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Tag: small business

Small business and startups are front and center

Boosting small businesses and software for DoD are priorities for the Biden administration and their nomination for the Defense Department’s technology efforts.  Heidi Shyu, nominated for undersecretary of defense,  recently introduced her priorities to modernize the military during her confirmation hearing. She stated, “In order to rapidly transition the latest software, we need to have an open architecture that isolates the software from the hardware then allows rapid user testing.” (Defense Systems May 26, 2021)

Shyu told the senate that DOD should be investing so that development and procurement are 70% of their costs for a new weapons system. Shyu proposed buying more emerging tech such as artificial intelligence, synthetic biology and hypersonics rather than investing in older systems. Shyu said, “today, sustainment makes up 70% of total weapon system cost, with development and procurement making up 30%.” (ibid)

During Shyu’s hearing, she mentioned small businesses, especially startups working on new technologies, repeatedly. Shyu feels they are necessary for the Defense Department’s success. Shyu did not lose sight of the inability of the acquisition system to shift prototypes into programs. Shyu plans to institute a clear transition path. (ibid)

Shyu said, “part of the reason there is a valley of death for technology is that a lot of the technology programs are being developed by small companies, and unless you had the foresight two years ago to understand that the technology is going to be mature within two years time, by the time you get the money to buy that technology it’s two years old now.” (ibid)

Shyu said, “I saw a six-person company that’s developed any type of fuel as input and the output is a DC-plug. Those are the types of creative, innovative companies we need to nurture. And they are struggling to figure out who to talk to in the DOD.” (ibid)

Are you an innovator or a small business looking to work with the Department of Defense? Give us a call.

 

 

 

 

Don’t be caught non-compliant

With each new year comes a new set of sub and prime contract goals each non-small business contractor and government agency must adhere to. Agencies achieve their goals by awarding prime contracts to small businesses. Non-small business contractors who compete for contracts worth $750,000 or more ($1.5 million for construction contracts) are required to submit a small business subcontracting plan. The plan must include how a contractor will attract small businesses and ensure that those businesses actually have an opportunity to subcontract (FAR 19.702). The plan must show separate dollar and percentage goals for small businesses, those services/supplies to be subcontracted, and an explanation of how small business contracts will be secured. (JDSupra April 23, 2020)

To keep contracts in check, the federal government may intermittently audit contractors. The audits verify small business subcontracting plan s are being fulfilled. The Small Business Administration (SBA) is the lead for the evaluations, the SBA may delegate this authority to other federal agencies. Department of Defense contracts are generally evaluated by the Defense Contract Management Agency (DCMA). (ibid)

Compliance reviews are random and any contractor with a subcontracting plan can be selected for review. The government considers the following factors during compliance reviews:

  • Number and size of the contractor’s government contracts
  • Date of last compliance review
  • Most recent compliance review results
  • Importance/sensitivity of the project
  • Reporting compliance in the electronic subcontracting reporting system (ibid)

The following may be reviewed during an audit:

  • Contract files/correspondence related to the contract
  • IT systems
  • Documentation on subcontracting methods and procedures (ibid)

Once the audit is complete, a contractor can expect to receive a report on non-compliant items found and a rating based on the review. A rating can range from unsatisfactory to outstanding. No further action is necessary if a contractor receives an outstanding rating. When the rating is below satisfactory, the contractor must create a corrective action plan (CAP) within 30 days, explaining the steps they will take to become compliant. (ibid)

It is a good idea for contractors to have the required documents on hand, should they receive notice of an upcoming audit. They may include the following:

  • Small business certification paperwork
  • Subcontracting program policies
  • Any prior compliance reviews
  • Organizational charts
  • Policy letters from the company CEO verifying subcontracting program
  • Historical subcontracting reports
  • Listing of any small business conferences or trade shows attended
  • Documentation of success stories – showing contracts awarded
  • A letter identifying small business liaison officer (ibid)

Companies that are well prepared for audits and have a subcontracting plan in place will undoubtedly move through a review smoothly and quickly.

Do you have all of your ducks in a row for a possible upcoming audit? Give us a call.

