDC) is a
business advisory service partially funded by the SBA that provides
counseling and training in these areas:
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Financial Analysis and Access to Capital
Research and Marketing
Performance Improvement
Strategy and Leadership Development
Government Procurement
International Business
Technology Commercialization
} 
NC Small Business & Technology Development Center
www.sbtdc.org
} 
NC SBTDC Procurement Technical Assistance Centers
www.sbtdc.org/programs/ptac
Small Business Resources - SCORE
SCORE is a volunteer organization of successful business persons who
volunteer their time to provide free small business counseling and training
under special funding from the SBA.
Visit www.score.org for more information.
For a list of SCORE chapters in North Carolina, visit www.sba.gov/nc and
scroll down to Business Resources and News – look under COUNSELING
Small Business Resources - Veterans
The North Carolina Veterans' Business Outreach Center helps military
veterans start and grow small businesses.
The VBOC provides training, counseling, and technical assistance for:
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Veterans
Service-Disabled Veterans
Reservists
National Guard Members
Active Duty
Veteran’s Business Outreach Center
at Fayetteville State University
910-672-1107
www.fsuvboc.com
Other Small Business Resources
NC Military Business Center (NCMBC)
The mission of the NCMBC is to leverage military and other federal
business opportunities to expand the economy, grow jobs and improve
quality of life in North Carolina.
910-678-0190
www.ncmbc.us
Questions?
North Carolina District
Business Development Team
704.344._ _ _ _
Joe Ann Shaeffers, BOS
Bob Tarleton, BOS
Mia Fagley, Lead BOS
6577
6567
6396
Joeann.Shaeffers@sba.gov
Robert.Tarleton@sba.gov
Mia.Fagley@sba.gov
Eileen Joyce, Lead EDS
Karen Hoskins, Lead LRS
Mike Arriola, DDD
6787
6381
6578
Elieen.Joyce@sba.gov
Karen.Hoskins@sba.gov
Mike.Arriola@sba.gov
Lynn L. Douthett, District Director
North Carolina District Office
www.sba.gov/NC