SubContracting Opportunities - Department Of Veterans Affairs

Federal Government Contracting:
SUBCONTRACTING
2022 Webinar Series
Washington DC – hello@JenniferSchaus.com – 202-365-0598

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JANUARY 27TH
CARAHSOFT
TECHNOLOGY CORP.
RESTON, VA
HTTPS://WASHINGTONTECHNOLOGY.COM/EVENTS
On January 27th , join your peers at the
WT Power Breakfast: 2023 Market
Outlook. Washington Technology
provides a direct line to the contractor
executives who need cutting-edge IT
systems and solutions to serve the
largest customer in the world – the
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How are leading industry executives
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During this Power Breakfast, these
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FOR MORE INFO CONTACT THE EVENTS TEAM AT
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SUBCONTRACTING OPPORTUNITIES AT
Department Of Veterans Affairs

AGENDA:
➢ Panelist Introductions
➢ Mission Statement / History
➢ Bureaus, Agencies & Offices
➢ Important Links
➢ Top Vendors
➢ Trends & Opportunities
➢ Marketing Best Practices
➢ Legal Considerations

DATA SPEAKER:
Ms. Archisha Mehan
GovSpend
amehan@govspend.com

LEGAL SPEAKER:
Mr. Matthew Moriarty
Schoonover & Moriarty
mmoriarty@schoonoverlawfirm.com

MISSION STATEMENT & HISTORY:
To provide veterans the world-class benefits and services they have
earned — and to do so by adhering to the highest standards of
compassion, commitment, excellence, professionalism, integrity,
accountability, and stewardship.

BUREAUS / AGENCIES / OFFICES:
National Cemetery Administration
Veterans Benefits Administration
Veterans Day National Committee
Veterans Health Administration

LINK TO DEPARTMENT:
https://www.va.gov/
LINK TO OSDBU/OSBP:
https://www.va.gov/osdbu/
LINK TO PROCUREMENT FORECAST:
https://www.vendorportal.ecms.va.gov/eVP/fco/EntireVA.aspx?Type=Complete
LINK TO SBA SCORECARD:
https://www.sba.gov/document/support-department-veterans-affairs-contracting-scorecard

TOP 10 VENDORS

1. McKesson
2. Triwest Healthcare Alliance
3. Cerner Government Services
4. QTC Medical Services
5. Veterans Evaluation Services
6. Logistics Health
7. Booz Allen Hamilton
8. Dell Federal Systems
9. Liberty IT Solutions
10. Four Points Technology

TOP 5 VENDORS - PROFILE

#1 - MCKESSON
https://www.mckesson.com/

MCKESSON
SBLO (SMALL BUSINESS LIAISON OFFICE) INFO /
LINK TO REGISTER AS SMALL BUSINESS VENDOR:
https://www.mckesson.com/Biopharma/Medical-Supplier-Program/

#2 - TRIWEST
https://www.triwest.com/

TRIWEST
https://www.triwest.com/en/contact/small-business-outreach-program/

#3 - CERNER GOVERNMENT SERVICES
https://www.cerner.com/solutions/federal

CERNER GOVERNMENT SERVICES
https://www.cerner.com/contact

#4 - QTC MEDICAL SERVICES
https://www.qtcm.com/

QTC MEDICAL SERVICES
https://www.qtcm.com/about-us/contact-us/

#5 - VETERANS EVALUATION SERVICES
https://www.ves.com/

VETERANS EVALUATION SERVICES
https://www.ves.com/contact-us/

MARKETING BEST PRACTICES

MARKETING BEST PRACTICES
1 – Know your Customer (Department and Primes) BEFORE you engage! Do your homework!
2 – Register on the Prime’s website as a Small Business Vendor. Ensure your information is complete and
accurate and matches your SAM registration.
3 – Connect on Linkedin with the key players and follow the company to stay abreast of news and relevant
information. Sign up for Google alerts.
4 – Attend events and join associations where the company is active.
5 - Provide value - bring an opportunity and a custom Capability Statement geared to an Opportunity

Reference - Department of Veterans Affairs FAR
Supplement
https://www.youtube.com/watch?v=3CR5MGmzsfo
Subcontracting – LEGAL PERSPECTIVE

Subcontracting – LEGAL PERSPECTIVE
Mr. Matthew Moriarty
Schoonover & Moriarty

Quintessential contracting relationship
• Prime is awarded the contract, then subcontracts out a portion of
that work to one or more subcontractors
• Prime has privity of contract with the government, and is
responsible/liable for performance of the contract
• NOT A “JOINT VENTURE”
• Governed by state law
• Some FAR provisions apply
The Prime/Sub Relationship

What Socioeconomic Entities Sell To The VA?
Prime
Small businesses: 30.38 percent (goal:
28.45%)
SDVOSB: 23.78 (goal: 3 %)
Disadvantaged: 11.2 percent (goal: 5 %)
WOSB: 2.31 percent (goal: 5 %)
HUBZone: 2.25 percent (goal: 3 %)
Subcontracts
Small businesses: 13.2 percent (goal: 16 %)
SDVOSB: 0.4 (goal: 3 %)
Disadvantaged: 2 percent (goal: 5 %)
WOSB: 1.8 percent (goal: 5 %)
HUBZone: 0.4 percent (goal: 3 %)
SOURCE: 2021 SBA Agency scorecard

