1. Subcontracting Program Goals
June 20, 2013
Randy Czaia
Minnesota District SBA Office

2. U.S. Small Business Administration
• Financial Assistance
• Business Counseling and Training
• Disaster Recovery
• Government Contracting
• http://www.sba.gov/ (national)
• http://www.sba.gov/mn (local)

3. SBA District Office and SBA Office of
Government Contracting
• Minnesota District Office is one of 68
SBA district offices.
• SBA Government Contracting is
separate with its own internal reporting
structure.
• Many states (such as Minnesota) do not
have any employees from the SBA
Office of Government Contracting.

4. SBA District Office GC Functions
• Outreach and training of small
businesses and resource partners.
• Delivery of the 8(a) Business
Development Program.
• HUBZone site visits.

5. SBA Office of Government Contracting
• Dwight Johnson is assigned as the PCR/CMR for
Minnesota.
– PCR: Procurement Center Representative
– CMR: Commercial Market Representative
• SBA GC Area Office
– Size Protest
– Certificate of Competency
• SBA GC HQ
– Negotiate agency small business goals
– Status protests
– Waivers

6. Government Prime Contracting
• SBA negotiates goals with Federal
agencies
– 23% Small Business
– 5% Small Disadvantaged Business
• 8(a) Business Development
– 5% Women Owned Small Business
– 3% HUBZone Small Business
– 3% Service Disabled Small Business

7. Government Subcontracting
• The contracting officer reviews and negotiates
subcontracting goals with prime contractors.
– Small Business – negotiated
– Small Disadvantaged Business
• 5% statutory
– Women Owned Small Business
• 5% statutory
– HUBZone Small Business - negotiated
– Service Disabled Veteran Owned Small Business-
negotiated
– Veteran Owned Small Business - negotiated

8. Small Business – Size Standards
• Based on 2012 North American Industrial
Classification system codes –NAICs.
• Codes and corresponding size standards at
www.sba.gov/size.
– Manufacturing and Wholesaling – One year
average number of employees.
– Service Industries – Three year average revenues.
• Self Certification.
• Size Regulations are at 13 CFR 121.

9. Government Use of Size Standards
• Used by SBA to determine program
eligibility.
– Business must be small for NAICs code that
best describes the business.
• In prime contracting, used by the CO to
set-aside or limit competition to
businesses that are small for the
product/service being procured.

10. Prime Contractor Use of Size Standards
• Supplier must be small for the provided
product/service to count towards
subcontracting goals.
• Prime Contractors send out
questionnaires asking suppliers to self-
certify if they are small and if they qualify
for other sub-categories.
• Some Prime Contractors also look at
self-certification data in SAM.

11. Subcategory Qualification
• Small Disadvantaged Business
• Women Owned Small Business
• HUBZone Small Business Concern
• Service Disabled Veteran Owned Small
Business
• Veteran Owned Small Business

12. • SDB – Self certification
• 8(a) Business Development
– Nine Year Business Development program
– Applicant must apply to SBA
– All 8(a) BD participants are by definition
SDB
SDB and 8(a) Business Development

13. • Social Disadvantage
– Designated Groups
– Non-Designated Groups
• Economic Disadvantage
• Potential for Success – 8(a) BD only
– Two years in business
– Possible waiver
SDB and 8(a) Business Development
Eligibility Criteria

14. Women Owned Small Business
• Women Owned Small Business
Concerns may self-certifiy their status.
• Under the WOSB Program (set-aside)
there are also:
– WOSB concern eligible under the WOSB
Program.
– Economically Disadvantaged Women Owned
Small Business (EDWOSB).
• The WOSB Program does not affect
subcontracting goals.

15. • HUBZone SBC must be certified by
SBA to count towards subcontracting
goals.
• The official list of HUBZone certified
small business concerns is the DSBS.
– (http://dsbs.sba.gov/dsbs/dsp_dsbs.cfm)
HUBZone Small Business Concern

16. HUBZone Program
• Place based program.
• Designed to increase investment and
employment in distressed areas.
• Types of Historically Underutilized
Business Zones or HUBZones.
– Rural counties.
– Census tracts.
– Exterior boundaries of an Indian reservation.
– Redesignated areas.
• To find out if a location qualifies, type in
address at: www.sba.gov/hubzone.

17. HUBZone Program Eligibility
• Must meet all four requirements.
– Principal Office must be in HUBZone.
– 35% of employees must reside in
HUBZone.
– Must be small.
– Business must be 51% owned by U.S.
Citizens.
• SBA certification required.
– Including subcontractors.
• www.sba.gov/hubzone.

18. Service Disabled Veteran Owned Small
Business (SDVOSB)
• Self-certification (except for VA
contracts).
• SBA GC responsible for SDVOSB status
protests (except for VA contracts).
• Certification required from VA’s CVE to
be eligible to:
– Compete on VA SDVOSB set-asides.
– To be counted on VA subcontracting plan
goals.

19. Veteran Owned Small Business (VOSB)
• Self-certification (except for VA
contracts).
• SBA GC responsible for SDVOSB status
protests (except for VA contracts).
• Certification required from VA’s CVE to
be eligible to:
– Compete on VA VOSB set-asides.
– To be counted on VA subcontracting plan
goals.

20. 2014 SADBOC Government
Procurement Fair
• Annual procurement event sponsored by
the Federal Executive Board of
Minnesota’s Small and Disadvantaged
Business Opportunity Council (SADBOC).
• April 30, 2014 at the Earle Brown Heritage
Center.
• Trade show, Workshops, Match Making.
• Recent attendance: 1,000.

21. Questions?
• Minnesota District SBA Office
www.sba.gov/mn
• Randall Czaia (612) 370-2314
randall.czaia@sba.gov