small business opportunities with dod
TRANSCRIPT
Small Business Opportunities
with DoD
Tammy J. Proffitt
Director, Office of Small Business Programs
Defense Human Resources Activity (DHRA)
February 26, 2019
Agenda
• DoD Component/Agency Small Business Prime Contracting Goals
• DoD Small Business Strategy
• DoD Small Business Professionals
• Tips for Marketing to DoD
• Subcontracting & Strategic Relationships
• Resources for Small Businesses
• DoD Cybersecurity Training Initiative
• Recent Regulatory Changes
• Questions
Component/Agency FY19 Goals
Small Business Prime Contracting Goals• Army 29% • DMEA 2%• DoDEA 30%• DSCA 65%• DSS 65%• DTRA 17%• MDA 8%• NGA 15%• NSA 23%• SOCOM 30%• TRANSCOM 17%• USUHS 55%
• WHS 37%• Navy 14%• Air Force 18%• DARPA 20%• DCMA 50%• DeCA 60%• DFAS 19%• DHA 49%• DHRA 50%• DIA 30%• DISA 28%• DLA 31%• DMA 56%
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DoD SB Achievements – FY18
DoD Small Business Strategy
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• Section 851 of the FY19 NDAA requires the Secretary of Defense to develop andimplement a small business strategy. Execution of the strategy will maximize the effectiveness, efficiency and visibility of small business programs and initiatives to:➢ Increase innovation and lethality on behalf of the Warfighter➢ Align and clarify small business opportunities under a unified management structure and reformed business practices➢ Promote activities to provide coordinated outreach to small businesses through PTACs
• Section 1644 (Assistance for Small Manufacturers in the Defense Industrial Supply Chain and Universities on Matters Relating to Cybersecurity) of the FY19 NDAA:➢ Establishes a cyber-counseling certification program (or approval of a similar existing program) for the Defense acquisition workforce➢ Establishes a Cybersecurity for Defense Industrial Base Manufacturing Activity by way of DoD’s Mentor-Protégé Program
• Section 846 (Support for Defense Manufacturing Communities to Support the Defense Industrial Base) of the FY19 NDAA:➢ Authorizes the Secretary of Defense, in coordination with the Secretary of Commerce and the Defense Manufacturing Institutes, to establish a program to strengthen the national security base by designating and supporting consortiums as defense manufacturing communities➢ Improves the national security innovation base by making long-term investments in critical skills, infrastructure and smallbusiness support
DoD Small Business Professionals
• Small Business Professionals are located at every component/agency that exercises contracting authority. They help:– Small businesses identify prime contracting and subcontracting
opportunities– Small businesses develop strategies for selling services and products to DoD– Program offices conduct market research and contracting office’s develop
acquisition strategies
Statistics• DoD has 60K suppliers; about 40K are small businesses.• DoD has 30K Contracting Officers and Contracting Specialists. • DoD has 18K Program Managers. • DoD has 700 Small Business Professionals.
“Rule of Two” – FAR 19.502-2• The FAR specifies that acquisitions exceeding the micro-purchase threshold up to the
simplified acquisition threshold are automatically set-aside for small businesses.
• Acquisitions with values over the simplified acquisition threshold shall be set-aside by the contracting officer unless there is not a reasonable expectation that:
1) Offers will be obtained from at least two responsible
small business concerns and
2) Award will be made at fair market prices.
• In other words, the “Rule of Two” must be satisfied for the contracting officer to set an acquisition aside when the acquisition is valued above the simplified acquisition threshold.
• FAR 19.203 requires contracting officers to consider socioeconomic set-asides before setting an acquisition aside for small businesses.
Tips for Marketing to DoD
Marketing Tips• Follow the money. Understand how your target customer
procures products and services.
• Arm yourself with information and facts, not emotion.
• Find your niche. Don’t try to be everything to everybody.
• Understand your prospective customer’s mission, environment, challenges and hot buttons.
• Meet with Small Business Professionals.
• Don’t provide a standard, canned presentation to potential customers.
• Demonstrate your utility. Explain how your service or product has a positive impact on a project’s cost, schedule and performance.
Marketing Tips• Identify your differentiators.• Translate the relevancy of your past performance.
Don’t expect a prospective customer to do it for you.• When meeting with Program Managers and
Contracting Officers, be prepared to discuss a real requirement, not your generic capabilities.
• Participate in agency industry days and outreach events – Matchmaking.
