Georgia Tech Procurement Assistance Center

SBA to interpret Supreme Court contractor ruling for small business

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SBA logo smallThe June 16 Supreme Court decision requiring the Veterans Affairs Department to expand set-asides for veteran-owned small businesses could affect broader procurement regulations across government, says the Small Business Administration’s John Shoraka, associate administrator of SBA’s Office of Government Contracting and Business Development.  He recently told Government Executive at a contractors networking event that “the path forward is that we have to interpret how the decision impacts the Small Business Act.”

The court’s decision in Kingdomware Technologies Inc. v. the United States determined that the so-called “rule of two” requirement that the VA consider at least two bidding contractor firms (and apply a set-aside to the one that qualifies) must apply to supply orders as well as contracts.

“There was a perception that a [pre-existing GSA Schedule] order was not a contract, so the rule didn’t apply,” Shoraka told the audience. “But the Supreme Court says it is a contract, so now we know,” and the department must pick the veteran-owned small business assuming it offers a reasonable price.

Keep reading this article at: http://www.govexec.com/contracting/2016/06/sba-interpret-supreme-court-contractor-ruling-small-business/129477

Group sues SBA, says government ‘defrauded small businesses’

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ASBL Injunction Against SBA - May 2016Just a week after the Small Business Administration celebrated record-breaking contract awards to small business owners eligible for government set-asides, a longtime critic filed suit in federal court for an injunction to force SBA to halt some of the practices used in measuring its success.

The Petaluma, Calif.-based American Small Business League, in an injunction addressed to Administrator Marie Contreras-Sweet filed in Federal District Court in San Francisco, argued that the SBA’s “illegal policies” have “defrauded small businesses and small businesses owned by women, minorities and disabled veterans out of hundreds of billions of dollars in government contracts.”

ASBLIt quotes the Small Business Act’s language noting that “the governmentwide goal for participation by small business concerns shall be established at not less than 23 percent of the total value of all prime contract awards for each fiscal year.” And within that category, the goal states 5 percent for women-owned small businesses, 5 percent for minority-owned firms, and 3 percent for disabled veterans.

But the SBA, the group’s argument goes, “has created a policy they call the ‘exclusionary rule’ and ‘small business eligible dollars’ that uses a significantly lower federal acquisition budget number to calculate the percentage of contracts awarded to all categories of small businesses.”

SBA logo smallKeep reading this article at: http://www.govexec.com/management/2016/05/group-sues-sba-says-government-defrauded-small-businesses/128084

See copy of complaint for injunctive relief here: http://www.asbl.com/documents/Filed_Complaint_For_Injunctive_Relief.pdf

SBA releases scorecard on small business participation in federal contracts

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The U.S. Small Business Administration (SBA) last week released its annual Small Business Procurement Scorecards, which provide an assessment of each federal agency’s annual small business contracting achievement against its goal using a grading system of A+ through F.  Government-wide, agencies received an “A” in FY 2015, reflecting achievement of small business goals in all categories except on behalf of HUBZone firms.

According to the SBA, the federal government reached its small business federal contracting goal for the third consecutive year, awarding 25.75 percent in federal contracts to small businesses totaling $90.7 billion.  The 25.75 percent of contracts awarded to small businesses represent the highest ever percentage of contracts awarded to small businesses by the government.

Small Business Goal Scorecard - All Agncies FY15

Last month, the SBA announced at a press conference that for the first time in history, the federal government has met the 5 percent goal for contracting with women-owned small businesses and record achievements for service disabled veteran-owned and small disadvantaged businesses. More information about these contracting figures can be found here.

At the individual agency level, five agencies’ grades increased from FY 2014, 16 agencies’ grades stayed the same and 3 agencies’ grades decreased.  The agency breakdown is as follows:

  • 3 agencies received an “A+” (GSA, SBA, and DOT)
  • 18 agencies received an “A”
  • 3 agencies received a “B” (HHS, NASA, and VA)
  • No agencies received a C, D, or F

Despite the fact that SBA awarded an “A” grade to 18 agencies, most of them did not meet all of the government’s overall small business goals.  The Energy Department, for example, did not meet any of the government’s five small business goals.  USAID met only two of the five goals.  Of the 18 agencies receiving a score of “A,” only Agriculture, Homeland Security, Interior, State, Treasury, and NRC met all five governmentwide goals.

About SBA’s Scorecard

According to the SBA, its annual Scorecard is an assessment tool to: 1) measure how well federal agencies reach their small business and socio-economic prime contracting and subcontracting goals, 2) provide accurate and transparent contracting data, and 3) report agency-specific progress.

