NMTC HUB-IT Initiative

National Minority Technology Council HUB-IT IT Initiative

A 21ST CENTURY ANSWER TO

URBAN ECONOMIC DEVELOPMENT LEVERAGING

FEDERAL CONTRACT PROCUREMENT AND PROVEN SUSTAINABLE

STEM TALENT PIPELINE METHODOLOGIES METHODOLOGIE Visit our HUB HUB-IT IT Initiative website: http://hubit.nmtcouncil.org

National Minority Technology Council HUB-IT Initiative Chairman’s Message Driving US Job Creation This is an important time in American history. Our country’s prosperity has never before so uniquely relied on our ability to rally together to transform how we approach the very definition of the “American Dream”.

The National Minority Technology Council is poised as a vital connector to small businesses, federal procurement, urban economic development and jobs. We must push the limits of cooperation and experience to build trusted partners that illuminate the capacity born through innovation and skill. Our HUBIT Initiative promises to create the vital link between our public and private stakeholders. We stand ready to build capacity in our local urban neighborhoods. Ready to create awareness and advocate a new distribution of wealth to our needy communities through partnerships that put small business owners in the driver’s creating tens of thousands of jobs in areas where unemployment is at an all time high.

This initiative may be led by our over 350 qualified and ready HUBZone Certified minority technology companies located across our 40 Districts, but it is inclusive of every HUBZone IT company and large federal partner companies who stand ready to help facilitate some of the largest opportunities every presented to small businesses. We strive to increase HUBZone set-asides by $1 Billion per year! This will employ over 25,000 people in our hardest to employ neighborhoods and create local prosperity, ignite our economy, and provide a new framework for federal contracting officers to “Buy Small Business”.

Our HUB-IT Initiative builds in a proven sustainable talent pipeline methodology to ensure that we engage those hardest to employ. We will marry this program with our leadership in STEM (Science, Technology, Engineering, and Math) education. NMTC’s HUB-IT Initiative is an opportunity to inspire our youth to employment or ownership. Our plan includes the involvement of many stakeholders including government (Federal, State, and Local), Education (University, Community College, K-12), Business, Non-Profits, and the Faith Based Community.

I thank our HUB--IT Committee Chair Tynesia Boyea-Robinson, CEO, Reliance Methods, for her insight and vision. Her nationally recognized commitment has already been recognized by President Obama, many Fortune 50 companies, and large federal contractors. It is with great trust and assurance I say this Council initiative cannot fail. We owe it to future generations to take the reins of our economic future and hand them over to the many small business owners who pay taxes, buy, lease or own property local, and represent the largest employers in America.

I challenge each reader to believe in the vision and help us achieve this Billion Dollar HUBZone set-aside goal.

With great excitement,

Karl Cureton Chairman, National Minority Technology Council

National Minority Technology Council HUB-IT IT Initiative NMTC HUB--IT Initiative A 21st Century Answer to Urban Economic Development Leveraging Federal Contract Procurements and Proven Sustainabl Sustainable Talent Pipeline Methodologies Executive Summary by HUB-Boyea--Robinson, CEO, Reliance Methods HUB--IT --IT Committee Chair Tynesia Boyea

When you look at the headlines, there is growing concern about the United States and its standing in the world. From education to economics, other countries seem to be moving mo ahead more rapidly than our country. Traditionally, the vast majority of Americans built their wealth through equity in their homes, but with the decline of the housing market, this puts mobility even farther out of reach. The other path to wealth, business ownership, is the backbone of our country. Yet, for every business that launches only a small percentage actually succeeds and sustains long term outcomes.

Given this backdrop, it is no surprise that the President has pushed for an enhanced focus on small business growth and job creation. Very few people would argue with those as goals, but that is where the unity ends. Fortunately, the government already has an underutilized vehicle at its disposal to achieve both- the HUBZone program. Histori Historically cally Underutilized Business

National Minority Technology Council HUB-IT Initiative Zones (HUBZone) are areas in the country that are traditionally high unemployment and low income. While most people see these as liabilities, in reality, these are markets for untapped talent.

The HUBZone program aligns economic incentives for the business community and potential employees. If a business is HUBZone certified, it must locate in a HUBZone and hire 35% of its employees from a HUBZone. Put simply, if you want to win a large contract, you must understand how to build and develop talent from low income neighborhoods.

