This short webinar (only 30 minutes) is designed to help you, a veteran small business owner, understand how Vets GSA provides support for veteran entrepreneurs and can help them break into the supplier market, specifically working with the government.
A conversation about this presentation can be found on this LinkedIn Group: https://www.linkedin.com/groups/SupplierEdge-Community-6772622
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Leveraging Veteran-Owned Status to Land Corporate and Government Contracts
3. 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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4. 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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5. 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 Veterans 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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6. VOSB and SDVOSB Self Certification vs CVE
Certification
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.
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7. VOSB and SDVOSB Self Certification vs CVE
Certification (continued)
SDVOSBs VOSBs Applies to All Agencies Applies to the VA Only Self Certification VA Verification Required
SDVOSB Program Yes No Yes No Yes No
Vets First CVE VA Program Yes Yes No Yes No No
Approved firms are eligible to participate in VOSB and SDVOSB set asides issued by the
VA. They are eligible to subcontract with VAs large prime contractors in acquisitions for
additional evaluation credit.
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8. 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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9. 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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10. 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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11. 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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12. 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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13. 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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14. Overall Set Aside Dollar Amounts and Goals for
2012
Actual vs Goal
Total Dollars
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16. 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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17. DoD
Small Business
Contracts
Breakdown
for FY 2014
Source: http://smallbusiness.data.gov/
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18. 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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19. 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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20. 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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