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5Minority Enterprise Advocate • November-December 2010

Cover StoryMiracle Systems, LLC – Delivering on Its Performance of Quality, Performance and Results 12

Feature ArticleBusiness Update: Legislation Affecting Your Access to Federal Contracts 8

Financial NewsFinancing Alternatives For Government Contractors When Significant Capital Needs Precede Customer Payments on Government Contracts 16

Minority Enterprise AdvocateMEA

ContentsMiracle Systems, LLC,

Delivering on Its Promise of Quality,

Performance and Results

International BusinessDoing Business in Africa 20

DiversityWhen Did We Stop Following the Rules? 24

Shumaker ReportWoman-Owned Companies Score Big Win 27

Publisher’s Message 6OSDBU Contact List 30

Sandesh Sharda, CEO

6 Minority Enterprise Advocate • November-December 2010

This is a new climate for everyone in business We need to network and diversify in order to survive in these very uncertain times International business is a very interesting option that all of us need to take a look at

You might ask how do I start this international venture? Join an international trade association that provides programs that facilitate overseas trade and investments There are organizations you should contact such as The Leon Sullivan Foundation and the Corporate Council on Africa which are located in Washington D C For Federal agencies that can assist you, visit www export gov Take time to visit the U S Embassy of the country you are targeting, do your research

I believe a lot of entrepreneurs are interested, but just not sure where to start After all you do want to make sure you are doing business in a safe, legitimate, and practical manner

I am always talking about networking How is your business network? Do you have a mentor or are you mentoring someone else? This is the true way to success and building lasting relationships Never say you do not have time to help others

Networking and mentoring are very necessary tools What will you do when something goes wrong, who will you turn to? That is the significance in having a good network or mentor; there is always someone there to help and answer your questions

I know a lot of business people across the country Many of them could not handle the changes in the economy and did not survive the crisis Many did not know how to diversify in order to stay alive They did not maintain a network of strong business leaders

I try to encourage people to start their own business A lot of people are afraid or just don’t know where to start It is a challenge and sometimes scary, but if you ever want to maximize your lifestyle and income, you have to think about it You will never make what you are worth working for someone else You have to believe the opportunity is waiting for you and that there are plenty of people and resources out there to help you

Merry Christmas and have a happy New Year!

Minority Enterprise Advocate Magazine

PublisherDebra Williams

WritersAngela Chester-Johnson

Richard W Lewis Alfonzo PorterGary A Smith

Gary E ShumakerGloria Berthold Larkin

Design & ProductionAdrienne Butler

Polaris Press

PresidentSunny Ezeji

Minority Enterprise Advocate Magazine is published bi-monthly by

Minority Enterprise Executive Council P O Box 5199

Woodbridge, Virginia 22194 Tel (703) 730-4091Fax (703) 730-4092

E-mail: vpwilliams@comcast net Website: www meecouncil com

MEE CouncilSunny Ezeji, President

All rights reserved © copyright

Debra Williams, Publisher

Sunny Ezeji, President


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Informed business owners not only are aware of the legislation that affects their business, but also take proactive steps to incorporate the changes into business-building strategies The areas affected by recent legislation and rulings include:

n Small Business Parityn Increased Dollar Thresholdsn Sole Source Dollar Award Thresholdsn Women’s Procurement Programn Prime Contractor Requirements for Subcontracting Plansn Bundling Limitsn Size Standards Review

Small Business Parity

Equal footing was restored to all small business types in federal contracting programs The types of small business affected are: those businesses who are “Small” as determined by the SBA Size Standards, 8(a) Certified, Women-Owned, Service Disabled Veteran-Owned and HUBZone This means that the contracting officer now has the ability to choose the small business type for set-aside opportunities as opposed to being required to focus on just only one type, such as HUBZone

Owners of small businesses pursuing government contracts will take advantage of this situation by answering every Sources Sought Notice or Request for Information (RFI) where their products or services are required The federal government uses Sources Sought Notices and RFIs as market research to determine if enough qualified small businesses can perform the work, and if so, will then have reason to set-aside the contract for small business, or a particular type of small business For instance, if two businesses who are 8(a) certified respond, the contracting officer may then issue the opportunity as an 8(a) set-aside If one business responds who is 8(a) and another who is woman-owned, the set-aside may be for “small business”

Business Update: Legislation Affecting

YOUR Access to Federal Contracts

By Gloria Berthold Larkin

It is critical that small businesses respond to these notices in order to give the contracting officer a legitimate reason to use the set-aside program and not use a full and open competition process where all businesses, large and small, would compete for the contract

Increased Dollar Thresholds

In the past, contracts between $3,000 and $100,000 were to be set-aside exclusively for small business, with a few exceptions This threshold was increased from $100,000 to $150,000 Generally, this means that all contracts valued between $3,000 and $150,000 should be set-aside for small businesses

The exceptions to this new limit would be sales made on GSA Schedules or task orders on other contract vehicles such as Government-wide Acquisition Contracts (GWACs) or Indefinite Delivery Indefinite Quantity (IDIQ) contracts Those sales are available to any size company, large or small

Savvy small business contractors will take time to contact all current contracting officers for whom they have worked and educate them about the increase in the threshold and ask for any upcoming opportunities that may fall within the new thresholds

Sole Source Dollar Award Thresholds

Contracting officers have had the opportunity to make sole-source contract awards (where no competitive bidding is required) to 8(a) and HUBZone firms up to 3 5 million dollars for any non-manufacturing work and 5 5 million dollars for manufacturing Those limits have now increased to $4 million and $6 5 million dollars respectively

The Service Disabled Veteran Owned Small Businesses (SDVOSBs) threshold for sole source awards has now increased from $3 million to $3 5 million for non-manufacturing and $5 5 to $6 million for manufacturing contracts

Gloria Berthold Larkin

Educated business owners will contact their local Small Business Administration (SBA) representative and learn how to request and participate in the sole-source contracting process There is a very specific process to follow to win sole source contracts and your SBA representative is a very important person who will guide you through the process

Women’s Procurement Program

The SBA announced the publication of a final rule, called the 8(m) Program, to implement the federal procurement program for women-owned small businesses (WOSB) that has been over ten years in the making This is an economic-disadvantaged-based program in which eighty-three industries have been identified where WOSBs are underrepresented among federal contractors Thirty-eight of which the SBA has deemed WOSBs to be “substantially underrepresented ” The 8(m) program seeks to open up more opportunities for WOSBs working in these 83 industries

