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Selling to the government

The SBA is serving our entrepreneurial veterans

Last Friday, the Small Business Association (SBA) announced that it would invest $3.5 million in grant funding to create veterans business outreach centers (VBOCs) in seven new locations, including Alaska, California, Colorado, Iowa, Nebraska, Nevada, and South Carolina. The purpose of this investment is to expand entrepreneurial training and counseling services for veterans and military spouses who own and operate small businesses. (ExecutiveGov April 24, 2023)

The VBOCs will assist veteran-owned small business in various aspects such as business planning, loan application, marketing and outreach efforts. Additionally, grants will be set up to support Boots to Business classes to help active duty service members transition and determine whether entrepreneurship is a practical transition strategy.(ibid)

Isabella Casillas Guzman, administrator of the SBA, stated that “with this expansion of our veteran-focused network of small business centers, we can help more transitioning service members, veterans, National Guard and Reserve members, and military spouses start and grow their businesses and advance our economy.” (ibid)

Interested in grant funding for your veteran owned small business? Give us a call.

Is being good enough, good enough?

With fierce competition for government contracts, one must ponder if meeting the minimum standards, is enough to win some of the most coveted contracts with the Federal Government. Vendors are finding they must set themselves apart from the competition. Compliance excellence is one way to do this.

According to a GOVCON Expert, the Defense Contract Audit Agency connected with approximately 5,800 contractors in fiscal 2021. They learned that not all contractors maintained accounting compliance. Using compliance gives contractors an edge. (GOVCONWire March 2, 2023)

The Gauge Report from 2022 gives an indication of how compliance gives contractors an edge:

  1. Nearly 66% of all solicitations call for adequate accounting systems.
  2. Government contracting firms put adequate accounting systems second on their list of top auditing challenges.
  3. Labor floor checks have increased. (ibid)

The six business systems relevant to the audit process are accounting, estimating, material management and accounting systems, purchasing, government property, and earned value. Contractors that show they have adequate business systems in these areas may have an advantage over the competition. According to the Gauge Report, accounting systems are one of the most frequent requirements in new solicitations. (ibid)

How does a contractor get an “adequate” rating? When a solicitation requires documentation, bidders must provide some form of evidence, such as a letter from the Defense Contract Management Agency (DCAA) stating that the system has been approved for use on government contracts. Many contractors do not have assessed systems, which excludes them from solicitations. (ibid)

There are three possible ways a firm can turn compliance into a competitive edge:

  1. Your company has been examined by an agency and it is determined to be “adequate.” Keep a copy of the report/determination and provide the documentation as part of the bid. (If however, deficiencies are found, fix them and obtain a follow-up audit), once an adequate determination is made, use the determination when bidding.
  2. Request a system review. Since DCAA or DCMA do reviews based on contractor requests, a strong relationship with a PCO is necessary to work on your behalf to “push” a request through. To note, the examination process can take months due to the current backlog
  3. Your company pays a commercial firm, such as a CPA, to conduct an independent examination. Some government solicitations will only accept examination findings performed by government agencies.

The government appears to be making progress. In a recent OASIS+ solicitation, the solicitation language is more flexible by following the latest procurement trend, a self-scoring system. In a self-scoring system, companies earn points for systems, clearances, certifications, and past performance, and all bidders meeting the minimum points requirement are eligible to win an OASIS+ contract. (ibid)

Your company can stay proactive by:

  1. Advocate for your company. When necessary, object to the restriction limiting SF1408 examinations be performed by “government officials.”
  2. Ask for clarification of vaguely worded compliance sections. Make certain you are clear on all sections as it may be the difference between winning or losing a contract.
  3. Make sure your company and the accounting department are knowledgeable and up-to-date with new accounting standards.
  4. Invest in cybersecurity, it will carry more weight than ever before. (ibid)

Questions concerning compliance excellence or how to get an adequate rating? Give us a call.

