Live Oak Bank

Winning & Financing Government Contracts

Jackie Robinson-Burnette, GovCon Expert, Live Oak Bank

ie Robinson-Burnette Government Contracting expert, live Oak Bank (former S[S @ Small Business Administration)

Washington D.C. Metro Area

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#ArmyWife #GovernmentContracting -live Oak Bank understands the opportunities and challenges

facing federal Government small business contractors. As the domain expert, I bring a strong

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Find me on LinkedIn!

Jackie Robinson-Burnette www.linkedin.com/in/jackie-robinson-burnette-9624b924 (former Federal Senior Executive Service (SES) leader)

Jackie Robinson-Burnette joined Live Oak Bank in November 2017 as theGovernment Contracting Team's Industry Expert.With over 30+ years of federal civilian service, Jackie served as the highest ranking career Senior Executive (SES) forfederal small business contracting programs with the U.S. Small Business Administration (SBA). While at the SBA from 2014 to 2017, she was responsible forthe implementation of all federal small business contracting programs to include the set-aside program that awards o/a $99 billion in contracts to small businesses each fiscal year.

Jackie held the positions of the Deputy Associate Administrator, Office of Government Contracting & Business Development and the Associate Administrator, Office of 8(a) Business Development. Jackie led her team to streamline several difficult 8(a) processes, digitize the entire 8(a) application, and implement the new All-Small Mentor Protégé Program. Before joining the SBA, she served in the Pentagon leading the Army’s Small Business Contracting Program across the nation, and from 2010 to 2014 she served as the Associate Director for the US Army Corps of Engineers, Office of Small Business Programs.

Her federal government contracting experience includes several years as a seniorcontracting officer GS-1102 with an unlimited warrant. Her business acumen and long history as a federal contracting leader make her a valuable asset to Live OakBank. She is an Army-wife, and served at the US Army Contracting Command Europe, US Army Contracting Command Korea, and Headquarters US ArmyContracting Command Fort Belvoir VA.

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The U S Federal Government is t he World’s La rgest Buyer

Spends over $500 billion per year.

Congress through the SB Act requires federal agencies to collectively award o/a 23% of the CONUS spend or about $99 billion per year to small businesses across the county.

Small Businesses create two thirds of all new job opportunities, are innovative, agile, inclusive, and stabilize the economic strength of the Nation.

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Test Your Knowledge

Discussion Topics

• What does the government buy?

• Registering to do business with the government and applying for certifications.

• Where to find contract opportunities?

• Where to learn more about the process, writing proposals, and how to getstarted?

• Government PaymentTerms

• Financing your contract growth and the different SBA loans available for small business government contractors. Reminder to avoid predatory lending that puts your business at risk.

• Business Acquisition – Buying a business with active federal governmentcontracts.

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And so much more!!

What does the government buy? USAspending.gov • Food • Entertainment • Office Supplies • Logistics Support • Technical Training • Transportation • Rental Cars • Uniforms • Consulting • Building Repair • Computers • Construction • Gas & Electricity • Decorators

• Conference & Meeting Planners

• Healthcare • Research • Admin Services • Helpdesk support • Furniture • Marketing Support • Church staff • Leadership Training • Temp Housing • Building Lease • Cell phones • Janitorial Services

• Grass cutting • Summer programs

for kids • Trophies/plaques • HHG Moving • Security Services • Parks and

Cemetery Maintenance

• Shuttle services

JIL h tti:>S 'www.sam.gov 12ortal/SAM/#1 Search ...

Sys t em for A ward M anagem ... x LI"

Password

Forgot Password? Create an Acco1

SEARCH RECORDS DATA,. tSS CHECK STATUS

oin.tin.g the authorized Entity Ad.m.i.n.istrator before your registration. 'Will be activated. This requirement now applies to both

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The S y stem for Award Management (SAM) is an official website of the U.S. government. There is no cost to use SAM. You can use this site for FREE to:

• Register to do business with the U.S. government • Update or renew y our entity registration • Check status of an entity registration • Search for entity registration and exclusion records

Gettin.g Started

Create A User Account Register Entity Search Records ... ,;:·f-..· · _ LIVf OAK BArJK

SAM.gov offers FREE Registration!

