Leveraging Veteran-Owned Status to Land Corporate and Government Contracts

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Agenda

• Veteran Business Landscape• Veteran Small Business Certification Programs • Agency Service-Disabled Veteran-Owned Small Business Goals• Qualification and Eligibility • Veteran Contracting Advantages • FY 2014 Agency Set Aside Spend Data and Analysis

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Veteran Business Landscape

• Veteran-Owned Small Business (VOSB) and Service-Disabled Veteran-Owned (SDVOSB) firms represent a unique and important force within the American economy

• Veterans own approximately 2.5 million small businesses or 9% of all small firms in the U.S. 200,000 Veteran-Owned firms are owned by service-connected disabled Veterans 1 out of 6 Veterans starts a business

• VOSB and SDVOSB are the only socio economic statuses that are earned

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Veteran and SDVOSB Small Business Certification Programs

• Two programs are available: Self-certifying program (for most agency requirements) Center for Veterans Enterprise (CVE) certifying program (only applies for

Department of Veteran’s Affairs [VA] procurements)• Once eligibility is established, SDVOSBs and VOSBs are eligible to bid on

SDVOSB and VOSB set aside contracts• The VOSB and SDVOSB programs provide subcontracting opportunities• The prime contractor gets credit toward small business goals for using

VOSBs and SDVOSBs as subcontractors

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VOSB and SDVOSB Self Certification vs CVE Certification

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The bidding firm must certify or represent to the Contracting Officer that it is an SDVOSB Self certification can be achieved through the System for Award Management (SAM) Different from the Veterans First Contracting Program, which requires a detailed

verification process of Veteran status and placement in the VetBiz database Agencies cannot require certification by the VA. The Vets First CVE Verification

Program applies ONLY to VA bids and procurements. All other federal agencies accept self representation through SAM

Vets First: The Vets First Contracting Program within the VA was created under Public Law 109-461. This contracting program was created for VOSBs and expanded the Service-Disabled Veteran contracting program for VA procurements.

VOSB and SDVOSB Self Certification vs CVE Certification (continued)

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Approved firms are eligible to participate in VOSB and SDVOSB set asides issued by the VA. They are eligible to subcontract with VA’s large prime contractors in acquisitions for additional evaluation credit.

SDVOSBs VOSBs Applies to All Agencies Applies to the VA Only Self Certification VA Verification Required SDVOSB Program Yes No Yes No Yes NoVets First CVE VA Program Yes Yes No Yes No No

Qualifications of a Service-Disabled Veteran (SDV)

• An SDV is a person who served in the active military, naval, or air service and was discharged or released under conditions other than dishonorable and whose disability was incurred or aggravated in the line of duty in the active military, naval, or air service.

• A Veteran with a zero to 100% disability rating is eligible to self represent as an SDV for federal contracting purposes.

• The Veterans Benefits Act of 2003 that established restricted contracting in federal procurement for SDVOSB concerns did not require a formal process to certify concerns as Service-Disabled Veteran-Owned.

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Qualifications for the SDVOSB Program: Establishing Eligibility

• Size: Must be small according to Small Business Administration standards

• Ownership: Must be at least 51% directly and unconditionally controlled by one or more service-disabled Veterans

• Status: Owner(s) must have Form DD214 indicating honorable discharge

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Contracting Advantages for VOSBs and SDVOSBs

• Contracting Officer may set aside awards for VOSBs and SDVOSBs Reasonable expectation that two or more responsible SDVOSBs will

submit offers

• Award can be made at a fair market price

• Sole source awards can be made to VOSBs and SDVOSBs If only one VOSB or SDVOSB can satisfy requirements Limitations on award amounts

• $6 million for manufacturing• $3.5 million for all other procurements

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Subcontracting Limitations (13 CFR 125.6[b]) for SDVOSB and VOSB Set Asides

• Services – 50% labor spent on SDVOSB or VOSB personnel• Supplies – 50% labor performed by SDVOSB or VOSB personnel• General Construction – 15% labor spent on SDVOSB or VOSB

personnel• Special Trade Construction – 25% of labor spent on SDVOSB or

VOSB personnel• Contracting Officer verifies through certified payrolls• Joint ventures must also meet limitations on subcontracting

requirements

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Teaming Partners: Prime vs Sub Roles

• Understand the responsibilities of the work share and roles for the opportunity with your teaming partner

• Ensure all items are clearly defined in your teaming and subcontract agreements

• Ensure both companies are aware of all subcontracting limitations for the specific opportunity

• Reach out to Small Business Liaison Officers at the large businesses with which you wish to work (see list of links at end of presentation)

• Have a solid capabilities statement and presentation ready to provide

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Exclusions to the SDVOSB Program

Following are exclusions to the VOSB and SDVOSB program when requirements can be satisfied through any of the following:• Federal Prisons Industries Inc. (FAR Subpart 8.6)• Participating non-profit agencies for the blind (FAR Subpart 8.7)• Orders under indefinite delivery contracts (FAR Subpart 16.5)• Orders against Federal Supply Schedules (FAR Subpart 8.4)• Requirements currently being performed by an 8(a) participant or

requirements the Small Business Administration has accepted for performance under 8(a) authority

Review the FAR reference for clarity regarding exclusions

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Overall Set Aside Dollar Amounts and Goals for 2012

• Actual vs Goal• Total Dollars

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Top Ten Federal Agency Spending for FY 2014

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Top Ten Federal Agency Spending for FY 2014 (continued)

• For opportunity targeting, the DoD Eligible Dollars budget dwarfs all other agencies

• Set asides for SDVOSB and VOSB are the greatest for this agency• Focus on the agencies that fail to meet SDVOSB or VOSB goals as a

part of general marketing• 4 out of the 10 top agencies failed to meet the SDVOSB set aside

goal

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DoDSmall Business Contracts Breakdownfor FY 2014

Source: http://smallbusiness.data.gov/17

DoD Small Business Contracts Breakdown for FY 2014 (continued)

• Contract type: Major disparity between Firm Fixed Price (FFP) and all other types

• Top 4 of 5 dollars spent were on services and not products• Focus on the location of the most dollars spent to determine your

market target (especially for service-related issues, recruitment, etc.)

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Additional Tools for SDVOSBs and VOSBs• General Services Administration (GSA) Schedules for services and

products More than $40 billion flows through GSA Multiple Award Schedule

(MAS) contracts every year In FY14, approximately 10% of government needs were procured

through GSA MAS contracts• GSA had more than 19,000 MAS contracts in FY14

80% of GSA MAS contractors are small businesses who represent 36% of sales

• Indefinite Delivery / Indefinite Quantity (IDIQ) vehicle Empty contract with predetermined prices and terms 5-year base with option years (up to 20 years, Evergreen clause) Unlimited ceiling (at the contract level)

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Helpful Links for VOSBs and SDVOSBs

• Prime Contractors List with Small Business Subcontracting Plans

• GSA Set Aside Opportunity Forecast Matrix • SBA Subcontracting Directory SUBNET • Army Small Business Programs • Navy Small Business Programs • Air Force Small Business Programs• All Other Defense Agencies Small Business Programs • Entrepreneurship Boot Camp for Veterans with Disabilities

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