To be eligible, the company has to be considered “small” under the primary NAICS code, and not less than 51% unconditionally and directly owned and controlled by one or more women who are U S Citizens Further, the rule specifies that, with certain exceptions, the woman who holds the highest officer position may not engage in outside employment and must manage the company on a full-time basis during the normal working hours just like other companies in the same or similar line of business

To determine whether a woman is economically disadvantaged for purposes of the 8(m) Program, the SBA will check her income, personal net worth, and the fair market value of her total assets A woman will be found economically disadvantaged if her adjusted gross yearly income, averaged over the three years preceding the certification, is less than $350,000, her personal net worth is less than $750,000, and the fair market value of all of her assets is less than $3 million In the 38 industries where women are deemed to be “substantially underrepresented,” the rule waives the economic disadvantage requirement

Woman-owned businesses may either self-certify or certify through third parties approved by SBA Regardless of the certification method, every

woman-owned business must ensure that all requirements for the following three databases are met:

Central Contractor Registration (CCR)

“WOSB Program Repository,” to be established by the SBA

Online Representations and Certifications Application (ORCA)

This program is scheduled to go into effect in February 2011and the SBA estimates that federal agencies will be able to start setting aside contracts for WOSBs in the first quarter of 2011

Right now, WOSBs are planning their strategies to build strong relationships with target agencies and prime contractors so that they will be well-positioned for accelerated success after February, 2011

Prime Contractor Requirements for Subcontracting Plans

Prime contractors have been required to write specific subcontracting plans for all non-construction contracts over $550,000 and $1 million for construction contracts Now, the limits are increased to $650,000 and $1 5 million for construction Prime contractors will also be required to use the subcontractors listed in their subcontracting plan, unless they went out of business within 1 year

Prompt payment to subcontractors will also be enforced in that subcontractors must be paid within 90 days Contracting officers will be required to include this and related issues in the published prime contractor’s evaluation

Bundling Limits

In the past ten years, the practice of contract bundling, or consolidation, has grown dramatically This is the practice of combining many related or even non-related services or products under one, generally very large, contract Because the contracts grew to extraordinary sizes, often exceeding 100 million dollars, most small businesses were effective cut out of competition

Recent legislation now states that no Federal agency acquisition plan can include consolidation of contract requirements (bundling of contracts)

worth more than just $2 million unless consolidation is necessary and justified There is now an across-the-board policy on bundling: Agencies will be required to solicit bids from small business joint ventures and teams on solicitations above the bundling threshold

This means that there will be many more contracts of smaller sizes up for competitive or even sole-source bids While this is very good for small business, it will make the contracting officers’ lives difficult and demanding

The businesses who will be most successful in this market will have all of the necessary certifications, contract vehicles and full preparation with regards to the needs of the market, not to mention strong relationships built with the decision-makers

Size Standards Review

Every business can be identified by its industry with the North American Industry Classification System (NAICS) These NAICS have been associated with specific measurements such as number of employees or amount of revenue to determine when a company is considered a large or small company Some size standards have not changed in over ten years To keep up with economic changes, the SBA will now conduct a review of one third of size standards (by NAICS code) every 18 months, completing a comprehensive review of all NAICS every 5 years

These legislative updates can bring significant changes to the federal procurement market and either help or hurt business The more knowledgeable and better prepared you are, the greater the chance is that your business will benefit, increase revenues, employ more people and help rebuild our economy

Gloria Berthold Larkin is president of TargetGov and a Board Member of Women Impacting Public Policy (WIPP.org). She is an expert in business development in the government and corporate business markets. She is a dynamic speaker and book author and adept at negotiating the government contracting maze on behalf of clients. Visit www.TargetGov.com, email [email protected] or call toll-free 866-579-1346 for more information. n

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organization’s Oracle system It was a time of little direction for the company where you chased whatever opportunities come your way, Sharda says

“You start a business with a sense of excitement You have a chance to prove that you can do it, that you can strike out on your own and create your own golden plate,” he said “New start ups experience many problems The question of sustainability and how to keep the company growing and fiscally sound, weighs heavily It is a risky and highly pressure filled undertaking ”

He seems pleased with his performance so far, adding, “I give myself an A+ for what the company has accomplished and our future is promising ”

Sharda offers sober advise for any new or aspiring business owner He insists that anyone looking to launch a new enterprise be willing to work an average of 18 hours a day for at least 5 years And even then, there are no guarantees

“I advise new business owners to have patience and an almost obsessive desire to succeed It is also helpful to cultivate your connections; an ability to network is helpful and you must have an engaging personality”

Yet, even with all those attributes, luck still plays its part

Oddly, it was the Department of Transportation that encouraged him to strike out on his own Sharda was employed with Oracle as a project manager and servicing systems under the firms’ contracts when he was approached by a DOT contracting official about continuing on after the Oracle contract expired

Miracle Systems is an SBA 8(a) firm As a federal contractor the company provides a strong portfolio of services such as IT Support Services, Database Support, Oracle Application, Financial and Accounting Systems, and Financial Analyst Services

The company is also qualified as a CMMI Level II appraised firm and has achieved ISO 9001-2008 certification Its clients include the US DOT, DHS, DOJ, and the State Department

MIRACLE SYSTEMS, LLC –– Delivering on Its Promise of Quality, Performance

and Results Sandesh Sharda, CEO

By Alfonzo Porter

Growing up in Bhopal, India, all indications were that Sandesh Sharda would become a highly successful member of his community His father was a high ranking, career government official with a Ph D in Economics His mother created a warm, nurturing environment where he learned the value of family, stability and community cohesiveness

He never imagined that he would one day live in the United States What he also could not envision then was that his education, training and technical savvy would place him at the top of his own successful information technology firm

Sharda, 38, is President and CEO of Miracle Systems, LLC located in Arlington, VA The seven year old company has grown from one staff member to more than 110 full time employees and over 70 contractors, since 2003 The company has experienced a 300% growth rate since 2006, making it one of the fastest growing small firms in the Washington DC area

A graduate of Richmond University, in London, Sharda earned his MBA in 1994 and has more than 15 years of experience as a technical architect He also holds a bachelors degree in accounting from Mumbai University (1992) He describes himself as a hands on, results oriented professional with demonstrated success in developing operational strategies Additionally, his strong problem solving acumen coupled with his ability to implement detailed action plans make him a highly effective executive