• Every business must first register to do business with the government. • It’s easy and directly managed by the federal government. • It’s FREE – but there are many websites that will charge you $3,000 or more to

register you. Avoid the wrong site by looking for .gov in the web address.

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certify.SBA.gov Login

Home Prepare Am I eligible? Help

~Welcome to certify.SBA.gov

The U.S. Small Business Administration (SBA) is working to mnrli:::irniu::i thA :::mnlirAtinn nmrPCC fnr forli:ir:::il rrmtr;:irtino

Login

Or

~ I U.S. Department ~ of Veterans Affairs

= MENU

VA » Office of Small & Disadvantaged Business Utilization » Vets First Verification Program

Office of Small & Disadvantaged Business Utilizat

Vets First Verification Program

The Veterans Benefits, Health Care, and Information Technology Act of 2006 (Public Law 109-461) provides the U .S . Department of Veterans

Affairs (VA) with unique authority for Service-Disabled Veteran-Owned

Small Business (SDVOSB) and Veteran-Owned Small Business (VOSB)

set-aside and sole source contracts.

This procurement authority, and its subsequent implementation, is a logical

extension of VA's mission to care for our Nation's Veterans. VA refers to

this program as the Veterans First Contracting Program.

The Vets First Verification Program affords verified firms owned and

controlled by Veterans and Service-disabled Veterans the opportunity to

compete for VA set asides. During Verification , the Center for Verification and Evaluation (CVE} verifies SDVOSBsNOSBs according to the tenets

OSOBU Call

1-866-584

Monday-F

8a.m .~p.n

Status Up

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Small Business Certifications for Government Contractors

Get certified for all the categories that you qualify for to increase your opportunities to bid on contracts.

• Small Business • Small Disadvantaged Business • Woman Owned Small Business &

Economically DisadvantagedWoman Owned

• SBA 8(a) Certified Small Business • Veteran Owned & Service Disabled

Veteran Owned • SBA HUBZone Certified Small Business

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~ ~deral Procurement Data Syste ... _g) Home - Federal Business Op ...

• i General Services Administrati ... C, Search... P • W * @ • ----------------------

� Q Type here to search

* FEnB1zOPPs.cov Federal Business Opportunities

Getting Started General Info Opportumt1es Agencies Privacy

Search more than 33,300* active federal opportunities.

Posted Date: ~I L_a_st_9_0_D_a~y_s _____ v~I Set-Aside Code: ~I A_n~y ______________ v~I Place of Performance: I Any State or Territory v I Type: ~I A_n~y _____________ v~I Keyword / Solicitation#: ._ _______ _, Agency: ..,,I ____________ ___,

Additional criteria and multiple selections are available on the advanced search form. - Noflces posted wrlhm the last 90 days

- ATTENTION: The U.S. Small Business Administration (SBA) updated its Table of Small Business

Size Standards adopting the Office of Management and Budget's 2017 revision of the North

American Industry Classification System (NAICS) effective October 1, 2017. The revised NAICS

Codes and their corresponding size standards are available for use in FBO. The updated table of

size standards is available on SBA's website at www.sba.gov/size.

SAM.gov REGISTRATION IS FREE: There is NO FEE to register, or maintain your registration , in

the System for Award Management (SAM.gov). If you receive an email from a company claiming to

represent SAM.gov, be cautious . If you get an e-mail from a company offering to help you register in

SAM.gov asking you to contact them and pay them money, be cautious. These messages are not

locate actions funded by lJ"te Ar-:encan Recovery and Re nv•tment Aci. .

