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Small Business Requirements For Government Contracts

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What Is A Small Business Participation Plan

Government Contracting – SBA 8a – Requirements & Timing – Win Federal Contracts

The answer to these questions can make the difference in getting a high proposal evaluation score and a low one.

A Small Business Subcontracting plan is an agreement between private party government contractors submitted with a bid proposal detailing the specific division of the work between contractors. This may be an agreement between a Prime and Subcontractor or between two Subcontractors.

A Small Business Participation Plan is the percentage of work an Agency requires must be completed by a small business. In other words, how much a small business must participate. The reason for this is to involve small businesses in contracts and eliminate a Prime Contractor from being a middle man. Some agencies have chosen to name the requirement small business participation plan or small business utilization plans since subcontracting plans were initially put in place for large businesses that compete in full and open bidding requirements.

What Is An Rfp

RFP stands for request for proposal. Its an invitation from a government entity or agency to bid on contracts for products or services. But an RFP is more than just a request for a bid or quotation. Its the most cost-effective solution to bid on contracts based on the criteria laid out in the request.

When a government bid becomes available, the government agency writes an RFP. Its then that interested companies can submit proposals. RFPs are usually issued when the requirements of the contract are $25,000 or more, or when choosing a supplier cant be done based solely on price. Often the reason for an organization to put out a request is to make sure they receive multiple bids.

If your company decides its prudent to respond to a request for proposal, you must write a proposal that provides all of the information requested in the RFP. After you have included all essential information, proofread your proposal for mistakes. Any errors may lead to your proposal being rejected by the government contracting office.

I: Basic Contracting Limits

Entry into a contract or contractual arrangement must be approved by the Treasury Board if the amount payable, including all applicable taxes, fees and amendments, exceeds the stated monetary limit for the contracting authority identified in the basic limits schedules.

When an exceptional limit for a specified program is lower than the basic limit for its corresponding schedule, the lower exceptional limit applies.

Schedule 1: construction

  • Competitive construction contract: up to $11,500,000
  • Competitive architectural and engineering contract up to $1,850,000
  • Non-competitive architectural and engineering services contract up to $150,000
  • For housing and detachment projects:
  • competitive construction contract up to $23,000,000
  • competitive architectural and engineering services contract up to $3,700,000
  • Competitive and non-competitive goods and services contracts or arrangements up to an amount approved by the Treasury Board in support of sensitive operations
  • Until March 31, 2025, the Minister responsible for Shared Services Canada may enter into and amend non-competitive contracts for up to $22.5 million to support IT operations for the GC where IP rights of the supplier prevent the contract from being competed.

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    Are You A Small Business In The Eyes Of The Government

    The government has rigid guidelines about what makes up a small business. To complicate matters, the guidelines vary according to industry. To find out if your company qualifies as a small business in your industry, choose the primary North American Industry Classification System code for your business from this chart.

    Then, take a look at the Table of Small Business Size Standards to find the code that lists the gross profits and maximum number of employees that a business in your industry can have and still be considered a small business by the government.

    Its important to know that when searching for contracts, you wont be limited to your primary NAICS Code. All you need to do is meet the requirements of the solicitations youre looking for.

    Procurement Center Representative Review

    (PDF) Contracting with the U.S. Government: A Small ...

    Lastly, the final rule amends FAR 19.202-1, Encouraging Small Business Participation in Acquisitions, to allow SBA “procurement center representatives” to review any acquisition even those set-aside or partially set-aside for small business concerns when they deem it appropriate to do so.

    Procurement center representatives are SBA personnel located at federal agencies, designed to assist contracting officers in identifying set-aside opportunities, conducting market research and communicating with the industry. Under the existing regulations, the contracting officer is required to provide the procurement center representative with a copy of the proposed acquisition package only in certain instances .

