The Matchmaker Team

1
The Matchmaker Team

• Mark I Professional Small Business Program
  Training Series for Large Businesses and Federal
  Agencies

2

• What you have before you is a Weapon System
  designed to fight lack of knowledge and
  misunderstanding about Small Business Programs.
  We hope to pass this body of information from
  this dedicated team, the Matchmakers HPT, to the
  fighters for supplier diversity all over this
  nation. While this training does not replace the
  actual regulations, the Mark I course can light
  the path to the wisdom needed to get the Small
  Business participation mission accomplished.
• This is the users guide to the system. Please
  use it wisely and often. Its application is what
  the American Dream is all about. Small Business
  owners, their families, the President and the
  Congress of these United States are all counting
  on you to get the job done.
• We wish you great success!
• Ira M. Brand, Team Leader (Retired)
• on behalf of the Matchmakers HPT
• a subcommittee of the Northeast Regional Council

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Small Business TrainingMark I Professional
Small Business Program Training Series

• Module 1 Public Laws and Regulations
  4
• Module 2 Identifying a Small Business
  22
• Module 3 How Small Business Programs Work
  41
• Module 4 Preparing a Small Business
  Subcontracting Plan 64
• Module 5 Small Business Assessment
  99
• Module 6 Small Business Metrics and Reporting
  106
• Module 7 Information Resources and FAQs
  129
• Module 8 Staying Current
  136
• Resources
  140

4
Module 1 Public Laws and Regulations

• This Module contains information on the Public
  Laws and Federal Acquisition Regulations (FAR)
  that govern the requirements for Small Business
  Subcontracting Programs. These small business
  laws and regulations form the framework for what
  we do and why we do it.
• The Module includes the goals for each business
  type and the Public Law basis for these
  requirements. The module also covers FAR
  references for incentive programs and liquidated
  damages provisions.

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Module 1 Public Laws and Regulations001A FAR
Regulations

• What Federal Regulations govern the formation of
  small business plans and the goals set for small
  business subcontracting?
• A. FAR Parts 19 and 52
• B. Public Laws
• C. The Small Bus Law
• D. A and C
• E. A and B
• (check one)

• Answer E
• FAR part 19 and 52 outline all the requirements
  for preparing small business plans.
• Public Laws are the basis for the regulations.

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Module 1 Public Laws and Regulations001B FAR
Regulations

• What are the percentage goals setby Public Laws
  for?
• Small Business (SB) ________
• Small Disadvantaged Business (SDB) ________
• Woman-Owned SB (WOSB) ________
• Historically Black Colleges Universities
• and Minority Institutions (HBCU/MIs)
  ________
• HUBZone SB ________
• Veteran-Owned SB (VOSB) ________
• Service-Disabled VOSB (SDVOSB) ________
• Alaska Native Corp. Indian Tribes ________

• And the answer is

23 5 5 Best Effort 3 Best Effort
3 Best Effort Included as part of SDB
Goal
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Module 1 Public Laws and Regulations001C FAR
Regulations

• About the Law
• Section 8(d) of the Small Business Act requires
  Small, SDB, HUBZone, WOSB, VOSB, and SDVOSB have
  the maximum practicable opportunity to
  participate as subcontractors on Federal
  contracts, to the extent that such opportunity is
  consistent with efficient contract performance.

• Revision of the Small Business Act of 1978
  (Public Law 95-507)
• Redefined minority firms as Socially and
  Economically Disadvantaged Small Business
  Concerns (SDBs).
• Required Federal agencies to establish small
  business goals and explain to Congress when goals
  were not met.
• Required small and small disadvantaged business
  subcontracting goals for major contracts awarded
  to large businesses.
• Reserved all Federal awards under 100,000 for
  small businesses.
• Required establishment of the Office of Small
  Business Programs.
• Directors appointed by Head of Agency.

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Module 1 Public Laws and Regulations001D FAR
Regulations

• What is the goal for Small Disadvantaged
  subcontracting emphasis?
• A. 1
• B. 2
• C. 3
• D. 4
• E. 5
• (check one)

• Answer E
• National Defense Authorization Act
• (Public Law 99-661)
• Passed in 1987.
• Established Small Disadvantaged Business Program.
• 5 goal for minority owned businesses.
• Emphasized contracting with Historically Black
  Colleges Universities/Minority Institutions
  (HBCUs/MIs).

9
Module 1 Public Laws and Regulations001E FAR
Regulations

• Public Law 103-355 introduced a 5 goal against
  the value of all prime contracts for Woman-Owned
  Small Businesses.
• A. True
• B. False
• (check one)

• Answer A
• Federal Acquisition Streamlining
• Act of 1994 (Public Law 103-355)
• Section 7106
• Established a government-wide goal for
  Woman-Owned Small Businesses (WOSBs).
• Not less than 5 of the total value of all prime
  contract/subcontract awards for each fiscal year.
• Note There are no preference programs for
  Woman-Owned Small Businesses.

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Module 1 Public Laws and Regulations001F FAR
Regulations

• How is a HUBZone (Historically Underutilized
  Business Zone) Small Business Verified?
• A. By SBA certification as shown in Central
  Contractors Registry (CCR)
• B. By DOC Zone Charts
• C. By the Census Bureau
• (check one)

• Answer A
• The HUBZone Empowerment Act
• (Public Law 105-135)
• Included in the Small Business Reauthorization
  Act of 1997.
• Stimulates economic development.
• Creates jobs in urban and rural communities.
• Provides contracting preferences to small
  businesses that are located in a HUBZone and that
  hire employees who live in a HUBZone.
• 1 of prime contracts for HUBZone small
  businesses for FY1999, not less than 1.5 for
  FY2000, 2 for FY2001, 2.5 for FY2002, and 3
  for FY2003 and each year thereafter.

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Module 1 Public Laws and Regulations001G FAR
Regulations

• What is the Service-Disabled Veteran- Owned goal
  as set forth in the subcontracting provisions of
  Public Law 106-50?
• A. 1
• B. 2
• C. 3
• D. 4
• E. 5
• (check one)

• Answer C
• The Veteran's Entrepreneurship and
• Small Business Development
• Act of 1999 (Public Law 106-50)
• Established a goal for subcontracts awarded by
  prime contractors to (SDVOSB) concerns of 3.
• A best effort goal for veteran-owned small
  businesses shall apply.
• Individual, Master, and Comprehensive Subcontract
  and Commercial Plans must incorporate these
  goals.

