FED GOV CON - SBA 8a Certification – What It Takes

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FED GOV CON Webinar Wednesdays 2019 Series JSchaus & Assoc. Washington DC +1–202–365–0598


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About Our Speaker: Timothy A. Furin Education: Temple University, J.D.; The JAG School, LL. M. with a specialty in Gov. Con. Law Company Name: Cohen Seglias Pallas Greenhall & Furman # of Years Federal Gov Con Experience: 16


SBA 8a Certification: What it Takes


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

SBA 8a Certification: What it Takes


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

Overall Combined Goals for Federal Government: • 23% of prime contracting dollars for small businesses  5% of prime contracts and subcontracts for small disadvantaged businesses (8(a))  5% of prime and subcontracts for women-owned small businesses (WOSB)  3% of prime contracts and subcontracts for HUBZone small businesses  3% of prime contracts and subcontracts for service-disabled veteranowned small businesses (SDVOSB)


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

What is a “Small” Business?


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

SBA Size Standards • Used by SBA to Determine the Size of a Concern • Represents the largest size that a business may be to remain classified as “small” • Can Be Based on Annual Gross Receipts or Number of Employees • Standards Vary By Industry – Based on North American Industrial Classification Codes (NAICS Codes)


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

North American Industry Classification System (“NAICS”) Codes • Procurement/Solicitation Specific • Identifies Each Solicitation by Industry


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

Back to SBA Size Standards: • Once you know the applicable NAICS code, check the corresponding SBA Size Standard on the SBA’s Website • https://www.sba.gov/federal-contracting/contracting-guide/size-standards


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

8(a) Program: Basic Eligibility Requirements


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

What is an 8(a) Business? • Small business 51% unconditionally owned and unconditionally controlled by one or more:  Socially disadvantaged AND  Economically disadvantaged individuals  Who are of good character  Citizens of and residing in the United States  Who demonstrate potential for success


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

Who is Socially Disadvantaged? • Rebuttable Presumption of Social Disadvantage:  Black Americans  Hispanic Americans  Native Americans  Asian Pacific Americans  Subcontinent Asian Americans  Members of other groups designated from time to time by SBA


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

Who is Socially Disadvantaged? • An individual must demonstrate that he or she has held himself or herself out, and is currently identified by others, as a member of a designated group • The presumption of social disadvantage may be overcome with credible evidence to the contrary


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

Who is Socially Disadvantaged? • An individual not a member of one of the groups may establish individual social disadvantage • Evidence of individual social disadvantage must include the following elements: • One objective distinguishing feature (race, ethnic origin, gender, physical handicap) • Personal experiences of substantial and chronic social disadvantage • Negative impact on entry into or advancement in the business world because of the disadvantage. (Education, employment, and business history)


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

Who is Economically Disadvantaged? • Individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same or similar line of business who are not socially disadvantaged


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

Who is Economically Disadvantaged? • Net Worth - excluding the ownership interest in the 8(a) concern, the equity in the primary personal residence, and IRA/retirement account funds • $250,000/$750,000 • Personal income for the past three years • $250,000 /$350,000 • Fair market value of all assets – excluding IRA/ retirement account funds • $4,000,000/ $6,000,000


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

What is Potential for Success? • The applicant concern must possess reasonable prospects for success in competing in the private sector if admitted to the 8(a) BD program. • Two years in business rule • Access to credit and capital • Technical knowledge in primary industry and sufficient management experience


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

What is Good Character? • Case by Case, totality of circumstances analysis:  Criminal conduct  Violations of any of SBA's regulations  Debarred or suspended  Lacks Business Integrity  Incarceration  Dishonest behavior


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

How to Obtain Certification • Submit application via https://certify.sba.gov/ • Must have a SAM profile to use the certification website • SBA will then review for approval • An SBA certification lasts a maximum of 9 years


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

SBA Annual Reviews • (8)a participants must annually submit information to the servicing SBA district office to support continued 8(a) program participation • At a minimum, annual review submissions must include: • • • • •

Certification that eligibility requirements are met Certification that there are no changed circumstances that could adversely impact eligibility Personal financial information for each disadvantaged owner A record of all payments, compensation, and distributions made to each owner, officer, or director A listing of any fees paid to agents or representatives for assistance in obtaining a Federal contract


THANK YOU! JSchaus & Assoc. Washington DC hello@JenniferSchaus.com www.JenniferSchaus.com +1–202–365–0598 Speaker: Timothy A. Furin Email: tfurin@cohenseglias.com Phone: (267) 238-4718


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