Requirements To Do Business With Small

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• Requirements To Do Business With Small Other
  Socioeconomic Business Concerns

Leadership Maine
Greg Harrison September 2005
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Outline

• Premise
• DoD Small Business Requirements
• SBA and DoD Agencies Descriptions
• Next Steps

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Premise

• A cornerstone premise is that small diverse
  business concerns must flourish in Maine if we
  expect to increase the immigration of minority
  persons to our State
• Creation of laws to require a percentage of state
  spending to be spent with small business with
  socioeconomic classifications similar to existing
  federal laws would create a base for diverse
  cultures to flourish

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Background On DoD Small Business What is
Required?

• All Government solicitations require that defense
  contractors have small business programs that
  maximize participation. Public Law 95-507
  requires "maximum practicable opportunities be
  provided to small business
• All Federal contracts in excess of 500,000
  require a formal subcontracting plan containing
  goals and bi-annual reporting for use of small
  business.
• FAR 52-219.8, 52-219.9 and 52.21.11 requirements
  implement DoD Policy in our prime contracts .
• Government solicitations focus on small business
  performance is increasing
• Evaluation criteria for source selection
• Annual ratings of defense contractors performed
  by DoD

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What is required?- Subcontracting Plan

• Types of Subcontracting Plans are
• Prime Contract Plans
• Master Plans
• Commercial Plans
• Comprehensive Corporate Plans

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What is required?- Program Rating by DoD

• Based on the annual DoD evaluation a company is
  provided one of the following ratings
• Outstanding Exceeded all negotiated goals or
  exceeded at least one goal and met all of the
  others.
• 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.
• 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.
• Marginal Deficient in meeting key
  subcontracting plan elements.
• Unsatisfactory Noncompliant with the
  contractual requirements of DFARS and FAR.

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What is required?- DoD Goals

• Small Business (SB) 23
• Small Disadvantaged Business (SDB) 5
• Women-Owned SB 5
• Service-Disabled Veteran SB 3
• Historical Underutilized Business Zone 3
• Veteran-Owned SB Best Effort

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Government Agencies That Monitor the DoD Small
Business SC Program
Agency
Role
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Government Agencies That Monitor the DoD Small
Business SC Program
Agency
Role
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Action

• Based on the Federal laws construct similar
  requirements that can be converted to laws at
  the State level. The basis of the requirements
  will be to increase the existence of small
  socioeconomic business concerns.
• Determine and recommend what State agencies would
  best suited to administer such a Program.