SEARCH RECOVERY Of'PORT\Jr«TlES

SEARCH RECOVERY AWARDS

CD FBO RECOVERY REPORTS

Click here for Opportunities

• Click here for Awards

Learn more about FBO recovery

reports

SMALL BUSINESS EVENTS

Learn more about the Small Business Central Event Listing or

5:15 PM

4/ 16/ 201 B

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Federal Business Opportunities – FBO.gov

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Project Engineering, Test Engineering

Support N0040618RENGR R - Professional, administrative, and management support services

U.S. Government Seeks to Lease Office and Related Space in Northern Virginia 6VA0486 X - Lease or rental of facilities

FTQW 17-1021, CONSTRUCT STORAGE FOR SNOW BARN FA500418RD012 C - Architect and engineering services

RIBITS (Regulatory In-Lieu Fee and Bank Information Tracking System) Professional Support Services W912HQ-18-SN-0018 R - Professional , administrative, and management support services

TCM ABCT MRD Formation W911SF-18-T-AMO18595 R - Professional, administrative, and management support services

National Medical Evidence Collection SSA-RFl-18-622 R - Professional, administrative, and management support services

Request for Information for Material Support Integrator FA8126-18-R-0009 S - Utilities and housekeeping services

D--Office of Procurement, Acquisition and Logistics !OPAL) Tier 1 Electronic Contract Management System (eCMSl Support Services 36C 1 OB 18Q2976

Department of the Navy Naval Supply Systems Command

NAVSUP Fleet Logistics Center Puget Sound

General Services Administration Public Buildings Service (PBS)

PBS Center for Broker Services (47PA05)

Department of the Air Force Pacific Air Forces 354 CONS

Department of the Army U.S. Army Corps of Engineers

USAGE HEC, Fl. Belvoir

Department of the Army Army Contracting Command, MICC MICC - Fort Benning

Social Security Administration Office of Budget, Finance, Quality and Management

Office of Acquisition and Grants

Department of the Air Force Air Force Materiel Command PK/PZ Tinker AFB

Department of Veterans Affairs VA Technology Acquisition Center VA Technoloov Acquisition Center

Sources Sought Jun 22, 20 18

Presolicitation Jun 22, 20 18

Presolicitation / Total Small Business

Jun 22, 20 18

Sources Sought Jun 22, 2018

Sources Sought / Total Small Jun 22, 2018

Business

Sources Sought Jun 22, 20 18

Sources Sought (Modified) Jun 22, 20 18

Sources Sought Jun 22, 2018

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What’s Posted right now on FBO.gov ??

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' (,__ _ 0 https://vaptap.e c enterdirect.com/events ~ C] LSearc h ...

Calendar « Virginia PTAP at Geo... 0 Virginia PTAP eCenter Direct X [J

VI RGI Email >========.-----------r---1 Password Sign

l!2'.I Stay sign ed in Forgot password?

-A Home

-' NewClient Training Events

Signup

~ Contact Us I~ Search: 6/02/2018-6/02/2019

l:ffll Training Events

i Useful Links Govology Live Webinar: Proposal Development for Government Contractors (3-Part Series) Date: 6/5/2018 - 6/7/2018 Time: 1:00 PM - 2 :30 PM (EDT) Status: Open - 96 places remaining Registration Deadline: 6/5/2018 8:00 AM (EDT)

Program Format: Webinar Description: Fee: $22.50 (clients), $75.00 (non-clients)

Dates & Times:

Webinar 1 : June 5 , 2018, 1 :00 p .m. EDT ----------------~ tps://vaptap.ecenterdirect.com/events/2343 June 6 , 2018. 1 p.m. EDT

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Where else can you get help? PTACs are in every state!

•http://www.aptac-us.org/

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Consider FAR Part 9 – Federal Contract Payments Responsibility Determination

FAR 32.904 Determining payment due dates.• (a) General.Agency procedures must ensure that, when specifying due dates,

contracting officers give full consideration to the time reasonably required by Government officials to fulfill their administrative responsibilities under the contract.

• (b) Payment due dates. Except as prescribed in paragraphs (c) through (f) of thissection, or as authorized in 32.908(a)(2) or (c)(2), the due date for making an invoice payment is as follows:

• (1) The later of the following two events: • (i) The 30th day after the designated billing office receives a proper invoice

from the contractor (except as provided in paragraph (b)(3) of this section). • (ii) The 30th day after Government acceptance of supplies delivered or services

performed.

