Lora Morrow, NAVFAC, Provides Insight on Government Contracting for Small Businesses

Tips for selling to NAVFAC. By Mike Sabellico, Business Consultant, Orange County SBDC

This month's edition of Contracting Central features the Naval Facilities Engineering Command (NAVFAC) and specifically their Deputy for Small Business, Lora Morrow. She has over twenty years of small business experience working for the Navy and has served in virtually every contracting position during that period. She has been in her current position for two years. NAVFAC is a global military Command with a Headquarters element and Component Commands that work together as one team providing facilities engineering, contingency engineering, and expeditionary support to the Navy, Marine Corps, Federal Agencies, and other Department of Defense Clients. NAVFAC provides Systems Command (SYSCOM) support to all Warfare and Provider Enterprises, serves as the lead SYSCOM for the Navy Expeditionary Combat Command, and provides warfighter support, including contingency engineering, expeditionary operations, sealift support programs, and ocean facilities. The local NAVFAC Command, NAVFAC Southwest, is located in San Diego and is one of ten facilities engineering commands in NAVFAC. The command is comprised of over 3,400 Federal employees (civil service, officers, and enlisted). NAVFAC Southwest is responsible for the public works, planning, engineering/design, construction, real estate, environmental services, and acquisition / disposal of facilities and real estate in a six state area on the West Coast. NAVFAC Southwest contracts with commercial businesses to produce and deliver construction for the military such as housing, piers, airfields and hospitals to name a few. The command also provides public works services such as transportation, maintenance, utilities/energy delivery, facilities management and base operations support to the Navy and Marine Corps Installations within its geographic area of responsibility as well as support to other federal agencies in California.   Most of these services are performed by ROICC & Public Works Teams composed of Seabees and Sailors with different levels of expertise in construction trades. Their annual operating budget is in excess of $3 billion in client work on the West Coast resulting in huge economic impacts for many communities. I recently spoke with Lora Morrow and asked her some questions regarding small business and NAVFAC. OCSBDC: How do you like working for the NAVFAC and how would you describe the current atmosphere for small businesses who want to work with the NAVFAC? Lora: I really enjoy working for NAVFAC. I believe strongly in our mission and work with a really great group of dedicated individuals. There is always something new to learn due to constantly changing regulations. The current atmosphere for small business is challenging due to recent budget constraints, but I don't think it's any easier for large businesses either. We were able to get a lot of work done in the past few years with stimulus funding and those funds are gone and our normal funding levels have been cut. We had about $4 billion in our executive portfolio for the last 3 to 4 years and the outlook for 2014 & 2015 is closer to $1Billion. OCSBDC: What is the best way for a small business to track upcoming opportunities for your agency? Lora: There are two avenues to track opportunities for NAVFAC Southwest: First as a prime contractor you need to monitor our website https://www.neco.navy.mil/ and also FedBizOps. On the FBO site look for our unit ID code N62473. I recommend not relying on the FBO email notification alone, get on the website and conduct active searches once or twice a month. The second way to look for opportunities to work with us is via a subcontracting role and you can find information about that on our website on the NAVFAC Southwest Small Business portal. OCSBDC: What is the best way for companies to market their products or services to the NAVFAC? Lora: First and foremost, they have to understand how NAVFAC works - do your homework! The best way for companies to learn about how we operate is to schedule a one-on-one meeting with myself or another Small Business Specialist or attend one of our various outreach events. You can always check with your local SBDC and find out what events we'll be attending or you can find the information on our website. Also make sure that you tailor your capability statement to the targeted customer. In a similar fashion to resumes, tailored capability statement are more likely to get you a call than a generic statement. OCSBDC: What are some of the common mistakes you've seen small businesses make when working with the NAVFAC? Lora: There are several mistakes that I've seen small businesses make over and over again. #1. Capability Statement - Make them succinct, eye catching, and tailored to the individual opportunity. #2. Don't drop in for a visit with the SB office or any technical POC. Everyone is busy and drop in appointments can't be supported. I feel awful when someone has driven down from Temecula and I have to tell them that I have no time for them today. Make an appointment and send your capability statement via email so I can have some feedback ready for you when you visit. #3. Not doing your homework - When I ask you what you sell or what service do you provide and you answer with whatever you need, I get the impression that you're not ready to work with NAVFAC. At matchmaking events never ask the agency or prime contact what they need or what they do...You want to make them your customer so do your homework and know those details in advance. #4 Performance - Once awarded the contract you NEED to perform on that contract. The worst thing a small business can do is to win a contract and then not be able to perform the work. The company will likely lose money on that contract and then it will be nearly impossible to get another contract. This may mean saying no to a larger opportunity that you're not ready to support. Winning a contract that the company is not ready to support can result in overextending the company and possibly watching it unravel. #5 Business Cards - Use the back and have all important information on the card. It may be worthwhile to have a card for commercial work and one for government work. On the Government card ensure you have the DUNS number and any federal certifications with their associated expiration dates. OCSBDC: Any last comments for our readers? Lora: Use the outstanding resources available to small businesses like the agency SBLO's and the Orange County SBDC consultants who have incredible experience and knowledge available to qualified small businesses at no cost! Last Word: Lora Morrow is an exceptional advocate of small business in a variety of facets and I want to thank her for taking the time to conduct this interview. We have several Orange County SBDC clients who have achieved incredible success both from a contract awarded and jobs created perspective working closely with Lora and supporting NAVFAC on a variety of projects.