With 2009 revenues in excess of $15 million Miracle Systems has carved out a significant niche, as a small business, in the highly competitive IT arena The company’s three year plan, according to Sharda, is admittedly aggressive

“We project that our revenue will reach about $50 million by 2013,” he says “I anticipate that our firm will grow to approximately 600 staff members during the same period ”

It’s a far cry from the beginning when times were hard as a new business The company started with a miniscule contract with the National Endowment for Humanities The total award was for $4,000 to provide support for the

Sandesh Sharda, CEO

Among its Core Corporate offerings, specifically, are:

o Systems Planning and Designo Software Developmento Infrastructure Planningo Integration and Implementationo Emerging Technologieso Service Continuity and Availability

Monitoringo Performance Reportingo Systems Supporto Configuration Managemento Change and Release Managemento Architecture and Designo Development and Migrationo Performance Tuningo Data Mining and Warehousingo Business Intelligenceo Applications and Data Baseso Help Desko User Support and Trainingo Network and Securityo Collaboration Serviceso Federal Financial Systemso Budgetary Systemso Grants Managemento Accounting and Financeo Reporting and Compliance

Although Sharda has plans to expand Miracle Systems, LLC globally, he likes the idea of a manageable corporate headquarters Its home is in an Arlington, VA office tower with a view of some of the most recognized scenery in the world

“I want to remain established in one single location,” he says “Even as we grow and expand, and may need an entire office tower; we will still operate out of one central office location ”

Perhaps his proclivity for operational control is born out of the very experiences of building a business from the ground up Small business CEO’s are forced to be multi faceted with varying skill sets that they can call upon simultaneously Most manage, not only operations, but finance, marketing, human resources, accounting, information technology, development and administration

A belief in the virtue of giving back to the next generation is a core value for Sharda Among the community involvement projects, sponsored by Miracle Systems, consist of internship programs that provide

opportunities for college students to receive the support they need in order to complete their degree “We are proud of our efforts to bring young people along,” he said We typically host at least six interns in the office over the Summer This provides valuable insights and training for them as they grow and become the leaders of the future ”He continued by saying that Miracle Systems, LLC support initiatives for children who are under privileged in India, as well “We work with the AKANSHA national organization AKANSHA means “Hope,” and that is what we are tasked with I want to ensure that children in India understand that they can achieve and succeed anywhere on the globe We also support an orphanage in Bhopal, India, my home town We have worked with the National Institutes of Health here in the US to assist in the vaccination of the underprivileged in the metropolitan area ”The greatest challenge for small busi-nesses working in the federal space is attempting to sift through the myriad of opportunities and threats that loom large over your survival Most important, according to Sharda, is the ability to identify the right people “Finding the right talent who can not only bring business to your organization but who also possess the skill sets to help effectively manage new projects,” he says “With many small companies, we wind up hiring people based solely upon a resume and references That is a huge mistake You find yourself in a constant training mode with staff with virtually zero return from the investment In many cases, you feel as though you work for your staff instead of the other way around The right business development team is a must ”He asserts that Miracle Systems, LLC is a very good 8(a) company that brings integrity to every project His methods include hiring former SES (Senior Executive Service) level government officials with a high degree of ethics and who can deliver

“With that level of talent, you feel confident you have the skills to be successful,” he said

The biggest problem that small companies face in working with the federal government is that large businesses attempt to eat from the same plate by manipulating the system

“It is unfair for smaller players who are trying to grow in the market space Large businesses are able to undercut us They represent themselves as a small firm to win contracts through partnerships and other collaborations For us, spending time on a proposal, assigning a staff member to searching for opportunities, and the financial expenditure to simply bid on work is a daunting thing for smaller players The long term impact is that smaller companies cannot grow ”

He suggests that most innovations come from smaller firms and when the small cannot get through, the government misses out on talent, efficiency and cost savings

For too many of us, if we are not able to effectively pursue certain opportunities where we are a good fit, it becomes nearly impossible to compete, Sharda says As a result, many of us don’t waste our time That has an overall net negative impact upon the whole process of procuring the critical goods and services the government needs

Although the challenges are every-where, Sharda remains convinced that Miracle Systems, LLC will continue to make a significant impact as it grows to meet the exacting projections of its aggressive young CEO

He and his wife, Anu, have been married for 14 years They have two children, a son Sahaj, 13, and a 9 year old daughter, Disha n

Miracle Systems Team

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Financing Alternatives for Government Contractors©

When Significant Capital Needs Precede Customer Payments

on Government Contractsby Richard W Lewis

The Good News: Your Company has landed a new Government contract, one that will result in a significant increase in revenues

The Challenge: In order to fulfill this contract, you must commit to additional people (payroll), training, materials, and related costs This commitment must be made in advance of receiving payments from your customer (the US Government) Unfortunately, the amount of capital needed to cover your commitments exceeds the balance available on your existing line of credit or your credit card It also exceeds the amount of cash that could be made available by delaying payments to selected vendors The nature of this contract might justify issuing new equity or debt, but raising capital generally is an expensive, complex task that ultimately may take too long to meet your short-term contract specific capital requirements

“While poor management is cited most frequently as the reason businesses fail, inadequate or ill-timed financing is a close second Whether you are starting a business or expanding one, sufficient ready capital is essential However, it is not enough to simply have sufficient financing; knowledge and planning are required to manage it well These qualities ensure that entrepreneurs avoid common mistakes like securing the wrong type of financing, miscalculating the amount required, or underestimating the cost of borrowing money ” http://www sba gov/financing/basics/basics html

Solution – Planning!: In order to minimize the risk of your company having to scramble to raise enough capital to ramp up for future major contracts, your internal business development forecasting process should identify and signal situations early to senior management This will allow for a proactive review of any significant operational, personnel, and financial impacts Specific terms may be negotiated into the customer’s agreement to dampen these impacts Such terms may include extended delivery dates, partial payment upon order placement, or progress payments based upon specific performance criteria

