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Jennifer Schaus & Associates GOV CON WEBINAR SERIES - 2017


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2017 - WASHINGTON DC

www.JenniferSchaus.com

Join Us for A Series of Complimentary Webinars on various US Federal Government Contracting Topics. Presenters are industry experts sharing knowledge about the competitive government contracting sector. Find all of our Govt Contracting webinars (free download) at www.JenniferSchaus.com

Contact Us @ 2 0 2 – 3 6 5 – 0 5 9 8


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2017 - WASHINGTON DC

www.JenniferSchaus.com

ABOUT JENNIFER SCHAUS & ASSOCIATES: -

Based in downtown Washington, DC; A la carte services for Federal Contractors;

- Proposal Writing to GSA Schedules and Contract Administration, etc.; Deep bench of industry experts; -

Educational webinars;

Networking events and seminars;

WEBSITE: http://www.JenniferSchaus.com


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2017 - WASHINGTON DC

www.JenniferSchaus.com

ABOUT JENNIFER SCHAUS: -

Over 20 years in federal contracting; -

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Began career with D&B; Industry speaker and author;

Board Member: GovLish; NCMA; and NMIA.

Volunteer Mentor &/or Instructor: VA PTAP; CBP / VBOC; Capitol Post; 1776; Eastern Foundry, WIT; WDCEP and the Towson University Incubator.


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2017 - WASHINGTON DC

ABOUT OUR SPEAKERS Michael Hordell Jeffrey Pedersen

www.JenniferSchaus.com


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2017 - WASHINGTON DC

ABOUT MICHAEL HORDELL: Education: B.B.A., Insurance & Marketing, University of Cincinnati (1970); J.D., Boston University School of Law (1973) # Of Years in Govt Contracting: 41 Position/Title: Of Counsel Law Firm Bio: http://www.pepperlaw.com/people/michael-a-hordell/ Law Firm Phone: 202.220.1232 Law Firm Email: hordellm@pepperlaw.com Owner: Michael A. Hordell, LLC, which provides business and government contract strategic advice (mahordell77@gmail.com; 703.927.0769) Co-Author : Winning Proposals and Pricing/Cost Strategies: A Guide for the Federal Contractor Past Chair: ABA Section of Public Contracts Law (2006-2007)

www.JenniferSchaus.com


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2017 - WASHINGTON DC

www.JenniferSchaus.com

ABOUT JEFFREY PEDERSEN: Education: B.S., Aerospace Engineering, University of Michigan (2004); M.S., Aerospace Engineering, University of Michigan (2006); J.D., The George Washington University Law School (2013) # Of Years in Govt Contracting: 5 Position/Title: Associate Law Firm Bio: http://www.pepperlaw.com/people/jeffrey-pedersen/ Phone: 202.220.1253 Email: pedersenj@pepperlaw.com


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2017 - WASHINGTON DC

www.JenniferSchaus.com

ABOUT PEPPER HAMILTON LLP: Founded in 1890 -

A multi-practice law firm with more than 450 lawyers in 13 offices in the U.S. -

Provides corporate, litigation and regulatory legal services to leading businesses, government entities, nonprofits, and individuals throughout the nation and the world - The exclusive member firm in Pennsylvania for Lex Mundi - Website: http://www.pepperlaw.com


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2017 - WASHINGTON DC

www.JenniferSchaus.com

HUBZone Certification Alone Does Not Guarantee Success: What You Need to Know to Better the Odds! Thursday September 14, 2017


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2017 - WASHINGTON DC

www.JenniferSchaus.com

Why certify? - HUBZone Program Benefits • “The purpose of the HUBZone program is to provide federal contracting assistance for qualified SBCs located in historically underutilized business zones in an effort to increase employment opportunities, investment, and economic development in such areas.” 13 C.F.R. 126.100 • Set-aside and sole source procurements • Price evaluation preference • No participation end date • No requirement for social-disadvantaged status


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2017 - WASHINGTON DC

www.JenniferSchaus.com

HUBZone Program Qualification/Requirements HUBZone certification requires the business to satisfy all of the following four criteria: 1. Small business under primary NAICS code; 2. Meet one of the ownership and control requirements (see next slide); 3. Principal office located in a HUBZone; and 4. At least 35% of employees reside in a HUBZone