DFAR 232.903 Responsibilities.• DoD policy is to assist small business concerns by paying them as quickly as possible

after invoices and all proper documentation, including acceptance, are received and before normal payment due dates established in the contract.

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Government Contracting Financing Federal small business contractors need lending products tailored to their unique business challenges.

Optimize Cash Flow

SBA 7(a) Loan Mobilization Financing

WORKING

CAPITAL / REFINANCE/

Leverage Anticipated

Monthly Invoices

Line of credit SBA Express Loan

CONTRACT LINE

OF CREDIT / REFINANCE

Acquisition SBA 7(a) Loan up to $5M ACQUISITION

FINANCING

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Contract Funding Customer Spotlight: Associated Veterans, LLC

Government Contracting Customer Spotlight:

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Acquisition Story –Tony Moscatelli

• https://youtu.be/HR339oReoqI

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Government Contracting Financing for Inorganic Growth

Federal small business contractors need lending products tailored to their unique business challenges.

Finance Inorganic Growth

• Buy and leverage past performance and experience • Buy and leverage cleared staff and facilities • Leverage the acquired contracts with option years

MERGERS & ACQUISITIONS

• The game has changed, and there’s another way to grow and scale a small firm. You no longer have to grow contract win by contract win. You can acquire!

• The best sellers have performance periods remaining on contracts. Similarly situated buyers can leverage the set-aside contracts and the benefits of the

acquisition for years to come, while continuing to grow and diversify their business.

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Borrower Profile for Acquisition Considerations for potential borrowers include:

• Credit score(s) • Cash flow minimums • Growth Strategy • Ownership/Management experience • Personal equity/assets • Personal debt service

What is EBITDA? • EBITDA – or earnings before interest, tax, depreciation and amortization – is an indicator

commonly used by prospective buyers or investors to measure a company’s financial performance.

• EBITDA = Operating Profit (EBIT) + Depreciation (D) + Amortization (A)

• By eliminating the non-operating effects that are unique to each business, EBITDA can help balance the scales by focusing on operating profitability as a singular measure of performance.This is particularly important when comparing similar companies across avariety of industries or different tax brackets.

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Case Study: Business Acquisition w/ $200K down payment

Traditional banks often don’t understand unique nature of projections for small business government contractors and typically won’t provide financing.

AcquisitionTarget

• Graduated 8(a) --• $6M revenue • $600K EBITDA

• $2M purchase price • Purchase price also

considers active contracts, options, and projectedrevenues from new awards,

• Contracts with 3 different agencies

• DoD / Treasury/ Dept State

Product: Business Acquisition

• Finances 100% purchase ofbusiness & assets

• Borrower injects 10%($200K); or less if theborrower has another profitable business

• SBA 7a Loan for $1.8M +legal and other fees withpayments stretched over 10 years

• Priced @ 3 x $600KEBITDA

Outcomes

• Buyer able to acquire athriving business with minimal cash investment

• Business grows withinjection of new revenues from acquired contracts

• Assumption ofrelationships and pastperformance enhances ability to capture newwork

• Retention of workforce creates a seamless transfer for the government

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Win-Win-Win Acquisitions • Most successful government contractors have an exit date or strategy, and

when they sell to another small business owner it’s a way to pay it forward.

• For the acquisition to be win-win-win, all parties must win meaning the seller, the buyer, and the government. The seller wins with the highest practicable valuation. The buyer wins when the transaction results in contract revenue that facilitates business growth and the ability to meet the financial obligations to the bank that closed on the acquisition loan.The government wins with continued performance without a gap inservice/delivery, avoidance of re-compete costs/effort, and maintaining the experienced and skilled contractor workforce.

• A small firm is most valuable to a buyer that can assume performance of the existing contracts and maximize the benefits for the current performanceperiod and beyond. As a buyer, you gain the seller’s experience and past performance record with the acquisition. A buyer’s ability to maintain sole source contracts and/or eligibility to submit proposals on the re-competes significantly impacts the valuation of small business. With the home court advantage of direct experience and great past performance, over 80% of all incumbent contractors win follow-on procurements. Thebest transactions maintain the careers of the dedicated employees that helped grow the seller’s business.

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Questions