How one small word change could mean many more contracting dollars for small businesses

June 3, 2014 by

Sometimes, it’s the most subtle nuances in a phrase that matter most — and for small government contractors, that appears to be the case in the federal procurement rulebook.

The Federal Acquisition Regulation, a long list of government-wide contracting rules established by the heads of several federal agencies, requires all large companies bidding on prime contracts to specify what percentage of the money awarded would flow through to small-business subcontractors.

The rule is meant to ensure that small firms “have the maximum practicable opportunity to participate in performing contracts,” according to the FAR, and to help the government meet its annual goal of awarding 35.9 percent of all subcontracting dollars to small companies. Collectively, federal agencies have missed that mark each of the last five years.

Bob Justis says one odd word on page 1,343 in the rulebook isn’t helping.

“Out of all your planned subcontracting dollars, you’re required to set aside some percentage of that for small businesses,” Justis, head of Justis Consulting, a contracting proposal development firm based in Washington, said in a recent interview. “However, it’s required to be stated as a percentage of your total subcontract dollars — not as a percentage of the total contract dollars.”

It’s a subtle but important distinction, Justis explained, because a large prime contractor can, based on that rule, pledge to commit 40 percent of its subcontracting dollars to small businesses. If the company then handles all the work itself, resulting in a total subcontracting spend of zero, it still met its small-business subcontracting goal.

After all, 40 percent of nothing is nothing.

Keep reading this article at: http://m.washingtonpost.com/business/on-small-business/how-one-small-word-change-could-mean-many-more-contracting-dollars-for-small-businesses/2014/05/22/30b4c0d8-e106-11e3-9743-bb9b59cde7b9_story.html

House bill would raise small business goals and require bundling justifications

May 29, 2014 by

The defense policy bill that cleared the House May 22 is controversial for multiple reasons, most stemming from its rejection of many of the Obama administration’s cost-cutting proposals in troop compensation, military bases and weapons systems.

But deep inside the 700-plus page National Defense Authorization Act are also provisions to open more federal contracting opportunities to small businesses, and some of these measures are troubling to major contractors.

“The contracting amendments offered to the NDAA are common-sense reforms that will provide opportunities for small companies trying to break into the federal marketplace,” said Rep. Sam Graves, R-Mo., chairman of the House Small Business Committee. “These amendments address many of the barriers created due to the federal procurement system’s bureaucracy and inefficiency.”

The Graves-sought provisions include one to increase the government-wide small business prime contracting goal from 23 percent of contracting dollars to 25 percent and establish a 40 percent subcontracting goal. Another would require that the administration publish contract bundling and consolidation justifications before issuing requests for proposals for awards under the General Services Administration-run Federal Strategic Sourcing Initiative.

keep reading this article at: http://www.govexec.com/management/2014/05/house-defense-bill-would-raise-small-business-contracting-goals/85249/

GSA to hold industry day in Atlanta for HUBZone and SDVOSB firms on May 28

May 21, 2014 by

The General Services Administration (GSA) is planning an Industry Day focusing on Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and HUBZone certified small businesses with specific NAICS codes.  The program’s planned presentations will outline contracting and potential subcontracting opportunities in GSA’s Public Buildings Service (PBS).  GSA’s Federal Acquisition Service (FAS) also will be presenting.  This event is being facilitated by GSA’s Office of Small Business Utilization.

The top NAICS codes for Region 4 PBS:

236220   Commercial and Institutional Building Construction
337214   Furniture
53              Real Estate (includes rental & leasing)
541611    Administrative, Management & General Management Consulting Services
561720   Janitorial Services
561210   Operations and Maintenance
GSA Schedule 70

AGENDA

1:00 p.m. – 1:15 p.m. Opening Comments
Chasity Ash, Small Business Technical Advisor, GSA Office of Small Business Utilization
Mildred Quinley, Director, GSA Office of Small Business Utilization (OSBU)

1:15 p.m. – 1:45 p.m.  GSA, Federal Acquisition Service
1:45 p.m. –  2:15 p.m. Services Branch, GSA Public Buildings Service
2:15 p.m. – 2:45 p.m.  Small Projects Branch, GSA Public Buildings Service
2:45 p.m. – 3:15 p.m.  Capital and Program Support Branch, GSA Public Buildings Service
3:15 p.m. – 4 :00p.m.  Wrap Up, GSA Office of Small Business Utilization

This event is open to small business firms whose primary NAICS codes are listed above.  Pre-registration is required.  Please send attendee names, company name, address, phone numbers, and email addresses to vog.asgnull@zibllams4r.  Limit two attendees per firm.  Please include your NAICS codes, CAGE code, and HUBZone certification number or SDVOSB status in the email.  Please direct all inquiries to Region 4 OSBU at (404) 331-5103 or vog.asgnull@zibllams4r.