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Module 1 Public Laws and Regulations001H SB
Program Success

• Incentive Clauses
• FAR 52.226-1
• Utilization of Indian Organizationsand Indian
  Owned Economic Enterprises
• The Indian Incentive Program provides for a
  payment of 5 of the amount subcontracted to an
  Indian organization or Indian-owned economic
  enterprise. The clause must be included in the
  contract.

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Module 1 Public Laws and Regulations001I SB
Program Success

• Incentive Clauses
• FAR 52.219-26
• Small Disadvantaged Business Participation
  Program
• Incentive Subcontracting for specific parameters.
  Monetary incentives shall be based on actual
  achievement as compared to proposed monetary
  targets for SDB sub-contracting. The incentive
  subcontracting program is separate and distinct
  from the establishment, monitoring and
  enforcement of SDB subcontracting goals in a
  sub-contracting plan. This is an incentive to
  encourage increased subcontracting in the North
  America Industry Classification System (NAICS)
  Major Groups and is reported at the end of the
  contract via the OF312 attached to the final ISR.

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Module 1 Public Laws and Regulations001J SB
Program Success

• Incentive Clauses
• FAR 52.219-10
• Incentive Subcontracting Program
• Monetary incentive from 0-10, which encourages
  the development of increased subcontracting
  opportunities based on actual achievement for
  small, Small Disadvantaged Business, Woman-Owned
  Small Business, HUBZone small business,
  Veteran-Owned Small Business, and
  Service-Disabled Veteran-Owned Small Business.

15
Module 1 Public Laws and Regulations001K SB
Program Success

• Incentive Clauses
• FAR 52.219-16
• Liquidated Damages - Subcontracting Plan
• Failure to comply with a subcontracting plan is
  considered a material breach of the contract and
  could result in the imposition of liquidated
  damages to be paid by the contractor.
• Size of damages is equal to the actual amount by
  which the contractor missed each goal.

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Module 1 Public Laws and Regulations001L SB
Program Success

• Good Faith Effort
• 13 CFR 125.3
• Provide the maximum practicable
  subcontractingopportunities for small business
  concerns.
• Consistent with the efficient performance of the
  contract.

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Module 1 Public Laws and Regulations001M SB
Program Success

• Example of maximum practicable opportunity
• 13 CFR 125.3
• Breaking out contract work items into
  economically feasible units, as appropriate.
• Conducting market research to identify small
  business subcontractors and suppliers through all
  reasonable means.
• Soliciting small business concerns early in the
  acquisition.
• Moregtgt

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Module 1 Public Laws and Regulations001N SB
Program Success

• Example of maximum practicable opportunity
• 13 CFR 125.3
• Providing adequate and timely information about
  the plans, specifications, and requirements for
  performance of the prime contract to assist them
  in submitting a timely offer.
• Negotiating in good faith with interested small
  businesses.
• Assisting them to obtain bonding, lines of
  credit, required insurance, necessary equipment,
  supplies, materials, or services.
• More gtgt

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Module 1 Public Laws and Regulations001O SB
Program Success

• Example of maximum practicable opportunity
• 13 CFR 125.3
• Utilizing the available services of small
  business associations, local, state, and Federal
  small business assistance offices and other
  organizations.
• Participating in a formal mentor-protégé program
  with one or more small business protégés that
  results in developmental assistance to the
  protégés.

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Module 1 Public Laws and Regulations001P
Small Business Goal Summary
21
Module 1 Public Laws and Regulations001Q
Small Business Goal Summary

• DoD Subcontracting Goals can Be Different

22
Module 2 Identifying a Small Business

• This Module covers the requirements for a Small
  Business to qualify as a specific recognized type
  for identification and reporting credit under
  Federal contracts.
• The module includes definitions of Small
  Disadvantaged Businesses, the minority groups and
  the certification requirements for HUBZone firms.

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Module 2 Identifying a Small Business002A
Identifying Small BiZ

• How is a Small Business Identified and Certified?
• Small Business Self-Certify.
• Does not exceed NAICS code size standard, is not
  owned by a large business, self certified. Size
  standard exception for ANCs and Indian tribes.
• How is a Small Disadvantaged Business Identified
  and Certified?
• SDBs Self-certify as of October 3, 2008.
• Meets size standard (except ANCs and Indian
  tribes), listed in CCR, 51 owned and operated by
  a Socially and Economically Disadvantaged person
  as designated by the SBA.
• How is a Woman-Owned Small Business Identified
  and Certified?
• WOSBs Self-Certify.
• Meets size standard, 51 owned and operated by
  one or more Women, Self Certified.
• How is a HUBZone Firm identified and Certified?
• Certified by the SBA.
• Meets size standard, located in a HUBZone, 35 of
  employees live in a HUBZone, owner US citizen,
  Certified by SBA and listed in CCR.

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Module 2 Identifying a Small Business002B
Identifying Small BiZ

• How is a Veteran-Owned Business Identified and
  Certified?
• Self-Certified but can be verified by Center for
  Veterans Enterprise.
• Meets size standard, 51 owned and operated by
  one or more veterans with active duty (other than
  training).
• How is a Service-Disabled Veteran-Owned Business
  Identified
• and Certified?
• Self-Certified but can be verified by Center for
  Veterans Enterprise.
• Meets size standard, 51 owned and operated by
  one or more veterans with active duty (other than
  training) and a service-related disability
  (0-100).

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Module 2 Identifying a Small Business002C
Identifying Small BiZ

• Definition of a Small Business
• A for profit concern including its affiliates
  that is independently owned and operated.
• Not dominant in the field of operations in which
  it is bidding on government contracts.
• Qualified as a small business under the criteria
  and size standards in CFR Part 121 (See 19.102).

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Module 2 Identifying a Small Business002D
Identifying Small BiZ

• Definition of Small Disadvantaged Business
• Net worth of each individual does not exceed
  750,000 excluding home firm equity.
• The firm must be at least 51 unconditionally
  owned by one or more socially and economically
  disadvantaged individuals, or in the case of any
  publicly owned business, at least 51 percent of
  the voting stock is unconditionally owned by one
  or more socially and economically disadvantaged
  individuals and whose management and daily
  business operations are controlled by one or more
  such individuals.

