Georgia Tech Procurement Assistance Center

Small Business Mentor-Protege Program fuels cooperation

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Small businesses are underutilizing a mentor-protégé program that streamlines their access to the federal marketplace, say government officials. Known as the All Small Mentor-Protégé Program, or ASMPP, the effort provides small businesses with a new avenue into federal contracting.

Developed by the Small Business Administration (SBA), the ASMPP fits a niche and fills a need that had been a gap for some time, said Lori Gillen, ASMPP director at the SBA. Sandi Clifford, ASMPP deputy director, explained at an AFCEA Small Business Committee presentation that it was modeled and expands on the SBA’s 8(a) mentor-protégé program by opening doors for non-8(a) firms under the umbrella of a single governmentwide program for all small businesses. It does not involve the Defense Department, which has its own mentor-protégé program, nor the Federal Aviation Administration, as neither comes under the purview of the Small Business Act.

“It helps streamline access for small firms to get into the federal marketplace; it helps enhance business capabilities and growth potential through mentoring with large—or other small experienced—federal contractors; it helps increase the protégé firm’s wealth and create jobs through government contracts; and it also helps large mentor firms develop and increase their supply chain through building capable small business contractors,” Clifford declared.

Keep reading this article at: https://www.afcea.org/content/small-business-mentor-protege-program-fuels-cooperation

USDOT is on the hunt for automation, blockchain and more

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The U.S. Department of Transportation is looking to fund a new slate of emerging technology applications, including automation and blockchain.

USDOT opened the fiscal 2019 solicitation for its Small Business Innovation Research program Tuesday, calling on small businesses to provide solutions focused in 12 topic areas:

  • Automated Detection of Broken Spike Fasteners in Wood Tie Railroad Track
  • Automated Driving Systems Test Data Interface
  • Automated, Drone-Based Grade Crossing Inspection
  • Cost Allocation Technology for Non-Emergency Medical Transportation
  • Improved Condition Monitoring of Traction Motors
  • Inline-Inspection Tool for Detecting Coating Defects/Disbondment of Coating
  • Innovative, Low-Cost Methods for Concrete Bridge Deck Assessment
  • In-Vehicle Highway Rail Grade Crossing Alert System
  • Portable Stiffness/Elastic Modulus Measurement System
  • Secure Motor Carrier Safety Data Information Exchange Using Blockchain
  • Vehicle Communication via Induction Paint
  • Wireless Pore Water Pressure Sensor

The SBIR program is administered by the Small Business Administration and includes 11 federal agencies that award R&D contracts to fund and mature new potential technology applications.

Keep reading this article at: https://www.fedscoop.com/dot-opens-solicitation-new-innovative-technologies/

How to Apply
  • Read the 2019 Solicitation for information about the 2019 topics and about proposal requirements.
  • Review the 19 Technical and Administrative Questions
  • If you do not see the answer to your question(s), submit additional technical or administrative questions to the U.S. DOT SBIR Program Office at dotsbir@dot.gov.
  • All questions and answers will be posted as soon as they are received and answered by DOT SBIR program experts.

Submit a proposal through DOT’s SBIR secure site.

DoD makes immediate change to limitations on subcontracting rule; FAR Council issues proposed rule

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The Department of Defense (DoD) has issued a class deviation that resolves the inconsistency between the Small Business Administration (SBA) regulations and the clause at Federal Acquisition Regulation (FAR) 52.219-14 related to the Limitations on Subcontracting Rule (LOSR).

The FAR Council has also issued a proposed rule to amend FAR 52.219-14 to fully resolve this issue for all small businesses. Government contractors should be aware of these new changes and proposed changes.

Generally, the LOSR prevents small business prime contractors from subcontracting the majority of the work under a prime contract to large businesses. The LOSR is intended to ensure that small businesses get the benefit of the set-aside prime contract. The government does not want a small business to get an award, perform only a small portion of the work, and then subcontract out everything else to large businesses.

