FED GOV CON Webinar Wednesdays 2019 Series JSchaus & Assoc. Washington DC +1–202–365–0598
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About Our Speaker: Ryan Bradel, Esq. Education: J.D., Notre Dame Law School B.A. University of Calif., Los Angeles Company Name: Ward & Berry, PLLC The government contractor’s law firm www.wardberry.com # of Years Federal Gov Con Experience: 12
Service Disabled Veteran Owned Small Business (“SDVOSB�) Contracting: Advantages in Contracting
2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates
The Advantages and Benefits of Contracting as an SDVOSB Overview: 1) Set-aside contracts 2) Vets First under the Veteran’s Benefits Act 3) Sole source awards 4) Subcontracts – helping primes fulfill their subcontracting plan
2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates 1. Set-Aside Contracts What is a set-aside? A set-aside is a contract that is “set-aside” for competition only among companies that fall into a certain small business program (e.g., SDVOSB, 8(a), HUBZone, WOSB). Government’s small business contracting goals All small businesses: 23% (which constituted $120.8 billion in 2018) SDVOSBs: 3% (which constituted $20.6 billion in 2018)
2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates 1. Set-Aside Contracts
The Rule of Two (i) Simplified Acquisitions: For acquisitions valued between the micro-purchase threshold ($3,500) and the simplified acquisition threshold ($150,000) are automatically set-aside for small unless the contracting officer determines there is not a reasonable expectation of obtaining officers from two or more small businesses (which category of small business to set-aside for is up to the contracting officer’s discretion). (ii) All other acquisitions: For acquisitions above the $150,000 threshold, the contracting officer will it set-aside for competition among small businesses if there is a reasonable expectation that: 1) offers will be obtained from at least two responsible small businesses; and 2) award can be made at fair market prices (contracting officer must look at socioeconomic SBs first).
2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates 1. Set-Aside Contracts
The Rule of Two (i) Simplified Acquisitions: For acquisitions valued between the micro-purchase threshold ($3,500) and the simplified acquisition threshold ($150,000) are automatically set-aside for small unless the contracting officer determines there is not a reasonable expectation of obtaining officers from two or more small businesses (which category of small business to set-aside for is up to the contracting officer’s discretion). (ii) All other acquisitions: For acquisitions above the $150,000 threshold, the contracting officer will it set-aside for competition among small businesses if there is a reasonable expectation that: 1) offers will be obtained from at least two responsible small businesses; and 2) award can be made at fair market prices (contracting officer must look at socioeconomic SBs first).
2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates
1. Set-Aside Contracts Making the determination to set-aside an acquisition In making the determination to set-aside an acquisition for small business, the contracting officer must rely on input from the agency’s small business representative (e.g., the OSDBU) and the SBA. So don’t be afraid to advocate for yourself!
2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates
1. Set-Aside Contracts Making the determination to set-aside an acquisition In making the determination to set-aside an acquisition for small business, the contracting officer must rely on input from the agency’s small business representative (e.g., the OSDBU) and the SBA. So don’t be afraid to advocate for yourself!
2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates 2. Veterans First – the Veteran’s Benefits Act of 2006 Provides the VA with unique procurement authority to set-aside contract for and sole source contracts to SDVOSBs (and VOSBs). VA Rule of Two The VA must set-aside an acquisition for competition among SDVOSBs if there is a reasonable expectation that two or more responsible SDVOSBs will submit an offer and that award cab be made at a fair and reasonable price.
2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates 2. Veterans First – the Veteran’s Benefits Act of 2006 Provides the VA with unique procurement authority to set-aside contract for and sole source contracts to SDVOSBs (and VOSBs). Enforcing the Rule of Two: Kingdomware Supreme Court decision which held that the VA Rule of Two holds priority over all other contracting methods. Thus, the VA cannot procure from the GSA Schedule without first conducting a Rule of Two analysis. Veterans4You GAO case which said that VA Rule of Two requirement applies when the VA uses another agency to procure goods or services.
2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates 3. Sole Source Awards A contracting officer shall consider a contract award to an SDVOSB on a sole source basis before considering small business set-asides (provided there is no requirement to give another program priority e.g., Federal Prison Industries, Ability One, Federal Supply Schedule contracts) if: (i) the contracting officer does not have a reasonable expectation that offers would be received from two or more SDVOSBs (ii) the anticipated award price of the contract, including options, will not exceed $4 million ($6.5 million for a manufacturing contract) (iii) the requirement is not currently being performed by an 8(a) company (iv) the SDVOSB has been determined to be a responsible contractor (v) award can be made at a fair and reasonable price
2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates 3. Sole Source Awards Expansion of sole source awards to SDVOSBs? Early this year the House of Representatives passed H.R. 190 which would increase the size of contracts eligible for sole source awards by eliminating the “including options” language from the rule. So any requirement that was under $4 million for the base year ($6.5 million for manufacturing) would be eligible for sole source to and SDVOSB. The measure passed the House 415-6. No word on if the Senate is going to take it up.
2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates 3. Sole Source Awards Strategies for obtaining sole source awards: * Make sure your customers know your status and that they can make a sole source award to you. * Agencies must do market research before making a sole source award—be sure to respond to all RFIs and when you do, highlight your SDVOSB status (in addition to your technical capabilities) * Talk to the agency even before the RFI stage so you have a good understanding of the agency’s needs so that you can show how your capabilities are unique and thus suitable for a sole source award.
2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates 4. Subcontracts – helping primes fulfill their subcontracting plan Large prime contractors are required to subcontract to small businesses to the maximum extent practicable. For contracts that exceed the simplified acquisition threshold, large prime contractors are required to submit a small business subcontracting plan which outlines: 1) the prime’s plan for subcontracting to small businesses; 2) a description of the method used to identify potential sources for solicitation purposes.
THANK YOU! JSchaus & Assoc. Washington DC hello@JenniferSchaus.com www.JenniferSchaus.com +1–202–365–0598 Speaker: Ryan Bradel Email: rbradel@wardberry.com Phone: (202) 331-8160