SMALL BUSINESS

This service is geared towards Small, Minority, Disadvantaged, and Women-Owned businesses serure more business.

It is the policy of the United States, as stated in the Small Business Act that all small businesses have the maximum practicable opportunity to participate in providing goods and services to the government

The government spends over $200 billion every year for goods and services that range from paperclips to complex space vehicles!!! In 1999, contracts for services were the largest acquisition category at $78 billion. The government also spends money on supplies and equipment (35%); agriculture, transportation, communications, utilities, and finance (19%); construction (7%); and wholesale/retail (3%).
For the current fiscal year the various federal agencies are mandated to undertake contracts, purchase goods and services (directly / indirectly) from Small, Minority, Disadvantaged and Women owned businesses to the tune of approx. $6 Billion. Is your business positioned to capitalize on this opportunity???

Each agency have a certain percentage of contract set aside, the statutory government-wide goals are as follows:

23 % of prime contracts for small businesses.
5 % of prime and subcontracts for small disadvantaged businesses;
5 % of prime and subcontracts for women-owned small businesses;
1% of prime contracts for HUBZone small businesses for FY1999 and not less than 1.5 % for FY2000, 2 % for FY2001, and 2.5 % for FY2002 and 3 % for FY2003 and each year thereafter.
3 % of prime and subcontracts for service-disabled veteran-owned small businesses.

To be eligible to receive a share of this very lucrative market you must secure either an 8(a), Small Disadvantaged Business (SDB), or HUBZone certification. To meet these objectives, Federal Agencies have established Offices of Small and Disadvantaged Business Utilization (OSDBU) under the authority of public law 95-507. These offices are responsible for promoting the use of small, minority, and women-owned small businesses in compliance with Federal laws, regulations, and policies. They also assist such firms in obtaining contracts and subcontracts with Commerce and its prime contractors. The following is a listing of such agencies:

Air Force Army Census Bureau Department of Commerce Federal Aviation Administration Department of Interior Environmental Protection Agency Department of Veterans Affairs Department of Defense Defense Logistics Agency Department of Agriculture

Forest Service Department of Justice Department of Energy Department of Interior Housing and Urban Development Office of Health and Human Services NASA Treasury U. S. Agency for International Development Department of Transportation State Department

To access these benefit and participate under the various programs you must be certified. Certification is however a stringent process; the program administrators have to make absolutely sure that only eligible businesses benefit. Statistics show that over 70% of individually prepared applications fail. Our qualified, experienced Accountant (C.P.A.) and our staff will help you through the process, by preparing the relevant documents, forms, financial statements, etc for submission thereby expediting the approval process, after all; “Taking care of businesses is our business” The following is a checklist of the documents that you need to have done:
Click here for checklist

Government-wide Procurement Preference Goaling Program

It is the policy of the United States, as stated in the Small Business Act that all small businesses have the maximum practicable opportunity to participate in providing goods and services to the government. To ensure that small businesses get their fair share, the SBA negotiates annual procurement preference goals with each Federal agency and reviews each agency's results. The SBA is responsible for ensuring that the statutory government-wide goals are met in the aggregate.

The Small Business Administration (SBA)

The SBA oversees the:

SBA's 8(a) Program
Small Disadvantage Business (SDB)
HubZone Programs.

These minority development programs are intended to help small businesses become successful. Companies like yours, just starting or in a growth stage, can benefit from the wide-range of services offered: - support for government contractors, access to capital, management and technical assistance, and export assistance, just to name a few.

SBA's 8(a) Program

The 8(a) program is a business development program that offers a broad scope of assistance benefits to socially and economically disadvantaged firms. This program helps companies access management expertise, technical assistance, and capital. Unlike the SDB program, 8(a) applicants must generally be in business for at least two years before applying.

Once a firm has been accepted into the SBA’s 8(a) Program, it is automatically qualified for all SDB benefits. The 8(a) Program provides a more comprehensive array of business development services than the SDB program. That is why it’s a little tougher to get into and it has more reporting requirements. In addition, 8(a) Program participants have business opportunity specialists assigned to them for helping their firms evolve into economically viable business entities. 8(a) businesses also are eligible to participate in SBA’s Mentor-Protégé program. This program allows small businesses to form potentially lucrative private sector relationships with successful businesses that could provide joint-venture opportunities to raise capital, win large contracts, and provide valuable technical and managerial assistance.