Existing Bank or Lender - If your company has an existing line of credit or borrowing arrangement with a bank or other lender,

try to negotiate an increase with them A responsive lender may provide all of the short-term capital needed until the Government agency begins payment You should be aware that trade-offs of a significantly higher level of credit might involve committing to a new long term deal, additional loan covenants, greater reporting requirements, and/or higher interest rates In addition, your credit agreement may constrain your ability to take on other types of debt or lease obligations In any event, it is best to discuss the situation as far in advance as possible and have a full financing/business plan and presentation available Remember, LENDERS HATE SURPRISES If your company does not have an accommodating lender, the following alternatives should be considered:Factoring – This is the sale of your invoices, accounts receivable, to a bank or finance company (the “Factor”), as opposed to using them as borrowing collateral The Factor will advance a percentage, usually between 75% and 90%, of the invoice amount to the customer; the balance is refundable upon receipt of payment, less interest and transaction costs Some Factors may also provide weekly or mid-month, funding of unbilled accounts receivable, mobilization financing for new contracts, and/or “term loans” for multi-year contracts The Factor will, through the Federal Assignment of Claims provisions, notify the Federal Government agency customer that the invoice has been financed and is payable directly to them There are several advantages to factoring; much of the A/R bookkeeping, customer credit worthiness, collections, and credit risk become a shared responsibility with the Factor, and the initial approval process can usually be a matter of days In addition, because the primary credit criteria is based on your government customer, the federal, state, or municipality, a Factor will generally provide financing for start-ups, 8a, minority, service disabled veteran, woman, Native American owned contractors, or other companies that may have a questionable credit history Although sometimes more costly, it is a viable alternative to traditional bank financing because of its increased flexibility In addition, many Factors will provide a “financial support” letter, submitted with the proposal, to the

Government agency insuring that their institution’s financial strength is behind the client Contract Financing/Purchase Order Financing - You may be able to negotiate financing based upon your Federal Government customer Purchase Order(s) Some lenders provide Purchase Order financing based upon the credit worthiness of your customer (in this case the US Federal Government) PO financing is easiest when your products or services are well established If your products are new, services are non-standard and/or unproven, PO financing is more difficult to obtain The effectiveness of contract/PO financing in a prerevenue ramp up situation will be determined by how soon your company can invoice the customer Commercial Financing-Asset Based Lending - This is a common type of financing provided by most banks and commercial financial companies The primary asset used in this type of lending is your company’s accounts receivable, although inventory, fixed assets, and in some instances, intellectual properties may be used to collateralize additional long term financing requirements With asset based lending your, as well as your customers’ credit worthiness will determine the percentage of the receivables that will be advanced, usually between 75% and 90% Inventory and fixed assets advance rates are most often significantly lower because these are less liquid assets This financing is almost always provided on a revolving or an on-going basis, thus the term “revolving credit ”Leasing and/or Sale and Leaseback - These financing alternatives can be used to generate capital from fixed assets that are to be obtained or currently owned by your company, such as computers, equipment, furniture and fixtures, vehicles, and real estate Banks, financing companies, dealers, and manufacturers provide these more specialized services Your company’s credit standing and the quality of the assets involved will determine the amount of cash that can be raised and the terms under which it is provided The specifics of the agreement will determine if these leases have to be reported on your company’s balance sheet or if they can be treated as “off balance sheet” items SBA Loan – The SBA offers numerous loan programs to assist small businesses It is important to note, however, that the

SBA is primarily a guarantor of loans made by private and other institutions

The Basic 7(a) Loan Guaranty serves as the SBA’s primary business loan program to help qualified small businesses obtain financing when they might not be eligible for business loans through normal lending channels It is also the agency’s most flexible business loan program, since financing under this program can be guaranteed for a variety of general business purposes Loan proceeds can be used for most sound business purposes including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions) Loan maturity is up to 10 years for working capital and generally up to 25 years for fixed assets http://www sba gov/financing/sbaloan/snapshot html

SBIR and Grants: SBIR (Small Business Innovation Research) is a federal government program administered by 10 federal agencies for the purpose of helping to provide earlystage Research and Development funding to small technology companies (or individual entrepreneurs who form a company) Solicitations are released periodically from each of the

agencies and present technical topics of R&D, which the agency is interested in funding Companies are invited to compete for funding by submitting proposals answering the technical topic needs of the agency’s solicitation Each agency has various needs and flavors of the SBIR program and you can learn more about them by visiting their sites Here are the addresses for the SBA, DOD, and NIH: http://www sba gov/sbir/, http://www acq osd mil/sadbu/sbir/, http://grants nih gov/grants/funding/sbir htm

None of the alternatives mentioned above are mutually exclusive In many cases, combinations can be very effective However, there are significant legal and operational differences in these financing arrangements The terms of some borrowing agreements may limit your ability to take on additional debt and they should be entered into only as part of a coherent financing strategy Do not be alarmed when the lender asks for your personal guaranty Personal guarantees are virtually standard for all but the most credit worthy and/or public companies

For questions or additional information, please do not hesitate to contact Richard Lewis, Financial engineering Counselor, LTD at 703.992.8988, email [email protected], www.fecltd.net. n

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Doing Business in Africa

By Angela Chester-Johnson

Vast deposits of natural resources, new emerging markets, and improving infra-structure, and economic reforms position Africa as an attractive place to do business Africa is a viable location for conducting business Whether it is mining, manufacturing, trade, and investment, or agriculture, opportunity lies there It currently offers larger percentages of returns on investment than practically anywhere else in the world Countries across the continent are creating and refining business policies and practices such as eliminating price controls on designated agricultural products, reducing import restrictions, and “red tape” at sea and airports customs Africa is fast becoming an international and inter-continental business arena

Energizing the World:

Africa offers not only significant deposits of fossil fuels both on and off shore, but also presents remarkable opportunities for renewable energy fuel source development and supply Because of its vast land deposits, agronomists from around the world are leasing or purchasing farms to cultivate jatropha; an indigenous previously wild growing cactus like plant, for its rich oil bearing seeds Jatropha oil is particularly attractive to renewable refineries because it does not compete on the food chain, like ethanol; which is made from corn Businesses that are forward reaching would do well to explore engaging in the development of Africa’s soon to be vital renewable energy segments

One can already witness an emergence in the organization of the growth and harvesting of bio-mass, for local and international usage Biomass is a catchall term for inedible products from trees, shrubs and other plants These materials are chipped and dried, then burned to run generators Other types of biomass include organic municipal waste and methane gas produced in landfills It is estimated that fuel production from bio-mass will at least, triple in the next decade; generating collective industry profits propelled upwards by 200% Biomass is a cost savings energy solution, which furthermore, partially answers ever mounting environmental woes from pollutants generated by burning traditional fuel like coal and petroleum