    The final rule revises FAR 19.202-1 to require contracting officers to provide procurement center representatives copies of any proposed acquisition package and other reasonably obtainable information related to the acquisition, if the representatives exercise their discretion to review the acquisition. Further, the rule revises procurement center representatives’ duties under FAR 19.402, Small Business Administration Procurement Center Representatives, to allow them to recommend procurements be set-aside or awarded on a sole-source basis to a small business concern advise the contracting officer to breakout discrete components, items and requirements for competition, and suggest other ways to improve competition for small business concerns.

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    Appendix E Federal Contracts For Building Services In The Province Of Ontario

  • Federal contracting authorities are required to observe the intent and follow the provisions of the Ontario legislation concerning the protection of jobs and the level of benefits of workers who work primarily at one specific site to provide building cleaning, food and security services.
  • Upon request by the building owner or manager, an employer providing the specified services shall provide the following information as set out in Ontario Regulation138/96:
  • the name, address and telephone number of each employee
  • the classification, wage rate, benefits, average weekly hours and initial hire date of each employee
  • the number of weeks worked in the preceding 26 weeks or a longer period if services were temporarily discounted or an employee was on pregnancy or parental leave and
  • a statement indicating which employees were not primarily employed at the premises during the preceding 13 weeks or during and employees most recent 13weeks of active employment.
  • Building owners or managers are required to give this information, excluding the names, addresses and telephone numbers of employees, to prospective bidders upon request.
  • Building owners or managers must provide the full list, including names, addresses and telephone numbers, upon the request of the successful bidder.
  • Such information shall be used only for the purposes of complying with the Employment Standards Act and shall not be disclosed except as authorized by the Act.
  • Administration Of Construction Contracts

    13.2.1 The standard federal construction contract form should be used for all construction contracts over $100,000 except those which, in the judgment of the contracting authority, must be modified to meet special circumstances. The principles and policies expressed in the Standard Construction contract are the prerogative of the Treasury Board. However, the style and content of the Standard Construction contract are the responsibility of the Department of Public Works and Government Services Canada.

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    Reporting Requirements For Government Departments And Agencies

    1.1 Departments and agencies are to submit an annual report on the total number and dollar amounts of construction and service contracts , including amendments awarded within a departments own departmental authorities.

    1.2 Data on contracting activities is to be broken down by Basic contracting limits and Exceptional contracting limits and further organized into competitive, non-competitive and amendments. Information on the following items is to be excluded from the report:

  • real property leases
  • Dynamic Small Business Search

    Government Contracts For Small Businesses

    The Dynamic Small Business Search is a database that government agencies use to find small business contractors for upcoming contracts. Small businesses can also use DSBS to find other small businesses to work with.

    The SBA maintains the DSBS database. The information you provide when you register your business in the System for Award Management is used to populate DSBS, so you should create a comprehensive business profile.

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    Experience Is The Best Teacher

    The government provides two mentoring programs to help small businesses that want to win contracts. The first is the General Services Administration GSA Mentor-Protege Program. Qualified business owners will be paired with experienced owners of similar companies who can help them maneuver through the system.

    Businesses that are socially or economically disadvantaged and qualify for the SBAs 8 program will also be paired with a mentor in the SBAs Mentor-Protege Program who has experience in federal contracting.

    After youve done the hard work and secured a government contract, make sure you have the software to manage your contracts securely and efficiently. In addition, if you are interested in learning more about smart funding options for your small business, explore your possibilities with Quickbooks.

    Estimating Fair Market Price

    The contracting officer shall estimate the fair market price of the work to be performed by the 8 contractor.

    In estimating the fair market price for an acquisition other than those covered in paragraph of this section, the contracting officer shall use cost or price analysis and consider commercial prices for similar products and services, available in-house cost estimates, data submitted by the SBA or the 8 contractor, and data obtained from any other Government agency.

    In estimating a fair market price for a repeat purchase, the contracting officer shall consider recent award prices for the same items or work if there is comparability in quantities, conditions, terms, and performance times. The estimated price should be adjusted to reflect differences in specifications, plans, transportation costs, packaging and packing costs, and other circumstances. Price indices may be used as guides to determine the changes in labor and material costs. Comparison of commercial prices for similar items may also be used.

