www.sba.gov

www.sba.gov

Traditional Procurement Programs

• Full and Open Competition– Unrestricted– Small Business Set Aside

• Small business set-a-sides– 8(a) – HUBZONE– Service Disabled Veteran Owned– Woman-owned Business (Pending)

• Prime contractor Sub-contract Program

www.sba.gov

Federal Procurement Goals

Federal procurement goals provide agencies with a strong incentive to look for qualified small businesses when awarding contracts.

Explore:

• SBA Certification Programs

• Self-certification Programs

www.sba.gov

Special Emphasis Groups

• 23% overall small business goal• Woman-owned small businesses

– 5% goal– Proposed rule published March 4, 2010– Robust certification in ORCA

• Service Disabled Veterans– 3% goal– Register in www.vetbiz.gov– Restricted competition

www.sba.gov

SBA Certification Programs

SBA programs assist specific groups in securing federal contracts:

• Historically Underutilized Business Zone Program (HUBZone)

• 8(a) Business Development Program

www.sba.gov

Section 8(a) Business Development Program

• Owned and controlled by socially and economically disadvantaged U.S. Citizens

• Personal net worth may not exceed $250,000• 51% unconditionally owned by

disadvantaged individuals• Nine years• Two-year rule• Automatically certified SDB• https://eweb.sba.gov/gls/dsp_login.cfm

www.sba.gov

HUBZONE Program

• Historically Underutilized Business Zone

• Empowerment contracting program• Provide Federal contracting assistance• Increase employment opportunities• Stimulate capital investment• Electronic application• 3% goal

www.sba.gov

HUBZONE Program Requirements

• Principal office physical location:– Within one or more qualified census tracts,

or– Qualified non-metropolitan counties, or– Federally recognized Indian reservation

• Exclusively owned and controlled by U.S. Citizens

• At least 35% of employees reside in a Hubzone

www.sba.gov

HUBZONE Contractual Assistance

• HUBZONE set-aside contracts

• Sole source and competitive

• Price evaluation preference

• Subcontracting opportunities

• 3% Federal contracting goal

• www.sba.gov/hubzone to apply

• https://eweb.sba.gov/gls/dsp_login.cfm

www.sba.gov

How Does the SBA Help MeBecome a Government Contractor?

Procurement Forecasts- www.sba.gov/gc- Resources and Opportunities- Federal Agency Procurement

Forecasts

1. Procurement Forecast

2. Select Agency

www.sba.gov

Training and Counseling Programs

• Small Business Training Network – a virtual campus

• Business Opportunities: A Guide to Winning Federal Contracts

• Free, online “how-to” courses on federal procurement procedures

• www.sba.gov/training

www.sba.gov

Identify Subcontracting Opportunities

• Teaming with a prime contractor can be a profitable experience.

• Experience gained as a subcontractor helps youin bidding on prime contracts.

• SBA’s SUB-Net searchable database posts subcontracting opportunities.

• www.sba.gov/gc

– SUB-NET

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SBA SURETY BOND GUARANTEESBA SURETY BOND GUARANTEE

What Contractors Need To Know About BondingWhat Contractors Need To Know About Bonding

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SBA’s Role

• SBA provides –

Bid Bond

Payment Bond

Performance Bond• Gives sureties an incentive to provide

bonding• Strengthens contractors ability• Increases access to contracting

opportunities• SBA assumes percentage of loss

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SBA’s Role Cont’d

• Guarantee bonds for contracts up to $2.0 Million –

Note: Under 2009 Recovery Act, up to $5.0 and $10.0 until September 30, 2010

• Reimburse surety for losses incurred• Prior Approval Program – SBA Guarantees 90% of

losses on bonds up to $100,000 on bonds to certified 8(a) and SDB firms; 80% on all other bonds

• Preferred Surety Bond (PSB) – 70% Guarantee• SBA’s bonds do not cover subcontractors

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SBA Surety Bond Guarantee Program

- Agent reviews application, recommend to surety company for approval

- Package sent to SBA/SBG Area Office for evaluation

- SBA issues guarantee to surety company- Surety company must be certified by U.S.

Treasury- Designed for smaller, less experienced firms

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Contractor’s Eligibility Requirements

• Small business• Independently owned and operated• Possess good reputation• Not debarred or suspended• No default on previously SBA guaranteed bonds• U.S. Citizen or registered legal alien• Ensure satisfactory performance of contract• Contract cannot exceed $2.0 Million - Note: Under

2009 Recovery Act, up to $5.0 and $10.0 until September 30, 2010

• Apply for a specific bond

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Contractor’s Responsibilities

• Prequalification Checklist- Organizational Chart- Resumes- Business Plan- Work in Progress- Continuity or Completion Plan- Line of Credit- Letters of Recommendation

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What Do Bonds Cost?

• No charge for bid bonds• SBA processing fee of $7.29 per thousand

dollars of the guaranteed amount• Surety bond premiums range from one-half of

one percent to two percent of the contract amount

• Factors considered: size, type, duration of project, contractor

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SBA Surety Bond Guarantee Program

Typical Contractor Profile– Start-up firms– Under 3 years in business– Marginal financial resources

• Working capital• Equity

– Losing year okay– Leveraged– No prior bonded project experience– Changing specialty– Marginal credit history– Note: we provide guarantees to many existing, medium size firms

www.sba.gov

Is Becoming a Government Contractor Right for You?

• Can you spend the time required to identify agencies and buyers?

• Can your business financially support the costs involved in a government contract?

• Are you prepared to learn and follow the federal procurement rules?

www.sba.gov

Getting Started –Registering with the CCR

• The Central Contractor Registration is an online database of companies wanting to do business with the federal government.

• Buying agencies can search the CCR for vendors.

• Creating and updating your small business profile in CCR gives your firm access to contracting opportunities.

• www.ccr.gov

www.sba.gov

Getting Started –the Dynamic Small Business Search

• From CCR, enter your business profile in SBA’s Dynamic Small Business Search database.

• Using the DSBS, agencies can quickly identify potential small business vendors.

www.sba.gov

Jo Ann LawrenceLouisiana District Office

365 Canal Street, Suite 2820New Orleans, LA 70130jo.lawrence3@sba.gov

504-589-6688