Finally, while not yet sufficiently gauged and exploited, Africa has coveted potential for wind and solar energies Wind power is the conversion of wind energy into a useful form of energy, such as using wind turbines to make electricity, wind mills for mechanical power, wind pumps for pumping water or drainage, or sails to propel ships At the end of 2009, worldwide nameplate capacity of wind-powered generators was 159 2 gigawatts (GW) Energy production was 340 TWh, which is about 2% of worldwide electricity usage;[1][2] and has doubled in the past three years Currently only Morocco, Tunisia, and Egypt are adequately benefitting from wind power South Africa and Kenya are poised to join these three countries in the near future

Africa also gets extensive amounts of sunlight throughout the year; therefore solar energy is another high profit potential business With increasing political stability, improved business practices, a wider arsenal of trained workers, and wise investors, Africa could soon become one of the most important contributing supply sources of renewable energy She will be capable to not only supply her own energy needs, but also to satisfy a large share of the international energy demand

In order to take full advantage of these or any business opportunities in Africa, one must exercise the four “P”’s: preparation, planning, protocol, and persistence

Preparation: Do your homework! If you’ve never or not recently been to your country or region of interest, take time to visit Before you ever get on a plane, do some virtual travel, by way of the internet There has never been another time in history that so much information has been available to us at the touch of a button Learn the currency exchange, the predominant ethnic groups, the language, climate and topography All of these will add to your knowledge; and therefore success A practical and current overview of the country’s economy, business culture, and potential opportunities will guide your planning strategies, and heighten your on the ground experience

Angela Chester-Johnson

Planning: While the need for planning is understood by most astute business persons, doing business internationally takes an additional amount of effort Unless you are well travelled, there are small important details that you may overlook Make no mistake though; small oversights can have a huge impact when working globally When planning, you must consider the weather, the time zone(s), the season, the currency, the local electric voltage, days (not dates) for air travel, local transportation (it can literally take four hours to go ten miles by car, in Lagos)

Good planning will definitely yield greater satisfaction and potential for accomplishing your goals

Protocol: This one is huge! All the charm and money in the world cannot get you out of a religious faux pas Is the country or your partner Muslim or Christian? Is it a high holiday like Ramadan? If the country is Muslim, there will be little or no business on Fridays You must learn both the religious customs and social practices of the countries or regions where you plan to do business Do you speak first? Who walks into a room first? What is an appropriate gift or invitation? When greeting a host do you kiss, bow, or shake hands? It MATTERS! Learn the rules and play by them You will win over your clients, customers, partners, and/or employees

Persistence: Of all the things that have changed in Africa, speed of action or decision making is not necessarily one Please plan to make the acquaintances of family members, friends, other associates, more than once before business matters are even initiated Please plan to make several trips to discuss, view, demonstrate, or whatever else it takes to please your target Here, business is as much about relationships as it is about profits You will have to establish favorable and comfortable ones The good news is that in Africa, a delay is certainly no indication of a denial If your gut and your due diligence say so – stay the course Your new or next international business alliance is waiting

Angela Chester-Johnson is an international trade and business development expert; with a focus on Africa. She currently serves as Vice President for Protocol and Strategic Partnerships for the Leon H Sullivan Foundation. She can be reached at [email protected]. n


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When Did We Stop Following the Rules?

by Gary A Smith

As I was driving to work the other day it suddenly occurred to me that we’ve become a society that doesn’t believe in following the rules We don’t yield when the sign says to yield; we barely stop when we encounter that big red stop sign; and signaling a turn is definitely optional Of course, the only way this can work is if everyone else really does follow the rules Rolling through the stop sign really isn’t all that dangerous if everyone else always stops But if no one stops, then you’ve got a big problem

As I began to think about how we all break the rules, I started to wonder if we break or disregard the rules because we simply don’t believe that they should apply to us, or simply because we don’t even know what the rules are anymore? What if drivers confronted with a yield sign on the beltway actually believe that they are supposed to drive as fast as they can and force their cars into the smallest of possible spaces rather than simply pause or even stop until they can safely merge into traffic? Now before you tell me I need to let this driving analogy go, let me remind you that it’s not just the rules of the road we ignore I think it is beginning to apply to every aspect of our lives

When did we change elevator etiquette so that instead of waiting for people to get off the elevator before we get on, we now just let whoever is in the biggest hurry go first? When did waiting your turn in line become passé? I love how people use the phrase, “I just have a question,” to justify getting in front of a line of people waiting to do something (other than ask a question I guess!!!) Then there’s the perception that telling a plane load of passengers to turn off their electronic devices is merely a suggestion (no I don’t agree with the rule either, but that’s beside the point) ”After all,” the thinking apparently goes, “I’m the only one doing something really important and I have no idea what the rest of you are doing, so I’m going to keep mine on to do this ‘one last thing ’”

On our jobs, in our homes, schools, businesses, and daily activities, we all seem to be looking for the work-around,

the exception, how the uniqueness of our circumstance justifies why the rule doesn’t really apply to us It’s as if the rules are for other people, for someone else to follow

We’ve begun to cross the line so many times a day, in so many situations, that I think we honestly don’t even know where the line is anymore It has blurred into a vague boundary that really doesn’t apply to us We know it’s out there somewhere and, in a pinch, if we had to, we know we could find it somehow, but we’ve simply stopped looking We’ve lost our way and the generation that will follow us has been paying close attention They’ve watched us and adopted this “new normal” for themselves

Our businesses suffer too As entrepreneurs we are often held to a different standard One that, I have often commented, may not even be fair But the rules ARE the rules Yet in our new “disregard the rules” society, how often do we cite how a big company is allowed to circumvent a rule to justify our not having to follow it as well? But isn’t that beside the point? Does it really matter who gets away with disregarding it if a rule is meant to be followed? We’re not supposed to decide when to stop at the stop sign We’re supposed to just stop…every time, no matter what The funny thing is that adhering to the rules is actually easier It makes life simpler and more predictable

So as an experiment, I want you to write down every rule you break for the next week Let’s just call it our Top 10 If you get stuck at three just ask someone that knows you well and I’m sure they’ll help you out Pay attention to when you break them, why you break them, and what advantage or consequence makes doing so beneficial or risky We’ll share them in a future column and see what they reveal about us and the slippery slope we’re on

As a society and as entrepreneurs, this need to adhere to the rules is only going to matter more as we go forward We’ve entered a period of confusion over the rules at the low end to near lawlessness at the extreme that I believe

Gary A Smith, Sr. Partner, Ivy Planning Group


is going to produce a need to swing the pendulum back the other way The rules that people are willing to adhere to, the established conventions that people follow to govern their interactions, define a society And as we operate in a global society and a global marketplace, the boundaries and rules will only become more difficult to understand We see that today in the way deals are negotiated,

joint ventures are established, and concepts such as the rule of law or intellectual property are constantly being tested

The one thing I know for sure is making it up as we go won’t work Deciding “right of way” in the middle of the intersection is never a good idea

Gary A. Smith is Founder and Senior Partner of Ivy Planning Group LLC.