If you are unable to attend this even, a conference line  is being set-up.  Be advised that this will be a “Listen Only Call” and all phones will be muted.  If you have any questions during the call, please email them to vog.asgnull@zibllams4r. The Conference Call-In Number is 559-546-1000 and the Access Code is 584979.

SBA isn’t ready to boast yet, but all agencies have met their small biz contracting goals

April 28, 2014 by

For the first time in seven years, all federal agencies in fiscal 2013 met their goals of steering 23 percent of contracting to small businesses, according to panelists at an industry conference on Thursday, Apr. 24, 2014.

Emily Murphy, senior counsel for the House Small Business Committee, in a discussion on legislation and the Small Business Administration’s rulemaking progress, made the disclosure and suggested that SBA is tardy in making the announcement.

Her co-panelist, Kenneth Dodds, SBA’s director of policy, planning and liaisons, said the announcement “deadline is soft,” and that the score card is still being readied.

The Small Business conference was staged by the American Council for Technology-Industry Advisory Council and is intended as an opportunity for small business contractors to interact with agency representatives on how to qualify and win more work.

Keep reading this article at: http://www.govexec.com/contracting/2014/04/sba-isnt-ready-boast-yet-all-agencies-have-met-their-small-biz-contracting-goals/83176

 

Phony small businesses pay $1.9 million to settle False Claims Act charges

April 24, 2014 by

Five California-based masonry subcontractors and two individuals paid the government nearly $1.9 million to resolve allegations that they violated the False Claims Act by misrepresenting their disadvantaged small business status in connection with military construction contracts, the Department of Justice announced on April 9, 2014.  The defendants are Frazier Masonry Corp., F-Y Inc., CTI Concrete & Masonry Inc., Masonry Technology Inc., Masonry Works Inc., Russell Frazier and Robert Yowell.

“This settlement demonstrates our continuing vigilance to ensure that those doing business with the military do so legally and honestly and that taxpayer funds are not misused,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery.  “Among the rules that military contractors and subcontractors must follow are those relating to the use and hiring of small businesses.”

The case involved contracts to construct facilities at Marine Corps bases at Camp Lejeune, N.C., and Camp Pendleton, Calif.  Under the rules of the Small Business Administration, the contracts required that a certain percentage of the work be performed by disadvantaged small businesses.  This contract requirement was intended to benefit small firms owned by women, minorities and other disadvantaged groups.

The government alleged that the defendant masonry subcontractors and their principals misrepresented to the prime contractors that they were small businesses, and that these misrepresentations caused the prime contractors to falsely certify that they had complied with the small business provisions of the contracts in claiming payment.  Russell Frazier previously pleaded guilty in related criminal proceedings to causing false statements.

The settlement resolves allegations filed in two lawsuits by Rickey Howard, a former employee of Frazier Masonry Corp., in federal court in Raleigh, N.C.  The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery.  The act also allows the government to intervene and take over the action, as it did in this case.  Howard will receive $393,383. 

The cases are captioned United States ex rel. Howard v. Harper Construction Co., et al., Case No. 7:12-CV-215-D (E.D.N.C.) and United States ex rel. Howard v. RQ Construction LLC, et al., Case No. 7:13-CV-48-D (E.D.N.C.).  The claims resolved by the settlement are allegations only; there has been no determination of liability.   More details at: http://www.justice.gov/opa/pr/2014/April/14-civ-357.html

SBA says GSA failed to assess negative impact of office supply contract on small businesses

April 17, 2014 by

The General Services Administration (GSA) failed to assess the negative impact that the Office Supplies 3 (OS3) strategic sourcing contract would have on small businesses, a Small Business Administration (SBA) analysis says.

Under the Small Business Act, agencies must determine whether new consolidated contracts would negatively affect small businesses, and the SBA is tasked with making sure the agencies execute the determination properly.

SBA undertook the analysis at the Government Accountability Office’s request after several small businesses protested to the OS3 request for proposals, saying GSA failed to look into the economic consequences of the businesses who don’t receive an OS3 award. FedNewsRadio posted a copy (pdf) April 7.

