FEDERAL Govt Contracting - Life After 8a & Best Practices

Navigating the Section 8(a) Program: Can I Benefit and If So How? US Federal Government Contracting Webinar Series - 2016 Presented By: Patrick Fazzone JUNE 9, 2016

YOUR LOGO HERE

2016 US Federal Government Contracting Webinar Series CALENDAR OF EVENTS: (All Webinars are at 12pm EST & Recorded) JUNE 1 - Maximizing The Value of Your GovCon Business https://attendee.gotowebinar.com/register/74156936435694851

JUNE 2 - Capture Planning - To Bid Or Not To Bid https://attendee.gotowebinar.com/register/7051206926535220483

JUNE 3 - Teaming Agreements - The Good, The Bad & The Enforceable https://attendee.gotowebinar.com/register/7352313683359938307

JUNE 6 - Teaming With Tribally Owned 8(a) Businesses https://attendee.gotowebinar.com/register/4324839202604449539

JUNE 7 - Color Reviews For Successful Proposals https://attendee.gotowebinar.com/register/3973323136181419267

JUNE 8 - Preparing The FSO for a DSS Audit https://attendee.gotowebinar.com/register/423786240906737667

JUNE 9 - Life After 8(a) - Best Practices & Case Study https://attendee.gotowebinar.com/register/6473232146721067779

JUNE 10 - The Politics Of Procurement https://attendee.gotowebinar.com/register/3924758807094447107

JUNE 13 - Contract Administration - Best Practices https://attendee.gotowebinar.com/register/2132047978959217667

JUNE 14 - So You Have A Facility Clearance, Now What? https://attendee.gotowebinar.com/register/9028972158695833091

JUNE 15 - Unsolicited Proposals - Why, What & How. https://attendee.gotowebinar.com/register/4729436391901262849

JUNE 17 - SBIR's - The Good, The Bad & The "How" https://attendee.gotowebinar.com/register/6337198369128857857

2016 US Federal Government Contracting Webinar Series

AGENDA

2016 US Federal Government Contracting Webinar Series AGENDA:

• Introduction – HOST •Introduction - GUEST • Presentation •Conclusions •Q&A

2016 US Federal Government Contracting Webinar Series

INTRODUCTION Host

2016 US Federal Government Contracting Webinar Series

Jennifer Schaus About The Host * Approx 20 Yrs in Gov Contracting * Career: D&B (Govt Division) Federal Sales & GSA Scheds * Frequent Speaker: Chambers, NCMA, AFCEA, etc * Member: WIPG * Education: Towson University – B.A. UC Berkeley - Leadership Accelerator Cornell University - Exec Leadership

2016 US Federal Government Contracting Webinar Series

Jennifer Schaus Jennifer Schaus & Associates * DC Based Consulting Firm * Over 10 Yrs in Business * Support Services for Gov Cons Proposal Writing / Contract Vehicles (GSA) Sales & Biz Dev Certifications – SBA 8(a); SDVO; etc.

Events

2016 US Federal Government Contracting Webinar Series

INTRODUCTION Guest

YOUR LOGO HERE

2016 US Federal Government Contracting Webinar Series

Patrick Fazzone ABOUT OUR SPEAKER Patrick Fazzone Partner, Member Montgomery Fazzone PLLC Counsels companies on doing business with the U.S. Government: Contracting strategies Understanding acquisition system and regulations Opportunities for small to mid-sized businesses

2016 US Federal Government Contracting Webinar Series

Patrick Fazzone Montgomery Fazzone PLLC Montgomery Fazzone PLLC Washington DC based law firm.

Advising clients in a broad range of matters involving The U.S. Government.

Corporate & Commercial law.

International transactions & trade regulation, Federal acquisition Facility (security) clearances for foreignowned companies

YOUR LOGO HERE

2016 US Federal Government Contracting Webinar Series

PRESENTATION Maximizing the Benefits of the Section 8(a) Program: Best Practices

2016 US Federal Government Contracting Webinar Series BACKGROUND ON THE SBA 8(a) PROGRAM: * The Small Business Administration (“SBA”) administers various pgms mandated by the U.S. Small Business Act (“Act”). These are designed to assist qualifying small businesses to grow. * To participate, the business must be unconditionally owned & controlled by an individual who can demonstrate that he or she has suffered social & economic disadvantages. * The business must also demonstrate potential for success & normally must be in business for at least 2 yrs prior. * SBA will consider the concern’s access to credit & capital & the technical & managerial experience of the SBC’s managers, its prior operating history & performance on previous government & private sector contracts & its financial capacity. * There are additional eligibility criteria as well (Good Character, etc).

2016 US Federal Government Contracting Webinar Series CONSIDERATIONS IN APPLYING FOR CERTIFICATION: * Participation = 9 Yrs Total - 4 yr developmental / growth stage - 5 yr transitional stage. * 9 yr term can be shortened only by (1) termination, (2) early graduation or (3) voluntary graduation. * Rigorous certification process.