Ivy Planning Group (IVY) is a full service management consulting and training firm. Established in 1990, IVY took its core business consulting skills in strategy development, change management, leadership development and performance measurement and deployed them through a diversity lens. IVY helps leverage difference as a workforce, workplace and marketplace opportunity. Gary Smith can be reached at [email protected]. n

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Woman-Owned Companies

Score Big Winby Gary Shumaker

Gary Shumaker, President, Gary E. Shumaker, Inc.

For some sixteen years, federal agencies have long had goals for spending a portion of their contracting dollars with woman-owned companies, but they’ve had no tools to use to achieve that goal Unlike other programs such as the 8(a) business development program, the HUBZone program or even the Service-Disabled Veteran-Owned program, there were no set-aside contracts for women

Finally, the Small Business Administration has announced a plan that gives contracting officers the authority to identify contacting opportunities to be set aside for woman-owned companies

The new rules that will go into effect on February 4, 2011 will allow set asides for companies owned by disadvantaged women in industries where women are “underrepresented”

in federal contracting In industries where women are “substantially underrepresented,” set asides will be open to all woman-owned businesses

The determination of which industries women are “underrepresented” and which they are “substantially underrepresented” in will be based on the North American Industry Classification System (NAICS) that describes the work

Set asides for woman-owned companies will be limited to contracts with total values of $3 million and $5 million, following the same rules as other set aside programs

If you’re a woman business owner and you’re taking to government contracting officers, be sure to include this new program Spread the word!

_______________________________________NAICS codes in which WOSBs are “underrepresented” are:

· 3323 –– Architectural and Structural Metals Manufacturing

· 3324 –– Boiler, Tank, and Shipping Container Manufacturing

· 3333 –– Commercial and Service Industry Machinery Manufacturing

· 3342 –– Communications Equipment Manufacturing

· 3345 –– Navigational, Measuring, Electromedical, and Control Instruments Manufacturing

· 3346 –– Manufacturing and Reproducing Magnetic and Optical Media

· 3353 –– Electrical Equipment Manufacturing

· 3359 –– Other Electrical Equipment and Component Manufacturing

· 3369 –– Other Transportation Equipment Manufacturing

· 4842 –– Specialized Freight Trucking

· 4881 –– Support Activities for Air Transportation

· 4884 –– Support Activities for Road Transportation

· 4885 –– Freight Transportation Arrangement

· 5121 –– Motion Picture and Video Industries

· 5311 –– Lessors of Real Estate · 5413 –– Architectural, Engineering, and Related Services

· 5414 –– Specialized Design Services · 5415 –– Computer Systems Design and Related Services

· 5416 –– Management, Scientific, and Technical Consulting Services

· 5419 –– Other Professional, Scientific, and Technical Services

· 5611 –– Office Administrative Services · 5612 –– Facilities Support Services

· 2213 –– Water, Sewage and Other systems

· 2361 –– Residential Building Construction

· 2371 –– Utility System Construction · 2381 –– Foundation, Structure, and

Building Exterior Contractors · 2382 –– Building Equipment

Contractors · 2383 –– Building Finishing Contractors · 2389 –– Other Specialty Trade

Contractors · 3149 –– Other Textile Product Mills · 3159 –– Apparel Accessories and

Other Apparel Manufacturing · 3219 –– Other Wood Product

Manufacturing · 3222 –– Converted Paper Product

Manufacturing · 3321 –– Forging and Stamping


· 5614 –– Business Support Services · 5616 –– Investigation and Security

Services · 5617 –– Services to Buildings and

Dwellings · 6116 –– Other Schools and Instruction · 6214 –– Outpatient Care Centers

· 6219 –– Other Ambulatory Health Care Services

· 7115 –– Independent Artists, Writers, and Performers

· 7223 –– Special Food Services · 8111 –– Automotive Repair and Maintenance

· 8113 –– Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

· 8114 –– Personal and Household Goods Repair and Maintenance

_______________________________________The NAICS codes in which WOSBs are “substantially underrepresented” are:

· 2372 –– Land Subdivision · 3152 –– Cut and Sew Apparel

Manufacturing · 3231 –– Printing and Related Support

Activities · 3259 –– Other Chemical Product and

Preparation Manufacturing · 3328 –– Coating, Engraving, Heat

Treating, and Allied Activities · 3329 –– Other Fabricated Metal

Product Manufacturing · 3371 –– Household and Institutional

Furniture and Kitchen Cabinet Manufacturing

· 3372 –– Office Furniture (including Fixtures) Manufacturing

· 3391 –– Medical Equipment and Supplies Manufacturing

· 4841 –– General Freight Trucking · 4889 –– Other Support Activities for

Transportation · 4931 –– Warehousing and Storage · 5111 –– Newspaper, Periodical, Book,

and Directory Publishers · 5112 –– Software Publishers · 5171 –– Wired Telecommunications

Carriers · 5172 –– Wireless

Telecommunications Carriers (except Satellite)

· 5179 –– Other Telecommunications · 5182 –– Data Processing, Hosting,

and Related Services · 5191 –– Other Information Services · 5312 –– Offices of Real Estate

Agents and Brokers · 5324 –– Commercial and Industrial

Machinery and Equipment Rental and Leasing

· 5411 –– Legal Services · 5412 –– Accounting, Tax Preparation,

Bookkeeping, and Payroll Services · 5417 –– Scientific Research and

Development Services

· 5418 –– Advertising, Public Relations, and Related Services

· 5615 –– Travel Arrangement and Reservation Services

· 5619 –– Other Support Services · 5621 –– Waste Collection · 5622 –– Waste Treatment and Disposal · 6114 –– Business Schools and Computer and Management Training

