Lawmaker pushes to boost small business contract work
February 3, 2012 by cs
House Small Business Committee Chairman Sam Graves, R-Mo., on Tuesday (Jan. 31, 2012) introduced legislation to encourage a higher percentage of federal contracts to go to small business, along with a separate bill to elevate agency Offices of Small and Disadvantaged Business Utilization.
Graves’ GET Small Business Contracting Act would raise the small business prime contracting goal from the current 23 percent to 25 percent, while withholding bonuses from agency managers who fail to meet the goal. He estimates the 2 percent increase would bring $11 billion in new federal contracts to small businesses. The government spent about $535 billion in contracting in fiscal 2010, according to the Office of Management and Budget.
“Because the federal government spends half a trillion dollars on contracted goods and services, we owe it to the taxpayers to make sure their money is used wisely and efficiently,” Graves said in a statement. “Government contracting offers a unique opportunity to invest in small businesses while also stimulating our economy, considering small businesses create the majority of jobs — 65 percent over the last 17 years. Small businesses have proved time and time again that they can perform a service or produce goods for the government cheaper and often quicker than their larger counterparts; however, various bureaucratic impediments remain for small contractors.”
The Obama administration missed its small business contracting goal by 3 percent in 2010, according to Graves. His bill also would seek to use more small businesses as subcontractors, raising the goal from the current 35 percent of subcontracted dollars to 40 percent.
Graves is also offering a second bill, the Small Business Advocate Act, that would promote greater use of contractors, prime and sub, at each agency’s Office of Small and Disadvantaged Business Utilization.
OSDBUs were created in 1978 to reserve some federal contracts for for-profit small business concerns in which socially and economically disadvantaged individuals own at least a 51 percent interest and manage and control daily business operations. Their director’s place in the hierarchy has varied by agency.
The Graves bill would elevate those directors to senior acquisition leaders and prohibit them from holding any other position “so they can concentrate on their advocacy responsibilities,” a statement said. “This legislation makes it easier for the OSDBU to advocate for small business contracts, focus on acquisition assistance, and fight insourcing and unjustified contract bundling.”
This bill would require directors to be GS-15s or members of the Senior Executive Service and their performance reviews to be done by agency heads. “Acting as the OSDBU director,” Graves said, “is often simply another assigned duty for a senior official that lacks the authority to challenge decisions made by the chief acquisition officer or senior procurement executive.”
In April 2010, President Obama set up a task force to boost small business contracting opportunities.
The Graves bills come on a day when President Obama is releasing a package of proposed tax breaks for small businesses, including elimination of taxes on capital gains for investments in small businesses.
– by Charles S. Clark, Government Executive, January 31, 2012, at http://www.govexec.com/contracting/2012/01/lawmaker-pushes-boost-contractor-work/41045
National OSDBU conference scheduled in DC on Apr. 19th
February 1, 2012 by cs
The OSDBU (Office of Small and Disadvantaged Business Utilization) Procurement Conference is a national conference fostering business partnerships between the Federal Government, its prime contractors, and small, minority, service-disabled veteran-owned, veteran-owned, HUBZone, and women-owned businesses. Now in its 22nd year, the OSDBU Directors Conference has become the premier event for small business throughout the United States.
This year the event is scheduled on Apr. 19, 2012, and the location is the Walter E. Washington Convention Center in Washington, DC.
This unique one-day event annually attracts more than 3,000 people including:
- Over 500 government attendees representing 50 Federal, State and local agencies
- Prime Contractors with teaming and mentor-protégé opportunities
- Hundreds of small businesses, minority-owned businesses, women-owned businesses, Service-Disabled Veteran Owned Businesses, 8a businesses and HUB-Zone businesses
Participating firms will have the benefit of marketing their products and services to procurement representatives and small business specialists from federal agencies. Companies may choose to set up an exhibit table to showcase their capabilities or simply come as an attendee. The conference also includes educational conference sessions, procurement matchmaking, and a dynamic exhibitor showcase.
For more information or to register see; http://www.fbcinc.com/e/osdbu/default.aspx.
Congress could turn heat up on small-biz goals
January 27, 2012 by cs
Under a new bill, a department that misses a set goal to contract with small businesses could lose 10 percent of its budget as a penalty.
Rep. Bill Owens (D-N.Y.) introduced the Small Business Growth and Federal Accountability Act (H.R. 3779) Jan. 18, saying the government’s annual 23-percent small-business contracting goal is regularly ignored by agencies.
He said his bill would “ensure that Washington lives up to its promise to foster an environment of success for small businesses.”