Considerable documentation both to establish eligibility, including reasonable prospects for business success. * Post-certification, participant must submit a business plan which must be approved by an SBA to be eligible for program benefits. * Business Pllan must include analysis of the market potential & specific targets, objectives & goals for business development.

2016 US Federal Government Contracting Webinar Series OTHER IMPORTANT CONSIDERATIONS: * No Guarantees SBA does not “serve up” contracts & opps to participating firms. They must undertake their own independent marketing activities for contracts both in the public and private sectors. * Post-Award Requirements SBA regulations mandate non-8(a) business activity targets. Participants must make “substantial & sustained efforts” to attain the targeted dollar levels of non8(a) revenue established in its business plan. * Limitations $$$ There are overall limits on the total dollar value of sole source contracts firms can receive while in the program.

2016 US Federal Government Contracting Webinar Series OTHER IMPORTANT CONSIDERATIONS, cont’d.

On-going Requirements: -- Continuing to meet size, ownership & control criteria for the term of the prgm; -- Maintaining a balance between govt contracts & comml business; -- SBA will monitor & measure the progress through annual reviews, business planning & systematic evaluations.

-- Back Office reporting and compliance.

2016 US Federal Government Contracting Webinar Series CONSIDERATIONS IN PUSURING CERTIFICATION: ASK YOURSELF……… * Is your firm eligible, even if the owner is socially & economically disadvantaged? * Is it worth going through certification? Will your product or service have a market? * Is the govt market for you? Selling to the USG can be complicated. Contracts are subject to a variety of special rules & regulations, notably the FAR & other agency procurement regulations. * Does your track record indicate a reasonable prospect of business success?

Are there any issues under the Good Character requirement? * Do you have the staff to be able to develop & implement your business plan?

Is the timing right? * Will you be able to achieve a balance between govt contracting & comml business?

2016 US Federal Government Contracting Webinar Series ---- CONSIDER TIMING ----TIMING IS EVERYTHING! * Even if you are technically eligible now, it’s important to wait until the timing is right.

- Get educated about govt contracting FIRST - Secure contracts and build relationships - Understand your value and key differentiators (not 8a status!!) * Make sure your overall business plan has realistic goals & objectives. Ensure you have the resources & staff to be able to benefit from the 8(a) program. * Make sure your business and products/services will be positioned for both govt & comml markets.

2016 US Federal Government Contracting Webinar Series MAXIMIZING THE BENEFITS OF 8(a) CERTIFICATION * DO NOT RELY ON (ONLY) THIS TO WIN CONTRACTS Provides useful support, but it is up to you / your firm to make the business a success. * DOES NOT ELIMINATE COMPETITION To benefit from set asides, sole sourcing & subcontracts you still need to compete. * BALANCE & BUSINESS PLAN Develop a balance of govt & comml contracts. Implement & adapt your business plan. * EXPANSION Initiatives to expand your products / services. Consider other ways of growing – ie. attract investors or form alliances. * SPRINGBOARD TO FAST GROWTH An objective for many is to graduate early. Creates opportunity to pursue growth strategies that may not be permitted under the program while removing the requirement for ongoing monitoring & compliance.

2016 US Federal Government Contracting Webinar Series EARLY EXIT * SBA TERMINATION: Participation terminated by SBA for various reasons including loss of eligibility or failure to adhere to program requirements. * SBA GRADUATION: SBA can also graduate the SBC early if it has achieved its business plan goals or if the key individual is no longer economically disadvantaged. * VOLUNTARY GRADUATION (BY COMPANY): Voluntary Early Graduation—Permitted where a firm has met its business plan goals & is commercially viable. A firm may elect to do this for greater flexibility in its business operations.

2016 US Federal Government Contracting Webinar Series CASE STUDY: Client Objective – benefit from 8(a) Cert set-asides, accelerate growth Became 8(a) Certified After time, contracting opps became less important to its business.

Simultaneously desired larger company as a significant investor in the business. The objective was to accelerate its growth.

Client achieved business plan objectives, had very realistic prospects for success & graduated early.

2016 US Federal Government Contracting Webinar Series

LIFE AFTER 8(a): Participant Objective: Develop / grow its business so that it will be sustainable afterwards.

When you graduate, success is not a given. The playing field is a lot flatter and the competition can be fierce.

2016 US Federal Government Contracting Webinar Series LIFE AFTER 8(a): Years 1 – 4 = Developmental Phase Years 5 – 9 = Transition Phase Transition Phase = Plan a graduation strategy to help ensure a successful transition to the open market place. SUGGESTIONS: * Plan on graduating from the program early. This will help create a sense of purpose and urgency and a focus on the longer-term. * Don’t wait until Year 9 and find yourself saying “Now What?”

Remember: You can ONLY participate in the 8(a) program ONCE. * During participation consider different staff for govt and coml sectors to help you achieve a balance in sales. Don’t rely ONLY on govt markets and ONLY on 8(a).

