SBA proposes revisions to employee-based size standards for manufacturing and other industry sectors

September 11, 2014 by

The U.S. Small Business Administration (SBA) has published two proposed rules to revise small business size standards in North American Industry Classification System (NAICS) Sector 31-33 (Manufacturing) and industries with employee-based size standards that are not a part of NAICS Sector 31-33, Sector 42 (Wholesale Trade), and Sector 44-45 (Retail Trade).  The proposed rules were published in the Federal Register on Sept. 10, 2014.

As part of its comprehensive size standards review required by the Small Business Jobs Act of 2010, the SBA evaluated employee-based size standards for all 364 industries in NAICS Sector 31-33 and 57 industries and five exceptions that are not in NAICS Sectors 31-33, 42, or 44‑45 to determine whether they should be retained or revised.

In the first rule, SBA proposes to increase size standards for 209 industries in Sector 31-33.  The SBA also proposes to increase the refining capacity component of the Petroleum Refiners (NAICS 324110) size standard to 200,000 barrels per calendar day total capacity for businesses that are primarily engaged in petroleum refining.  The proposed rule also eliminates the requirement that 90 percent of a refiner’s output being delivered should be refined by the bidder.

In the second rule, SBA proposes to increase the employee-based size standards for 30 industries and three exceptions and decrease them for three industries that are not in Sectors 31-33, 42, or 44‑45.

Additionally, SBA proposes to remove the Information Technology Value Added Resellers exception under NAICS 541519 (Other Computer Related Services) together with its 150-employee-based size standard.  Similarly, SBA also proposes to eliminate the Offshore Marine Air Transportation Services exception under NAICS 481211 and 481212 and Offshore Marine Services exception under NAICS Subsector 483 and their $30.5 million receipts based size standard.  Accordingly, the second proposed rule also removes Footnotes 15 and 18 from the table of size standards.

If the changes in the two rules are adopted as proposed, nearly 1,650 more firms will become small and eligible for federal procurement and SBA’s loan programs.

Comments can be submitted on the proposed rules on or before November 10, 2014 at www.regulations.gov, identified by the following RIN numbers: (RIN 3245-AG50 for Sector 31‑33) and (RIN 3245-AG51 for employee-based size standards for industries that are not part of Sector 31-33, Sector 42 or Sector 44-45).  You may also mail comments to Khem R. Sharma, Chief, Office of Size Standards, 409 3rd St., SW, Mail Code 6530, Washington, DC  20416.

For size standards review, SBA takes into account the structural characteristics of individual industries, including average firm size, startup cost and entry barriers, the degree of competition, and small business share of federal government contracting dollars.  This ensures that small business size definitions reflect current economic conditions and federal marketplace in those industries.

An SBA-issued White Paper entitled, “Size Standards Methodology,” which explains how SBA establishes, reviews and modifies its receipts-based and employee-based small business size standards, can be viewed at http://www.sba.gov/size.

For more information about SBA’s revisions to its small business size standards for various industry sectors, click on “What’s New with Size Standards” on SBA’s Web site at http://www.sba.gov/size.

Family relationship, revenues and subcontracts caused affiliation, says SBA

September 5, 2014 by

A small business was affiliated with companies owned by the business owner’s father and siblings, based on the family relationship and the companies’ ongoing history of doing business together.

In a recent size appeal decision, the SBA Office of Hearings and Appeals held that the small business had not successfully rebutted the regulatory presumption that companies owned by close family members are affiliated, because the small business had earned substantial revenues from the alleged affiliates, and intended to issue a subcontract to both affiliates with respect to the procurement at issue.

SBA OHA’s decision in Size Appeal of Industrial Support Service, LLC, SBA No. SIZ-5576 (2014) involved an Army Corps of Engineers solicitation seeking a contractor to provide certain repair work.  The solicitation was issued as a small business set-aside under NAICS code 238290 (Other Building Equipment Contractors).