Unfortunately, this is easier said than done, which is why the government misses these numbers by $3B annually. The SBA highlights the HUBZone and Veterans programs as its number one priorities for the next several years.

Gratefully, the National Minority Technology Council is well positioned to leverage this backdrop to affect change for its members, and ultimately, the nation. Through the HUB-IT initiative the Council will invest in the educational awareness and technical assistance to support the government to close the $3B shortfall significantly, translating into new business and jobs for its member companies. Fundamentally, Council members have a track record of excellence and results, without which we would be unable to move the needle on what on the surface is an intractable problem. We are honored to provide the resources and support to highlight and channel the efforts of our membership to collectively solve one of the most pressing issues in our country.

National Minority Technology Council HUB-IT IT Initiative “The The Federal government has pledged to do what it takes to get the economy on track. Federal programs, coupled with the sustainable, slow recovery, will help keep the economy from entering another recession in the short short-run.�

Washington, DC Economic Partnership

What is a HUBZone The Historically Underutilized Business Zones (HUBZone) program helps small businesses in urban and rural communities gain preferential access to federal procurement opportunities. These preferences go to small businesses that obtain HUBZone certification in part by employing staff who live in a HUBZone. The company must also maintain a "principal office" in one of these specially designated areas.

The HUBZone Empowerment Contracting program was enac enacted into law as part of the Small Business Reauthorization Act of 1997. The program falls under the auspices of the U.S. Small Business Administration (SBA). SBA's HUBZone program is in line with the efforts of both the Administration and Congress to promo promote te economic development and employment growth in distressed areas by providing access to more federal contracting opportunities.

The SBA is committed to helping elping small businesses grow and win federal contracts. The SBA HUBZone program is designed to not on only ly help small businesses grow but to bring economic prosperity to communities in need.

The SBA determines which businesses are eligible to receive HUBZone contracts and maintains a listing of qualified HUBZone small businesses that federal agencies can use to locate qualified vendors. On October 1, 2011, the areas of the country designated as HUBZones changed. These changes are based on census tracts and the 2010 census data recently issued by the Commerce Department. SBA estimated that some 3,400 firms were wer de-certified. This list of vendors changes after every Census. The SBA adjudicates protest of eligibility to receive HUBZone contracts and reports to the Congress on the program's impact on employment and investment in HUBZone areas.

National Minority Technology Council HUB-IT Initiative There are many benefits for HUBZone-certified companies. HUBZone Certified small businesses bid on both competitive and sole source contracting. There is a 10% price evaluation preference in full and open contract competitions, as well as subcontracting opportunities. The federal government has a set-aside goal of awarding 3% of all dollars for federal prime contracts to HUBZonecertified small business concerns.

One very important change in the HUBZone program was the change in the definition of an employee. Prior to May 3, 2010 an employee was the traditional W2 40 hour per week definition of an employee. Now employee means all individuals employed on a full-time, part-time, or other basis, so long as that individual works a minimum of 40 hours per month. This includes employees obtained from a temporary employee agency, leasing concern, or through a union agreement or co-employed pursuant to a professional employer organization agreement. SBA will consider the totality of the circumstances, including criteria used by the IRS for Federal income tax purposes and those set forth in SBA’s Size Policy Statement No. 1, in determining whether individuals are employees of a concern. Volunteers (i.e., individuals who receive deferred compensation or no compensation, including no in-kind compensation, for work performed) are not considered employees. However, if an individual has an ownership interest in and works for the HUBZone SBC a minimum of 40 hours per month, that owner is considered an employee regardless of whether or not the individual receives compensation.

Eligibility for the HUBZone is not complicated. To qualify for the program, a business (except tribally-owned concerns) must meet the following criteria: 1. It must be a small business by SBA standards 2. It must be owned and controlled at least 51% by U.S. citizens, or a Community Development Corporation, an agricultural cooperative, or an Indian tribe 3. Its principal office must be located within a “Historically Underutilized Business Zone,” which includes lands considered “Indian Country” and military facilities closed by the Base Realignment and Closure Act 4. At least 35% of its employees must reside in a HUBZone.

National Minority Technology Council HUB-IT Initiative The HUBZone Opportunity: Some questions Isn’t federal government spending forecasted to decrease?

Not in certain targeted areas like IT. Specifically, spending on IT projects through commercial contractors is forecasted to increase from $86B in 2010 to $110B in 2015 (~5% CAGR). This is due to a freeze on hiring and the cost-savings associated with automation.