Since 2016, SBA small businesses have struggled to comply with the LOSR because the regulations at 13 C.F.R. § 125.6 are inconsistent with the contract clause at FAR 52.219-14.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=777544

See DoD’s Jan. 8, 2019 Class Deviation 2019-O0003 on this subject at: https://www.acq.osd.mil/dpap/policy/policyvault/USA000039-19-DPC_Class_Deviation_2019-O0003.pdf

See the proposed rule here: https://www.govinfo.gov/content/pkg/FR-2018-12-04/pdf/2018-25506.pdf

$3.6 million settlement resolves procurement fraud investigation involving 8(a) firm

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VMJ Construction, LLC (VMJ) and its owner, Colorado resident Michael T. Vigil, as well as Maryland-based Vigil Contracting, Inc. (Vigil Contracting) and its operations manager, John J. Vigil, have agreed to pay the United States $3.6 million to resolve allegations that they defrauded the Small Business Administration (SBA) 8(a) Business Development Program.

The SBA’s 8(a) Business Development Program for economically and socially disadvantaged small businesses serves dual roles.

  • First, the program helps socially and economically disadvantaged small business owners gain access to valuable federal contracts, thereby promoting economic and social mobility.
  • Second, the program saves taxpayers money by spurring a competitive marketplace.  By promoting the development of small businesses, the 8(a) Program helps prevent the formation of monopolies that would stifle innovation and restrict consumers’ ability to negotiate lower prices.

It is important that the 8(a) Program is reserved only for companies that actually meet the program’s criteria because misuse of the program deprives legitimate 8(a) Program participants of valuable economic opportunities and undermines the integrity of the program.

There are several rules that businesses in the 8(a) program must abide by.

  • The socially and economically disadvantaged owner of the business must manage the day-to-day operations of the company and have responsibility for the long-term decision-making for the company.
  • 8(a) Program applicants must also truthfully disclose any affiliation with other businesses so that SBA may accurately assess whether the applicant meets the definition of a small business, and whether the applicant shows potential for success and the ability to perform the requisite percentage of the contracts secured through the Program.
  • Businesses also cannot remain in the 8(a) Program indefinitely; after nine years, they graduate from the program and are no longer eligible to bid on 8(a) contracts.

VMJ was accepted into the 8(a) Program in 2011.  Michael T. Vigil, who is Hispanic, was the 91% owner of VMJ, and was the socially and economically disadvantaged individual upon which VMJ based its application to the 8(a) program.  John J. Vigil was a 9% owner of VMJ.  John J. Vigil was also the operations manager of Vigil Contracting.  Vigil Contracting is a 2011 graduate of the 8(a) Program.  Since 2011, Vigil Contracting has not been eligible to bid for contracts reserved for 8(a) program participants.

The United States contends that VMJ made false statements to the SBA regarding its eligibility to participate in the 8(a) program.  Specifically, VMJ relied almost exclusively upon Vigil Contracting to bid on and complete the work awarded to VMJ under the 8(a) program.  VMJ used Vigil Contracting’s bonding, office space, employees, contractors, software, computers, and vehicles.  Vigil Contracting employees and contractors, including John J. Vigil, made the high-level business decisions of VMJ and managed the day-to-day operations of VMJ.   Michael T. Vigil did not control VMJ, did not set the long-term policy, nor manage the day-to-day management of the business.  VMJ knowingly misrepresented these facts to SBA, in both VMJ’s initial application to participate in the 8(a) program and in an annual update to SBA.  As a result of the deception, the Army, the Navy, and the Department of Agriculture awarded VMJ several federal government contracts set aside for 8(a) program participants.

“The United States uses these set-aside contracts for a clear reason — to help small businesses owned by economically and socially disadvantaged individuals.  This program continues the promise of the American Dream by helping new small businesses get on their feet, and with more businesses on their feet, our markets are healthier and more competitive,” said U.S. Attorney Jason Dunn. “When companies lie about their eligibility to get these contracts, they prevent other deserving small businesses from getting the assistance that Congress intended.”

