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November 15, 2012

November 15, 2012. Agenda. 8(a) Program Overview SBA Partnership Agreement SBA Acceptance Contract Award. 8(a)Business Development Program. Section 8(a) of the Small Business Act of 1953.

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November 15, 2012

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  1. November 15, 2012 Visit us at www.sba.gov

  2. Agenda • 8(a) Program Overview • SBA Partnership Agreement • SBA Acceptance • Contract Award Visit us at www.sba.gov

  3. 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. Visit us at www.sba.gov

  4. 8(a)Business Development Program Eligibility Criteria • A Small Business • 2 Years in Business in Primary NAICS code • Socially & Economically Disadvantaged • U.S. Citizen • 51% or More Ownership • Potential for success • Good Character Visit us at www.sba.gov

  5. 8(a)Business Development Program Net Worth Criteria -After excluding the individual’s equity in the firm and equity in the primary residence, net worth may not exceed $250,000.00 Assets (minus) Liabilities less equity in primary residence less equity in business equals adjusted net worth (which must not exceed $250,000) For continued eligibility Net Worth must be less than $750,000 Visit us at www.sba.gov

  6. 8(a)Business Development Program Available Assistance to 8(a) Participants • Business Development Assistance • Marketing Assistance • Access to SBA Resource Partners • 7(j) Management & Technical Training • Assistance with identifying Government Procurement agencies & Procurement Forecasts • Sole Source ($150K - $4M –Construction & Services, $6.5 M – Manufacturing) and Competitive 8a Contracting Opportunities • SBA’s Mentor Protégé Program • Joint Venturing Opportunities Visit us at www.sba.gov

  7. NEW 8(a) RULES Effective Date: April 1, 2011 FAR 19.203 Relationship among small business programs (a) There is no order of precedence among the 8(a) Program (subpart 19.8), HUBZone Program (subpart 19.13), Service-Disabled Veteran-Owned Small Business (SDVOSB) Procurement Program (subpart 19.14), or the Women-Owned Small Business (WOSB) Program (subpart 19.15). (b) At or below the simplified acquisition threshold. The requirement to exclusively reserve acquisitions for small business concerns at 19.502-2(a) does not preclude the contracting officer from awarding a contract to a small business under the 8(a) Program, HUBZone Program, SDVOSB Program, or WOSB Program. (c) Above the simplified acquisition threshold. The contracting officer shall first consider an acquisition for the 8(a), HUBZone, SDVOSB, or WOSB programs before using a small business set-aside (see 19.502-2(b)). However, if a requirement has been accepted by the SBA under the 8(a) Program, it must remain in the 8(a) Program unless SBA agrees to its release in accordance with 13 CFR parts 124, 125 and 126…  Visit us at www.sba.gov

  8. NEW 8(a) RULES Effective Date: April 1, 2011 13 CFR 124.106(h)Where a disadvantaged individual upon whom eligibility is based is a reserve component member in the United States military who has been called to active duty; - The Participant may elect to designate one or more individuals to control the Participant on behalf of the disadvantaged individual during the active duty call-up period. (No additional time will be added to its program term). - The Participant may elect to suspend its 8(a) BD participation during the active duty call-up period. Visit us at www.sba.gov

  9. NEW 8(a) RULES (d) Release for non-8(a) competition…where a procurement is awarded as an 8(a) contract, its follow-on or renewable acquisitionmustremain in the 8(a) BD program unless SBA agrees to release it for non-8(a) competition. If a procuring agency would like to fulfill a follow-on or renewable acquisition outside of the 8(a) BD program, it must make a written request to and receive the concurrence of the AA/BD to do so. Visit us at www.sba.gov

  10. NEW RULE • Small Business Jobs Act of 2010’’ • EC. 1341. POLICY AND PRESUMPTIONS • Section 3 of the Small Business Act (15 U.S.C. 632), as amended by section 1311, is amended by adding at the end the following: ‘‘(w) PRESUMPTION.— ‘(1) IN GENERAL.—In every contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant which is set aside, reserved, or otherwise classified as intended for award to small business concerns, there shall be a presumption of lossto the United States based on the total amount expended on the contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant whenever it is established that a business concern other than a small business concern willfully sought and received the award by misrepresentation. Visit us at www.sba.gov