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    Establish A Contractor And Government Entity Code

    A CAGE code is another unique identifier for your business that is designed to be publicly available and has been required to do business with the federal government since 2014. These codes allow the government visibility into company ownership and contracting activity through various payment systems. If you are not yet a government contractor and need to apply for a CAGE code, you may do so through the Defense Logistics Agencys website.

    After you have completed the steps above, you are ready to complete your SAM registration. It is recommended to consult an expert before attesting to FAR and DFAR requirements. Inaccuracies or inconsistencies can be construed as making false claims to the government which is a felony.

    Protesting A Firms Status As A Hubzone Small Business Concern


    Definition. As used in this section-

    Interested party has the meaning given in 13 CFR 126.103.

    An offeror that is an interested party, the contracting officer, or the SBA may protest the apparently successful offerors status as a qualified historically underutilized business zone small business concern .

    SBAs protest regulations are found in subpart H “Protests” at 13 CFR 126.800 through 126.805.

    Protests relating to small business size status are subject to the procedures of 19.302. An interested party seeking to protest both the small business size and HUBZone status of an apparent successful offeror shall file two separate protests. Protests relating to small business size status for the acquisition and the HUBZone qualifying requirements will be processed concurrently by SBA.

    All protests must be in writing and must state all specific grounds for the protest.

    SBA will consider protests challenging the status of a concern if the protest presents evidence that-

    The concern is not a qualified HUBZone small business concern as described at 13 CFR 126.103 and 13 CFR 126.200

    The principal office is not located in a HUBZone or

    At least 35 percent of the employees do not reside in a HUBZone.

    Assertions that a protested concern is not a qualified HUBZone small business concern, without setting forth specific facts or allegations, will not be considered by SBA ).

    Protest by an interested party.

    An interested party shall submit its protest to the contracting officer-

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    Small Business Procurement Power Page

  • Contact Us
  • Welcome to the Small Business Procurement Power Page, designed by the U.S. Department of Labor’s Office of Small and Disadvantaged Business Utilization . OSDBU is responsible for promoting procurement opportunities for small businesses in compliance with federal laws, regulations, and policies. This page is meant to support the small business community by providing information on contracting opportunities with the Department of Labor, information that will assist small businesses to comply with DOL laws and regulations, as well as information on additional federal resources for small businesses.

    Protesting A Small Business Representation Or Rerepresentation

    The SBA regulations on small business size and size protests are found at 13 CFR part 121.

    An offeror, the contracting officer, SBA, or another interested party may protest the small business representation of an offeror in a specific offer for a contract. However, for competitive 8 contracts, the filing of a protest is limited to an offeror, the contracting officer, or the SBA.

    Any time after offers are received by the contracting officer, or in the case of bids, opened, the contracting officer may question the small business representation of any offeror in a specific offer by filing a contracting officer’s protest of this section).

    Any contracting officer who receives a protest, whether timely or not, or who, as the contracting officer, wishes to protest the small business representation of an offeror, or rerepresentation of a contractor, shall promptly forward the protest to the SBA Government Contracting Area Director at the Government Contracting Area Office serving the area in which the headquarters of the offeror is located.

    The protest, or confirmation if the protest was initiated orally, shall be in writing and shall contain the basis for the protest with specific, detailed evidence to support the allegation that the offeror is not small. The SBA will dismiss any protest that does not contain specific grounds for the protest.

    The protest and any accompanying materials.

    A copy of the size self-certification.

    Identification of the applicable size standard.

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    Bid Invitation Using Public Notice

    8.1 Wherever practicable, and consistent with sound procurement management, contracting authorities will first invite bids from within the Territory.

    8.2 Where the Crown intends to invite bids for government contracts to be performed in the Territory, contracting authorities shall take all reasonable measures to inform Inuit firms of such bids, and to provide Inuit firms with a fair and reasonable opportunity to submit bids.

