Contracting Officer Podcast
Slides
Knowledge & Insights From Contracting Officers
1
Episode 028
What is a Small Business Set-Aside?
Original Air Date: May 24, 2015
Hosts: Kevin Jans & Paul Schauer
2
Formatting notes
• Hyperlinks: Blue font indicates hyperlinks – presentation must be in
‘Slide Show’ mode to activate the link
• Red bold font indicates a point of emphasis
• Green bold font indicates CO’s personal comment or perspective
3
Introduction
• Purpose of this podcast: To explain some of the details behind the what, when
and why of Small Business Set-Asides.
• Agenda:
• What are Small Business Set-Asides?
• When do these apply?
• Why does Government care?
• Why does Industry care?
4
When do Small Business Set-Asides
happen?
• Acquisition Time Zones
(from Podcast Episode 003)
• Execution Time Zones
(from Podcast Episode 084)
• Requirements Zone
• Kick Off Zone
• Market Research Zone
• Performance Zone
• RFP Zone (proposal zone)
• Re-compete Zone
• Source Selection Zone
• Wrap-up Zone
5
Types of Set-Asides
• These DO NOT require a separate Justification & Approval (within some limits)
• All of them say “MAY” set aside…
• Small Business (FAR 6.203 – Set-Asides for Small Business Concerns)
• The “how” is in FAR 19.5 – Set-Asides for Small Business
• Section 8(a) Competitions (FAR 6.204 – Section 8(a) Competition)
• HUBZone Small Business Concerns (FAR 6.205 – Set-Asides for HUBZone
Small Business Concerns)
6
Types of Set-asides
• SDVSOB (FAR 6.206 – Set-Asides for Service-Disabled Veteran-Owned Small
Business Concerns)
• EDWOSB or WOSB program in FAR 19.1505 and FAR 6.207
• Set asides for local firms during a major disaster or emergency (FAR 6.208)
• To companies ‘residing in’ or “doing business primarily in’ the affected areas
7
Additional Considerations
• Size standards for Small Businesses, per NAICS Code
• Helps “thin the herd” and get to one awardee
• Policy: FAR 19.2
• “maximize practicable opportunities…to small businesses, VSOB, SDVOSBs,
HUBZone businesses, EDWOSBs, etc.”
• Heads of contracting are responsible to have a “SB program”
• We’ll explain FAR Part 19 another time…it’s a whopper.
8
Why Should Government Care?
• Book answer:
• Small Business Act and FAR 19 says so
• Our answer:
• Often allows better product/service, faster, and often at less cost (but not ‘no
cost’)
• Better service: Targets your offerers
• Saves you time, saves them time, you may be their largest customer
9
Why Should Government Care?
• Faster
• More focused, more nimble, more innovative (but not infinitely so)
• “Cheaper”
• Less overhead, less interdivision costs, etc.
• YOU WANT THEM TO KNOW IT’S NOT RIGGED!
10
Why Should Industry Care?
• Book answer: FAR 6.2 and FAR 19 say they can care
• Our answer:
• Small business
• Focus (see Episode 016 or the Target or Forget It! Webinar)
• Strategic Advantage
• Fewer sharks in your lagoon…
11
Why Should Industry Care?
• Large business
• As a prime: they have a subcontracting plan and the eSRS to manage
• As a sub: they have access to many set asides
• It’s the system we have
12
Summary
• Can be advantageous both Government and Industry
• Provides opportunities for Small Business that may not otherwise exist
• Must be carefully managed
13
Contact us
• We are on LinkedIn, Twitter and Facebook
• We also started the Government Contracting Network Group on
Facebook. Join us there!
• Send your topics to [email protected]
• For Community support, contact Shelley Hall at
[email protected]
14