• Respond to Sources Sought notices and Requests for Information
• Maintain database registrations and your own website
Resources for Small Businesses
Resources• Procurement Technical Assistance Centers
– Provides technical assistance to SBs
– Find yours at www.aptac-us.org
• Professional associations like:
– National Defense Industrial Association (ndia.org)
– National Contract Management Association (ncmahq.org)
– Armed Forces Communications Electronics Association (afcea.org)
– Society of American Military Engineers (same.org)
• Small Business Administration District Offices
– www.sba.gov
• Websites:
– DoD, Office of Small Business Programs www.business.defense.gov
– https://www.va.gov/osdbu/council/interagency-council.asp
– Federal Procurement Data System (FPDS) – www.fpds.gov
– Federal Business Opportunities (FBO) portal – www.fbo.gov
Subcontracting • Important entry for vendors with no government past
performance– Look to cultivate relationships and establish mentor
relationships with firms that can help you, where you can help them
– Learn how to be a prime contractor from your prime
• Helps plan your growth • Review opportunities on SBA SubNet site
– https://eweb1.sba.gov/subnet/client/dsp_Landing.cfm
• Subcontracting Plans and Participation Commitment Documents– Service Contracts over $700k must have subcontracting plans– Commitment Documents set more aggressive minimums and
other requirements for small business utilization
Strategic Relationships• Maintain vertical and horizontal business
relationships/partnerships:– Small businesses: HUBZone, 8(a), Service Disabled Veteran Owned
Bus.(SDVOSB), Woman-Owned Small Business (WOSB)– Large business
• Maintain diagonal relationships:– Goal of enhancing capability– Expand ability and focus beyond core competencies
• Formal and Informal Mentor-Protégé Relationships– DoD Mentor-Protégé Program – 75 Active Mentor-Protégé
Agreeements, Industrial Policy (IP) to address critical technology areas the Mentor-Protégé Program can support, i.e. cybersecurity training.
– SBA has new All-Small Mentor-Protege Program – 645 Agreements, Developmental benefits, size standards relaxed for Joint Ventures between Mentors and Proteges. www.sba.gov/document/support--active-mentor-protege-agreements
Strategic Relationships
• Joint Venture and Teaming
– Formal and informal
– Leverage in market research efforts
• GSA Contractor Teaming Agreements (CTA)
– A GSA Schedule CTA is an arrangement in which two or more GSA Schedule contractors team together to provide a total solution to meet a customer's needs.
• Identify Contracting Vehicles – Partner with contract holders
Cybersecurity Workshops
• Northrop Grumman will educate small businesses about the cybersecurity standards in NIST Special Publication 800-171
• In FY19, Northrop Grumman will host 40 cybersecurity workshops in 10 regions across the country
• FY19 2nd QTR Mentor-Protégé Program will focus on addressing cybersecurity challenges with the small business manufacturing community
40 Cybersecurity Workshops
I n t e g r i t y - S e r v i c e - E x c e l l e n c e
Cyber Security Workshopshttps://sites.usc.edu/cyberworkshops/
Tentative Completed
Firm Date In Work
Region City* State Date*
Colorado Springs CO 23-Apr-19
Salt Lake City UT 17-Apr-19
Bozeman MT 7/2, 7/3
Grand Forks ND 7/9
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Region City* State Date*
Cincinnati / Dayton OH 5/14, 6/11
Chicago IL 7/2, 7/16
Ann Arbor MI 7/16, 7/18
Minneapolis / St. Paul MN 7/23, 7/25
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Region City* State Date*
Boston MA 26-Mar-19
Hartford CT 6/4
Nashua NH 6/13, 6/18
Providence RI 5/16
1
Region City* State Date*
Bethpage / Melville NY 5/14, 5/15
Syracuse NY 5/28, 5/29
Newark NJ 6/28
Rochester NY 6/6
2
Region City* State Date*
Washington DC 5/28
Norfolk VA 5/21, 5/28
Herndon VA 5/2, 5/23
Baltimore / Fort Mead MD 4/5, 4/26
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Region City* State Date*
Seattle / Everett WA 11-Apr-19
Portland OR 5-Mar-19
Boise ID 4/2
Anchorage AK 7/9, 7/11
10
Region City* State Date*
Los Angeles CA 20-Dec-18
Sacramento CA 19-Feb-19
Phoenix AZ 20-Mar-19
Honolulu HI 5/21
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Region City* State Date*
Houston TX 9-May-19
San Antonio TX 5/30
Albuquerque NM 4/16
Baton Rouge LA 6/18, 6/20
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Region City* State Date*
Kansas City MO 6/11, 6/12
Wichita KS 5/28
Omaha NE 5/23, 6/12
Cedar Rapids / Mason IA 5/16, 5/23
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Region City* State Date*
Melbourne FL 27-Mar-19
Tampa FL 28-Feb-19
Huntsville AL 6/11, 6/13
Atlanta / Robbins AFB GA 6/4, 6/5
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As of: 29 Jan 19
Recent Regulatory Changes • Limitations on Subcontracting (LoS)DoD issued a class deviation that adopts SBA’s current approach to LoS. Applies to all contracts and solicitations on or after December 3, 2018. Change in the basis for determining cost percentage of contract performance from 50% of cost of the labor expended in performance of the contract to:
– In the case of a contract for services, small business vendor may not expend on subcontractors more than 50 percent of the amount paid to the concern under the contract.
– Allow small businesses to use similarly situated subcontractors to meet the required percentage. Contract amounts expended by the small business concern on a subcontractor that is a similarly situated entity (SSE) shall not be considered subcontracted.
– A SSE is a subcontractor that has the same small business program status as the prime contractor. HUBZone set-aside – SSE must be HUBZone certified, SDVOSB set-aside- SSE must be SDVOSB, etc.
• Micro-purchase and Simplified Acquisition ThresholdsDoD increased the micro-purchase threshold from $5K to $10K and the simplified acquisition threshold from $150K to $250K
• Enhanced De-briefings (class deviation) Unsuccessful offerors have two days to submit additional questions after debrief-agency shall respond in writing within 5 days