Keep reading this article at: http://smallgovcon.com/sbaohadecisions/family-relationship-plus-revenues-subcontracts-caused-affiliation-says-sba-oha/

GSA to host multi-agency small business event in Warner Robins on Oct. 29th

September 1, 2014 by

The U.S. General Services Administration (GSA) Southeast Sunbelt Region, the Centers for Disease Control and Prevention (CDC), Department of Housing and Urban Development (HUD), Federal GSA logoEmergency Management Agency (FEMA), Dobbins Air Reserve Base, Warner Robins Air Logistics Complex (WRALC), and the Marine Corp Logistics Base Albany will host a Multi-Agency Small Business Industry Day on Wednesday, October 29, 2014, at the Museum of Aviation (Eagle Building) at Robins Air Force Base.

This event will provide small business concerns the opportunity to hear from the agencies’ Heads of Contracting Activity/Directors of Contracting. Small business concerns will also have the opportunity to receive valuable training from the Small Business Administration (SBA) and discuss forecast opportunities with the various federal agencies during match-making sessions.

There is no cost to attend this event but pre-registration is required; limited space is available. No onsite registration or walk-ins will be allowed. Two (2) contractor representatives max per company are allowed to register. Once maximum attendance capacity is reached, registration will be closed.

To pre-register for the event, go to www.gsa.gov/events.

The Museum of Aviation is handicapped accessible and offers limited FREE parking.

Date: Wednesday, October 29, 2014

Time: 9:00 AM – 4:00 PM

For additional information: Please contact Cindy Kirvin at: vog.asgnull@nivrik.ydnic or call (404) 331-9720.

University System of Georgia’s annual procurement expo scheduled for Oct. 24 in Macon

August 26, 2014 by

Mark your calendar.

The University System of Georgia’s annual procurement conference is scheduled to be held on Friday, Oct. 24, 2014.  This year’s event will be held on the campus of Middle Georgia State College in Macon, GA.

Registration and further details are not available at this time.  Keep watching the GTPAC website for further announcements.

USG Procurement Expo 2014

How many big contractors are actually posing as small businesses?

August 25, 2014 by

In the sixth of its annual studies, a small business advocacy group has again blasted the government for allegedly awarding contracts to major corporations when policy intends for them to go to legitimate small businesses. The Small Business Administration offered other possible explanations for the apparent discrepancies.

The Petaluma, Calif.-based American Small Business League’s new study of fiscal 2013 procurement data concluded that of the top 100 companies receiving the highest-valued small business federal contracts, “79 were large companies that exceeded the SBA’s small business size standards, five were anomalous and 16 were legitimate small businesses.”

The group’s annual studies also show that the number of top-100 contracting companies that are large firms has risen steadily, from 60 in fiscal 2009 to 84 in fiscal 2013.

The large corporations that received the contracts in question in fiscal 2013 included Lockheed Martin Corp., General Dynamics Corp., Boeing Co., General Electric, Oracle Corp., Apple Inc., Verizon, Bank of America Corp., Citigroup Inc., PepsiCo, Comcast Corp., Intel Corp., John Deere Co. and many more, said the league, which published brief company-by-company profiles.

Keep reading this article at: http://www.govexec.com/contracting/2014/08/how-many-big-contractors-are-actually-posing-small-businesses/91694 

GSA awards 95 percent of OS3 contracts

August 18, 2014 by

The General Services Administration (GSA) has awarded 95 percent of its contracts for the third iteration of the Federal Strategic Sourcing Initiative for Office Supplies, an Aug. 12 GSA statement says.

GSA issued 21 FSSI OS3 contracts, with 20 of them going to small businesses and there’s potential for more small business contracts pending further review, the emailed statement says.

FSSI OS3 is meant to save the federal government money on everyday office supplies like pens, paper and printing items by providing agencies with a list of vendors with already negotiated prices.

Keep reading this article at: http://www.fiercegovernment.com/story/gsa-awards-95-percent-os3-contracts/2014-08-12

Large business’s unmet subcontracting goals result In “marginal” score

August 11, 2014 by

A large business was appropriately awarded a “Marginal” score for small business participation based on the large business’s history of failing to meet its small business subcontracting goals.