Owens, a member of the Small Business Committee, said federal agencies typically fail to meet their small-business contracting goals and they currently face no penalties for the shortfalls.
Under his bill, if an agency misses the set small-business contracting goal, their budget would decrease by 10 percent in the following fiscal year, with that percentage of funds going to pay down national debt.
“It is critical that federal agencies be held accountable,” Owens said.
The bill also would offer agencies more authority to give “preference” to small companies when awarding contracts. The term “preference” is not defined in the bill.
The bill has been sent to the Small Business Committee for consideration.
It is true that the government struggles to meet its annual 23-percent contracting goal. In the most recent scorecard from the Small Business Administration, the government reached 22.7 percent in fiscal 2010.
That year, agencies awarded a total of nearly $100 billion in contracts to small businesses. However, it was an increase in prime contract dollars going to small businesses for the second year following four years of decline.
SBA gave the government a B on the scorecard for its efforts in contracting with specific types of small businesses, such as those owned by a service-disabled veteran or located in an economically depressed area.
Owens’ bill could have several repercussions though.
In a post on the Government Contracts Legal Forum blog, Tiffany Wynn, an associate at the Crowell and Moring law firm, said agencies may decide to reduce their contracting goals to avoid the 10-percent penalty.
As a result of the bill, officials would have to weigh the penalties for missing the small-business goal against awarding a contract to a large company if the agency could save money.
Wynn also questioned whether this legislation would lead to penalties on companies that don’t meet their own annual small business subcontracting goals.
About the Author: Matthew Weigelt is a senior writer covering acquisition and procurement for Federal Computer Week. This article appeared Jan. 25, 2012 at http://washingtontechnology.com/articles/2012/01/25/small-business-goal-reduced-budget-penalty.aspx?s=wtdaily_260112.
White House to launch online resource for small businesses
January 23, 2012 by cs
The White House will be unveiling a new website that will act as one-stop virtual shop to provide information and resources for small businesses and help owners succeed in their entrepreneurial endeavors.
Federal CIO Steven VanRoekel made the announcement Jan. 13 when delivering a speech about federal mobility at a luncheon hosted by the Association for Federal Information Resources Management.
BusinessUSA.gov, which VanRoekel said will launch in “a few weeks,” pools information and services from the government into one integrated network for U.S. business owners and entrepreneurs.
The main focus of the website is to help U.S. business succeed and grow, VanRoekel said. The website will provide entrepreneurs with relevant information from one consolidated source instead of having them navigate through several different options, he said.
About the Author: Camille Tuutti is a staff writer covering the federal workforce for Federal Computer Week. This article appeared Jan. 13, 2012 at http://washingtontechnology.com/articles/2012/01/13/white-house-to-launch-online-resource-for-small-businesses.aspx?s=wtdaily_170112
3-day course on federal small business program offered at Georgia Tech
January 6, 2012 by cs
The federal Small Business Program is the subject of a new course now being offered by The Contracting Education Academy at Georgia Tech.
The course, designated as CON 260B by the Defense Acquisition University, provides an in-depth review of the Department of Defense’s Small Business Program. This course delves into the intricacies of the associated programs and initiatives that support the Small Business Program and the DoD’s efforts to improve small business participation in prime contracting and subcontracting. Particular attention is focused on the Small Business Managers’ role as a vital member of the acquisition team.
The course is scheduled to be offered several times in 2012 on the Georgia Tech campus in midtown Atlanta. Georgia Tech is an approved Defense Acquisition University (DAU) equivalency provider and offers DAU-equivalent training that will satisfy the FAC-C and DAWIA certification programs. This class is not limited to government employees; individuals representing businesses who wish to gain insights into the federal procurement process are welcome to register and attend.
How You Will Benefit by Attending
Participants will learn how to do the following by participating in this course:
- Conduct market research to the extent needed to maximize small business
participation at the prime and subcontracting levels. - Select the appropriate acquisition strategy that maximizes small business
participation either at the prime contract or subcontracting levels. - Describe the SBA’s role in the award decision making process.
- Implement the subcontracting requirements.
- Describe how to provide assistance to small businesses in finding government
contracting and sub-contracting opportunities
Course Materials
A notebook containing the PowerPoint slides, assessment instruments, exercises and supplemental information will be provided to each registered participant.
CEU’s, Cost and Registration
Course participants will earn 2.1 Continuing Education Units (CEUs) from Georgia Tech and be eligible for Continuous Learning Points (CLPs) from DAU. The course fee is $750. The course schedule and registration information is available on-line at http://www.pe.gatech.edu/courses/con-260b-small-business-programs.