In response to the protests, GSA argued that the OS3 contract is a follow-on contract to the OS2 and not a consolidated contract. GSA also said it’s “contrary to law” to provide an economic analysis on the negative impacts a consolidate contract would have on small businesses.

SBA disagrees on both points.

Keep reading this article at: http://www.fiercegovernment.com/story/sba-says-gsa-failed-assess-negative-impact-os3-small-businesses/2014-04-08 

Business owner says soliciting government business worth the hassle

April 14, 2014 by

[Note: This article was written by Michelle Shoultz, president of Florida-based Frazier Engineering.]

For more than 20 years, Frazier Engineering had a strong commercial and municipal/county government customer base that comfortably sustained our small business.

But as the economy changed, we knew we had to change.

We decided to pursue unique certifications that would enable us to compete for federal work in a smaller competitive pool certifications such as 8(a), Disadvantaged Business Enterprise/DBE and Minority Business Enterprise/MBE).

Through the Small Business Administration 8(a) program, we were given opportunities that we would not have had before. However, if we did not already have the knowledge and manpower to support the requirements of those opportunities, our certification would only have been as good as the paper it was printed on. Our success to date has been the result of a solid team, being financially and technically sound, having a strong work history, and being actively responsive.

I’d like to share some lessons we’ve learned over time.

As a small-to-midsize, growing business leader, I would definitely recommend the time and effort involved in pursuing government contracts.

Keep reading this article at: http://www.floridatoday.com/story/money/business/2014/04/01/business-money-edge-chamber/7146529/ 

 

House committee rips SBA for unauthorized pilot programs, contracting woes

April 1, 2014 by

Members of the House Small Business Committee on Tuesday voted unanimously in favor of several revisions to the Small Business Administration’s new budget proposal, with several lawmakers criticizing the agency for committing too much money to new, unproven programs and too little to fulfilling its underlying responsibilities to small employers.

“By necessity, budgets require hard choices,” Committee Chairman Sam Graves (R-Mo.) said during a brief markup of the budget on Tuesday. “To the extent that the SBA… budget request makes hard choices, they ultimately make them in the wrong place.”

Democrats and Republicans on the panel agreed on revisions that would trim $50 million from the agency’s $710 million budget proposal that was published earlier this month as part of the president’s broader spending blueprint. The committee’s recommendations now move to the House Budget Committee for review.

SBA officials maintain that the proposal would ensure that employers have the resources they need to start and grow their businesses, and it would give the department the resources it needs to expand important exporting, capital access and other educational programs. On the agency’s blog earlier this month, Marianne Markowitz, the agency’s acting administrator, said the plan “builds on SBA’s proven track record of assisting America’s small businesses.”

Keep reading this article at: http://www.washingtonpost.com/business/on-small-business/house-committee-rips-sba-for-unauthorized-pilot-programs-contracting-woes/2014/03/26/15f84f80-b433-11e3-b899-20667de76985_story.html 

Manufacturing and supplier development conference to be held in Macon on April 14

March 19, 2014 by

On April 14, small and mid-sized manufacturers across Central Georgia will have the opportunity to grow their business.

Georgia Tech, the Georgia Small Business Development Center, and the Center of Innovation are sponsoring an all-day conference in Macon to enable manufacturers and suppliers:

  • Meet with large manufacturers that have an interest in expanding their supplier network.
  • Have discussions around sub-contract opportunities, diversifying your business, exporting, and more.

This event is free and will take place on April 14, 2014 (from 9:00 a.m. to 4:00 p.m.) at Middle Georgia State College in Macon.

For more information, please click here: Supplier Development Conference April 14 2014 Middle Georgia State College Macon

Advance registration is required.  Register at http://tinyurl.com/p9ftj9z

Gwinnett County supplier symposium is April 30

March 19, 2014 by

The Gwinnett County Purchasing Division will host the 8th Annual Supplier Symposium on April 30, 2014, from 8:30 am to 11:30 am, at the Gwinnett Justice and Administration Center.

Attendees will have the opportunity to meet buyers and contracting officers from the County’s Purchasing Division and other metro Atlanta agencies and take advantage of networking opportunities designed to create relationships.  This year the Symposium will be interactive with Department and Purchasing staff and will provide the opportunity to acquaint potential suppliers with the County’s procurement procedures.

For more information about the event and to register, visit the following link and register to “Save the Date April 30, 2014” for the Gwinnett County Purchasing Symposium:

http://www.gwinnettcounty.com/portal/gwinnett/Departments/FinancialServices/Purchasing/SupplierSymposium.

Gwinnett Purchasing Symposium