2016 US Federal Government Contracting Webinar Series LIFE AFTER 8(a): * Consider International Markets & Export Sales.

Ref: Commerce Dept & state govt pgms available. * Product Adaptations & Financing If you identify product adaptations that may be needed, determine what financing you may require as early as possible so that you can implement your plans and make sales during your time in the program. * Business Growth & Investors Keep your eye on all potential strategies for business growth at all stages. You may not be able to bring in outside investors while you remain in the program but you can start positioning your business for early graduation and this type of expansion thereafter.

2016 US Federal Government Contracting Webinar Series LIFE AFTER 8(a): * Contract Vehicles & Alliances While you are in the program, look closely at the various ways firms can pursue government contracts, including through teaming arrangements, qualifying JVs and listing your product or service on a GSA Schedule. Many of these strategies can continue to be used post-graduation. * Be Strategic At the same time, narrow your focus as you transition. Identify specific agencies, sub-agencies and departments. You may want to focus on those agencies with whom you have been dealing successfully. (RELATIONSHIPS!)

2016 US Federal Government Contracting Webinar Series LIFE AFTER 8(a): * Team / Sub-Con Before Graduation Get your foot in the door. Forming teaming relationships with larger firms before you graduate. They may well find you attractive to deal with now while you are eligible for set asides. * Mentor-ProtĂŠgĂŠ Program. * Talent Hire the right talent; consider employing ex-government employees who may have good ties with and knowledge about their former agencies. Seek advice in advance on the restrictions on ex-employees that may apply. * Financial Awareness Keep a close eye on expenditures and finances generally as you near graduation.

8(a) firms can experience a significant drop in revenues after they graduate.

2016 US Federal Government Contracting Webinar Series LIFE AFTER 8(a): * Dynamic Business Plan Formally plan ahead for your exit from the program. Start modifying your business plan as necessary well in advance of your graduation. * Focus closely in your planning on three key factors essential to business success generally: Business focus, Sound finances, Unique characteristics.

2016 US Federal Government Contracting Webinar Series LIFE AFTER 8(a):

REMEMBER: Once you are in the competitive market place, what sets your business, products / services apart from the competition becomes essential.

Related & equally important: building your brand. “Strategic Brand Management”: good will, IP, reputation with customers, suppliers and partners.

Invest in your website & marketing materials now. They need to demonstrate your firm’s unique value proposition Thinking about life after 8(a) is always important since your company’s growth following participation will depend on business other than contracts set asides.

2016 US Federal Government Contracting Webinar Series

CONCLUSIONS

2016 US Federal Government Contracting Webinar Series

CONCLUSIONS * SBA 8(a) Program can greatly benefit eligible businesses. * Important to choose the right time to apply. * Once you’re “in”, it’s vital to take the right steps to expand your business & ensure its long term success.

2016 US Federal Government Contracting Webinar Series

CONCLUSIONS - JS #1 - Don’t enter the program TOO early – set up for failure. TIMING, TIMING, TIMING #2 - Always lead with your Value Proposition, not your set-aside status. 8(a) is a marketing tool, no guarantees. Govt will buy based on your value. “Check box” is only an incentive. #3 - Make a plan “well in advance” for postgraduation. (Contract Vehicles, Relationships w Primes, New Entrees into the 8a Prgm – pass the batton)

2016 US Federal Government Contracting Webinar Series

Q&A

CONTACT DETAILS

Ms. Jennifer L. Schaus Washington DC +1-202–365–0598 jschaus@jenniferschaus.com www.JenniferSchaus.com -----------------------------Patrick Fazzone Washington DC 202–888–2103 pfazzone@mft-law.com www.montgomeryfazzone.com

2016 US Federal Government Contracting Webinar Series CALENDAR OF EVENTS: (All Webinars are at 12pm EST & Recorded) JUNE 1 - Maximizing The Value of Your GovCon Business https://attendee.gotowebinar.com/register/74156936435694851

JUNE 2 - Capture Planning - To Bid Or Not To Bid https://attendee.gotowebinar.com/register/7051206926535220483

JUNE 3 - Teaming Agreements - The Good, The Bad & The Enforceable https://attendee.gotowebinar.com/register/7352313683359938307

JUNE 6 - Teaming With Tribally Owned 8(a) Businesses https://attendee.gotowebinar.com/register/4324839202604449539

JUNE 7 - Color Reviews For Successful Proposals https://attendee.gotowebinar.com/register/3973323136181419267

JUNE 8 - Preparing The FSO for a DSS Audit https://attendee.gotowebinar.com/register/423786240906737667

JUNE 9 - Life After 8(a) - Best Practices & Case Study https://attendee.gotowebinar.com/register/6473232146721067779

JUNE 10 - The Politics Of Procurement https://attendee.gotowebinar.com/register/3924758807094447107

JUNE 13 - Contract Administration - Best Practices https://attendee.gotowebinar.com/register/2132047978959217667

JUNE 14 - So You Have A Facility Clearance, Now What? https://attendee.gotowebinar.com/register/9028972158695833091

JUNE 15 - Unsolicited Proposals - Why, What & How. https://attendee.gotowebinar.com/register/4729436391901262849

JUNE 17 - SBIR's - The Good, The Bad & The "How" https://attendee.gotowebinar.com/register/6337198369128857857