Every year, the SBA works with each agency to set their prime and subcontracting goals and their grades are based on the agreed upon goals.  Each federal agency has a different small business contracting goal, determined annually in consultation with SBA.  SBA ensures that the sum total of all of the goals exceeds the 23 percent target established by law.

The individual agency scorecards released by SBA, as well as a detailed explanation of the scorecard methodology, is available online at:  https://www.sba.gov/contracting/finding-government-customers/see-agency-small-business-scorecards.

Since SBA started the current small business procurement scorecard methodology in FY 2009, six agencies have received a grade of “A+” or “A” seven fiscal years in a row (FY 2009 through FY 2015):  the Departments of Agriculture, Homeland Security, Interior, Labor, Transportation, and the Environmental Protection Agency.

The overall federal small business prime contracting performance released on April 28, 2016 by the SBA, as well as a detailed explanation of the calculations, is available online at http://go.usa.gov/Nxxd.

Why are women-owned small businesses only getting 5% of government contracts?

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SBA logoIn a quintessential case of good news/bad news, the U.S. Small Business Administration (SBA) announced on March 2, 2016, that, for the first time, it met its goal in the amount of federal contracts awarded to women-owned small businesses (WOSB) — a goal that was set roughly 20 years ago.

But for a goal that took nearly two decades to reach, the total amount awarded may not sound very impressive. It was just 5.05%.

Why did it take 20 years to hit that mark—and why does it seem so low? The answers need some context, says John Shoraka, SBA associate administrator.

Keep reading this article at: http://www.fastcompany.com/3057911/the-future-of-work/why-are-women-owned-small-businesses-only-getting-5-of-government-contrac

Government meets goal set in 1994 for women’s business contracts

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After more than 20 years of effort, the federal government has, for the first time, met its goal of awarding 5 percent of the money it spent on contractors to businesses owned by women.

SBA logoSmall companies captured 25.8 percent of the government’s contracting dollars last year, representing $90.7 billion, the Small Business Administration announced last week.

About $17.8 billion of that total went to businesses owned by women during the fiscal year, which ended in September.

The news comes on the heels of a Commerce Department analysis showing that businesses owned by women are 21 percent less likely to win government contracts than otherwise similar companies. Companies owned by women tend to be younger and smaller than other businesses, but even accounting for those differences, the disparity remains, the agency found.

Commerce Dept.The government set its 5 percent target in 1994 for spending on women-owned businesses, which are defined as those that are at least 51 percent controlled by women. It repeatedly fell short.

Keep reading this article at: http://www.nytimes.com/2016/03/02/business/government-meets-goal-set-in-1994-for-womens-business-contracts.html

See Related stories:

Fortune 500 firms continue to receive billions in federal small business contracts – http://gtpac.org/2016/02/22/fortune-500-firms-continue-to-receive-billions-in-federal-small-business-contracts/

Commerce Dept. says odds of women-owned businesses winning federal contracts are off by 21 percent – http://gtpac.org/2016/02/19/commerce-dept-says-odds-of-women-owned-businesses-winning-federal-contracts-are-off-by-21-percent/ 

Fortune 500 firms continue to receive billions in federal small business contracts

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ASBLThe American Small Business League (ASBL) has released their annual analysis of federal contracting data for fiscal year 2015, and it shows that Fortune 500 firms and thousands of other large businesses received billions of dollars of federal contracts meant for small businesses.

Specifically, ASBL found that 151 Fortune 500 firms landed government small business contracts in 2015.  ASBL’s research is based on publicly-available data pulled from from the Federal Procurement Data System (FPDS).

This year marks the sixteenth consecutive year of documentation that federal small business contracts have been diverted to corporate giants.

In the past year, Verizon received over $108 million in small business contracts through their subsidiary Terremark. Some of the other firms that received small business contracts last year include: Apple, Microsoft, General Electric, Home Depot, AT&T, UPS, Hewlett Packard, IBM, Bank of America, Citigroup, Wells Fargo, Pepsi, Boeing, Oracle, Raytheon, Lockheed Martin, General Dynamics, Northrop Grumman, Anthem and John Deere.

GAO-GovernmentAccountabilityOffice-SealThe Government Accountability Office (GAO) released their first investigation into corruption and fraud in federal small business contracting programs in 2003. The GAO uncovered over 5,300 large businesses had been the actual recipients of billions in US Government small business contracts.

SBA sealAs far back as 2005, the SBA’s Office of Inspector General described the diversion of small business contracts going to corporate giants as, “One of the most important challenges  facing the Small Business Administration (SBA) and the entire federal government today” (OIG Report 5-15).