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Module 2 Identifying a Small Business002F
Identifying Small BiZ

• Definition of Socially Disadvantaged Individuals
• Those who have been subjected to ethnic prejudice
  or cultural bias because of their identity as a
  member of a group without regard to their
  individual qualities.

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Module 2 Identifying a Small Business002G
Identifying Small BiZ

• Who are the Socially Disadvantaged Individuals?
• Black Americans
• Hispanic Americans
• Native Americans(American Indians, Native
  Alaskans,
• or Native Hawaiians)

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Module 2 Identifying a Small Business002H
Identifying Small BiZ

• Who are the Socially Disadvantaged
• Individuals?
• Asian Pacific Americans (persons with origins
  from Burma, Thailand, Malaysia, Indonesia,
  Singapore, Brunei, Japan, China (inc Hong Kong),
  Taiwan, Laos, Cambodia (Kampuchea), Vietnam,
  Korea, Philippines, US Trust Territory of Pacific
  Islands (Republic of Palau), Republic of Marshall
  Islands, Federated States of Micronesia,
  Commonwealth of the Northern Marina Islands,
  Guam, Samoa, Macao, Fiji, Tonga, Kiribati,
  Tuvalu, or Nauru).
• Subcontinent Asian Americans (persons with
  origins from India, Pakistan, Bangladesh, Sri
  Lanka, Bhutan, the Maldives or Nepal).

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Module 2 Identifying a Small Business002I
Identifying Small BiZ

• Definition of Economically Disadvantaged
  Individuals
• Socially disadvantaged individuals whose ability
  to compete in the free enterprise system has been
  impaired due to the diminished capital and credit
  opportunities as compared to others in the same
  or similar line of business who are not socially
  disadvantaged.

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Module 2 Identifying a Small Business 002J
Identifying Small Biz

• New regulation (Sept. 17, 2007) regarding Alaskan
  Native Corporations and Indian Tribes
• Subcontracts count towards goals for SB and
  SDB,regardless of the size or SBA certification
  status.
• This new provision does not apply to Hawaiian
  Native owned firms.

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Module 2 Identifying a Small Business002K
Identifying Small BiZ

• Definition of Woman-Owned Small Business (FAR
  19.001)
• A small business firm at least 51 owned by one
  or more women, or, in the case of any publicly
  owned business, at least 51 of the stock of
  which is owned by one or more women and whose
  management and daily business operations are
  controlled by one or more women. DoD does not
  consider Woman-owned businesses as disadvantaged.

33
Module 2 Identifying a Small Business002L
Identifying Small BiZ

• Historically Black Colleges Universities and
  Minority Institutions
• (HBCUs/MIs) (DFARS 252.219-7003)
• Minority Institutions are those organizations
  having significant minority enrollment.
• Designated minority groups include African
  Americans, Native Americans, Hispanic Americans,
  Asian Americans, and Pacific Islanders.
• The latest list of HBCUs can be obtained at
  www.ed.gov/about/inits/list/whhbcu/edlite-list.htm
  l
• The latest list of MIs can be obtained at
• www.ed.gov/about/offices/list/ocr/edlite-minorityi
  nst-list-tab.html

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Module 2 Identifying a Small Business002M
Identifying Small BiZ

• Definition of HUBZone Empowerment (Public Law
  104-135)
• Historically Underutilized Business Zone.
• An area located within one or more qualified
  census tracts.
• Qualified non-metropolitan counties (Rural
  Districts).
• Lands within the external boundaries of an Indian
  Reservation.
• HUBZones have higher unemployment and lower
  salaries than the state average.

35
Module 2 Identifying a Small Business002N
Identifying Small BiZ

• Definition of Veteran-Owned Small Business
  Concern
• A small business firm where, not less than 51 of
  which is owned by one or more veterans (as
  defined at 38 U.S.C. 101(2) or, in the case of
  any publicly owned business, not less than 51 of
  the stock of which is owned by one or more
  veterans and the management and daily business
  operations of which are controlled by one or more
  veterans.

36
Module 2 Identifying a Small Business002O
Identifying Small BiZ

• Definition of Service-Disabled Veteran-Owned
• Small Business Concern
• A small business firm where not less than 51 of
  which is owned by one or more service-disabled
  veterans or, in the case of any publicly owned
  business, not less than 51 of the stock of which
  is owned by one or more service-disabled
  veterans and the management and daily business
  operations of which are controlled by one or more
  service-disabled veterans or, in the case of
  veteran with permanent and severe disability, the
  spouse or permanent caregiver of such veteran.

37
Module 2 Identifying a Small Business002P
Identifying Small BiZ

• (Native American) Indian Incentive Program (FAR
  26.101, 52.226-1)
• The Indian Incentive Program provides an
  incentive to prime contractors that use Indian
  Organizations and Indian-Owned Economic
  Enterprises as subcontractors.
• The program allows for an incentive payment to
  the prime contractor equal to 5 of the amount
  paid to a performing Indian subcontractor, if it
  is authorized by the contract.
• Indian organization means the governing body of
  any recognized Indian tribe or Indian entity.

38
Module 2 Identifying a Small Business002Q
Identifying Small BiZ

• (Native American) Indian Incentive Program (FAR
  26.101, 52.226-1)
• Indian-Owned economic enterprise means any
  Indian-owned (as determined by the Secretary of
  the Interior) commercial, industrial, or business
  activity established or organized for the purpose
  of profit, provided that Indian ownership shall
  constitute not less than 51 percent of the
  enterprise.

39
Module 2 Identifying a Small Business002R
Identifying Small BiZ

• Mentor-Protégé Program (DFARS 219.71)
• Public Law 101-510, the National Defense
  Authorization Act of 1991,
• as amended, established the Pilot Mentor-Protégé
  Program.
• Provides incentives to prime contractors
  (mentors) to assist small disadvantaged
  businesses (SDB) firms (protégés) in enhancing
  their technical and business capabilities.
• Hopefully lead to increased SDB participation as
  subcontractors in Federal and commercial
  contracts.
• Fosters the establishment of long-term business
  relationships.
• Firms are eligible to be mentors if they are
  currently performing a contract with an approved
  subcontracting plan and are currently eligible
  for the award of Federal contracts.

