SMALL BUSINESS: WHAT YOU NEED TO KNOW - PowerPoint Presentation

SMALL BUSINESS: WHAT YOU NEED TO KNOW ANTONIO CEBALLOS Director Philadelphia International Trade Administration DEB EBLE SB Subcontracting Program Manager GSA JENN TILDEN Lead Business Opportunity Specialist SBA

Recent changes to small business Subcontracting Debbie Eble , GSA Subcontracting Program Manager deborah.eble@gsa.gov Mentor Protégé Program Jennifer Tilden, SBA jennifer.tilden@sba.gov Global expansion Tony Ceballos, Director, Dept. of Commerce antonio.ceballos@trade.gov

Why Small Business is Important Why small business is important Small business subcontracting Recent additions to subcontracting plans Task order goal setting and reporting SBA All Small Mentor Protégé Program What is it? Joint ventures and rules of affiliation Small business expansion globally

Small business subcontracting plans Key clauses 52.219-8, Utilization of small business concerns 52.219-9, Small business subcontracting plan 52.219-16, Liquidated damages

Additional assurances effective NOV 2016 ( i ) The Offeror identifies the small business concern as a subcontractor in the bid or proposal or associated small business subcontracting plan, to furnish certain supplies or perform a portion of the subcontract; or (ii) The Offeror used the small business concern's pricing or cost information or technical expertise in preparing the bid or proposal, where there is written evidence of an intent or understanding that the small business concern will be awarded a subcontract for the related work if the Offeror is awarded the contract. FAR 52.219-9(d)(12)

“Used a small business concern” means … (12) Assurances that the Offeror will make a good faith effort to acquire articles, equipment, supplies, services, or materials, or obtain the performance of construction work from the small business concerns that it used in preparing the bid or proposal, in the same or greater scope, amount, and quality used in preparing and submitting the bid or proposal. Responding to a request for a quote does not constitute use in preparing a bid or proposal. The Offeror used a small business concern in preparing the bid or proposal if-- FAR 52.219-9(d)(12)

Other assurances added last November (13) Assurances that the Contractor will provide the Contracting Officer with a written explanation if the Contractor fails to acquire articles, equipment, supplies, services or materials or obtain the performance of construction work as described in (d)(12) of this clause. This written explanation must be submitted to the Contracting Officer within 30 days of contract completion. (14) Assurances that the Contractor will not prohibit a subcontractor from discussing with the contracting officer any material matter pertaining to the payment to or utilization of a subcontractor. FAR 52.219-9(d)(13) and (14)

Other assurances added last November (13) Assurances that the Contractor will provide the Contracting Officer with a written explanation if the Contractor fails to acquire articles, equipment, supplies, services or materials or obtain the performance of construction work as described in (d)(12) of this clause. This written explanation must be submitted to the Contracting Officer within 30 days of contract completion. (14) Assurances that the Contractor will not prohibit a subcontractor from discussing with the contracting officer any material matter pertaining to the payment to or utilization of a subcontractor. FAR 52.219-9(d)(13) and (14)

Wait a minute !!! What about privity of contract?

Surprise! Another assurance added JAN 2017 (15) Assurances that the offeror will pay its small business subcontractors on time and in accordance with the terms and conditions of the underlying subcontract, and notify the contracting officer when the prime contractor makes either a reduced or an untimely payment to a small business subcontractor (see 52.242-5). FAR 52.219-9(d)(15)

What does effective date mean ? FAR 1.108 identifies when FAR changes apply to solicitations/contracts solicitations on or after effective date of the change COs, may at their discretion, include the change provided award of the resulting contract occurs after the effective date May include in existing contract with appropriate consideration When would you include the additional 4 requirements to your solicitation/contract?

Task order goal setting and reporting Goal setting: Set small business subcontracting goals at the task order level Do NOT ask for a subcontracting plan ! Only 1 plan per contract (FAR 19.705-2) Reporting FAC 2005-089 indicated “after November, 2017” Funding agencies able to receive subcontracting credit Requires changes to eSRS system- in process - IAE

SBA All Small Mentor Protégé Program Topics covered: What is the Mentor Protégé Program Ultimate incentive- Joint Ventures (JVs) between SBA-approved mentors & protégés Affiliation rules and exclusion from affiliation SBA as agency authorized for size determination