    8.3 Where the Crown intends to invite bids for government contracts to be performed in the Territory, the Bid Invitation process shall take into account the Bid Evaluation Criteria found in article 6.

    8.4 Where a contract has been awarded, it is the responsibility of the contracting authority to ensure that the contract document contains appropriate terms and conditions to make certain that sub-contractors to the contractor are also subject to the intent and the specific provisions of the contract.

    Are You A Small Disadvantaged Business

    Government Contracting – SDVO – Understanding The Requirements – Win Federal Contracts

    A small disadvantaged business isdefined as a firm that is 51% or moreowned, controlled and operated by aperson who is socially andeconomically disadvantaged. AfricanAmericans, Hispanic Americans, AsianPacific Americans, Subcontinent AsianAmericans, and Native Americans arepresumed to qualify. Other individualscan qualify if they show by a”preponderance of the evidence” thatthey are disadvantaged.Learn more about this.

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    Downsides Of Trying To Get Government Contracts For Small Business

    It take a long time to win your first government contract. And it can also take a significant amount of money. Some businesses spend between $80,000 and $130,000 to earn their first contract! Also, it could take up to two years to start making a return on your investment. So you must have enough cash flow to sustain your business.

    Keep a diverse list of private-sector clients. This can help offset any potential initial losses. Being e-commerce savvy is also very important in government contracting. For example, to work with the Department of Defense, you must be able to invoice and receive payments electronically.

    Small Business Federal Government Contracting Dollars Continue To Increase

    The U.S. Small Business Administration recently announced that, yet again, the federal government exceeded its small business contracting goal by awarding $145.7 billion dollars in federal prime contracts 26.01% of the governments total procurement spending to small businesses last year, with at least an additional $82.8 billion in small business subcontracts. The SBA released statistics in its FY 2020 Small Business Procurement Scorecard, available here. Notably, while small business contracting increased $13 billion in prime contracts, small business subcontracting may have by an estimated $7.9 billion. Other Scorecard highlights include that the U.S. government exceeded the service-disabled veteran-owned small business goal of 3% and far-exceeded the small disadvantaged business goal of 5%. The government failed, however, to meet the women-owned small business goal of 5% and the HUBZone goal of 3%.

    Federal Government Small Business Contracting Goals v. Results: Prime Contracts

    FY 2020 Goal
    -0.16% $13.64B

    The Administration has stated that it wants to focus on increasing the percentage of contracts awarded to small disadvantaged businesses by 50 percent in the next five years. That could result in more than $10 billion annually for that category of small businesses, which would present a plethora of opportunities for new businesses to enter that market and for existing small disadvantaged businesses to grow.

    FY 2020 Goal

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    Preparation Of T1204 Supplementary Slips For Contracts For Services

    16.15.1 As mentioned at paragraph 4.2.6 of this policy, pursuant to paragraph 221 of the Income Tax Act, payments exceeding $500.00 made by departments and agencies under applicable service contracts, including contracts involving a mix of goods and services, must be reported on a T1204 supplementary slip.

    16.15.2 Departments must report on a T1204 any payments related to printing contracts in the manner indicated in this section.

    16.15.3 Exceptions. Contract purchases for services that are exempt under this requirement are direct purchases made using acquisition cards, direct purchases under local purchase orders, grants and contributions, utility payments, and rental or leasing of office space and equipment and other “goods”.

    16.15.4 The amount to be reported on each information slip is the total of payments made to the enterprise in the calendar year, including any goods portion, expenses, indirect costs, etc., but excluding GST/HST.

    16.15.5 All forms of enterprises should receive these slips, including sole proprietorships , corporations and partnerships.

    16.15.6 Slips are required for service contracts where a Canadian resident is working outside the country. The payments made to non-residents providing services in Canada are not reported on T1204 supplementary slips, not being part of this reporting requirement. See section 16.15 for information on tax treatment of non-residents who perform services in Canada.

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