Small Business to Benefit From New Federal Rules

Agencies and Prime Contractors to pay more attention to Small Business Subcontractors.

The U. S, Small Business Administration (SBA) is amending its regulations governing small business subcontracting to implement provisions of the Small Business Jobs Act of 2010. The new rules include: Prime Contractors are required to issue notices to contracting officers specifically when they are late in making payments to small business sub-contractors; Prime Contractors must notify contracting officers in writing if they do not use the contractor originally referenced in the submitted bid or proposal; Agency Contracting Officers must monitor the small business sub-contractors' plan performance more closely; Clarifications as to which subcontracts should be included or excluded in data reporting (specifically, Prime Contractors record should be limited to awards made to immediate next-tier subcontractors; credit cannot be taken for awards made beyond the immediate next-tier); Changes subcontracting plan thresholds and updates to the use of the electronic subcontracting reporting system (eSRS); The new rule will be effective August 15, 2013.

CALTRANS Proposes 2014-2016 DBE Goals

Comment Period is open.

The California Department of Transportation (Caltrans) is seeking public input for proposed three year Disadvantaged Business Enterprise (DBE) goals for the period covering Federal Fiscal 2014 through 2016. As the recipient of funding from the Federal Transportation Administration (FTA), Caltrans is required to establish goals for the inclusion of DBEs. Caltrans has proposed a goal of 4 percent achieved exclusively through race-neutral means. This means that Caltrans expects to meet the goal without the use of DBE participation goals on individual projects. In the past, Caltrans has used various methods to achieve DBE goals. This includes business outreach to existing DBEs, technical assistance and training, improving the contract process, and data collection, monitoring, and reporting of DBEs. In addition to continuing to use the methods outlined above, Caltrans plans to: Expand the web site for easier access to information needed by SB and DBE firms and links to other supportive services, local agencies, and technical assistance; Establishing relationships with financial institutions, surety companies and insurance companies to market Caltrans opportunities in conjunction with SB and DBEs; Look for opportunities to package smaller contracts; Increase the number of certified DBE firms; The comment period is currently open. All comments should be e-mailed to michael.lange@dot.ca.gov or mailed to: Michael LangePO Box 942874 M.S. 39 Sacramento, CA 94274-0001 To read the methodology for the Triennial DBE Goal click here...

SBA Increases Size Standards for 70 Additional NAICS Sectors

More small businesses will have access to SBA's small business programs and government contracts.

The U. S, Small Business Administration (SBA) recently released the latest changes to small business size standards. Under the Small Business Jobs Act of 2010, SBA is conducting a comprehensive review of all size standards, a process that will continue for the next several years. In the lastest review, SBA has issued four final rules in the Federal Registry increasing size standards for firms in four North American Industry Classification System (NAICS) Sectors and one Subsector: Agriculture, Forestry, Fishing and Hunting (Sector 11) Finance an dInsurance (Sector 52) Management of Companies and Enterprises (Sector 55) Arts, Entertainment, and Recreations (Sector 71) Support Services for Mining (Subsector 213) Size standards define the maximum size a firm can be and still be considered a small business. The new size standards will enable more businesses to retain small business status allowing them to bid on more federal contracts and make them eligible for small business loans through the SBA loan programs and to receive technical assistance from SBA resource partners, such as the Orange County Small Business Development Center. SBA increased size standards for businesses in 11 industries in the Agriculture, Forestry, Fishing and Hunting Sector. More than 7,800 additional firms will qualify as small under these new size standards. SBA also increased size standards for 36 industries for firms in the Finance and Insurance Sector and two industries in the Management of Companies and Enterprises Sector. SBA changed the basis for measuring size from assets to annual revenues for the International Trade Financing industry and deleted the Real Estate Investment Trusts from its table of size standards. More than 7,400 additional businesses will qualify as small under the new size standards. . Size standards for 17 industries were also increased for firms in the Arts, Entertainment and Recreation Sector. More than 1,450 additional firms will qualify as small under these new size standards. SBA also increased size standards for three of the four industries for firms in the Support Activities for Mining Subsector within the Mining, Quarrying and Oil and Gas Extraction Sector (Sector 21). Subsector 213 is the only subsector within Sector 21 which has revenues-based size standards. The remaining industries within Sector 21 have employee-based size standards, which SBA will review in the near future. More than 475 additional firms will qualify as small under the new size standards. The four final rules will be effective July 22, 2013. To review the rules and public comments, go to visit.... Each sector has a separate RIN number: Agriculture, Forestry, Fishing and Hunting - (RIN 3245-AG43). Finance and Insurance & Management of Companies and Enterprises - (RIN 3245-AG45). Arts, Entertainment, and Recreation - (RIN 3245-AG36). Support Activities for Mining - (RIN 3245-AG44). The SBA is reviewing all size standards, and takes into account the structural characteristics of individual industries, including average firm size, the degree of competition, and federal government contracting trends. This ensures that small business size definitions reflect current economic conditions in those industries.

Useful Resource for Small Businesses

Small Business Exchange connects small businesses with contracting opportunities.

For over 29 years, Small Business Exchange Inc. has been connecting small, minority-, woman-, disadvantaged- and disabled veteran-owned, businesses with buyers of their goods and services. The Small Business Exchange recently ran an article in their newsletter that we published in last month's Contract Central on how to write a capabilities statement. Their web site and newsletters offers this type of helpful information for small businesses looking for contracting opportunities. It is also a resource for agencies and prime contractors that are looking for small businesses as sub-contractors. If you haven't visited their web site, take a minute to explore: http://www.sbeinc.com/index.cfm.