In 2014, Public Citizen released their investigation into fraud in government small business programs titled “Slighted.” They accused the federal government of using accounting tricks to “create false impression that small businesses are getting their share of federal procurement money.”

The House Small Business Committee recently unanimously passed H.R. 4329 titled, “Transparency in Small Business Goaling Act of 2016.” That bill was supposed to modernize the Small Business Act, but it contained no provision to halt the flow of federal small business contracts to Fortune 500 firms and thousands of other large businesses.

The ASBL’s research indicates middle-class small businesses are being shortchanged out of up to $200 billion a year. This is a result of the SBA’s exclusions of the majority of federal contracts from their calculations and the inclusion of billions in contracts to large businesses.

Source: http://www.prnewswire.com/news-releases/fortune-500-firms-receiving-billions-in-federal-small-business-contracts-300217843.html

 

Marines could do a better job on small biz contracts, IG says

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Marine Corps Systems Command is failing to adequately ensure small business contractors get access to defense contracts, according to an Inspector General’s report.

Marine CorpsThe report found that the Quantico, Virginia-based command had not ensured small business contractors had opportunities to subcontract on 12 prime contracts valued at $221 million, offered no compliance tracking on four contracts, did not follow up on large businesses not meeting small business-goals and awarded contracts without subcontracting plans.

“As a result, small businesses may have been denied subcontracting opportunities that large businesses were required to make a good faith effort to provide,” the report said. “In addition, MCSC contracting officials did not determine whether the prime contractors are making good faith efforts to comply with negotiated subcontracting goals and whether liquidated damages should be assessed.”

Keep reading this article at: http://www.federaltimes.com/story/government/acquisition/2015/11/16/marines-could-do-better-job-small-biz-contracts-ig-says/75874242/

 

SBA says government beat small business contracting goal for 2nd consecutive year

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The federal government awarded 25 percent of its prime contracting dollars to small businesses in fiscal 2014, according to the Small Business Administration (SBA).

SBA logoThat marks the second consecutive year that federal agencies have met the government’s 23 percent small business contracting goal, something rarely achieved in the past.

There are some caveats: some contracts, such as contracts awarded for overseas work, are excluded from the base of contracts considered in this goal report. If they were included, the small business share of total contracts likely would be lower. Plus, there are bound to be cases where contracts that were awarded to large businesses were mistakenly counted as small business contracts.

Keep reading this article at: http://www.bizjournals.com/bizjournals/washingtonbureau/2015/06/sba-says-government-beat-small-business.html

Skeptical Senate chairman asks SBA for list of every contractor it counted as a small business

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A Senate chairman has asked the Small Business Administration to provide him with a list of every company that was counted toward the federal government’s small business contracting goal in 2014.

Last year, the SBA reported the government had met its goal of awarding small businesses 23 percent of all federal contracting dollars for the first time in eight years.

Senate Committee on Small Business and Entrepreneurship

“We’re expecting even better results when we release the 2014 scorecard in the coming weeks,” SBA Administrator Maria Contreras-Sweet said May 8, during a White House event honoring National Small Business Week award winners.

But a report by Public Citizen (see http://contractingacademy.gatech.edu/2015/05/12/advocacy-group-accuses-sba-of-misapplying-law-on-small-business-set-asides) questioned the accuracy of the SBA’s procurement report for 2013. It found that contracts awarded to giant federal contractors such as Lockheed Martin were counted as small businesses in the SBA’s numbers. This is just the latest example of flaws in the SBA’s contracting data though the years.

Keep reading this article at: http://www.bizjournals.com/bizjournals/washingtonbureau/2015/05/skeptical-senate-chairman-asks-sba-for-list-of.html

SBA to include overseas contracts in rating agencies

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The Small Business Administration will begin to include overseas contracts as part of the baseline used to rate agency performance against small business contracting goals.

SBA logoCurrently about $100 billion a year in federal contracts — including contracts that support overseas projects — aren’t considered when the agency calculates small businesses’ share of procurement dollars annually. It’s been a bone of contention among the small business community, which argues that all awarded contracts should factor into individual ratings, as well as the overall goal of federal government to allocate 23 percent of contracts to small businesses.

“Overseas contracts, we couldn’t find a justification to continue to exclude that,” said John Shoraka, associate administrator of government contracting and business development at the SBA, during a keynote session at a procurement conference hosted by the Montgomery County Chamber of Commerce. “So coming into 2016, we’re working with the Office of Federal Procurement Policy, Defense, USAID and State on including those contracts in the base.”

Keep reading this article at: http://www.bizjournals.com/washington/blog/fedbiz_daily/2015/05/sba-to-include-overseas-contracts-in-rating.html

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