Source: https://www.justice.gov/usao-co/pr/36-million-settlement-resolves-procurement-fraud-investigation-against-colorado-and

Former Army colonel, wife sentenced to prison for roles in Fort Gordon fraud, kickback scheme

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A former active-duty U.S. Army colonel and his wife were sentenced to federal prison and fined more than $200,000 Feb. 5th for their roles in steering government contracts to co-conspirators in return for cash.

Anthony Roper of Augusta, Georgia pled guilty to Procurement Integrity Fraud and was sentenced to 60 months in prison and fined $200,000. He also will be subject to three years of supervised release after his sentence is completed.  There is no parole in the federal prison system. Roper’s wife, Audra Roper, pled guilty to Accessory After the Fact and was sentenced to 28 days in prison, fined $10,000, and placed on five years of probation.

According to evidence presented during guilty pleas and sentencing hearings, Anthony Roper, then in active-duty status at Fort Gordon, accepted bribes from Calvin Devear Lawyer, a retired U.S. Army colonel, to steer Army contracts worth more than $20 million to Lawyer’s company, the CREC group. Based on false representations from Lawyer and Dwayne Oswald Fulton, then an employee of a defense contractor, CREC group had been awarded Small Business Administration (SBA) status as a small, disadvantaged business, and the company used that status to gain competitive advantage in contracting.

The conspiracy also included the creation of fraudulent documents in an attempt to cover up bribes to Anthony Roper after law enforcement agencies discovered the scheme. Lawyer previously pled guilty in the case and was sentenced to 60 months in prison. As part of his sentence, Lawyer also paid a $3 million personal money judgment and a $2 million civil penalty.

The cases were investigated by the United States Army Criminal Investigations Division (CID), the Defense Criminal Investigative Service (DCIS), the Small Business Administration’s Office of Inspector General, and the United States Attorney’s Office.

“Taxpayers deserve above-board behavior from those who do business with the federal government, especially with the military,’” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “It is particularly disappointing when members of the armed forces violate their oaths of office to steal from the public, and our office will prosecute those crimes vigorously.”

Source: https://www.justice.gov/usao-sdga/pr/former-army-colonel-wife-sentenced-prison-roles-fort-gordon-fraud-kickback-scheme

SBA disappoints many growing small businesses by stating that new statutory 5-year period for eligibility is not effective yet

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Late last year, President Trump signed into law H.R. 6330, the Small Business Runway Extension Act of 2018 (the “Runway Extension Act”).  As detailed in our client alert on the Runway Extension Act, this law extends the measurement period for determining whether a contractor qualifies as a small business concern under revenue-based size standards from an average of the most recently completed five fiscal years, rather than the long-standing three-year measurement period. It is anticipated that many growing firms, which had or would soon come to exceed the revenue threshold applicable to their principal NAICS code(s), will gain additional years of “small business” status by including (often much lower) revenue totals from 4 and 5 years ago to determine their average annual revenue.

We noted that the Runway Extension Act amends the Small Business Act without expressly requiring implementation by the Small Business Administration (SBA), thereby allowing contractors reasonably to take the position that the Runway Extension Act is immediately effective, absent contrary guidance from the SBA.

In a move sure to disappoint the many small but growing services firms that Congress intended to help by passing the Runway Extension Act, SBA has now issued such contrary guidance.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=771894

See our earlier article on this subject at: https://gtpac.org/2018/12/20/bill-changes-small-business-size-measurement-term-from-3-to-5-years/ 

Dept. of Health & Human Services holding small business outreach event in Nashville on Feb. 11

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The U.S. Department of Health and Human Services (HHS) and the U.S. Small Business Administration (SBA) are hosting a Small Business Outreach Event in Nashville, Tennessee on Monday, February 11, 2019. 

The purpose of the event is to provide an opportunity for small businesses to build relationships, interact, learn how to engage, and network with the Department’s procurement officials, other federal agencies, and HHS’s top 25 prime contractors. 

In addition, small businesses will have the opportunity to participate in one-on-one matchmaking with various HHS procurement and prime contractors.  Vendors will be vetted in advance to ensure a fit that will benefit both small businesses and the HHS program officials.

Who should attend?

Small businesses interested in learning about federal procurement opportunities and doing business with HHS.