· 6115 –– Technical and Trade Schools · 6117 –– Educational Support Services · 6242 –– Community Food and Housing, and Emergency and Other Relief Services

· 6243 –– Vocational Rehabilitation Services

· 7211 –– Traveler Accommodation · 8112 –– Electronic and Precision Equipment Repair and Maintenance

· 8129 –– Other Personal Services · 8139 –– Business, Professional, Labor, Political, and Similar Organizations

Gary E. Shumaker is the founder and senior consultant for Gary E. Shumaker, Inc. a strategic business development practice specializing in helping small companies develop the intellectual infrastructure to succeed in the Federal marketplace. For more information visit www.garyeshumaker.com. n

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Directors (OSDBU) Office of Small and

Disadvantaged Business Utilization

Agriculture Department Quinton N Robinson Director, OSDBU1400 Independence Ave, SWAG STOP 9501, Room 1085-SouthWashington, DC 20250-9501Telephone: (202) 720-7117Fax: (202) 720-3001

Defense DepartmentLinda OliverActing Director, OSDBU201 12th Street, SouthSuite 406Arlington, VA 22202Telephone: (703) 604-0157Fax: (703) 604-0025Quinton robinson@usda gov

Air Force Department Ron PoussardDirector, OSDBU1060 Air Force Pentagon, Room 5E271Washington, DC 20330-1000Telephone: (703) 696-1103Fax: (703) 696-1170www selltoairforce orgRonald Poussard@pentagon af mil

Education DepartmentKristi Wilson HillDirector, OSDBU550 12th Street SWRoom 7049Washington, DC 20202Telephone: (202) 245-6300Fax: (202) 245-6304Kristi Wilson@ed gov

Army DepartmentTracey L PinsonDirector, OSDBU106 Army PentagonRoom 3B514Washington, DC 20310-0106 Telephone: (703) 697-2868Fax: (703) 693-3898www sellingtoarmy info

Energy DepartmentJoe GarciaDirector, OSDBU1000 Independence Ave SWRoom 5B-110Washington, DC 20585Telephone: (202) 586-8383Fax: (202) 586-3075www smallbusiness doe govjoe garcia@hq doe gov

Commerce DepartmentLaJuene DesmukesDirector, OSDBU14th & Constitution Ave, NWRoom H-6411Washington, DC 20230 Telephone: (202) 482-1472Fax: (202) 482-0501www commerce gov/osdbuLdesmukes@doc gov

Health and Human ServicesDebbie RidgelyDirector, OSDBU200 Independence Ave, SWRoom 517-DWashington, DC 20201Telephone: (202) 690-7300Fax: (202) 260-4872www hhs gov/osdbuDebbie Ridgely@hhs gov

Housing and Urban DevelopmentSharman LancefieldDirector, OSDBU451 7th Street, Room 3130Washington, DC 20410-1000Telephone: (202) 708-1428Fax: (202) 708-7642www hud gov/smallbusinesssharman r lancefield@hud gov

Navy DepartmentSean CreanDirector, OSDBU720 Kennon Street, SE, Building 36Washington Navy YardWashington, DC 20374-5015Telephone: (202) 685-6490Fax: (202) 685-6865sean crean@navy milInterior Department

Interior DepartmentMark OliverDirector, OSDBU1849 C Street, NW, Mail Stop 2252 MIBWashington, DC 20240Telephone: (202) 208-3493Fax: (202) 208-7444Mark_oliver@ios doi gov

State DepartmentShapleigh C DriskoDirector, OSDBURoom L500 (SA-6)Washington, DC 20522-0602Telephone: (703) 875-6822Fax: (703) 875-6825driskosc@state gov

Justice DepartmentDavid Sutton Director, OSDBU1331 Pennsylvania Ave, NW #1010Washington, DC 20530 Telephone: (202) 616-0521 Fax: (202) 616-1717David Sutton@usdoj gov

Transportation DepartmentBrandon NealDirector, OSDBU400 4th Street, SW, Room 9414Washington, DC 20590Telephone: (202) 366-1930Fax: (202) 366-7228

Labor DepartmentSonya CarrionDirector, OSDBU200 Constitution Ave, NW, Rm N-6432Washington, DC 20210 Telephone: (202) 693-7297 Fax: (202) 693-6485 www dol gov/dol business htm osdbu@dol gov

Treasury DepartmentTeresa LewisDirector, OSDBU1500 Pennsylvania Ave NWAttn: 655 15th Street, Room 6097Washington, DC 20220Telephone: (202) 622-2826Fax: (202) 622-4963teresa lewis@do treas gov

Department of Veterans AffairsTim Foreman Executive Director, OSDBU 801 I Street, NW, Mail Stop 00SB Washington, DC 20420 Telephone: (202) 461-4386 Fax: (202) 565-8156 tim foreman@va gov

Environmental Protection AgencyJeanette L BrownDirector, OSDBU1200 Pennsylvania Ave NW, MC 1230TWashington, DC 20460Telephone: (202) 566-2075Fax: (202) 566-0266Brown JeanetteL@epa gov

Defense Logistics AgencyPeg Meehan Director, OSDBU 8725 John J Kingman Rd DB Room 1127 Ft Belvoir, VA 22060 Telephone: (703) 767-0192 Fax: (703) 767-1670 Peg meehan@dla mil

Executive Office of the PresidentAlthea KireilisContract Specialist/Small Business725 17th Street, NW, Room 504Washington, DC 20460Telephone: (202) 395-7669Fax: (202) 395-3982akireilis@oa eop gov

Agency for International DevelopmentMauricio Vera Director, OSDBU 1300 Pennsylvania Ave NW Room 7 8E RRB Washington, DC 20523-7800 Telephone: (202) 712-1500 Fax: (202) 216-3056 mvera@usaid gov

Transportation Security AdministrationAnthony BellActing DirectorTSA HQ-West Bldg; 4th FloorTSA-25601 South 12th StreetArlington, VA 22202Telephone: (571) 227-2070Fax: (571) 227-2911Anthony Bell@dhs gov

