Government Contracting - HUBZone Certification - Jennifer Schaus

Govt Contracting Webinar Series

Learn Before You Leap!

• Govt Grants & SBIR Process RECORDING: http://youtu.be/1n8mUFsRcBc • Simplified Acquisitions RECORDING: http://youtu.be/dwSjw_P8WNg • Mentor-Protégé Program RECORDING: https://vimeo.com/103389860 • HUBZone Certification RECORDING: http://youtu.be/Eokpi70EOz8 • Aug 20 Access to Capital Guest: John Fedewa, Armcor Register: https://attendee.gotowebinar.com/register/8982943287949640962

•

Aug 21 Winning Proposals

Guest: Michael Hordell & Richard Leahy, Pepper Hamilton LLP Register: https://attendee.gotowebinar.com/register/2283591451730106626

ALL WEBINARS WILL BE RECORDED AND ARE AVAILABLE FOR DOWNLOAD ON OUR WEBSITE UNDER THE WEBINAR TAB PLEASE VISIT WWW.JENNIFERSCHAUS.COM AND SELECT “WEBINARS”

Jennifer Schaus & Associates GOVERNMENT CONTRACTORS WEBINAR SERIES

HUBZone Certification August 14, 2014

Jennifer Schaus & Associates • Washington DC Based • 20+ Yrs Government Contracting • GSA Schedule Consulting • Govt Contractor Events • Govt Contractor Support Services 1717 Penn Ave, NW; #1025 Washington DC 20006 +1–202–365–0598

http://JenniferSchaus.com

Jennifer Schaus & Associates

SPONSOR ANNOUNCEMENT… Unanet provides software to over 1,000 Government Contractors that facilitates:

• • • • • • •

DCAA Compliant Time Tracking & Approvals Expense Reporting Automation with Federal Per Diems Real-Time Reporting on Direct & Indirect Costs KPIs on Profitability, Utilization, Actual vs. Budget, etc.

Billing & Revenue Recognition Budgeting, Planning & Resource Forecasting Contract Management

WEBSITE: www.Unanet.com CONTACT: MFranklin@Unanet.com

Jennifer Schaus & Associates HUBZone Certification AGENDA:

Speaker: Jon Williams, Partner with PilieroMazza PLLC Presentation Audience Q & A

Conclusions & Wrap-Up

Jennifer Schaus & Associates HUBZone Certification

Jon Williams

888 17th Street, NW 11th Floor Washington, DC 20006 202-857-1000 jwilliams@pilieromazza.com

Jennifer Schaus & Associates HUBZone Certification SPEAKER BIO: Jon Williams, Partner •

Member of Government Contracts and Small Business Programs Groups

•

More than 13 years of experience advising contractors on all aspects of doing business with the federal government, with a focus on the federal small business programs including the HUBZone, 8(a), SDVOSB, and WOSB programs

•

Represents contractors in bid protests, size protests, appeals, claims, and related administrative and court proceedings

•

Frequent speaker and author on government contracting issues for small businesses

Jennifer Schaus & Associates HUBZone Certification

Jennifer Schaus & Associates Overview Preparing for a smooth HUBZone certification process • HUBZone eligibility criteria

• Employee counting issues • Employee record issues • The HUBZone application process • What documents do you need?

• What to expect

• Changes are coming

Jennifer Schaus & Associates HUBZone Eligibility Criteria • Must be a SMALL business • Size of a firm includes any affiliates • Multiple ways that affiliation can arise • Key is when one firm controls or has the power to control the other, or a third party or parties control or have the power to control both, even if this control is not exercised

• Can have affiliates, but must be small combined

Jennifer Schaus & Associates HUBZone Eligibility Criteria (Continued) • Must be at least 51% owned and controlled by a U.S. citizen • “Principal office” must be located in a HUBZone • The location where the greatest number of the firm’s employees at any one location perform their work • Job site exception for firms in services and construction

• At least 35% of employees must live in a HUBZone • “Employee” means all individuals employed on a full-time, part-time, or other basis working at least 40 hours per month

Jennifer Schaus & Associates Employee Counting Issues • Job site employees must be on a contract • Job site employee distinction only applicable to principal office location calculation, not the 35% HUBZone residency requirement

• Employee “test” found in SBA Size Policy Statement No. 1 • Includes considerations such as paying state unemployment taxes, power to hire and fire employees, supervise employees, etc.

• Vital to keep accurate and current records • Employee drivers licenses – make sure not expired • HUBZone maps of employees’ addresses

Jennifer Schaus & Associates The HUBZone Application Process • • • • • • •

Verify eligibility Gather supporting documentation Review sample HUBZone application form Review and ask questions Access SBA’s General Login System Complete and submit online HUBZone application Submit any requested supporting documentation

Jennifer Schaus & Associates Ready to Apply? Considerations • About 25% of applications are denied • Must wait 90 days after denial to re-apply • SBA statistics demonstrate that more “established” firms typically have greater success in the Program • Not a business development program like 8(a) Program • Only 30% of HUBZone-certified firms in the SBA’s portfolio have HUBZone contracts, most do not get work • Hard to stay compliant with all Program criteria

Jennifer Schaus & Associates Documents You Will Need • • • • • • • • • •

General business information DUNS number Business and personal federal tax returns for the last three years Business ownership documentation – articles of incorporation, LLC, etc.

Citizen documentation for owners SAM.gov profile Appropriate NAICS codes Proof of principal office location, such as lease agreement Official payroll records and other information showing employees residing within HUBZones (drivers licenses, HUBZone maps, etc.)

Other information supporting HUBZone eligibility requirements

Jennifer Schaus & Associates What Happens After You Apply?

• Usually takes three to six months for application to be processed • Roughly 10% of applicants will receive a “site visit” • SBA may have questions about submission

Jennifer Schaus & Associates Approved or Denied?

• If approved:

• Go on list of approved HUBZone entities • Check SBA’s Dynamic Small Business website to ensure it reflects your status • Can start pursuing HUBZone projects immediately • Must recertify continued HUBZone eligibility every three years • No maximum amount of time in the Program

• If denied:

• No formal appeal process • May submit an informal “request for reconsideration” if you believe denial was based on “clear and significant error” of procedures or significant facts relevant to your application

Jennifer Schaus & Associates Changes Are Coming • • • •

90-day target for processing new applications New Standard Operating Procedures coming soon Overhaul of regulations expected this year Site visits of about 10% per year of all HUBZone participants will continue • Reduce full document reviews from once every three years to once every six years?

• Protest decisions made public?

Jennifer Schaus & Associates HUBZone Certification

Questions ? ? ?

Jennifer Schaus & Associates HUBZone Certification

Conclusions . . .

Jennifer Schaus & Associates HUBZone Certification

Conclusions . . .

• To be eligible for the HUBZone program, your principal office must be located in a HUBZone and 35% of your employees must live in a HUBZone • Make sure you gather all the eligibility documents before you apply • Plan for a 3-6 month application process • Keep an eye out for coming changes

Thank You !!

CONTACT INFO Jon Williams Partner, PilieroMazza PLLC 888 17th Street, NW 11th Floor Washington, DC 20006 202-857-1000 jwilliams@pilieromazza.com

Jennifer Schaus & Associates JSchaus@JenniferSchaus.com http://JenniferSchaus.com +1–202–365–0598