 

EZ-ier requirements for COVID efforts at GSA says EZGSA

GSA’s Multiple Award Schedule (MAS) program may be used by state and local governments to procure commercial products, services, and solutions necessary to respond to the pandemic. GSA is providing additional support by issuing Acquisition Letter (AL) MV-21-03 and Supplement to further aid America in response to COVID-19. (GSA Interact April 14, 2021)

AL achieves this by:

  • Temporarily waiving (3) MAS solicitation requirements in MAS provision SCP-FSS-001 when a company is proposing products/services to support COVID-19 efforts.
  • The AL waives:
  1. The requirement to possess two years of Corporate Experience
  2. The requirement to submit a Relevant Project Experience for each SIN proposed
  3. The requirement to submit an Annual Financial Statement for the previous two years (ibid)

The AL, however, does not change the following:

  • Certain vendor instructions regarding the submission of a Corporate Experience narrative, Letter of Commitment/Supply, Past Performance Information, Quality Control Plans
  • Category/SIN specific technical requirements outlined in the MAS Solicitation category attachments
  • A Contracting Officer’s overarching responsibilities especially determining fair/reasonable pricing, ensuring compliance with vendor instructions, and making a responsibility determination in accordance with FAR subpart 9.1 (ibid)

AL applies to all MAS large categories, subcategories, and SINs under the following conditions:

  • New vendors proposing products, services, and/or solutions in direct support of COVID-19 efforts
  • Current MAS contractors adding service SINs in direct support of COVID-19 efforts (ibid)

AL does not apply under the following conditions:

  • Any offers or modifications which include products, services/solutions that do not directly support COVID-19 efforts
  • To VA MAS for medical equipment, pharmaceutical services, or supplies (ibid)

GSA is doing a number of things to support the ongoing COVID-19 efforts. The following are to name a few:

  • Deferring MAS contract cancellations when minimum sales haven’t been met under I-FSS-639 Contract Sales Criteria
  • Issuing a non-availability determination for Trade Agreement, Buy American Statute Class Determination, allowing contracting officers to temporarily award non-TAA compliant product to support COVID-19 requirements
  • Purchase Exceptions from the AbilityOne Program
  • Implementation of Emergency Acquisition Flexibilities (ibid)

GSA/FAS has many mechanisms for its Federal Partners to access the vital supplies and services required to meet the COVID-19 pandemic. For companies who would like to reach the government market beyond the MAS program, the Commercial Platforms program provides options to partner with several commercial e-marketplace platforms. It is also possible to partner with an existing MAS contractor as a subcontractor, providing part of a total solution to an agency’s COVID requirements. (ibid)

Questions concerning AL, what it does, doesn’t do, or do you now qualify for GSA? Give us a call.

 

 

 

 

COVID-19 actually helped small businesses do business

Due to the pandemic, the federal government has expanded remote network access to assist a dispersed workforce. This in turn has motivated reforms to the procurement system.

According to Roya Konzman, acting division director for solutions development at General Services Administration’s Federal Acquisition Service (FAS), “suddenly there was a need for new hardware, software and network access security, so we advised our Small Business Administration, Department of Veteran Affairs and Social Security Administration on their procurement strategies. GSA empowered its contracting officers to expand its rated orders authority. These orders are issued in accordance with the defense priorities and allocation system, and rated orders applied to IT capabilities included teleworking and health care solutions such as VPN accounts, virtual desktop infrastructure solutions, laptops, and mobile devices, and also covered personal protective equipment such as medical products hand sanitizers and disposable gloves.” (GovernmentCIO Media & Research April 6, 2021)

A national emergency allows the use of rated order authority. It authorizes GSA to prioritize a solicitation on behalf of an agency to buy goods and services. If a contractor receives a rated order, the contractor must prioritize that order ahead of other orders in the queue. (ibid)

There were so many rated orders issued to large contractors that individual suppliers often had a hard time meeting demands within the allotted timeframe. The result was federal agencies looked to enlarge their contracting base to include specialized smaller and mid-sized contractors. (ibid)

Because smaller firms do not have the “red tape’ that larger firms have, they can often change directions quickly. This makes smaller firms extremely valuable during times of national crisis. (ibid)

The federal government invested in video conferencing software and remote connectivity during the pandemic. This affords vendors the opportunity to demonstrate their products to various procurement offices. Additionally, agencies can quickly evaluate a large range of potential contractors. Which helps potential contractors who might have otherwise been overshadowed by larger vendors with preexisting relationships. (ibid)

Do you have a specialized product that the federal government needs? Give us a call.

 

$355M for Women Owned Small Businesses

Over the past 20 years, the government has aimed to award at least 5 percent of contracts to Women-Owned Small Businesses (WOSBs). In FY2020, WOSBs received $561.7 million in contracts. However, GSA has only set aside $354.9 million for WOSB contracts in FY2021. (ExecutiveGov, March 4, 2021)

According to GSA’s Office of Small and Disadvantaged Business Utilization, 10.47 percent of the total FY2020 contracting obligations for women-owned vendors were prime awards. To lend a hand to these vendors, GSA provides support through training resources and Forecast of Contracting Opportunities. These tools and other activities earned GSA a grade of A+ from the Small Business Administration in FY2019 for their work to support small businesses. (ibid)

Are you a Small or Woman-Owned Small Business looking to prime or sub on an upcoming procurement? Give us a call.