City of Los Angeles Now Accepts WBENC Certification

WBENC-West partners with Mayor's Office of Contractor Relations.

Women's Business Enterprise Council - West has been approved as the WBE certification solution for the City of Los Angeles for WBE contracting. With City budget cuts, the Bureau of Contract Administration (BCA) has had to limit the businesses it certify to those in Los Angeles and still has a back log for WBE certification. With this new agreement, BCA will now accept the Women's Business Enterprise National Council (WBENC) certification as of March, 2013. WBEC-West, in partnership with Mayor's Office of Contractor Relations, has been working with the City of Los Angeles to ensure that women-owned firms have an equal opportunity to participate in City contracts. WBEs receiving WBENC certification will increase their opportunities of participating in contracting opportunities that are subject to the City's Business Inclusion Program where outreach is required. Additionally WBENC certification allows the City to accurately track and report on the number of women doing business with the City. The City of Los Angeles strongly encourages city agencies and prime contractors to contract with women-owned, minority-owned, and service-disabled veterans as well as with small and local businesses. According to Kecia M. Washington, the Executive Director of the Mayor's Office of Contractor Relations, "Inclusion is an economic imperative and we know that women owned businesses are part of the solution to our economic woes. Women owned businesses are talented, resourceful, and more than capable - we look forward to doing business with them." The BCA now accepts WBENC certified firms that are registered in the City of Los Angeles' Business Assistance Virtual Network (BAVN). Registration is done online through http://www.labavn.org/.

High-Speed Rail Authority Announces Series of Statewide Small Business Certification Workshops

Orange County SBDC to host HSR Small Business Certification Workshop.