Good standing in this SBA administered program may lead to other forms of federal assistance. If your firm is a federal prime contractor and or subcontractor and you qualify for the 8(a) Program, you should consider getting your 8(a) certification so you can present your firm as a SDB.

Eligibility

To qualify for this program, a small business must be:

Owned and controlled by a socially & economically disadvantaged individual. Under the Small Business Act certain presumed groups include: - African Americans, Hispanic Americans, Native Americans, Asian Pacific Americans and Subcontinent Asian Americans. Other individuals can be admitted into the program if they show through a “preponderance of evidence” that they are disadvantaged because of race, ethnicity, gender, physical handicap, or residence in an environment isolated from the mainstream American society.

The applicant’s personal net worth has to be less than $250 thousand, excluding his or her ownership interest in the applicant firm and the equity in his or her personal residence.
Meet applicable size standards for small business concerns
Be in business for at least 2 years. (This requirement could be waived)
Display reasonable success potential
Display good character

If you want to present your firm as a SDB, but you do not qualify for 8(a) Program participation or you do not feel you have an immediate need for the business development assistance offered participants in the 8(a) Program, you should apply for SDB certification directly.

SDB Certification strictly pertains to benefits in Federal procurement. For many businesses, the Small Disadvantaged Business (SDB) Program offers the first avenue of entry into the federal procurement marketplace. If you qualify as a socially and economically disadvantaged business owner, this program may be for you.

Why Are Agencies and Prime Contractors Interested in Doing Business with SDBs?

The Federal government has a policy of encouraging opportunities for small and small disadvantaged businesses in the government-contracting arena. This policy recognizes that helping such businesses grow, ultimately benefits the U.S. economy as a whole.

At the beginning of each fiscal year, the government negotiates goals with each agency for the percentage of contracts it will award to small businesses and SDBs. Each agency then works throughout the year to meet these goals. Agencies are motivated to meet the goals they set because Congress measures their performance when making appropriations for subsequent fiscal years.
The Program implements certain mechanisms to be applied by government agencies and prime contractors to increase access by SDBs to Federal prime and subcontracting opportunities. Once certified, your company is added to the SBA’s SDB database. You can then receive contracts from Federal agencies and prime contractors on the basis of your certification.

When the SBA certifies a business as SDB qualified, and the firm is in one of 55 industrial classifications, that business immediately becomes eligible for special bidding advantages. Moreover, it substantially increases its subcontracting opportunities with Prime Contractors who accumulate evaluation credits by "subbing" out to qualified SDBs. SDB Certification could mean a potential price evaluation credit of up to 10 percent for a firm bidding on federal contracts in an industry cited by the Department of Commerce as still suffering from the effects of discrimination.

Eligibility Requirements of the SDB Program.

In general, to qualify as an SDB, a company must:

Be a small business, which is at least 51% unconditionally, owned and controlled by one or more socially and economically disadvantaged individuals.(There are numerous criteria, which the SBA looks into when reviewing an application to see if a business meets these criteria. However, businesses that are owned and controlled by Black Americans, Hispanic Americans, Native Americans, Asian Pacific Americans and Subcontinent Asian Americans are presumed to be socially and economically. Other individuals can be admitted into the program if they show through a “preponderance of evidence” that they are disadvantaged because of race, ethnicity, gender, physical handicap, or residence in an environment isolated from the mainstream American society.)

All individuals must have a net worth of less than $750,00.00 excluding the equity of the business and primary residence

Must meet applicable size standards for small business in their industry

HUBZone

The new HUBZone Empowerment Contracting Program allows small firms located in many urban or rural areas to qualify for sole-source and other types of federal contract benefits. HUBZone stands for "historically underutilized business zone." 8(a) companies and SDBs located in or willing to relocate to these areas are eligible for benefits under both programs. This dual status can be quite beneficial, so a firm that has one designation and legitimately qualifies for the other is strongly urged to obtain both. This program provides federal contracting opportunities for qualified small businesses located in distressed areas. Fostering the growth of these federal contractors as viable businesses, for the long term, helps to empower communities, create jobs, and attract private investment. As of October 1, 2000, all Federal agencies are subject to the requirements of the HUBZone Program.