40
Module 2 Identifying a Small Business002S
Identifying Small BiZ

• Mentor-Protégé Program (DFARS 219.71)
• Firms eligible to be a protégé
• SDB firms or
• Qualifying organization that employ the severely
  disabled
• Recent law allows HUBZones, WOSBs and VOSBs to be
  protégés.
• Mentors and Protégés are required to execute a
  formal agreement that sets forth the type of
  developmental assistance that will be provided to
  the protégé.
• Mentor-Protégé Programs may be for SDB credit or
  reimbursement.

41
Module 3 How Small Business Programs Work

• This Module introduces the key elements of a
  successful Small Business Program. A rating
  system is provided to assist in the assessment of
  your current program and the suggested levels for
  reaching an Outstanding rating.

42
Module 3 How Small Business Programs Work003A
Small Business Program Success

• What should an effective small business
  subcontracting program include?
• A. 10 Key Elements
• B. 8
• C. 6
• D. 4
• E. As many as it takes
• (check one)

• Answer A
• Ten Key Elements
• Management Support.
• An active SBLO.
• A good Subcontracting Plan.
• Matchmaker SB Training.
• Meeting SB Goals Objectives.
• A good Outreach Program.
• Connected to a Regional Council and a PTAC/PTAP.
• Active Procurement Staff Participation.
• Connection to CCR Dynamic Small Business
  Search.
• Accurate and On-Time reporting.

43
Module 3 How Small Business Programs Work003B
Small Business Program Success

• 1. Management Support

• SCORE GUIDE
• 1 No management support.
• 3 Management has minimal program knowledge.
• 5 Management knows about the program.
• 7 Management actively endorses the program.
• 9 Management endorses, monitors and
  participates in the program.

My company score is 1 2 3 4 5 6 7 8 9 10
Mark Score Here ______
44
Module 3 How Small Business Programs Work003C
Small Business Program Success

• 2. An Active SBLO

• SCORE GUIDE
• 1 Our company does not have an SBLO.
• 3 Our SBLO has not been Matchmaker certified.
• 5 Our SBLO is Matchmaker certified and is
  involved with at least 5 of the success elements.
• 7 Same as 5 but does 7 of the success elements.
• 9 Same as 5 but does all 10 elements.

My company score is 1 2 3 4 5 6 7 8 9 10
Mark Score Here ______
45
Module 3 How Small Business Programs Work003D
Small Business Program Success

• 3. A Good Subcontracting Plan

• SCORE GUIDE
• 1 My company does not have a subcontracting
  plan.
• 3 Our subcontracting plan is not approved by
  the agency buying office.
• 5 Our subcontracting plan is current and
  approved by the agency buying office.
• 7 Same as 5 and we are actively working our
  plan.
• 9 Same as 5 and we are meeting our plan goals.
• 10 Same as 5 and we are exceeding our plan
  goals.

My company score is 1 2 3 4 5 6 7 8 9 10
Mark Score Here ______
46
Module 3 How Small Business Programs Work003E
Small Business Program Success

• 4. Matchmaker SB Training

• SCORE GUIDE
• 1 My company does not have a training module
  for Small Business.
• 5 We are scheduled for Matchmaker training in
  the next 6-12 months.
• 10 We are Matchmaker Certified.

My company score is 1 2 3 4 5 6 7 8 9 10
Mark Score Here ______
47
Module 3 How Small Business Programs Work003F
Small Business Program Success

• 5. Meeting SB Goals Objectives

• SCORE GUIDE
• 1 My company has no goals or objectives for
  small business.
• 3 People are aware of subcontracting goals.
• 5 Management has established company small
  business goals.
• 7 Company goals are established and metrics
  reported.
• 9 Same as 7, most goals are being met.
• 10 Same as 7, all goals are being met or
  exceeded.

My company score is 1 2 3 4 5 6 7 8 9 10
Mark Score Here ______
48
Module 3 How Small Business Programs Work003G
Small Business Program Success

• 6. A Good Outreach Program

• SCORE GUIDE
• 1 Our company does not do Outreach.
• 3 Our SBLO does limited Outreach.
• 5 Our Company has an active Outreach Program.
• 7 Our company is active and has participated in
  one or more matchmaking events.
• 9 Same as 7, we have connected to sources
  through this process.

My company score is 1 2 3 4 5 6 7 8 9 10
Mark Score Here ______
49
Module 3 How Small Business Programs Work003H
Small Business Program Success

• 7. Connected to a Regional Council and a
  PTAC/PTAP

• SCORE GUIDE
• 1 What's a PTAC/PTAP?
• 3 How do I connect to the SBA and a Region
  Council?
• 5 Our company is active in our Regional
  Council.
• 7 Same as 5, and we work with our state
  PTAC/PTAP.
• 9 Same as 7 and we are on a Matchmaker
  Sub-Committee.
• SBA Small Business Administration
• PTAC Procurement Technical Assistance
  Center
• PTAP Procurement Technical Assistance Program

My company score is 1 2 3 4 5 6 7 8 9 10
Mark Score Here ______
50
Module 3 How Small Business Programs Work003I
Small Business Program Success

• 8. Active Procurement Participation

• SCORE GUIDE
• 1 Procurement staff is untrained.
• 3 Procurement staff is aware.
• 5 Procurement staff is active.
• 7 Procurement staff is Mark I Matchmaker
  Certified.
• 9 Same as 7, and procurement is meeting the
  goals.

My company score is 1 2 3 4 5 6 7 8 9 10
Mark Score Here ______
51
Module 3 How Small Business Programs Work003J
Small Business Program Success

• 9. Connection to CCR Dynamic Small Business
  Search

• SCORE GUIDE
• 1 What is CCR Dynamic Small Business Search?
• 3 How do I use CCR - Dynamic Small Business
  Search ?
• 5 CCR - Dynamic Small Business Search is used
  to verify certifications.
• 7 Our database is checked against CCR - Dynamic
  Small Business Search database regularly.
• 9 Same as 7, and we are compliant.
• CCR - WWW.CCR.GOV (click on Dynamic Small
  Business Search)

My company score is 1 2 3 4 5 6 7 8 9 10
Mark Score Here ______
52
Module 3 How Small Business Programs Work003K
Small Business Program Success

• 10. Accurate and On Time reporting.

• SCORE GUIDE
• 1 ReportingWhat reporting?
• 3 Whats an ISR?
• 5 ISRs and SSRs are issued.
• 7 Same as 5, and all data is compliant.
• 9 Same as 7, and reports are issued on time.
• ISR Individual Subcontracting Report (formerly
  SF294).
• SSR Summary Subcontracting Report (formerly
  SF295).