2022 VA Subcontracting Goals
Type Goal
Small Business 17.5 percent
VOSB 7 percent
SDVOSB 5 percent
Small Disadvantaged Business (including 8(a)) 5 percent
WOSB 5 percent
HUBZone 3 percent

Required Subcontracting Plans
• The VA, like all agencies, requires large business to maintain an acceptable subcontracting plan
• Plan required when estimated value of the prime contract is greater than $750,000 ($1.5 million for
construction of public facilities)
• Must include dollar and percent goals
• Must be in place prior to award
• Subcontracting plan requirement does not apply to
• Small businesses
• Contracts with value less than $750,000
• Contracts not offering subcontracting opportunities
• Contracts performed entirely outside the United States

Verification?
VAAR 852.219-9: “To be credited toward goal achievements, businesses must
be verified as eligible in the Vendor Information Pages database.”
Large primes must annually submit a list of SDVOSB and VOSB businesses to
count toward goals to the OSDBU.
SDVOSB/VOSB Subcontracting

Reporting And Compliance
● Must make “good faith effort” to meet goals.
● Failure = breach of contract and part of past performance evaluation
● Prime contractors must report subcontracting through the VA’s
● Electronic Subcontracting Reporting System (eSRS)
● Primes may be subject to a Subcontracting Plan Compliance Review (SPCR) – see VAAR 819.7202
● Can be on site or off site

VA Subcontracting: SBA View
“VA continues to face challenges in subcontracting due to the overwhelming dominance of commercial plans.
For subcontracting plans associated with an individual VA-administered contract, VA excels consistently. For
example, in FY 2021, VA achieved 23.9% small business participation on individual plans, well above VA’s 16%
goal. When these results were combined with commercial plans, where Government-wide policy provides
limited management or oversight, VA achieved 13.2% for all small businesses.”
TRANSLATION: The source of the issue with VA subcontracting is commercial plans
Individual plans = 23.9 percent small business participation
Commercial plans: 13.2 percent small business participation
SOURCE: 2021 SBA Agency scorecard

Resources
● The VA maintains a directory of large business prime contractors who must establish
subcontracting plans with goals
○ Company names and contact information
○ Over 7,000 on list
● https://www.vetbiz.va.gov/services/subcontracting/#
● SBA SUB-Net – website for prime contractors to post subcontracting opportunities
○ https://eweb1.sba.gov/subnet/client/dsp_Landing.cfm

FAR Flow Down Clauses
Prime federal contracts usually include FAR clauses that must also be included
in subcontracts—or flowed down
Look for: “The Contractor shall include the substance of this clause in all
subcontracts and in all contracts with agents.”

Common Flow Downs
● 52.203-13 Contractor Code of Business Ethics and Conduct
○ Need to flow down only if subcontract is greater than $5.5 million and
has a period of performance longer than 120 days.
● 52.219-8 Utilization of Small Business Concerns
● Only flows down if the subK offers further subcontracting opportunities. Also doesn’t
flow down if the subcontract is less than $700,000 or $1.5 million for construction of a
public facility. Last, no need to flow down to small business concern subcontractors.

Other Key Flow Downs (Potentially Optional)
● 52.217-8 OPTION TO EXTEND SERVICES
● 52.222-50 COMBATING TRAFFICKING IN PERSONS
● 252.204-7009 LIMITATIONS ON THE USE OR DISCLOSURE OF THIRD-PARTY
CONTRACTOR REPORTED CYBER INCIDENT INFORMATION
● 252.204-7012 SAFEGUARDING COVERED DEFENSE INFORMATION AND CYBER INCIDENT
REPORTING
● 252.223-7999 ENSURING ADEQUATE COVID-19 SAFETY PROTOCOLS FOR FEDERAL
CONTRACTORS

Limitation On Subcontracting
• Limits work prime contractor can subcontract to non-similarly situated entities on small
business set aside contracts (≥ $250k)
• General services: 50%
• Supplies/products (other than NMR): 50%
• Specialty trade construction: 75%
• General construction: 85%
• Manufactured items
• Small business must manufacture end item, unless nonmanufacturer rule applies

Similarly Situated Entity
Similarly situated entity:
• Shares prime contract’s socioeconomic designation and
• Small under subcontract’s NAICS code

Nonmanufacturer Rule
• Smaller than 500 employees;
• Primarily engaged in that trade and normally sells item;
• Takes ownership/possession per industry norms; and
• Supplies end item of a small business manufacturer (unless waiver)

Ostensible Subcontractor
• Prime contractor may be affiliated with subcontractor, if:
• Subcontractor performs “primary and vital” requirements, or
• Prime is too reliant on subcontractor

THANK YOU FOR ATTENDING
THANK YOU TO OUR SPEAKER
Archisha Mehan
amehan@govspend.com
Matthew Moriarty

SubContracting Opportunities - Department Of Veterans Affairs

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