Even in the face of statutory goals, aren’ aren’t larger companies positioned to win federal government contracts

Large companies are required to subcontract with small businesses, including HUBZone companies, as a stipulation of doing business with the government. Most comprehensive IT contracts involve some portion of lower-skill, labor intensive IT contracts. Larger companies tend to subcontract these projects to small businesses due to the lower margins.

Federal Contractors that subcontract with HUBZone businesses help the federal government meet its goals and as a result are better positioned for future procurement dollars.

Given the reduced margins, why focus on on lowerlower-skill, labor intensive contracts?

The biggest pressure on margins stems from challenges with developing and retaining a cost-effective talent pipeline. Our HUB-IT Chair has developed a unique competitive solution that creates a sustainable talent pipeline.

National Minority Technology Council HUB-IT Initiative The National Minority Technology Council Ecosystem – Our trusted network creates job creation The National Minority Technology Council is organized as a 501(c)6 non-stock Trade Association. Our members enjoy a range of benefits not limited to our network of 40 Districts located across the US. The Council has some 9,000 registered members in our database allowing us to create meaningful events and programs that facilitate collaboration and access to opportunities and resources. Our mission is to organize the Minority Technology Industry into a powerful and distributed network of vibrant and connected technology businesses. In line with our goals the HUB-IT Initiative works enable SBA HUBZone Certified Minority Technology Companies and our stakeholder partners to robustly participate in active and large transactions and engagements creating jobs and wealth in our communities.

This “Ecosystem” is enriched by trust. Our tag line Building Trusted Networks™ Networks resonates with not only our member minority technology companies but it is our guiding light, the seed that directs our corporate governance. If we consider contracts the rain we consider trust the dirt. One cannot exist without the other. Driving this initiative is the inspired push of the small business owners who have made the corporate decision not only to reside their corporate headquarters in areas that are determined to be “Historically Underutilized Business Zones” they have also made the decision to employ from those areas where economic development is most needed. The Council is poised to support and ensure small business is promoted and contracts are steered towards the neighborhoods, cities, reservations and even areas around closed bases, hardest hit by our recent recession.

In order to accomplish this task we must focus on the challenges as well as the opportunities. It is critical we keep job creation as our number one goal. Our ability to uncover and tap into the talent pool hidden in our communities of need rests on our God given ability to lift up the expectations and hope of those who have not always seen opportunity knock at their door.

National Minority Technology Council HUB-IT Initiative STEM as our Sustainable Fuel The National Minority Technology Council is the trade association that represents the Minority Technology Industry. There are over 235,000 minority technology companies located across the US. Over 65,000 of these companies are employers with over 500,000 employees. This $100 Billion industry works every day to solve our nation’s technology problems. STEM (Education reform acronym for the building the capacity to deliver students proficient in Science, Technology, Education, and Math) represents the pipeline for our future owners and employees. STEM also represents a huge business opportunity both within education reform in our urban communities and developing capacity by solving the issues born from the Digital Divide. We see STEM and access to Broadband both in the same light.

The Council has taken a systematic approach to solving the STEM talent shortage issue.

Central to our resolution is building relevance. With a registered member database of over 9,000 members located in 40 Districts across the US we are able to connect with our urban communities providing unprecedented outcomes. Central to our solution is the necessary critical thinking required to enroll multiple community stakeholders into the new world afforded by the benefits of our technologically driven economy. It is not enough to merely talk or show how technology can transform we believe we need to put change into practice.

Our goal is to create systematic change in how urban school systems relate to STEM workforce readiness, parent engagement and community economic empowerment. The Council has impacted the Capital City Program of Success Schools serving the students of Richmond Public Schools, proving that mutual respect coupled with input from the Minority Technology Industry enables a transformative spirit of cooperation and creativity. The Council’s Richmond District Leadership is teaming with Educational Leaders to facilitate

National Minority Technology Council HUB-IT Initiative measurable growth in STEM education. The Council’s ability to inspire and empower has led one Principal to create a 9th Grade Coed STEM Academy.

The National Minority Technology Council considers STEM core to our stakeholder strategy.

It is our battle cry for change. We subscribe America needs a “Sputnik moment” to rally around. We believe the universe of thinking big can be quantified into the balance between transformational critical thinking and a change in how we regard individual value regardless of race or socioeconomic status. We believe our country has the innate resolve to regain our economic competitiveness by leveraging our will to innovate with our endless ability to dream big and achieve feats never imagined. STEM is the code for the emancipation of our urban plight and the light we need to capture and reclaim our position in the global economy.