Green is the new kid in town

Last week the General Services Administration (GSA) signed a memorandum of understanding (MOU) with the Department of Defense (DoD) to make sustainable technology products more easily available in the federal marketplace. (Washington Technology March 24, 2023)

Under the MOU, GSA will use DoD’s Sustainable Technology Evaluation and Demonstration (STED) Program information on product performance and pricing to simplify the acquisition process and make sustainable technology alternatives more readily available to federal agencies. (GSA.gov March 21, 2023)

“This partnership is an important step in strengthening our sustainable acquisition offerings, it’s so important that we help agencies more easily find and buy products that not only meet mission needs but are also better for the environment,” said Sonny Hashmi, Federal Acquisition Service commissioner. (ibid)

In accordance with the agreement, once a sustainable product that meets or exceeds DOD requirements is identified by STED, GSA will work with vendors in obtaining a new Federal Supply Schedule. (Washington Technology March 24, 2023)

Officials at GSA said they would help vendors obtain National Stock Numbers, allowing agencies to obtain sustainable products directly from GSA through the GSA Global Supply requisition process. The GSA Global Supply requisition process is currently certified in the Federal Acquisition Regulation. (ibid)

In addition to the Global Supply requisition process, agencies can also buy through the GSA Advantage! Environmental Aisle to assist in meeting federally-mandated acquisition requirements. Products identified through STED will soon have access to GSA Advantage! providing an even larger market for vendors to market their products. (ibid)

Questions about the MOU or the STED program? Give us a call.

A sneak peak into the updated HUBZone maps

According to a recent Small Business Administration release, new Historically Underutilized Business Zone (HUBZone) maps will go into effect on July 1, 2023. The maps spotlight employment and growth opportunities reserved for small businesses in disadvantaged communities. The new maps include data from the 2020 census and 3,732 newly designated communities. (EXECUTIVEGOV March 10, 2023)

“By channeling a record $14 billion in federal purchases to HUBZone-certified small firms last year, the Biden-Harris Administration gave a critical financial boost to hundreds of entrepreneurs in economically disadvantaged rural and urban areas,” said SBA Administrator Isabella Casillas Guzman. (ibid)

Loris Gillen, director of the Office of the HUBZone Program said, “for small businesses in new HUBZone areas SBA’s certification provides a gateway to billions of dollars in federal contracting opportunities, contributing to the economic growth and strengthening of underserved communities while also ensuring that employment opportunities benefit the people living in communities that most need positive economic impact.” (ibid)

Questions about HUBZone contracting opportunities or the certification process? Give us a call.

New GSA requirement – attest to software safety

According to a recent GSA memo, software vendors will be required to ensure that only approved software is acquired and used by GSA. GSA plans to use a Cybersecurity and Infrastructure Security Agency form to collect the letters. The forms will be available in early June. (FEDSCOOP February 1, 2023)

The Cybersecurity and Infrastructure Security Agency (CISA), Chief Jen Easterly recently urged industry to take responsibility to ensure the safety of its products. The CISA Chief also recommended shareholders make sure c-suite executives are viewing cyber risk as a board-level issue. (ibid)

GSA is collecting the letters of attestation in an effort to implement a memo signed by the White House. The memo requires all federal agencies to verify that all distributed third-party IT software adheres to the National Institute of Standards and Technology (NIST) supply chain security requirements. (ibid)

The Federal Acquisition Council has under consideration, embedding the requirement for software providers to attest to the security of their products within the Federal Acquisition Regulation (FAR). (ibid)

According to the memo, “GSA’s acquisition regulations (GSAM 511.170(d)) require GSA’s Information Technology (IT) Office to approve new software before its use at GSA. To comply with Executive Order 14028 and OMB Memorandum M-22-18, which require federal agencies to only use software that complies with Government-specified secure software development practices, GSA IT will update its processes to approve software including requiring vendor attestations. GSA IT anticipates issuing an updated attestation process by June 12, 2023.” (Memorandum for the GSA Acquisition Workforce 1/11/23)

The memo also states, “Contractors providing GSA with a cloud-based solution are encouraged to work with the Federal Risk and Authorization Management Program (FedRAMP). The FedRAMP approval process will streamline the GSA IT Standards Process allowing for a timely contract start. GSA also anticipates that leveraging FedRAMP will ensure and streamline compliance with the requirements of OMB Memo M-22-18 in the future.” (ibid)

Have questions or need some guidance with your letter of attestation? Give us a call.