What is the Mentor Protégé Program ? Experienced contractors provide assistance for small businesses HQ-based program for all types of SB, not just 8(A) Online application through certify.sba.gov SBA has 2 Mentor Protégé Programs: 8(a) Mentor Protégé Program “All Small” Mentor Protégé Program, modeled after the 8(a) Mentor Protégé Program

Affiliation rules and exclusion from affiliation Ultimate incentive for mentors is the JVs between SBA- approved mentors & protégés Existing affiliation rules for JVs Approved M-P arrangements may bid on small business contracts This is true even if the Mentor is “other than small” SBA as agency authorized for size determination Size determination for our region comes out of the KOP Office

SBA All Small Mentor Protégé Program (ASMPP ) However, SBA’s ASMPP does not review JV agreements Approval of MPA from SBA HQ is required prior to submission of JV bid between mentor and protégé List of SBA approved All Small Mentor Protégé Agreements can be found under the “Resources” section of the webpage: https://www.sba.gov/contracting/government-contracting-programs/all-small-mentor-protege-program

Small business expansion in the global market Small and medium sized enterprises comprise 98% of all American goods exporters Companies that export are more stable and more profitable On average export-related jobs pay up to 18% more than non-export related positions 11.7 million U.S. jobs supported by exports in 2014 1% of America’s 30 million companies export, 58% of exporters sell to only one market. More than 95% of the world’s potential customers, live outside our borders

The World is Open for Your Business

Why Exports Matter to the Economy Companies that export grow faster, have higher wages, are more productive, and are more likely to stay in business. Market Share Achieving increased sales, profits, and economies of scale. Growth Overcoming low growth in the domestic marketplace. Sustainable Minimizing the effect of seasonal sales fluctuations. Drives Innovation Exploiting technology & expertise in foreign markets. Competitive Exporting provides an advantage over the competition. Opportunity 95% of global consumers reside outside the U.S.

Success Attended trade shows in Asia Met potential distributors at Trade Winds Asia Sold $2.65 million to Korea and now exports to over 10 markets   “The U.S. Commercial Service set me up with 18 business matchmaking meetings in South Korea over three days, with reputable partners and translators too.” Woman-owned small business Awarded LGPVC for USAF SBA Exporter of the Year Award SBA Financing: 7a & EWCP Export Express Program The Problem Costly regulatory hurdles Finding a distributor to expand in Asia Supplies: Helicopter parts and Fixed Wing Landing Gear Parts; Actuators, Struts, Down Lock Assy , Drag Links, Grips, Rods, etc.

Participating in a tender for the Philippine Air Force, ETC ran into cumbersome documentation requirements and reached out to CS immediately. As a result, ETC won a bid worth nearly $5 million. Successes in Thailand and Indonesia over $2 million.28% export growth in 2017 Environment Tectonics Corp NASTAR-FAA Certified Training Center Commercial, Space, Military, & Fighter Pilot Training $6.4 m in USG sales DOC Export Achievement Certificate Success Challenge Government Contracts Navy-Spatial Disorientation Device USAF-Tactical Flight Simulator USAF- Altitude Chambers

Global Supplier of OEM Components & Aftermarket Defense Systems Components Repairs Overhauls Upgrades Spares Challenge $1.3 million worth of goods stuck at our facilities due to Export Compliance rule changes. Awards President’s E Award Defense Supply Center Columbus DLA Land & Marine Defense Supply Center Supplies: F-15 Eagle F-16 Falcon C-130 Hercules S-70 Blackhawk CH-47 Chinook AH-64 Apache Success With the help of USDOC we were able to release the goods and have had a successful relationship with the end user and manufacturer .

Trade Shows International Defense Industry Fair Dubai Airshow Singapore Air ShowLatin America Defense & Security Expo

How exports Matter to Pennsylvania Total small & medium-sized Pennsylvania goods exporters in 2014 14,039 Jobs supported by goods exports from Pennsylvania in 2015 190,351 Source: USDOC/ITA Census Bureau, BEA

National Impact The U.S. Commercial Service assisted more than 44,000 U.S. exporters over the past two years and a record 28,692 in FY16.

Tony Ceballos, Director 215-597-7141 Antonio.Ceballos@trade.gov Theo Hunte, Trade Specialist 215-597-6105 Theo.Hunte@trade.gov Iris Kapo, Trade Specialist 215-597-6127 Iris.Kapo@trade.gov Tony Pu, Trade Specialist 215-597-6120 Tony.Pu@trade.gov

RESILIENCY IN ACQUISITION: DHS NINA FERRARO Acting Deputy Chief Procurement Officer DHS