  11. Partnership Agreement • Prior to issuance of “Partnership Agreement” • MEMORANDUM OF UNDERSTANDING • SBA Served as the Prime Contractor • Enter into a Contract with Subcontractor [8(a) Client] • 100% of Contract Performance subcontracted to [8(a) Client] • SBA Contracting Officer / Contract Negotiator assisted in Negotiations When Needed • Tri-Partite Contract Award Visit us at www.sba.gov

  12. Partnership Agreement • For 8(a) Requirements: • SBA reviews Program Offerings for 8(a) Eligibility; • 5 Days to issue an acceptance (unless extension granted) • SBA Evaluates: • Appropriateness of the NAICS Code Assigned • Nominees Size Standard Compliance • Requirement Suitable for 8(a) Program • Determination of Adverse Impact • Nominee’s Capacity to Perform • For Competitive 8(a) - Determination of Program Eligibility within 5 days of Contracting Officer’s request Visit us at www.sba.gov

  13. Partnership Agreement • Acquisitions at or below Simplified Acquisition Threshold • No Offer or Acceptance letter is required. • However SBA request that an offering be sent and • SBA will conduct an Eligibility Determination of the Nominee within 2 Days and issue an Acceptance. • Procuring Agency Must Notify SBA of 8(a) awards under this authority C.F.R 124.503 (a)(4) (ii). Visit us at www.sba.gov

  14. Partnership Agreement • Other Responsibilities (SBA) • Review and Approve all 8(a) Joint Venture Agreements Prior to Contract Award • May Assist with Contract Negotiations • Retain Appeal Authority Pursuant to FAR §19.8 10 • May Identify Requirements for Program Participants for Possible 8(a) Contract Award • Responsible for Ensuring Continued Program Eligibility of Program Participants • Responsible for Nominating 8(a) Participant on Open Requirements Visit us at www.sba.gov

  15. Partnership Agreement • Responsibilities: (Federal Agency) • Responsible for Compliance of the Limitation of Subcontracting Requirements (FAR 52-219-14) • Request an Eligibility Determination on all 8(a) Competitive Prior to Contract Awards • Cannot Count Contract Award Dollars as 8(a) unless Requirement was formally Offered and Accepted by SBA • Shall provide a copy of any signed contract as defined in FAR 2.101 • Provide SBA upon request all Non-Classified Information in Contract Files for On-Site Agency Reviews Visit us at www.sba.gov

  16. SBA’s Acceptance • SBA will review: • Suitable for 8(a) Program • Determination of Impact • Firm’s Capabilities, with access to: • Personnel • Equipment • Materials • Firm’s Capacity • Finances (cash flow, bonding) • Pipeline of work (where available) Visit us at www.sba.gov

  17. SBA’s Acceptance • Letter to Contracting Office • Assigned SBA Requirement Number • Confirmation of estimated dollar value • Confirmation of NAICS code • Reasons for offers to be declined • Requirement was previously synopsized in FBO • Determination of Adverse Impact • Firm is ineligible • Competitive Business Mix not met • Graduated/terminated from program • Firm not Small for Assigned NAICS • Firm does not have capabilities to perform • Offer exceeds sole source threshold Visit us at www.sba.gov

  18. Contract Award • Copies of Award Documents and Memorandum of Negotiations must be Provided to SBA within 15 Days of Award; • Each 8(a) Contract Must Contain the following Contract Clauses: • 52-219-11 – Special 8(a) Contract Conditions • 52-219-12 – Special 8(a) Subcontract Conditions • 52-219-14 – Limitations on Subcontracting • 52-219-17 – (Section 8(a) Award); and • 52-219-18 – Notification of Competition Limited to Eligible 8(a) Concerns (On 8(a) Competitive Procurements only) Visit us at www.sba.gov

  19. 8(a) PERCENTAGE OF WORK Visit us at www.sba.gov

  20. Colorado District Office Business Opportunity Team • 303.844.2607 • JoAnna Burciaga, BOS x 257 Joanna.Burciaga@sba.gov • Mia Fagley, BOS x 224 Mia.Fagley@sba.gov • Lonnie Koyama, BOS x 205 Leon.Koyama@sba.gov • Dwane Nevins, BOS x 206 Dwane.Nevins@sba.gov • Matt Palmer, BOS x 223 Matthew.Palmer@sba.gov • Carolyn Terrell, Supvr BOS x 260 Carolyn.Terrell@sba.gov • Greg Lopez, District Director Visit us at www.sba.gov

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