Small Business Development Program Hot Topics

Presented to: Procurement Achievement Reporting System Advisory Council

Location: Washington, D.C.

Presented by: Fred Dendy, Director, FAA Small Business Development

Date: April 16, 2013

Federal AviationAdministration

Small Business Development Program Hot Topics

2Federal AviationAdministration

Small Business Development Program

April 16, 2013

Who Are We?


Small Business Development

April 16, 2013

What We Do…

Establish FAA-wide prime and subcontract goals for small business contract awards;

Develop and publish the FAA’s annual procurement forecast

Execute, develop and establish agency small business policy/guidance

Maintain small business database “Source-Net” to help identify potential sources for set-aside decisions

Provide counseling/outreach/training to the small business community seeking or doing business with FAA via small business expositions/marketplaces, conferences, seminars and symposiums

Provide counseling, assistance and guidance to product/service teams and other FAA procurement decision makers to identify prime contract and subcontract opportunities

for small business

Provide guidance and advice to FAA’s small and disadvantaged business utilization specialists in each service area and center



April 16, 2013

Basis for FAA Acquisition Management System

In 1996 DOT Appropriations Act, FAA was directed to develop an acquisition system and exempted from all acquisition-related laws and regulations

Legislation stated the following provisions of Federal acquisition law shall not apply to the new acquisition management system:

Title III of the Federal Property and Administration Services Act of 1949 The Office of Federal Procurement Policy Act The Federal Acquisition Streamlining Act of 1994 The Small Business Act, except that all reasonable opportunities to be awarded contracts shall be provided

to small business concerns and small business owned and controlled by socially and economically disadvantaged individuals.

The Competition in Contracting Act. Subchapter V of Chapter 35 of Title 31, relating to the procurement protest system. The Brooks Automatic Data Processing Act The Federal Acquisition Regulation and any laws not listed above providing authority to promulgate

regulations in the Federal Acquisition Regulation.

FAA Acquisition Management System (AMS) issued April 1996



April 16, 2013

Key Themes of AMS Procurement

Minimizes “how to” and encourages tailoring to circumstances

Relies on business judgment - but must have a rational basis supported by substantial evidence

Aligns procurement methods to complexity of requirement

Emphasizes empowerment and collaborative decision-making

Eliminates non-value added activities and arbitrary thresholds



April 16, 20136

Key Features of AMS Procurement

Competition is preferred

Streamlined source selection, delegated to lower levels in FAA

Flexible processes and access allowing increased communication with vendors

Simplified/commercial procurement process

Direct, competition-based small business utilization program

Internal FAA Office of Disputes Resolution

Ethical standards for FAA employees and contractors



April 16, 2013

General Benefits of AMS to Vendors

AMS strongly encourages communication with vendors

Provides vendors better understanding of FAA needs and FAA insight into vendor capabilities

Promotes transparency in source selection processes and decisions

Streamlined source selection and “down-select” decisions save vendor bid and proposal costs

Vendors unlikely to receive award are notified early during source selection process



April 16, 2013

General Benefits of AMS to Vendors – cont.

Internal FAA Office of Disputes Resolution for Acquisition

Protests and disputes resolved through alternate disputes resolution

Saves cost and time of adjudication through formal boards or courts

AMS contract clauses based largely on Federal Acquisition Regulation clauses

Vendors do not have to become expert in a different set of contract clauses; history of interpretation and case law applies to AMS clauses



April 16, 2013

General Benefits of AMS to Vendors – cont.

All information comprising AMS is online and in one location - FAA Acquisition System Toolset (FAST) located at (http://fast.faa.gov)

AMS written in plain language which improves ability to understand what AMS requires



April 16, 2013

Small Business Contracting

Overarching policy is to provide small business reasonable opportunities for prime contracts and subcontracts

FAA must consider a small business set-aside before pursuing an

unrestricted contract For requirements over $100,000, product/service teams must

coordinate with the cognizant FAA Small Business Office staff FAA makes set-aside determination and contracts directly with small

business, 8(a), socially and economically disadvantaged business; and service disabled veteran owned small business and Small Business Administration is not involved



April 16, 2013



April 16, 2013

Small Business Development Initiatives • Set-asides (first consideration):

– Small business (self-certification)– Very small businesses (self-certification)– 8(a) businesses certified by Small Business Administration – Service-disabled veteran-owned small businesses (SDVOSB) (self-certification and verified in the vetbiz database)

• Non-competitive awards to 8(a) certified firms and SDVOSB

• Contract Bundling Reviews

• Encourage Teaming (i.e., Joint Ventures, Mentor-Protégé, Subcontracting)

• Marketing Resources



April 16, 2013

Small Business Development InitiativesBUSINESS PLANNING:

•Core Business Measure:

- Small Business and Corporate Citizenship

•Core Business Initiative:

- Award Procurement Dollars to SB, SDB & WOSB

•Core Activity Target:

- Outreach and 25% Small Business Direct Goal Linked to

Performance and Compensation



April 16, 2013

Major Procurement Program Goals vs. Accomplishments(Direct Contracts to Small Business)

Total Dollars Obligated

$4.2B $3.2B $2.9B $2.5B $3.1B $3.3B

$3.4B $3.5B $3.8B $3.9B

Small Business Goals & Accomplishments

FY 02 FY 03 FY 04 FY 05 FY 06 FY 07

GoalActual

0%

5%

10%

15%

20%

25%

30%

35%

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11

FY 08 FY 09 FY 10 FY 11



April 16, 2013

FY-12 Major Procurement Program GoalsAgency Goals vs. Accomplishments

(10/01/11 – 9/30/12)($4B Total Obligations Awarded)

%

FY-13 Major Procurement Program GoalsAgency Goals vs. Accomplishments

(10/01/12 – 04/05/13)($1B Total Obligations Awarded)

%



April 16, 2013

MARKETING RESOURCES

• Marketing Package

Lakisha Davis ([email protected])

• Business Plans https://www.faa.gov/about/plans_reports/

• Contracting Opportunities

https://faaco.faa.gov

• Small Business Development Program Group

https://www.sbo.faa.gov



April 16, 201317

Questions?

Small Business Development Program Hot Topics

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