Government Contracts

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Subcontracting: Another Huge Opportunity

OK, so maybe you tried several times to get a government contract and are not satisfied with the results. Or perhaps you don't feel quite ready to be a prime contractor and wish there were a way to ease into the government contracting business and learn gradually. Or maybe you are the type of person who finds dealing directly with government structure a bit daunting, but would still like to participate in the multi-billion dollar government market.

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DoD Regional Councils

The DoD Regional Councils for Small Business Education and Advocacy are a nationwide network of small business specialists organized to promote national small business programs to include minority and disadvantaged small business concerns and minority universities and institutions.

Certificate of Competency

This program, sometimes referred to as the "second bite of the apple," comes into play when a government buyer determines that a small business is "not responsible" for a specific contract award. In other words, the buyer has determined that the business does not show certain elements of responsibility, such as capability, competency, capacity, credit, integrity, perseverance, or tenacity, for the purposes of receiving and performing that specific government contract. In such a case, the Contracting Officer is required to withhold the contract and refer action to the Small Business Administration for a possible Certificate of Competency (COC).

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Veterans Entrepreneurship Program

The Veterans Entrepreneurship and Small Business Development Act of 1999 and the Benefits Act of 2003: Procurement Program for Small Business Concerns Owned and Controlled by Service-Disabled Veterans provides for set-aside and sole-source procurement authority for service-disabled veteran-owned small business (SDVOSB) concerns.

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Other Assistance Measures

Besides the government sources already discussed, there are other assistance programs available to small businesses to help them in the acquisition process.

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Entering the Program

Mentor and Protege firms enter the program by entering into an SBA-approved written agreement outlining the Protege's needs and describing the assistance the mentor has committed to providing. The Protege's servicing district office evaluates the agreement according to the provisions contained in the regulations (13 CFR 124.520). SBA conducts annual reviews to determine the success of the mentor-Protege relationship.

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Mentor Requirements

The mentor can be a business that has graduated from the 8(a) program, a firm in the transitional stage of the program, or a small or large business. A mentor must have the capability to assist the Protege and must make a commitment for at least a year. In addition, the mentor must meet all of the following requirements:

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Protege Requirements

To participate in the program, the Protege must be in good standing in the 8(a) program and must be current with all reporting requirements. In addition, the Protege must also meet one of the following requirements:

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Eligibility and Certification

To qualify for the HUBZone program, a business must meet four requirements:

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8(a) Mentor-Protege Program

The SBA has implemented the Mentor-Protege Program (MPP) to help starting 8(a) companies learn the ropes from experienced businesses. The program is offered under SBA's 8(a) Business Development program serving disadvantaged firms.

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Benefits of HUBZone Program

There are four types of contract benefits that a HUBZone certified business can qualify for:

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Application and Certification

To start the application process, contact the local SBA district office serving your area. An SBA representative will answer general questions over the telephone. Most district offices have regularly scheduled 8(a) orientation workshops designed to explain the 8(a) Business Development Program, the eligibility requirements and to review various SBA forms. An application will be provided at the informational session, along with filing instructions.

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Women-Owned Small Businesses

Federal regulations require that women-owned small businesses (WOSB) have the maximum practicable opportunity to participate in performing contracts awarded by any federal agency. The regulations direct federal agencies to reach out to women-owned small businesses and make sure that they understand the process and are offered contract opportunities. As of this writing, there were no specific preference programs in this area and no requirements for formal certification. The system still recognizes self-certification.

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HUBZone Program

The Historically Underutilized Business Zone (HUBZone) Empowerment Contracting program, which was enacted into law as part of the Small Business Reauthorization Act of 1997, provides federal contracting assistance and opportunities for qualified small businesses located in distressed historically underutilized business zones, known as "HUBZones."

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8(a) Business Development Program

The 8(a) Business Development Program, like the Small Disadvantaged Business Certification Program described above, is administered by SBA and designed to help small disadvantaged businesses compete in the American economy.

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Eligibility Requirements

To qualify for the 8(a) program, a small business must be owned and controlled by a socially and economically disadvantaged individual; in other words, a disadvantaged owner must be involved on a full-time basis. Certain minority groups are presumed to qualify as socially disadvantaged and include African Americans, Hispanic Americans, Asian Pacific Americans, and Subcontinent Asian Americans.

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Benefits of 8(a) Program

In addition to the on-going personal counseling services, the program offers specialized business training, marketing assistance, and high-level executive development provided by the SBA and its resource partners. Businesses may also be eligible for assistance in obtaining access to surplus government property and supplies, SBA-guaranteed loans and bonding assistance.

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Help Getting Certified

You can work directly with SBA in completing your application and providing the required documentation, but if there is something wrong with your paperwork, you will be denied certification and given 45 days in which to respond to the rejection. If you don't satisfactorily address the deficiencies within that time frame, you will have to wait a year to reapply.

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Eligibility Requirements

Any small business wanting to take advantage of the SDB Program must meet specific social, economic, ownership, and control eligibility criteria. To qualify as a Small Disadvantaged Business (SDB), the business must be a small business concern that is at least 51 percent owned and controlled by one or more individuals who are both socially and economically disadvantaged.

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Application and Certification for 8a

Prior to applying for certification, the SBA highly recommends that you take their online training course on SBA certification eligibility available. Look under the topic "Government Contracting" and click on "Certification Programs." It would be nice to be certain you meet the criteria before investing your time.

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DoD SBIR/STTR Fast Track

The "Fast Track" is a special program for the Department of Defense SBIR and STTP programs that offers a significantly higher chance of SBIR/STTR award, and continuous funding, to small companies that can attract outside investors. Small companies retain the intellectual property rights to technologies that they develop under these programs. Funding is awarded competitively, but the process is more streamlined and easier.

Benefits of SDB Program

If you can qualify as a small disadvantaged business (SDB), then you are entitled to participate in special preference programs aimed at encouraging participation by SDBs in government business.

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SDB Certification Program

The Small Disadvantaged Business Program (SDB Program) is administered by SBA and designed to help small disadvantaged businesses compete in the American economy by providing specific advantages and benefits in the federal procurement process. It is now a self-certifying check box within CCR.

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Other SBA Programs

The Small Business Administration administers several programs that are designed to help small businesses market to both large business and government procurements:

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Small Business Technical Transfer Program

Although similar in structure to SBIR, the Small Business Technical Transfer Program (STTR) funds cooperative R projects involving a small business and a non-profit research institution (i.e., a university, federally funded R center, or non-profit research institution). Established by Congress in 1992, the purpose of STTR was to create an effective vehicle for moving ideas from the nation's research institutions to the market, where they can benefit both private sector and government customers. The government SBIR and STTR programs were funded for $2.5 billion in Fiscal Year 2011.