Is Your Capabilities Statement Sending The Right Message?

Here is a quick tutorial on how to prepare a Capabilities Statement.

A Capability Statement is a written summary highlighting your company’s overall experience, expertise, resources and specific services or products you provide. The Statement should tell your reader who you are, what you do and why a client should choose you. It should be customized for your target market in much the same way you would your resume. The Statement is a factual presentation of your company and should be one to two pages in length. Your capabilities statement should include: Your logo Address, name of primary contact, phone & fax numbers, and e-mail address NAICS codes Cage code ---- (Commercial and Government Entity code is a five-character ID number used extensively within the federal government. If you don’t have one, it is automatically assigned when you do your SAM.gov registration.) D&B number Certifications (Both certifications such as 8(a) or DBE, but also industry specific certifications such as ISO 9000 or other quality assurance certifications) Provide a business summary – It should be a paragraph that tells your reader who you are & what you do. Capabilities: Areas of expertise – type of work you can do for your client. Use short sentences or bullet statements. This should not be a long narrative about your capabilities or areas of expertise. Facilities and Equipment: -- List all facilities, equipment and resources used to manufacture the products or provide the service(s). Include unique qualifications, techniques and approaches used to perform work, including any state-of-the-art equipment or capabilities that are part of your business. Expertise: --- A brief summary of your expertise, as well as that of your key personnel/staff, highlighting their education and technical experience as it relates to your business. Customers: --- Provide a list of at least three or four of your key customers, past or present. Company names are sufficient. The Capabilities Statement should be on your business stationary and titled Capability Statement. Keep it simple, but tell the reader what makes you special and why they should choose to do business with you. This can be used as a stand-alone document to market your business, or attached to any pertinent literature you may already have. This along with a simple cover letter can introduce your company to any government agency or large business. Once you have your capabilities statement, you are ready to get out there and begin to develop relationships.

How Could the Passage of CA's AB 53 Impact Your Business?

Insurance companies first report is due by July 1, 2013.

Passed in the fall of 2012, AB 53, authored by former Assembly Member Jose Solorio of Orange County, requires CA insurance companies to report on their efforts to purchase goods and services from minority-owned, women-owned, and service disabled veteran-owned business enterprises. The bill mandates that every insurance company collecting over $100 million in premiums in California must report on its outreach efforts to diverse businesses and also designate a person as the point of contact for diverse suppliers that are interested in becoming a supplier to that insurance company. There are just over 200 insurance firms doing business in CA that are required to comply. As also mandated by the bill, the state insurance commissioner is required to establish and maintain a link on the Department of Insurance (DOI) website that provides public access to the contents of each insurer's report on their diversity procurement efforts. The first report from the insurance companies is due July 1, 2013 and the data will be posted on July 31, 2013 at http://www.insurance.ca.gov/. Although insurance companies purchase a myriad of products and services, it is expected that a large portion of the potential spend will be in the area of repairs (both auto and home), advertising and marketing, and computer services.

SBA Finalizes Rule Adopting Changes to Contracting Program for Women-Owned Small Business

Women-owned businesses will have greater access to federal contracts.

A press released issued by the U. S. Small Business Administration (SBA) announced that an interim final rule has been published in the Federal Register and is effective immediately. The rule will amend regulations to the SBA's Women-Owned Small Business Federal Contract Program allowing for greater access to federal contracting opportunities for women-owned businesses as a result of the National Defense Authorization Act of 2012 (NDAA) signed in January 2013. The interim rule removes the anticipated award price of the contract thresholds for women-owned small businesses (WOSB) and economically disadvantaged women-owned small business (EDWOSB) to allow them greater access to federal contracting opportunities without limitations to the size of the contract. The rule can be accessed at: http://www.gpo.gov/fdsys/pkg/FR-2013-05-07/html/2013-10841.htm. As a result of this rule change, contracting officers will be able to set aside specific contracts for certified WOSBs and EDWOSBs at any dollar level which will help the federal agencies achieve the existing statutory goal of 5% of federal contracting dollars being awarded to WOSBs. SBA is currently working on the changes to the Federal Acquisition Regulations (FAR). Prior to the rule change, the anticipated award price of the contract for women-owned and economically disadvantaged women-owned small businesses could not exceed $6.5 million for manufacturing contracts and $4 million for all other contracts. Any firm that wishes to participate in the WOSB program must meet the eligibility requirements and either self-certify or obtain third party certification. There are four approved third-party certifies that perform eligibility exams: El Paso Hispanic Chamber of Commerce, National Women Business Owners Corporation, U. S. Women's Chamber of Commerce, and the Women's Business Enterprise National Council. Additional information and links about approved third-party certifiers are available at www.sba.gov/wosb. To qualify as a WOSB, a firm must be at least 51% owned and controlled by one or more women, and primarily managed by one or more women. The women must be U. S. citizens and the firm must be considered small according to SBA size standards. To be deemed "economically disadvantaged," a firm's owners must meet specific financial requirements set forth in the program regulations. The WOSB Program identifies 83 four-digit North American Industry Classifications Systems (NAICS) codes where WOSBs are underrepresented or substantially underrepresented. Contracting officers may set aside contracts in these industries if the contract can be awarded at a fair and reasonable price and the contracting officer has a reasonable expectation that two or more WOSBs or EDWOSBs will submit offers for the contract.