My company score is 1 2 3 4 5 6 7 8 9 10
Mark Score Here ______
53
Module 3 How Small Business Programs Work003L
Small Business Program Success

• How did your company rate?
• ____
• ____
• ____
• ____
• ____
• ____
• ____
• ____
• ____
• ____
• Total ______

• SCORE CHART
• 10 - 29 score Unsatisfactory
• 30 - 49 score Marginal
• 50 - 69 score Acceptable
• 70 - 90 score Highly Successful
• 91 - 100 score Outstanding
• Note This approximate score rating is subject to
  other factors and a formal review by Federal
  agencies. Individual results may vary from site
  to site.

54
Module 3 How Small Business Programs Work003M
Small Business Program Success

• OUTSTANDING
• Exceeded all negotiated goals or exceeded at
  least one goal and met all of the others.
  Negotiated goals for rating purposes compares
  the percentage goals with the percentage
  achievements.
• Has exceptional success with initiatives to
  assist, promote and utilize SB, SDB, WOSB,
  HUBZone, VOSB, and SDVOSB. Examples include,
  but are not limited to, participating in a
  Mentor-Protégé program, performing compliance
  reviews at subcontractors' sites, administering a
  buyer incentive program, participating in trade
  fairs, promoting registration in CCR, and
  contacting suppliers to encourage SDB and HUBZone
  certification.
• An outstanding rating signifies that the company
  has an exemplary program that could be used as a
  model by other contractors in similar industries.

55
Module 3 How Small Business Programs Work003N
Small Business Program Success

• HIGHLY SUCCESSFUL
• Met all of its negotiated goals in the
  traditional socio-economic categories (SB, SDB,
  and WOSB) and met at least one of the newer
  socio-economic goals (HUBZone, VOSB, and SDVOSB)
  for each contract that contains two or more of
  these goals.
• Has significant success with initiatives to
  assist, promote and utilize SB, SDB, WOSB,
  HUBZone, VOSB and SDVOSB.
• Makes an effort to go above and beyond the
  required elements of the program and can provide
  documentation and success stories to support such
  efforts.

56
Module 3 How Small Business Programs Work003O
Small Business Program Success

• ACCEPTABLE
• Demonstrated a good-faith effort to meet all of
  its goals, but has not met the rigorous criteria
  for a Highly Successful or Outstanding rating.
• Fulfills the requirements of its subcontracting
  plan and the regulations. ISR and SSR reports
  are complete and accurate.

57
Module 3 How Small Business Programs Work003P
Small Business Program Success

• MARGINAL
• Deficient in meeting key subcontracting plan
  elements, the ISR and/or SSR reports are not
  correct, or the contractor has failed to satisfy
  one or more requirements of a corrective action
  plan currently in place.
• However, contractor's management does show an
  interest in bringing its program to an acceptable
  level and has demonstrated a commitment to apply
  the necessary resources to do so. A corrective
  action plan is required, and the Administrative
  Contracting Officer(s) must be notified.

58
Module 3 How Small Business Programs Work003Q
Small Business Program Success

• UNSATISFACTORY
• Non-compliant with the contractual requirements
  of DFARS and FAR 52.219-8 and 52.219-9.
• Contractor's management shows little interest in
  bringing its program to an acceptable level or is
  generally uncooperative for example,
  recommendations made by SBA or DCMA on previous
  reviews have never been implemented.
• A corrective action plan is required, and the
  Administrative Contracting Officer(s) must be
  notified.

59
Module 3 How Small Business Programs Work003R
Small Business Program Success

• Who is the Small Business Liaison Officer (SBLO)?
• Appointment
• The Small Business Liaison Officer (SBLO) should
  have a Letter of Appointment defining their roles
  and responsibilities.
• Reports directly to the CEO or senior level
  management and has influence over all
  subcontracting activities and can effectively
  implement the overall SB Program.
• Assures maximum opportunities are afforded to
  those entities outlined in the company policy
  statement.
• The cognizant DCMA office should be notified when
  a new SBLO is appointed.

60
Module 3 How Small Business Programs Work003S
Small Business Program Success

• What is the SBLO responsible for in most
  organizations?
• The SBLO is responsible for the entire program
  for their organization.
• Develop local procedures.
• Develop source lists, guides to identify
  suppliers. Use of CCR, PTACs, SBA, DCMA and
  other sources.
• Ensure updates to supplier base and that on going
  efforts are being made to locate, utilize and
  develop SB, SDB,WOSB, HUBZone, SDVOSB and VOSB
  vendors.
• Attend and sponsor procurement conferences.
• Brief management and other personnel involved in
  the supply chain management on SB program.

61
Module 3 How Small Business Programs Work003T
Small Business Program Success

• What is the SBLO responsible for in most
  organizations?
• The SBLO is responsible for the entire program
  for their organization.
• Conduct training for all personnel involved in
  the subcontracting effort.
• Completion of ISR/SSR semi-annually.
• Use of Sub-Net (SBAs program) and United States
  Air Force Interactive Mall to advertise
  subcontracting opportunities.
• Networking with industry SBLOs, PTAC/PTAP, DCMA
  and SBA.

62
Module 3 How Small Business Programs Work003U
Small Business Program Success

• Important Small Business Programs are subject to
  monitoring
• and review by DCMA and the SBA.
• DCMA Offices provide performance data to
  Contracting Officers when evaluating the
  subcontracting plans prior to contract award.
• 5 year trend data is maintained on the
  contractors overall performance
• At contract completion, the Contracting Officer
  is provided a copy of the results of your
  individual contract performance.
• Monitor your program from every aspect.
• Reduce the size of the supplier base and maintain
  long-term relationships.
• Ensure that small business concerns have an
  opportunity to compete over a period of time
  therefore the search should be continuous.

63
Module 3 How Small Business Programs Work003V
Small Business Program Success

• Ongoing process involves all personnel involved
  in the supplier process.
• Recommended that you request continuous
  input/feedback/reporting from these individuals
  so that you have the information readily
  available.
• Upon completion of the review, it is requested
  that an exit briefing be scheduled with the
  CEO/President or senior management.
• A program rating will be assigned as a result of
  the review. The five categories were previously
  identified.