STEM means workforce readiness and it is the sustainable fuel for our HUB-IT Initiative.

The NMTC STEM | Broadband and HubZone IT Initiatives provide opportunities for educators to partner with leading edge minority technology companies capable of providing hands-on training, guest speaking as well as experiential paid and unpaid opportunities to learn how to effectively utilize the ever changing technologies to enhance the educational process. Educational institutions also are afforded the opportunity to explore innovative revenue generating programs as viable options to budget cuts and often unreliable grant funding.

Finally, unlike ever before, educational partners are able to serve as conduits for economic development and job creation in the communities they serve.

National Minority Technology Council HUB-IT Initiative Procurement Process – HUBZone Creates Mandated Set-Asides The key to our HUB-IT program is the “teeth” provided for small business found in Public Law 105-135-Dec.2, 1997. The law was passed with a very important word, “shall”.

PUBLIC LAW 105–135—DEC. 2, 1997 A contract opportunity shall be awarded pursuant to this section on the basis of competition restricted to qualified HUBZone small business concerns if the contracting officer has a reasonable expectation that not less than 2 qualified HUBZone small business concerns will submit offers and that the award can be made at a fair market price and Not later than 5 days from the date the Administration is notified of a procurement officer’s decision not to award a contract opportunity under this section to a qualified HUBZone small business concern, the Administrator may notify the contracting officer of the intent to appeal the contracting officer’s decision, and within 15 days of such date the Administrator may file a written request for reconsideration of the contracting officer’s decision with the Secretary of the department or agency head.

This powerful word is used in federal procurements. Use the terms "shall" and "must" to indicate an obligation to act. In the FAR "shall" and "must" have the same meaning. Hence the Contracting Officer is obligated to make an initial determination if there is a “reasonable expectation” that there are more than 2 HUBZone companies that can do the work and they can do the work at a fair market price.

In order for this program to be effective the SBA needs to be a willing partner with small business. The fact is the SBA is committed to helping small businesses grow and win

National Minority Technology Council HUB-IT IT Initiative federal contracts. The SBA HUBZone program is designed to not only help small businesses grow but to bring economic prosperity to communities in need.

The Council HUB-IT IT program adds an important step to ensure the process is effective effec and empowering for both the contracting officer and our targeted HUBZone IT companies. Our initiative creates a feedback loop to both the Contracting Officers and the SBA to ensure there is adequate information flow between all parties concerned. Fe Feedback edback is critical to this process as there are time limits for maximum compliance and to ensure the agency needs are not interrupted. Below is our HUB HUB-IT Cross-Functional Functional Flowchart for Contracting.

It illuminates the workflow process requirements and tthe he need for effective communication to every qualifying Federal Agency.

HUB-IT CrossFunctional Flowchart – Contracting Roles and Responsibilities NMTC Database check for company capabilities vs.

Contract

National Minority Technology Council HUB-IT Initiative NMTC HUB-IT Anchor Stakeholder Partnerships Core to our HUB-IT Strategy is partnership. Our outreach program includes the following‌ Visionary Federal Agencies

Vetted NMTC Members

Visionary District Level Executive Branch

Vetted Talent Providers

Visionary Investors

Vetted Technical Assistance

It is critical for each District to develop a stakeholder strategy that is inclusive and collaborative. Our HUB-IT program is programed to introduce new relationships and partnerships that enable inductive change and jobs from an increase in local contracts.

Although our focus is on Minority Technology Companies our goal is to revitalize the communities we serve. Our ability to appropriately qualify and encourage participants will improve the amount of contracts let to HUB Zone Certified companies and bring jobs and an increased tax base to targeted Urban Cities and Communities across the US.

National Minority Technology Council HUB-IT Initiative Contact Information

National Minority Technology Council 1616 Anderson Road McLean VA 22102

www.nmtcouncil.org Karl Cureton, NMTC Chairman karl.cureton@nmtcouncil.org NMTC HUB-IT Chair and Executive Member Tynesia Boyea Robinson, CEO Reliance Methods 700 12th St NW, Suite 700 Washington, DC 20005

tboyea@reliancemethods.com Visit our HUB-IT Initiative website: http://hubit.nmtcouncil.org

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