Small Business Topics
Presented by
Bill Donaldson
(781) 225-6470
Overview
Main Points:
-AFLCMC/SB-Hanscom Small Business
Office
-Contracting Philosophy SBSAs
-Subcontracting Important New Stuff
-Wrap-up and Questions & Answers
AFLCMC/SB-Hanscom Mission
SB is the primary advocate for promoting contracting with small
business at the Hanscom AFB.
Mission: To serve as small business
advocates for meeting the USAF
mission with small business
solutions.
Director: Bill Donaldson
William.donaldson@us.af.mil
(781) 225-6470
FAR 52.219-8 Utilization of Small
Business Concerns
It is the policy of the United States that small
business concerns, veteran-owned small business
concerns, service-disabled veteran-owned small
business concerns, HUBZone small business
concerns, small disadvantaged business concerns,
and women-owned small business concerns shall
have the maximum practicable opportunity to
participate in performing contracts let by a Federal
agency, including contracts and subcontracts for
subsystem, assemblies, components and related
services for major systems
Contracting Philosophy
Small Business Set Asides require FAR 52.219-14
The Limitation of Subcontracting Clause:
(1) Services (except construction). At least 50 percent of the cost of contract
performance incurred for personnel shall be expended for employees of the concern.
(2) Supplies (other than procurement from a nonmanufacturer of such supplies). The
concern shall perform work for at least 50 percent of the cost of manufacturing the
supplies, not including the cost of materials.
(3) General construction. The concern will perform at least 15 percent of the cost of
the contract, not including the cost of materials, with its own employees.
(4) Construction by special trade contractors. The concern will perform at least 25
percent of the cost of the contract, not including the cost of materials, with its own
employees.
NDAA FY13 Small Business Items
The National Defense Authorization Act for FY13
Noteworthy small Business Issues
Final Bill Was Signed Into Law on January 2, 2013,
as P.L. 112-239
There are approximately 30 provisions of the NDAA that
directly focus on small business contracting reform.
These provisions aim to strengthen small business
contracting opportunities, improve oversight, reduce
fraud, and promote the health of the small business
industrial base.
The following are selected highlights of the NDAA
NDAA FY13 Small Business Items
SECTION 1651. LIMITATIONS ON SUBCONTRACTING
Fundamentally changes the formula for calculating
limitations on subcontracting for contracts for services
and, to a lesser extent, contracts for supplies
In the case of service contracts, the SB prime contractor
must perform more than 50% of the amount paid to the
contractor under the contract (rather than 50% of the
cost of contract performance incurred for personnel)
In the case of supply contracts, the SB prime contractor
must perform more than 50% of the amount (less the
cost of material) paid the small business prime
contractor (rather than the cost of manufacturing)
NDAA FY13 Small Business Items
SECTION 1651. LIM ON SUBCONTRACTING (Cont.)
Similarly situated entities exemption: 50% limitation on
subcontracting restriction does not apply if the
subcontractor is a small and of the same type as the
prime
Failure of any contractor/subcontractor to comply in
good faith with any plan required [s]hall be a material
breach of such contract or subcontract that may be
considered in any past performance evaluation of the
contractor
NDAA FY13 Small Business Items
SECTION 1651. PENALTIES (LIMITATIONS ON
SUBCONTRACTING)
Increases penalty on small businesses for violating the
limitation on subcontracting
Small businesses who violate this rule could be fined up to
$500,000 for failing to abide by the limitation requirements
or the dollar amount expended, in excess of permitted
levels, by the entity on subcontractors
Progress?
News received 10 February 2014:
FAR Cases related to Subcontracting: FAR Council will
begin developing 2 FAR cases related to subcontracting. Both
will address recent changes to the SB Act that implements
the SB Jobs Act.
Why Were Here
Assisting USAF Market Research
Some quick tips Answer the questions you can address
AND the ones you cannot translation???
Subcontracting Capability, capability, capability
Stating Capability or Selling a Good Nights Sleep?
The truth about RFIs
How we make the sausage.then how we sell it!
AFLCMC/SB Hanscom Office of
Small Business Programs
QUESTIONS?
12
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