64
Module 4 Preparing a Small Business
Subcontracting Plan

• This Module will provide the information needed
  to prepare a Small Business Subcontracting Plan
  as part of a proposal or contract.
• The required elements are covered as well as the
  calculation methods used in establishing the
  goals. Incentive programs are also discussed.

65
Module 4 Preparing a Small Business
Subcontracting Plan 004A Select Plan Type

• First, Select the Plan Type
• For Example Individual Subcontracting Plan(FAR
  19.704(a))
• OR another plan type

• A separate plan for each
• contract over

1,000,000 (Construction)
550,000
66
Module 4 Preparing a Small Business
Subcontracting Plan 004B Select Plan Type

• Commercial plan (FAR 19.704(d))
• A subcontracting plan (including goals) that
  covers the offeror's fiscal year and that applies
  to the entire production of commercial items sold
  by either the entire company or a portion thereof
  (eg., division, plant, or product line).
• Preferred type of subcontracting plan for
  contractors furnishing commercial items (FAR
  19.701).
• Submitted to (1) the first Contracting Officer
  awarding a contract subject to the plan during
  the contractors fiscal year or (2) if the
  contractor has ongoing contracts with commercial
  plans, to the Contracting Officer responsible for
  the contract with the latest completion date.
• Approved plan shall remain in effect during the
  contractors fiscal year for all Government
  contracts during that period.

67
Module 4 Preparing a Small Business
Subcontracting Plan 004C Select Plan Type

• Comprehensive Subcontracting Plan (DFARS
  219.702(a))
• DoD is currently conducting a test program to
  determine whether a corporate, division, or
  plant-wide basis will increase subcontracting
  opportunities for small business concerns.
• The test is being conducted from October 1, 1990
  throughSeptember 30, 2010.
• No Incentive Clauses are applicable during the
  period of the test program.
• Eligible contractors are large business concerns
  at the major (total)
• corporate level that during the preceding fiscal
  year
• Were performing under at least 3 DoD Contracts,
  and were paid 5 million or more for the
  contracts.
• Achieved a small disadvantaged business goal of
  5 or more during the preceding year.

68
Module 4 Preparing a Small Business
Subcontracting Plan 004D Select Plan Type

• Comprehensive Subcontracting Plan (DFARS
  219.702(a))
• Comprehensive subcontracting plans
• Are negotiated on an annual basis by DCMA.
• Incorporated into all contractors active DoD
  contracts, which require a plan.
• Use by all DoD Contracting Officers in contracts
  which require a plan awarded contractors during
  the test period.
• Not subject to application of the liquidated
  damages during the period of the test.

69
Module 4 Preparing a Small Business
Subcontracting Plan 004E Select Plan Type

• Master Plan
• A subcontracting plan that contains all the
  required elements of an individual contract plan,
  except goals (and description), and may be
  incorporated into individual contract plans,
  provided the master plan has been approved.

70
Module 4 Preparing a Small Business
Subcontracting Plan 004F Select Plan Type

• Master Subcontracting Plan (FAR 19.704(b))
• Incorporated, maintained and updated by the
  contractors cognizant contract administration
  office and established on a plant or
  division-wide basis.
• Contains all required elements except goals.
• Separate goals for SB, SDB, WOSB, HUBZone,
  SDVOSB, and VOSB are submitted for each contract.
  
• Effective for a 3-year period AFTER approval by
  the Administrative Contracting Officer.
• When incorporated in an Individual Plan, shall
  apply throughout the life of the contract.

71
Module 4 Preparing a Small Business
Subcontracting Plan 004G Select Plan Type

• Individual Subcontracting Plan
• A subcontracting plan that covers the entire
  contract period (including option periods),
  applies to a specific contract, and has goals
  that are based on the offeror's planned
  subcontracting in support of the specific
  contract, except that indirect costs incurred for
  common or joint purposes may be allocated on a
  prorated basis to the contract.

72
Module 4 Preparing a Small Business
Subcontracting Plan 004H Establish Goals

• Identify needs to satisfy the contract
• Purchased Parts
• Subcontracts
• Service Contracts
• Indirect (MRO) Items
• Identify Supplier Ownership Type
• Estimate Current Cost
• Cost estimating may be based on
• Historical Data
• Supplier Quotes
• Purchase agreement

• 4. Goals
• Based on perceived subcontracting opportunities.
  
• Categorize the dollars and percentages by
  business type (i.e. small large total
  subcontracted dollars) SDB, WOSB, HUBZone, VOSB
  SDVOSB are subcategories of small business.
• Goal percentages are calculated based on total
  subcontracting dollars.
• Prepare a Goal Sheet to add to your Small
  Business plan.

73
Module 4 Preparing a Small Business
Subcontracting Plan 004I Self-Certifications

• Contractors acting in good faith
• may rely on written representations by their
  subcontractors regarding their small business
  status or SBA Certifications, when required by
  regulation.

• REMEMBER Credit for Small Business goals may
  require a Certified supplier.
• Self Certification is required for
• a small business.
• a veteran-owned small business
• a service-disabled veteran-owned small
  business.
• a Woman-owned small business
• a small disadvantaged business.
• SBA Certification is required for
• HUBZone businesses.

74
Module 4 Preparing a Small Business
Subcontracting Plan 004J Dollars

• Plan must include
• Total dollars to be subcontracted
• Total dollars planned for each category of small
  business
• Percentage goals for each category of small
  business

75
Module 4 Preparing a Small Business
Subcontracting Plan 004K Identify Current
Suppliers

• Identify current Supplier category
• List Goals for each category

• Small Business
• Large Business
• Small Disadvantaged Business
• HUBZone Small Business
• Woman-Owned Small Business
• Veteran-Owned Small Business
• Service-Disabled Veteran-Owned Small Business
• HBCU/MI

76
Module 4 Preparing a Small Business
Subcontracting Plan 004L Type Product/Service
Contracted

• Prepare a matrix showing the supply/service to be
  procured and the SB categories that will provide
  the supplies or services
• (Helps to identify ideal type of plan)

• Identify the source of the supply as
• Commercial Item
• Standard Catalog Item
• Contract Specific Item
• Qualified Military Product
• Sole/Single Source Item
• Provide an explanation of the goals based on the
  supply mix used in the plan.