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2017 - WASHINGTON DC

www.JenniferSchaus.com

Ownership and Control Requirements SBC must meet one of the following ownership and control requirements: • Owned and controlled at least 51% by U.S. citizens; • Wholly owned or owned in part by one or more Indian Tribal Governments or by a corporation that is wholly owned by one or more Indian Tribal Governments; • An ANC owned and controlled by Natives or a direct or indirect subsidiary corporation, joint venture, or partnership of an ANC; • Wholly owned by one or more Native Hawaiian Organizations (NHOs), or by a corporation that is wholly owned by one or more NHOs, if all other owners are either United States citizens or SBCs; • Wholly owned or owned in part by a Community Development Corporation (CDC); • A small agricultural cooperative or a small business concern wholly owned or owned in part by one or more small agricultural cooperatives


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2017 - WASHINGTON DC

www.JenniferSchaus.com

HUBZone Program Qualification/Requirements – Location SBA publishes spreadsheets and searchable maps that are regularly updated based on census information, legislation, and other employment analyses https://www.sba.gov/contracting/government-contracting-programs/hubzone-program/hubzone-maps


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2017 - WASHINGTON DC

www.JenniferSchaus.com

Certification Process & Timeline • Initial steps • Dun & Bradstreet DUNS Number • System for Award Management (SAM) Registration • Dynamic Small Business Search (DSBS)

• Certification application – SBA’s General Login System • Request system access • Complete HUBZone application module

• Timeline • After submitting online application: 10 days to verify data; 10 days to upload the supporting documentation • SBA’s goal is to process certification requests within 90 days of the completed application (including supporting documentation)


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2017 - WASHINGTON DC

www.JenniferSchaus.com

Common Issues - Certification • Discretionary certification / adverse inference • 4,000 applications per year • Approximately 25% of applications declined

• Small business size status • NAICS standard for size (employee or revenue based) • Affiliation (see next slide)


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2017 - WASHINGTON DC

www.JenniferSchaus.com

Small Business Size Status – Affiliation


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2017 - WASHINGTON DC

www.JenniferSchaus.com

Post-Certification Requirements • Continued requirement to meet the four eligibility requirements (Slide 11) for HUBZone set-aside contracts: • SBC must meet the four eligibility requirements at the time of the initial offer and at the time of award • SBC must certify that it will “attempt to maintain” compliance throughout performance

• Subcontracting limitations (13 C.F.R. 125.6) • Prime SBC may not pay more than 50% of the contract to a non-HUBZone for supply or nonconstruction services • Construction and special trade contractors are subject to other limitations


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2017 - WASHINGTON DC

www.JenniferSchaus.com

Risks • GAO Report “Undercover Tests Show HUBZone Program Remains Vulnerable to Fraud and Abuse,” GAO-10-759, June 25, 2010 • HUBZone Designated Areas – Decertification • Designations reviewed annually and sometimes more frequently • 35% Employment Requirement


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2017 - WASHINGTON DC

www.JenniferSchaus.com

Risks Steep penalties for misrepresentation: • False Claims Act •

December 21, 2012, Kentucky-based contractor and its owners paid $6.25M to settle allegations that they submitted false statements to the SBA to obtain HUBZone certification

• Fraud •

September 15, 2015, Ohio-based contractor sentenced to one year in prison and ordered to repay $6.7M for making false representations about the company’s office location to obtain HUBZone certification

• Loss of contract, suspension, debarment, etc.


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2017 - WASHINGTON DC

Maintaining Eligibility • HUBZone designation expiration • Subcontracting limitations • Non-Manufacturer Rule • Record keeping (6 years from submittal)

www.JenniferSchaus.com


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2017 - WASHINGTON DC

www.JenniferSchaus.com

HUBZone Program Developments • FY 2013 NDAA revisions – Effective June 2016 • Subcontracting limitations • Certification application processing • HUBZone joint ventures

• FY 2016 NDAA revisions – Effective Oct. 2016 • Native Hawaiian Organizations • Expanded definitions of “base closure area” and “qualified disaster areas”

• HR 3294 HUBZone Unification and Business Stability Act of 2017 (pending) • 5-year cycle for determining designations • Change geographic qualifications to increase number of zones


Jennifer Schaus & Associates

GOV CON WEBINAR SERIES - 2017

QUESTIONS? Michael Hordell (hordellm@pepperlaw.com, 202.220.1232); Jeffrey Pedersen (pedersenj@pepperlaw.com, 202.220.1253)

THANK YOU FOR ATTENDING!!

WWW.JENNIFERSCHAUS.COM

FED GOV CON - Hubzone certification - what you need to know to better the odds!  

Please join Jennifer Schaus & Associates every Wednesday in 2018 for a complimentary Wednesday series. For full audio of this presentation p...

FED GOV CON - Hubzone certification - what you need to know to better the odds!  

Please join Jennifer Schaus & Associates every Wednesday in 2018 for a complimentary Wednesday series. For full audio of this presentation p...

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