Who Should Attend
- State, local, federal contracting officials
- Small business advocacy associations
- Prime contractors with AND without government contracts
- Corporate supplier diversity professionals
- Small, mid-size, and large businesses
- Anyone working for a federal agency who interacts with/supports small
businesses
Course Agenda
Day One
- Introduction
- Administrative Information
- Course Overview
- Market Research
Day Two
- Acquisition Strategy
- SBA’s Role
Day Three
- Subcontracting Plan
- Conducting Outreach
Questions?
Feel free to contact The Academy’s program manager Rhonda Lynch at info@ContractingAcademy.gatech.edu.
Veteran entrepreneur training symposium scheduled for June 11-14 in Reno
January 6, 2012 by cs
The National Veteran Small Business Coalition (NVSBC) is proud to announce the 2012 Veteran Entrepreneur Training Symposium (VETS2012) in Reno, Nevada, June 11-14, 2012.
VETS2012 brings government agencies, industry leaders and veteran entrepreneurs together in an intimate forum to discuss issues affecting veteran-owned companies.
Besides informative sessions and prominent speakers, the event will feature an Exhibit Hall for companies to display their products and services, as well as one-on-one Business Matchmaking Sessions. Throughout the event, attendees are encouraged to strike up conversations with experts in scheduled sessions and beyond. Through connecting with federal agencies, prime contractors, small and large companies from all across the country are able to forge the relationships needed to help them grow.
NCSBC’s Scott Denniston, former director of the U.S. Dept. of Veterans Affairs’ small business office, promises even more opportunities, information, and key players in this upcoming event than at the inaugural event held in Reno last year.
For further information, you may phone (571) 297-4039, or email InfoVETS@aetherquest.com, or visit the conference website at www.vetereantrainingsymposium.com.
USAID pushes for more competition, less onerous regulations
January 5, 2012 by cs
The U.S. Agency for International Development is seeking to increase competition for its contracts and make its programs more accessible to small and disadvantaged businesses as part of a larger agency-wide reform effort.
Concerned that a reduction in contracting staff has led to an increased reliance on a fairly small group of contractors and nongovernmental organizations, USAID has made changes to its procurement program a key part of its reform.
In its plan for change, the agency says it is “falling short” in accessing the full range of talent in both U.S. businesses and organizations and those in developing countries.
USAID has started by promoting more competition within its programs, particularly focusing on setting aside more awards for small and disadvantaged businesses.
The agency has established a review board that looks at ways to make large contracts more accessible to small businesses, such as by splitting them into smaller pieces, said Aman S. Djahanbani, USAID’s chief acquisition officer.
“Broadening our partner base … just makes good business sense, and it furthers sustainable development,” Djahanbani said.
At the same time, the agency is trying to work with more of the organizations and companies that are local to a given country. Littleton Tazewell, senior adviser to USAID’s general counsel for implementation and procurement reform, said the agency often relies on intermediaries — such as U.S.-based contractors or international nongovernmental organizations — to work with local bodies.
“The idea here is to increase our direct engagement with local organizations,” said Tazewell, who said a deeper understanding of local
organizations will help USAID craft better solicitations.
The agency also is seeking to make its regulations and rules less burdensome to encourage more companies and organizations to compete for contracts and grants.
USAID acknowledged that some larger contractors or NGOs may see reduced work as a result of its procurement reform moves.
“Our partners need to realize that there is more competition,” said Djahanbani. “However, they definitely have a role to play — maybe a different role.”
For instance, he said, in some cases a local organization could serve as the prime contractor while an international or U.S.-based organization could function as a subcontractor.
Tazewell said USAID has engaged the companies and organizations it frequently uses as it reforms in an effort to identify their particular problems.
Still, USAID is only about 18 months into what it expects to be a five-year process, Tazewell said.
“We’re going to trip and make some mistakes along the way, but our expectation is at the end of that five-year process we’ll be a much better organization,” he said. “We will have a structure [and a] regulatory framework that allows for a broadened partner base that’s both local- and small business-oriented.”
– by Marjorie Censer – The Washington Post – published December 25, 2011 at
http://www.washingtonpost.com/business/capitalbusiness/usaid-pushes-for-more-competition-less-onerous-regulations/2011/11/28/gIQA1chUHP_story.html.
Contractors get insourcing warning under defense bill
January 4, 2012 by cs
As Defense Department officials consider insourcing work, Congress wants them to notify contractors of their decision to bring the work inhouse.
The fiscal 2012 National Defense Authorization Act includes a provision requiring DOD to notify companies before insourcing particular jobs. Congress wants officials to give contractors a “timely notification” of their decision.