77
Module 4 Preparing a Small Business
Subcontracting Plan 004M To Calculate Goals

• Total planned subcontracting dollars
• Total of all Large and Small Subcontracting
  dollars
• Anticipated spend with companies located in the
  United States to perform customer contract
• (this is the denominator for ALL GOAL
  calculations)

78
Module 4 Preparing a Small Business
Subcontracting Plan 004N Small Business Concerns

• Goal percentage to be subcontracted to
• Small Business Dollars / (divided by)
• Total Planned Subcontracting Dollars (x100)
• SB goal
• (Congressional goal 23.0)

79
Module 4 Preparing a Small Business
Subcontracting Plan 004O Small Business Goals

• Total dollars planned / Goal to be
  subcontracted to
• Small Disadvantaged Business Concerns
• Total Planned Subcontracting Dollars
• x100 SDB goal
• (Congressional goal 5.0 includes HBCU/MIs and
  ANCs)

80
Module 4 Preparing a Small Business
Subcontracting Plan 004P Small Business Goals

• Total dollars planned / Goal to be
  subcontracted to
• Woman-Owned Small Business Concerns
• Total Planned Subcontracting Dollars
• x100 WOSB goal
• (Congressional goal 5.0)

81
Module 4 Preparing a Small Business
Subcontracting Plan 004Q Small Business Goals

• Total dollars planned / Goal to be
  subcontracted to
• HBCU/MIs
• Total Planned Subcontracting Dollars
• x100 HBCU/MI goal
• (Congressional SDB goal 5.0 includes HBCU/MIs)

82
Module 4 Preparing a Small Business
Subcontracting Plan 004R Small Business Goals

• Total dollars planned / Goal to be
  subcontracted to
• HUBZone Small Business Concerns
• Total Planned Subcontracting Dollars
• x100 HUBZone goal
• (Congressional goal 3.0)

83
Module 4 Preparing a Small Business
Subcontracting Plan 004S Small Business Goals

• Total dollars planned / Goal to be
  subcontracted to
• Veteran-Owned Small Business Concerns
• Total Planned Subcontracting Dollars
• x100 VOSB goal
• (Congressional goal 3.0 placed only on Service
  Disabled)
• (VOSB goal includes SDVOSB goal)

84
Module 4 Preparing a Small Business
Subcontracting Plan 004T Small Business Goals

• Total dollars planned / Goal to be
  subcontracted to
• Service-Disabled Veteran-Owned Small Business
  Concerns
• Total Planned Subcontracting Dollars
• x100 SDVOSB goal
• (Congressional goal 3.0)
• (Included in VOSB goal)

85
Module 4 Preparing a Small Business
Subcontracting Plan 004U Small Business Goals

• For any percentage goal less than the
  Congressional goal, provide an explanation as to
  why the goal is lower.

86
Module 4 Preparing a Small Business
Subcontracting Plan 004V Small Business Goals

• The Plan must include
• A description of methods used to develop goals.
• Example How SB content was realistically
  established based on historical or Bill of
  Material sourcing analysis.
• A description of methods used to identify
  potential sources.
• Example Historical or CCR.
• A Statement whether or not offeror included
  indirect costs in establishing goals.
• Note Indirect subcontracting is useful when NO
  direct subcontracting is planned ( an allocation
  method may be used).

87
Module 4 Preparing a Small Business
Subcontracting Plan 004W Indirect Allocation

• If indirect costs (overhead) are included in the
  goal, then the allocation method must be
  explained.
• Each firm has its own method to allocate indirect
  costs to a contract.
• For Small Business purposes, one method would be
  to determine the total indirect spending for the
  last year. Analyze the spending by source to
  determine which categories the spending falls
  into.
• Once the spending is categorized, determine what
  percentage of the total indirect applies to each
  category of small business.
• Apply that percentage to planned indirect costs
  and add the resulting dollars to the planned
  direct dollar spending.

88
Module 4 Preparing a Small Business
Subcontracting Plan 004X Name of Individual
Administering

• Individual Responsible for Administrating the
  Plan
• Employee (name, title, contact information)
• who will administer the offerors subcontracting
  program
• description of duties
• Ref FAR 52.219-9 (d) (10)

89
Module 4 Preparing a Small Business
Subcontracting Plan 004Y Assurances

• Describe efforts offeror will make to assure
  small business concerns have an equitable
  opportunity to compete for subcontracts. See FAR
  52.219-9 (e) for details.FAR ref 52.219-9 (d)
  (8)

90
Module 4 Preparing a Small Business
Subcontracting Plan 004Z Assurances

• FAR 52.219-9(e) lists 5 functions that a
  contractor is expected to perform in implementing
  its plan
• Assist small firms by arranging solicitations,
  time for bid preparation, quantities,
  specifications and delivery schedules to
  facilitate participation.
• Provide adequate and timely consideration of the
  potentialities in all make-or-buy decisions.
• Counsel and discuss subcontracting opportunities.

91
Module 4 Preparing a Small Business
Subcontracting Plan 004AA Assurances

• FAR 52.219-9(e) lists 5 functions that a
  contractor is expected to perform in implementing
  its plan (cont.)
• Confirm that a subcontractor representing itself
  as a HUBZone firm is identified as certified in
  the Central Contractor Registration or by
  contacting SBA.
• Provided notice to subcontractors concerning the
  penalties and remedies for misrepresentation of
  business status for the purpose of obtaining a
  subcontract that is to be included as part of a
  goal.

92
Module 4 Preparing a Small Business
Subcontracting Plan 004AB Assurances

• Statement
• Contractor will cooperate in any studies or
  surveys as may be required.FAR ref 52.219-9
  (d) (10)
• StatementContractor will submit periodic
  reports as required ISRs SSRs (formerly SF 294
  295).FAR ref 52.219-9 (d) (10)

93
Module 4 Preparing a Small Business
Subcontracting Plan 004AC Assurances

• Statement that the offeror will include the
  following clause
• Utilization of Small Business Concerns
• (FAR 52.219-8) in all subcontracts that offer
  further subcontracting opportunities, and that
  the offeror will require all subcontractors
  (except small business concerns) that receive
  subcontracts in excess of 550,000 (1,000,000
  for construction of any public facility) to adopt
  a subcontracting plan that complies with the
  requirements of this clause.

94
Module 4 Preparing a Small Business
Subcontracting Plan 004AD Records

• FAR 52.219-9(d)(11) lists 6 specific records that
  the contractor must agree to maintain
• -- Source lists, guides and other data
  identifying small business concerns.
• -- Organizations contacted to locate small
  business concerns.