Homeland Security DepartmentKevin Boshears Director, OSDBU 7th & D Street, SW, Room 3514 Washington, DC 20528 Telephone: (202) 447-5279 Fax: (202) 447-5552 Kevin Boshears@dhs gov

Defense Information Systems AgencyAnthony JacksonActing Director, OSDBU701 S Courthouse Rd, D04Room 1108BTelephone: (703) 607-6436Fax (703) 607-4173disasmallbusinessoffice@disa mil

Nuclear Regulatory CommissionCorenthis Kelley Director, OSDBU Office of Small Business and Civil Rights 11545 Rockville Pike, MS T2F18 Rockville, MD 20852 Telephone: (301) 415-7380 Fax: (301) 415-5953 CBK@nrc gov

General Services AdministrationJiyoung C ParkAssociate Administrator, OSDBU1800 F Street, NW RM 6029Washington, DC 20405Telephone : (202) 501-0864Fax: (202) 501-1021jiyoung park@gsa gov

U.S Postal ServiceJanice Williams Hopkins Manager, Supplier Diversity Department of U S Postal Service 475 L’Enfant Plaza SW , Rm 4430 Washington, DC 20260-6204 Telephone: (202) 268-4633 Fax: (202) 268-4012 www usps gov/business

Surface Transportation BroadDon HirstDirector, OSDBU1201 Constitution Avenue, NWWashington, DC 20423Telephone: (202) 565-1700Fax: (202) 927-5158HirstD@stb dot gov

National Science FoundationDr Donald Senich Director, OSDBU 4201 Wilson Boulevard, Room 527 Arlington, VA 22230 Telephone: (703) 292-7082 Fax: (703) 292-9055 www nsf gov dsenich@nsf gov

NASAGlenn DelgadoAssistant Administrator, OSDBU300 E Street, SW, Room 9K70, Code KWashington, DC 20546Telephone: (202) 358-2088Fax: (202) 358-3261www osdbu nasa govGlenn A Delgado@nasa gov

U.S Information AgencyGeorgia Hubert Director, OSDBU 301 4th Street, SW , Rm M-27, 20547 Washington, DC 20457 Telephone: (202) 205-9662 Fax: (202) 401-2410

Smithsonian InstituteEra MarshallDirector, OEEMA600 Maryland Avenue, Suite 2091Washington, DC 20560Telephone: (202) 633-6430Fax: (202) 633-6427Rudy D WatleySupplier Diversity Programs Managersdphelp@si edu

Indian Health ServicesNelia Holder 12300 Twinbrook Parkway, Suite 450A Rockville, MD 20852 Telephone: (301) 442-1480 Fax: (301) 480-0682nholder@his gov

Federal Trade CommissionEric VottChief Procurement Commission6th & Pennsylvania Ave, NWRm H-700Washington, DC 20580Telephone: (202) 326-2259Fax: (202) 326-2050

Office of Federal Procurement PolicyMichael GerichDeputy Associate AdministratorNew Executive Office Building725 17th Street, NW , Rm 9013Washington, DC 20503 Telephone: (202) 395-6811 Fax: (202) 395-5105 mgerich@omb eop gov

Procurement Tech Assistance CenterJames D ReganDirector, OSDBUGeorge Mason University4031 University Drive, Suite 200Fairfax, VA 22030Telephone: (703) 277-7700Fax: (703) 352-8195Jregan@gmu eduwww gmu edu/gmu/PTAP

Minority Business Development AgencyDavid Hinson Director 14th & Constitution Ave, NW Rm 5055Washington, DC 20230 Telephone: (202) 482-5061 Fax: (202) 501-4698

Social Security AdministrationWayne McDonaldDirector7111 Security Blvd Baltimore, MD 21244 Telephone: (410) 965-7467Fax: (410) 965-2965 wayne mcdonald@ssa gov

Corporation for National and Community ServiceRitchie Vinson Director Office of Procurement Services 1201 New York Avneue, NW Room 8409 Washington, D C 20525 Telephone: (202) 606-6988Fax: (202) 606-3488

Export-Import Bank of the U.S.Mark Pitra Manager, Contracts and Acquisitions 811 Vermont Avenue, NW, Room 1023Washington, DC 20571Telephone: (202) 565-3338Fax: (202) 565-3528

Federal Deposit Insurance CorporationRobert Elcan Chief, Minority & Women Outreach 3501 Fairfax Drive, Room E2014Arlington, VA 22226Telephone: (703) 562-6070Fax: (703) 562-6069Belcan@fdic gov

VA Center for Veterans EnterpriseGail L WegnerDeputy DirectorCVE, 810 Vermont Avenue, NWMail Stop 00VEWashington, DC 20420Telephone: (202) 303-3260Fax: (202) 254-0238

Defense Contract Management AgencyKevin LoeschDirector Telephone: (732) 866-2768Kevin loesch@dcma mil

Department of Defense Education ActivityStephanie Waldrop Director4040 N Fairfax DriveArlington, VA 22203Telephone: (703) 588-3625

Minority Business Development Agency Anita Cooke WellsChief Office of Business Development14th & Constitution Ave , NW Washington, DC 20230 Telephone: (202) 482-3238awells@mbda gov

Office of Personnel Management (OPM)George LeiningerDirector 1900 E Street, NW, Room 1330DWashington, DC 20415Telephone: (202) 606-2083Fax: (202) 606-1464

Defense Contract Management AgencyMark G OlsonTelephone: (224) 625-8920Toll Free: (877) 662-3960Mark olson@dcma mil


At BAE Systems we recognize the vital roles that minority, veteran, women-owned, and hubzone small businesses play in the creation of new jobs and the significant contributions they make to the economy.

As a leading defense, security and aerospace company, we support our small business partners to meet our mutual goals and mission objectives.

We are committed to our small business programs and welcome your interest.

IN PARTNERSHIP WITH THE SMALL BUSINESS COMMUNITY

www.baesystems.com


General Energy Corp. Full Scope Engineering & Energy Services Company

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Improve your bottom line & maximize your profits by reducing your energy cost.

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Leaders In Energy Efficient Design

A key component to Northrop Grumman’s success is its diverse supply base. A diverse supply base

creates an environment of inclusion and promotes innovation and creativity. Ultimately, it re-

flects and strengthens the communities we live and work in and makes the world a safer place.

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Building Stronger Partnerships to meet the AdvancedTechnological Needs of the War Fighter.

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