ELIGIBILITY

A small business must meet all of the following criteria to qualify for the HUBZone program:

It must be located in a "historically underutilized business zone" or HUBZone.

It must be owned and controlled by one or more US Citizens, and At least 35% of its employees must reside in a HUBZone

GOALING

The Small Business Reauthorization Act of 1997 increases the overall government wide procurement goal for small business from 20% to 23%. The statute sets the goal for HUBZone contracts as follows: 2001 - 2%; 2002 - 2 ½ %; 2003; and each year thereafter - 3%. Under the government’s reformed affirmative action rules, small disadvantaged business are eligible for price evaluation adjustments of up to 10 percent when bidding on federal contracts in certain industries. Industries Eligible for the 10% Price Evaluation Adjustment.

Dept of Commerce Update On Sept 29, 2000 in Reference to Price Evaluation Adjustments

SIC	Description of SIC Major Group	SIC	Description of SIC Major Group
10	Metal mining	48	Communications
12	Coal mining	49	Electric, gas, and sanitary services
13	Oil and gas extraction	50	Wholesale trade-durable goods
14	Extraction of non-metallic minerals, except fuels	51	Wholesale trade-non-durable goods
15	Building construction – General Contractors (Limited to firms in East North Central, East South Central, Middle Atlantic and West South Central Regions comprising the following states: AL, AR, IL, IN, KY, LA, MI, MS, NJ, NY, OH, OK, PA, TN, TX, and WI)	52	Building materials, hardware, garden supply, and mobile home dealers
16	Heavy Construction, other than Buildings (Limited to firms in East South Central and West South Central Regions comprising the following states: AL, AR, KY, LA, MS, OK, TN, TX)	53	General merchandise stores
17	Construction, Special Trade Contractors (Limited to firms in New England and West North Central Regions comprising the following states: CT, IA, KS, MA, ME, MN, MO, NE, NH, ND, RI, SD, VT)	54	Food stores
22	Textile mill products	55	Automotive dealers and gasoline service stations
23	Apparel and other finished products made from fabrics	56	Apparel and accessories stores
24	Lumber and wood products, except furniture	57	Home furniture, furnishings, and equipment stores
25	Furniture and fixtures	58	Eating and drinking places
26	Paper and allied products	59	Miscellaneous retail
27	Printing, publishing, and allied industries	60	Depository institutions
17	Construction, Special Trade Contractors (Limited to firms in New England and West North Central Regions comprising the following states: CT, IA, KS, MA, ME, MN, MO, NE, NH, ND, RI, SD, VT)	54	Food stores
22	Textile mill products	55	Automotive dealers and gasoline service stations
23	Apparel and other finished products made from fabrics	56	Apparel and accessories stores
24	Lumber and wood products, except furniture	57	Home furniture, furnishings, and equipment stores
25	Furniture and fixtures	58	Eating and drinking places
26	Paper and allied products	58	Eating and drinking places
27	Printing, publishing, and allied industries	65	Real estate
28	Chemicals and allied products	67	Holding and other investment offices
29	Petroleum refining and related industries	70	Hotels, rooming houses, camps, and other lodging places
30	Rubber and miscellaneous plastics products	73	Business services
31	Leather and leather products	75	Automotive repair, services, and parking
34	Fabricated metal products	76	Miscellaneous repair services
36	Electronic and other electrical equipment and components, except computers	80	Health services
37	Transportation equipment	82	Educational services
38	Measuring, analyzing, and controlling instruments; photographic, medical and optical goods; watches and clocks	87	Engineering, accounting, research, management, and related services
39	Miscellaneous manufacturing industries	89	Miscellaneous services
41	Local and suburban transit and enter urban highway passenger transportation
42	Motor freight transportation and warehousing
44	Water transportation
46	Pipelines, except natural gas
47	Transportation services

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Last Updated 02/02/03 ALL RIGHTS RESERVED. Webmaster