In its continued outreach and assistance to small businesses, the California High-Speed Rail Authority (Authority) will host a series of statewide workshops to help certify small businesses that want to participate in the statewide high-speed rail project. The Authority will provide small businesses with hands-on technical assistance which includes on-the-spot certification that can be completed online. Participants will also receive pertinent information on upcoming procurement opportunities around the state that would be of interest to their businesses. "The Authority is committed to creating opportunities for small businesses with an aggressive 30 percent goal of participation in California's high-speed rail program," said Jeff Morales, Authority CEO. "We have been working to engage small businesses and encouraging them to get involved. Many of our contracts are long-term and will be a big boost economically for small businesses. We want to help small businesses prepare to work on the project." The Authority's Small Business Advocate Robert Padilla added, "The initial construction in the Central Valley is expected to cost $6 billion dollars and a significant amount of that could go to certified small businesses. These workshops are a critical part of the process for the Authority to partner with California's small businesses." Orange County SBDC is proud to host a southern CA workshop. When:  May 15, 2013      9 AM to 12 Noon Where: Rancho Santiago Community College District      2323 N. Broadway, #107      Santa Ana, CA 92706 The workshops are RSVP-only events and limited to non-certified small business that meet the California Department of General Services (DGS) eligibility criteria to be certified. Specifically, that means that DGS must certify them as a Small Business (SB), Microbusiness (MB) or Disabled Veteran Business Enterprise (DVBE) for the State of California in order for their participation to count toward the 30 percent goal. Workshop participants should bring the following materials with them to the workshop: Applicant/Affiliate Federal Tax Returns for the past three (3) years Federal Employer Identification Number (FEIN) (if applicable) Secretary of State Number (if applicable) Home address of Officers, Member/Manager and Partners Social Security Number (if sole proprietor) Dunn & Bradstreet Number (if applicable) Contractors State License Board Number (if applicable) The Authority will host several more workshops around the state in the coming months. If you'd like to register for the workshops, please email sbworkshops@hsr.ca.gov.

SAM.GOV Identifies Security Vulnerability

Software patch closes security breach.

Recently, U.S. GSA officials identified a security vulnerability in the System for Award Management (SAM), which could allow some existing users in the system to view certain registration information of other users. The System for Award Management is a federal government-wide procurement system that acts as a data source for vendor, contract award and reporting information.   Immediately after the vulnerability was identified, GSA implemented a software patch to close this exposure. GSA is undertaking a full review of the system and investigating any potential additional impacts to registrants in SAM. The security breach happened over two days. The security of this information is a top priority for GSA as well as SBA and will continue to ensure the system remains secure. It is unclear how many businesses were affected, but as a precaution, GSA is offering the users at higher risk, access to credit monitoring services. The most vulnerable users are those that use a Social Security Numbers as a Taxpayer Identification Number and that “opted in” to public search. All registered SAM users were made aware of the situation, but no foreseeable potential harm was identified from the vulnerability. No one's data could be edited. At this time, GSA is undertaking a full review of the system and investigating any potential additional impacts to registrants in SAM. SBA officials are in close contact with GSA staff to determine next steps. For more information, please visit http://www.gsa.gov/portal/content/167855 and starting Monday, March 18, at 8 a.m., people may call the FedInfo hotline at 1-800-FED-INFO for immediate support.

2013 TURNER SCHOOL OF CONSTRUCTION MANAGEMENT

PROGRAM BACKGROUND

The Turner School of Construction Management (TSCM) for Small, Minority, Women, and Disadvantaged Businesses is the oldest community outreach program in Turner’s history. Initiated in 1969, the program has since become an opportunity to develop strategic business relationships with M/W/S/DBE firms. Today, TSCM is offered in more than 30 of Turner’s offices nationwide.
 

THE TSCM ADVANTAGE

Attending the Turner School of Construction Management provides the following advantages:

Develop a relationship with Turner and learn how to do business with a larger contractor

Develop a relationship with the partners of Turner School

Enhance your managerial, technical and administrative expertise

Classes are offered free of charge

Learn how to make your company more visible to larger contractors in order to be more competitive

                Participants gain access to Turner’s Online University for additional courses

           Graduates receive a Certificate of Completion which can be sent to contractors to verify that you are a qualified subcontractor

 

2013 TSCM AT METRO HEADQUARTERS

This year, the Turner School of Construction Management is sponsored by METRO and Union Bank, in collaboration with Southern California Edison, Los Angeles Minority Business Development Agency, National Association of Minority Contractors, Los Angeles World Airports, Los Angeles City Bond Assistance Program and Southern California Minority Supplier Development Council.