95
Module 4 Preparing a Small Business
Subcontracting Plan 004AE Records (cont.)

• Were firms in each of the small business
  categories solicited?
• If not, Why not?
• AND,
• if applicable, why the award was not made

96
Module 4 Preparing a Small Business
Subcontracting Plan 004AF Records (cont.)

• Outreach efforts to contact trade associations,
  business development organizations, conferences
  and trade fairs.
• Records of internal guidance and encouragement to
  buyers through workshops, seminars, training,
  etc. and monitoring performance to evaluate
  program compliance.
• On a contract-by-contract basis, records to
  support award data including the name, address
  and business size of each subcontractor.

97
Module 4 Preparing a Small Business
Subcontracting Plan 004AG Participation Plans

• Some contracts may require a Small Business
  Participation Plan
• (DFARS 215.304)
• The contracting officer shall evaluate the extent
  to which offerors identify and commit to small
  business and Historically Black Colleges
  Universities and Minority Institutions in the
  performance of the contract, whether as a joint
  venture, teaming arrangement, or
  subcontractor.(A) Evaluation factors may
  include
• The extent to which such firms are specifically
  identified in proposals.
• The extent of commitment to use such firms (for
  example, enforceable commitments are to be
  weighted more heavily than non-enforceable ones).
• The complexity and variety of the work small
  firms are to perform.
• The realism of the proposal.

98
Module 4 Preparing a Small Business
Subcontracting Plan 004AH Assurances Records
of Awards of 100,000

• Sample Matrix

99
Module 5 Small Business Assessment

• This module covers the assessment of small
  business firms in preparation for solicitations
  and source selection. A series of
  recommendations on the evaluation process are
  made to assist the user in determining the
  probability of subcontractor success. The
  information will ensure that buyers do not
  overlook the capability of small business
  entities in performing subcontracts.

100
Module 5 Small Business Assessment005A SB
Assessment

• How should small business firms be assessed and
  evaluated for prime or subcontracting
  opportunities?
• A. Gut feel
• B. Company brochures
• C. An organized assessment process
• D. An introduction at a Matchmaker event
• (check one)

• Answer C
• This Module covers
• Use of evaluation tools
• The evaluation process
• Fundamental success factors
• Technical/Business Expertise
• Integrity/Ethics/Vision
• Owner in the store
• Subjective assessment

101
Module 5 Small Business Assessment005B SB
Assessment

• 1. Use of Evaluation Tools
• The use of evaluation tools may vary from state
  to state and company to company but here are the
  basic tool types to consider.
• 2. The Evaluation Process
• Key elements that can assist in the true picture
  of a companys capability.

• Evaluation Tools
• 1. Standard business reports
• 2. Commercial evaluations
• 3. Lean Manufacturing
• 4. CCR Certifications
• 5. Not on Debarred List (EPLS)
• Evaluation Elements
• 1. Past performance
• 2. Relationships
• 3. Inspection and Pre-award Surveys
• 4. References/History
• 5. Inventory position
• 6. Financial status

102
Module 5 Small Business Assessment005C SB
Assessment

• 3. Fundamental and Critical Success Factors
• Elements that effect a firms ability to be
  successful.
• 4. Technical Expertise
• The minimum required expertise to conduct
  business and projects.

• Critical Success factors
• 1.Adequately capitalized
• 2. Drive and determination
• 3. Competitive advantage
• 4. Demand for product or service
• 5. Pricing and profit margins
• Technical Expertise Required
• 1. Marketing/Pricing
• 2. Production
• 3. Organization and management
• 4. Financial and Accounting
• 5. Quality Management
• 6. Safety and loss control

103
Module 5 Small Business Assessment005D SB
Assessment

• 5. Integrity/Ethics/Vision
• The foundation of any organization is the ethical
  basis of the operation.
• 6. Expertise
• The basis for the firms ability to perform any
  given task.

• Integrity/Ethics/Vision
• 1. Honesty
• 2. Vision - long term goals
• 3. People skills
• 4. Workers that share the vision
• Expertise
• 1. Are the skill sets present to do the work?
• 2. Is training a way of life?
• 3. Are there single points of failure?

104
Module 5 Small Business Assessment005E SB
Assessment

• 7. Owner in the Store
• Local management may be key to the effectiveness
  of the business unit.

• Owner in the Store
• 1. Is the owner involved on a day
• to day basis?
• 2. Does management have good
• financial relations with financing
• and professional services?
• 3. Are they profitable?
• 4. Is this a serious business for the
• owners or just a hobby?

105
Module 5 Small Business Assessment005F SB
Assessment

• 8. Subjective Assessment
• Use your experience and the information from the
  above items to help formulate the evaluation
  report.
• Are they ready to take our orderand perform
  all aspects of it well?

• Subjective Assessment
• 1. Housekeeping and general appearance.
• 2. Is this the company you would do business with
  if it was your money?
• 3. Hows the attitude of the people?
• YES or NO?

106
Module 6 Small Business Metrics and Reporting

• This Module covers the reporting required against
  the Small Business Subcontracting Plans created
  in Module 4. The ISR and SSR are reviewed in
  detail. Optional form OP312 is also discussed.
• Note The information contained herein is for
  guidance and education only and does not replace
  or supersede any Federal Acquisition Regulations
  or instructions.
• Some of the material to be presented in the
  following slides was taken from the eSRS website
  and from a TRIAD presentation given earlier this
  year.

107
Module 6 Small Business Metrics and
Reporting006A Reporting

• What is eSRS?
• eSRS is the electronic reporting system that
  replaces paper reporting on SF294s and SF295s.
• SF294 has been replaced with the ISR Individual
  Subcontracting Report.
• SF295 has been replaced with the SSR Summary
  Subcontracting Report.

108
Module 6 Small Business Metrics and
Reporting006B Reporting

• Individual Subcontracting Report/Summary
  Subcontracting Report (ISR/SSR)
• Both reports are due semi-annually for those
  contractors reporting under Individual
  Subcontracting Plans.
• ALL Contractors including those in the
  Comprehensive Subcontracting Program report
  semi-annually via the SSR (except those with
  Commercial Plans).
• Contractors under Commercial Plans report via the
  SSR annually, at the end of the Governments
  fiscal year.
• The performance data is based on the Governments
  fiscal year between October 1 through September
  30.

109
Module 6 Small Business Metrics and