One expert said the timely notification is a step forward in informing companies that they are losing their contracts. But the provision’s usefulness
depends on DOD’s interpretation of the provision.
“How ‘timely’ is defined determines whether this is of any value or not,” said Robert Burton, former deputy OFPP administrator and now partner at the
Venable law firm.
Having worked with small contracting companies that lose their business because of insourcing, a timely notification may be a six-month heads-up. Still
he said the small businesses often struggle to stay afloat after a decision to insource work.
For the best option, Burton said government officials should talk with companies about the effect of insourcing on their future. Officials should then
consider it as a factor in their decision.
Also in the bill, the provision would add slightly to the blurry term of “critical function.”
A critical function is a duty “necessary to maintain sufficient government expertise and technical capabilities” and “entails operational risk associated
with contractor performance.”
The Office of Federal Procurement Policy this year defined a critical function as work that’s “necessary to the agency being able to effectively
perform and maintain control of its mission and operations.”
Congress also is telling defense officials to give special consideration in taking back these critical functions, as well as acquisition workforce functions
and even work that DOD employees have done at some point during the past decade.
Officials would need to test whether to insource certain functions based on guidance in a memo on comparing the estimated costs of civilian, military and
contractor support. Officials would also have to decide if insourcing a function would be either 10 percent lower or $10 million less expensive than the
contractor’s cost. The choice would not apply to inherently governmental functions, which should only be done by federal employees.
The authorization bill cleared Congress Dec. 15, and now awaits President Barack Obama’s signature or his veto.
About the Author: Matthew Weigelt is a senior writer covering acquisition and procurement for Federal Computer Week. This article appeared Dec.
22, 2011 at http://washingtontechnology.com/articles/2011/12/22/ndaa-timely-notification-insourcing.aspx.
White House urges agencies to remember small businesses for micro purchases
December 30, 2011 by cs
Continuing its push to support small businesses, the White House is reminding agency financial and acquisition officers not to forget small firms when they make credit card micro purchases of $3,000 or less, which are not affected by larger scale required set-asides.
A Dec. 19 letter from Dan Gordon, the departing administrator of the Office of Federal Procurement Policy, and Danny Werfel, controller, said the Office of Management and Budget and the Small Business Administration are “working with agencies to improve access by small businesses to the federal marketplace and to increase communications to small businesses about federal business opportunities.” Agency purchase cardholders “should consider small businesses, to the maximum extent practicable, when making micro purchases.”
According to a private study required by Congress, agencies used the General Services Administration’s SmartPay® purchase cards in fiscal 2010 for $6 billion in transactions with small businesses at or below the micro purchase threshold. This amounts to about 30 percent of the total annual government purchase card spending, the letter stated.
The White House asked agencies within six months to “adjust cardholder training as needed to help ensure cardholders continue to place a reasonable proportion of micro purchases with small businesses, consistent with agency mission support needs.”
– by Charles S. Clark – Government Executive – December 22, 2011 – http://www.govexec.com/story_page.cfm?articleid=49632&dcn=e_gvet.
Professional ed contracting courses save time and money
December 29, 2011 by cs
Beginning in February 2012, Georgia Tech is offering a series of professional education courses that allow you to better manage both your time and your budget.
Featured, for the first time anywhere, is CON 090-Federal Acquisition Regulation (FAR) Fundamentals, packaged in four modules.
Georgia Tech’s Contracting Education Academy has split-up what is normally offered as a four-week Defense Acquisition University course into four, one-week classes. That means you now have multiple opportunities to complete the entire class throughout the year without the challenge of being away from your job for a month straight.
In CON 090, the Federal Acquisition Regulation – also known as “the Bible” of federal acquisition – is broken down into bite-sized pieces, making all the detail more digestible.
Plus, if you register for all four modules of CON 090 at one time, you’ll receive a discount of $300. (Please contact Info@ContractingAcademy.gatech.edu or call 855-812-5309 for details on this discount.)
Other courses featured in 2012 are the three-day CON 260B-Small Business Programs and CON 120-Mission Focused Contracting. See http://www.pe.gatech.edu/Subjects/Acquisition-Government-Contracting for details on all courses, including cost and registration.
During 2011, contracting officials and contractors alike attended these two courses. Both “sides of the table” gained new insights into the government acquisition process.
The 2012 course calendar can be viewed at http://contractingacademy.gatech.edu/training. Courses are expected to be added throughout the year. Coming soon, for instance, are COR 206-Contracting Officer Representatives in the Contingency Contracting Environment and COR 222-Contracting Officer’s Representative Course.