Why should I attend?
  • Familiarize small businesses with the processes and procedures associated with federal government contracting.
  • Gain insight on identifying and pursuing contract opportunities with HHS.
  • An opportunity to network and learn how to do business with the Department, prime contractors and other Federal agencies.
  • Consider HHS spent over $24 billion dollars in contracts last year; $5 billion of them in prime contracts to small businesses.
TIME: 

On-site check-in will open at 7:00 am on Monday, Feb. 11, 2019.  The event will begin at 9:00 am and conclude at 3:00 pm.

LOCATION: 

Gaylord Opryland Hotel and Convention Center
2800 Opryland Drive
Nashville, Tennessee 37214

COST: 

Free – there is no cost to register*
*Additional costs related to lunch and co-located events are optional.

REGISTRATION:

For businesses, there is a limit of 2 representatives per company per event. Please note that the total registration is limited.

Pre-registration is required and limited. Registration will close when it is full. A registration link is provided at http://www.cvent.com/d/4bqvyj.

If you register and cannot attend, please cancel your registration as soon as possible so that someone on the wait list can participate.

QUESTIONS:

If you have questions regarding the event, please contact conference support at OS B2BMail@hhs.gov or (202) 690-7300.

OTHER INFORMATION:

You will also have the opportunity to elect to participate in matchmaking/counseling appointments with representatives from the U.S. Department of Health and Human Services (HHS) and other government agencies.

The event is also being held in conjunction/co-located with the 2019 National 8(a) Association Small Business Conference and American Express Contract Connections.

Business plan and financial plan resources are readily available

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Folks often contact the Georgia Tech Procurement Assistance Center (GTPAC) to obtain help in formulating a business plan or a financial plan for their business.  It’s important to know that GTPAC does not provide counseling on those topics.  But help is available elsewhere!

We’ll identify business and financial planning resources in a moment, but first we’d like to explain why we don’t provide assistance in those areas:

  1. Our speciality is helping business identify, compete for, and win government contracts.  You must have an active, operating business in order to benefit from our services.
  2. Competent assistance with business formation topics — including creating business plans and financial plans — is available through another state-wide organization.  Small Business Development Centers (SBDCs) provide free and low-cost help, including training workshops.

So, there are plenty of resources you can tap.  There are SBDC offices in 17 cities across the State of Georgia.  You can identify the SBDC nearest you here: https://www.georgiasbdc.org/locations/

In addition, the SBDC program’s federal sponsor, the Small Business Administration (SBA), has a free webinar entitled “How to Write a Business Plan.”  You can access that webinar here: https://www.sba.gov/course/how-write-business-plan/

In addition, here are several SBA documents that you can download right here:

Bill changes small business size measurement term from 3 to 5 years

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On Monday of this week (Dec. 17, 2018), the president signed the “Small Business Runway Extension Act of 2018” into law.   The new law changes the basis on which a business determines whether or not it meets the federal definition of a “small business.”

Our friends at Koprince Law, LLC have published two articles about this change, providing details on how the size status under revenue-based NAICS codes will now be calculated using a five-year average instead of the longstanding three-year average.

As they point out, for some contractors, the new law is great news, as it will allow them to stay small longer.  For others, the opposite is true: the law could force those companies to stay large longer, or even change their self-certifications from “small” to “other than small” in SAM.

Read their articles here:

New decisions clarify small business minority shareholder protections

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One of the easiest small business affiliation rules to apply is that a person that owns “50 percent or more of a concern’s voting stock … controls or has the power to control the concern.” (13 C.F.R. § 121.103(c)(1))

It is far more difficult, however, for minority owners that own less than 50 percent of a concern’s voting stock to determine what, if any, controls they can have over a small government contractor without jeopardizing their small business status.

The Small Business Administration (SBA) has long held that minority owners may have negative controls to protect their investment without creating affiliation as long as the negative controls do not create control over day-to-day business operations.

In recent cases, SBA’s Office of Hearings and Appeals (OHA) has further clarified what specific arrangements may comply with that rule.

Generally, a minority owner will be found to control a concern if it can veto or block important business actions.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=759238

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