 

METRO HEADQUARTERS

UNION STATION ROOM

ONE GATEWAY PLAZA

LOS ANGELES, CA 90012

7-WEEK PROGRAM

EVERY TUES & THURS*

APRIL 2** - MAY 17 2013

6:00 - 9:00 PM

*includes one Wednesday class

** Kick-off Reception at 4:30 pm in the Gateway conference room.

Parking available for $6

Please direct inquiries & email registration form to:

Turner Construction Company 555 South Flower Street, Suite 4220

Los Angeles, CA 90071 Tel 213.891.3171 Email: socal@tcco.com

Confused About Bonding?

Here is a quick overview of bonding.

Bonding a contract has been a requirement for most construction related government contracts. However, more and more service contracts and occasionally supply contracts are requiring surety bonds for both public and private projects. Also more prime contractors are requiring their sub-contractors to bond, as well. Exactly what is a "surety bond?" It is a three-party arrangement between the surety, the owner of the project, and the contractor. The surety guarantees that the contractor will complete the project in accordance with the contract documents issued by the owner. Surety companies are usually subsidiaries of insurance companies, but unlike traditional insurance which compensate for unforeseen events or losses, surety is designed to prevent a loss. Typically there are three types of bonds required for public and some private contracts. There are: 1)Bid Bond - Ensures that the bidder has submitted the bid in good faith and will enter into the contract at the price quoted and is capable of providing the required performance and payment bonds. 2)Performance Bond - Ensures that the contractor will complete the contract per the terms and conditions sited in the contract. The bond protects the owner from financial loss should the contractor not satisfactorily meet the requirements of the contract. 3)Payment Bond - Ensures that all suppliers, subcontractors, and labor associated with the contract are paid. Traditionally bonding can be difficult to obtain for a small business, especially when they are first starting to compete in the public and private sector. There is some hope, though. The U S Small Business Administration oversees a Surety Bond Guarantee Program that assists small businesses obtain bonding. (See the following article to learn more about recent changes to the program.) Also, there are companies that have recognized the difficulties that small businesses have when trying to secure bonding and are creating programs that are based on experience and character rather than on financial profile. The Orange County SBDC can help you through the bonding process to identify a program that is right for your business. In addition, we can assist you to access your financial resources to perform on a specific contract and if needed, assist you to secure working capital for that project. If you are an experienced business owner currently pursuing publiv and private contracts, call 714.564.5200 to learn more about our bonding and financing assistance.

SBA Announces Revisions to Surety Bond Guarantee Program

More small businesses will have access to larger contracts.

U. S. Small Business Administration (SBA) recently announced a major revision to their Surety Bond Guarantee (SBG) Program. The new provision more than triples the eligible contract amount from $2 million to $6.5 million that the Agency will guarantee on surety bonds for both public and private contracts. These new higher limits will help small business construction and service providers to have greater access to larger contracts. "These new contact ceilings are one more way we can help small businesses, particularly in the construction and service sectors, compete for and win critical contacting opportunities that help them grow their businesses and create jobs," SBA Administrator Karen Mills said. "Additionally, these changes, which are enthusiastically supported across the surety industry and small business community, will help spur economic growth and recovery in areas that have been hard hit by disasters, bringing jobs and economic activity to regions at a time when it is needed most."   The revisions are a result of the Fiscal 2013 National Defense Authorizations Act and are expected to increase surety bond agents and brokers and their surety companies to increase participation in the SBG Program. In addition, the changes increases the government contact value up to $10 million that SBA can guarantee if a contracting officer of a federal agency certifies that the guarantee is necessary for the small business to obtain bonding and if it is in the best interest of the government. SBA partners with the surety industry to help small businesses that are not able to obtain bonding in the commercial marketplace. Under the partnership, SBA provides a guarantee to the participating surety company of between 70 to 90 percent of the bond amount if the contractor was to default or fails to perform.