In a recent bid protest decision, the GAO held that the procuring agency properly assigned the large business a low score based on the large business’s history of unmet subcontracting goals, even though the large business apparently pledged to subcontract a significant amount of work to small businesses under the solicitation in question.

The GAO’s decision in Cajun Constructors, Inc., B-409685 (July 15, 2014) involved an Army Corps of Engineers solicitation for the construction of a concrete-covered canal in Louisiana.  The solicitation was issued in an unrestricted basis.  Award was to be made to the offeror presenting the best value to the government, considering price and four non-price factors: past performance, technical approach, key personnel and project management plan, and small business participation plan.

Keep reading this article at: http://smallgovcon.com/gaobidprotests/large-businesss-unmet-subcontracting-goals-result-in-marginal-score/ 

House bill seeks to reform federal IT acquisition, expand competition to smaller firms

August 8, 2014 by

A new bipartisan House bill seeks to reform how the federal government buys IT goods and services and also make it easier for smaller firms to compete for federal contracts.

The Reforming Federal Procurement of Information Technology, or RFP-IT Act was introduced July 30, 2014.   The legislation proposes to enhance competition for government IT contracts, promote innovation, and strengthen accountability by creating a new government office.

According to its sponsors, the bill will improve competition by expanding the number of contracts using a simplified process that makes it easier for small and innovative firms to bid. The process will shorten lead times on contracts, cut administrative costs, and create a larger pool of bidders for federal contracts, the bill’s authors claim.

Keep reading this article at: http://www.fiercegovernmentit.com/story/house-bill-seeks-reform-federal-it-acquisition-expand-competition-smaller-f/2014-07-31

SBA announces federal government met its small business goal in FY13

August 4, 2014 by

The U.S. Small Business Administration (SBA) announced on August 1, 2014 that the federal government reached its small business federal contracting goal for the first time in eight years, awarding 23.39% in federal contracts to small businesses totaling $83.1 billion of eligible contracting dollars.  The government’s annual small business contracting goal is 23%.

The SBA’s report is for FY13, or the 12-month period ending September 30, 2013.

“When we hit our small business procurement target, it’s a win.  Small businesses get the revenue they need to grow and create jobs, and the federal government gets the chance to work with some of the most responsive, innovative and nimble companies in the U.S. while the economy grows,” said SBA Administrator Maria Contreras-Sweet.

Performance in four out of five of the small business prime contracting categories showed significant improvement, with increases in performance against statutory goals. While contract dollars have gone down in all categories as a result of overall reduced federal spending, small businesses still secured a greater percentage of the contracting dollars.

FY13 Government-Wide Small Business Contracting - Goals and Actual

Alongside the announcement, the SBA released its FY 2013 Small Business Procurement Scorecard, which provides an assessment of each federal agency’s yearly small business contracting achievement against its goal.   Overall, the federal government received an “A” on SBA’s government-wide Scorecard.   Twenty individual agencies receiving an A or A+.   Three agencies were given a B.  One agency, the Department of Energy, received a failing grade, awarding only 7% of its contracts to small businesses in FY13.

The individual agency scorecards released by the SBA, as well as a detailed explanation of the scorecard methodology, is available online at http://go.usa.gov/Nxxd.

Strategic sourcing’s subtle effects on small business

July 29, 2014 by

Do federal strategic sourcing initiatives put price ahead of good business relationships — and hurt both small businesses and the agencies seeking their services in the process?

“The strategic sourcing that Wal-Mart does builds long-term relationships with suppliers,” said Emily Murphy, senior counsel of the House Committee on Small Business. The federal government’s brand of strategic sourcing, however, has become “more about leveraging buying and limiting the number of companies that might be able to compete.”

Keep reading this article at: http://fcw.com/articles/2014/07/23/strategic-sourcing-and-business.aspx