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SUB-CONTRACTING: A PRIME STRATEGY

SUB-CONTRACTING: A PRIME STRATEGY. National 8(a) Summer Conference Anchorage, ALaska , June 18, 2014 Ronetta Keeter Briggs & Leigh A. McGee Co-founders, osiyo consulting. GBS OSIYO NNI. Prime/Sub = Win/Win.

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SUB-CONTRACTING: A PRIME STRATEGY

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  1. SUB-CONTRACTING: A PRIME STRATEGY National 8(a) Summer Conference Anchorage, ALaska, June 18, 2014 RonettaKeeter Briggs & Leigh A. McGee Co-founders, osiyo consulting

  2. GBS OSIYO NNI Prime/Sub = Win/Win Strategic Partners – Sitnasuak Native Corporation’s GBS LLC, OSIYO Consulting, and Native Nations Institute Teaming Objective – Align a team with past experience and multiple specialized skills to capture an 8(a) set-aside contact Contract Awarded – Department of Treasury’s CDFI Fund awarded GBS LLC a contract for eight Tribal consultations, research, and writing an “Access to Capitol and Credit in Native Communities” Study

  3. Participant PollingQuestions How many prime contractors? How many sub-contractors? How many of you would consider sub-contracting as a prime strategy?

  4. To Prime or Not to Prime – That is the question? What's Your Best Strategy? What should you consider?

  5. It’s Your Strategic Choice!

  6. To Prime or Sub: 4 Big Questions?

  7. SBA’s 2012 Scorecard on Small Business Spending

  8. Government’s Subcontracting $ Goals

  9. Prime or Sub? General Rules & Considerations

  10. Risks in the Prime/Sub Affiliation • Division of Work - The larger the subcontractor’s share of work, the greater the risk of affiliation concerns • Incumbency - SBA is more likely to question a subcontractor relationship if the subcontractor was previously the incumbent for the contract work • Management - The larger the management role played by the subcontractor and its employees, the greater the likelihood of affiliation issues • Proposal Terminology – If the terminology and content of the proposal suggest that the subcontractor is an equal partner, or worse, the lead partner, repeated references to the subcontractor can backfire • Relative Experience - When an inexperienced small prime teams with a large, experienced subcontractor, SBA may decide that the prime could never have been awarded the contract without the subcontractor’s experience Source * Contract Management Article by Steven Kopeince

  11. Required Federal AgencySubcontracting Plans • The Small Business Act requires the prime contractor to: (1) make a “good faith effort” to acquire goods and services from the small businesses “used” in the bid/proposal and “in the same amount and quantity” (2) notify the contracting officer in writing if paying a reduced price to a subcontractor, or if payment to a subcontractor is more than 90 days past due (for which the government has paid contractor) • Requires agencies to collect and report data on the extent to which prime contractors meet the goals in their subcontracting plans • A prime’s failure to comply with a subcontracting plan may be considered in the evaluation of past performance for future contracts

  12. Why Sub-Contract as a Prime Strategy?

  13. Finding a Prime Contractor Top 10 Federal Contractors FY 2014 YTD Marketing and Relationships

  14. Marketing to the Prime Contractor Entrance Tickets: Credentials Game Changers: Added Value • We do it BETTER, CHEAPER, FASTER • We have CAPACITY • We are ABLE: Reliable, Dependable, Flexible, Can-doable, and valuable • We are cost-saving, money-adding PARTNERS. We bring future opportunities, relationships, and capabilities. • Quality Core Capabilities • Reputation & Past Performance • Licenses & Professional Certifications • Insurance & Worker's Compensation Certificates • Reputable References & Contacts

  15. Closing Comments and Questions Thank youfor Sharing yourself and time with us!

  16. Innovative tools and methods helping organizations adapt, grow, and prosper. -Visioning & Strategic Planning - Organizational Assessment - Leadership Development - Facilitation & Mediation - Board Governance o s I y o Est 2003 Leigh A. McGee| 410-330-7484 | lamcgee@osiyo.biz Roni K. Briggs| 972-720-9953 | rbriggs@osiyo.biz www.osiyo.biz

  17. Sources • 15 U.S.C. §644(g)(1) • Contract Management | September 2011 Article by Steven Koprince • Congressional Research Service www.crs.gov • http://www.sba.gov • http://www.onvia.com/business-resources/find-prime-contractors-subcontracting • The Federal Market Group Daniel M. Jacob www.fmg-ltd.com

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