THE REALITY BEHIND SBA SUBNET

The SBA SubNet Subcontracting network was brought to my attention by some of my students. They were asking if this network is a promising avenue for breaking their way into federal government contracting. 

Is the SBA subcontracting website worth your time? Let’s dive deep and discover the truth behind the SBA SubNet.

WHY DO LARGE COMPANIES OFFER SUBCONTRACTING OPPORTUNITIES

According to FAR Part 19 Subpart 19.7 Section 19.704 in acquisition.gov, large companies or prime contractors must create subcontracting plans and offer subcontracting opportunities. Thus, the government literally obligates them to provide opportunities. 

An article, SBA Clarifies Subcontracting Plan Rules, published last year, talked about the changes or limitations made by the SBA concerning numerous aspects of small business contracting rules. 

If the government had resorted to emphasizing the rules already set in place, It shows that many companies were failing to follow them. 

Prime contractors were reported to have turned in subcontracting plan reports late, not paid small business subcontractors on time, did not designate an employee monitor, not maintained records of compliance, and not done market research.

Although it’s great that the SBA is taking action against these types of behavior, the SBA had already done this in 2013, which means this is a recurring problem.

When I had Angela Terry, SBA Subcontracting network program manager, on my podcast, she informed me of some interesting things. She said that the SBA had not put a lot of effort into their website.

The SBA has done many great things for the small business community, but they fall short in certain areas.

CONTRACTORS ON THE SBA SUBNET WEBSITE

There have been many instances wherein large contractors have said that their subcontracting plan is not public information. Instead, they want to keep it to themselves.

Most, if not all, of the companies found on the SBA SubNet website, have not met their subcontracting plans. Consequently, these contractors are required to post subcontracting opportunities on the website for not complying with the rules.

Is that somebody you want to do business with? Probably not. I don’t want you to get caught up in the idea that people on the SubNet website genuinely want to help small businesses because that is not the case.

So, where does that leave us? The government has so many good ways that you can market yourself. I, personally, just don’t think that the SBA SubNet website is one of them.

PATH OF LEAST RESISTANCE

I know how difficult it is when you’re first starting, and you’re still exploring these different avenues for opportunities. 

You then read from an official government website that they have these programs in place for small businesses. Because you don’t know a lot, you trust that these programs offer you the best possible opportunities for your company, but they don’t. 

If I could save one of you from the pain and suffering that I had to endure and go through when growing my business, then that’s what I want to do.

I want to share with you the path of least resistance. We have limited time and resources, so I want to help you find the way that can give you the most, in terms of opportunity, for yourself and your company.

RESOURCES

If you want to learn more about the tips and tricks in winning government contracts, then join us here at GovCon Giants.

You could also visit our website and other social media platforms or check the new GovCon Edu, where you learn everything about government contracting!

To learn more about the topic above, check these resources below:

Is the SBA Subcontracting website worth time and energy?

https://www.youtube.com/watch?v=BPs4aUB-9Io

028: Angela Terry – SBA Subcontracting Program Manager

https://govcongiants1.wpengine.com/podcast/028-2/

SOURCES SOUGHT: Advanced Soldier Sensors / Displays for Dismounts

The U.S. Army Contracting Command-Aberdeen Proving Grounds Belvoir division, on behalf of the Combat Capabilities Development Command (DEVCOM), Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance and Reconnaissance (C5ISR) Center, Research and Technology Integration (RTI) Directorate, in accordance with the Federal Acquisition Regulation (FAR) Part 10 releases this RFI. The purpose of this RFI W909MY-22-R-A001 is to request information from interested and capable vendors to inform future requirements generation for situational awareness enhancing technologies that could enable small, disaggregated tactical units the ability to rapidly develop improved situational understanding. Technologies of interest are those that could be used to enhance Soldier’s vision, detect and localize threats, and digitally communicate those threats to Advanced Soldier Sensors and their systems.

  • Original Set Aside:
  • Original Response Date: Nov 15, 2021 12:00 pm EST
  • Product Service Code:
  • NAICS Code: 333314 – Optical Instrument and Lens Manufacturing
  • Place of Performance: USA

Full details via beta.sam.gov


Donnie Harris: Retired Contracting Officer with an Unlimited Warrant to Write Billions in Contract Actions

Navigate the government contracting market with retired military contracting officer Donnie Harris.

BACKGROUND

Donnie Harris is a retired military contracting officer who served two decades for the Coast Guard Office of Chief Counsel, Procurement Law Division, and the Clerk of the Court/Paralegal for the Coast Guard Court of Military Appeal.

Throughout his tenure, Harris participated on various radio shows and trained thousands of military and civilian personnel on topics ranging from preparing a statement of work to updates on the FAR.

Over the course of these years, he managed complex and high-profile procurements totaling $1.2 billion from the acquisition to the pre-award phase. 

After retiring, he was employed by numerous companies that wanted to utilize his procurement experience. 

CONTRACTOR PURCHASING SYSTEM REVIEW AUDIT

What that audit means is when you’re dealing with a cost reimbursable contract, you have to have an approved purchasing system that is approved by the government.

Huge companies like Booz Allen Hamilton use this process in order to ensure that everything, from the reqs and certs to the subcontractor agreements, are dated and signed correctly.

The reason is that if you fail too many audits, then that’s going to go into your past performance.

You may have an outstanding technical solution, but because you’re not able to pass an audit and it is reflected in your past performance, then you’re probably not going to win.

This is why Harris worked with a whole department in Booz Allen that was strictly dedicated to doing this audit. 

SUBCONTRACTING GOALS

Under the subcontracting goal, huge companies that do federal works need to subcontract a certain percentage of their work to small businesses. 

For instance, you’re not going to get a small business who can build a $3 billion bridge. The reasons may include the fact that they don’t have the infrastructure, the resources, and the technical knowledge and expertise to build a bridge.

Still, these small businesses can do some of the legwork, like dirt removal, concrete, and other of the small jobs. This is where the subcontracting goals come into place. 

However, depending upon the requirements, there are firms that really don’t have to adhere to the subcontracting goals, especially if there’s no subcontractors out there that can perform that type of work.

This happens when the vendor or the offerors have done their market research and found that no small business can fulfill the requirements.  

SMALL BUSINESSES ARE MISINFORMED

In Harris’ experience, he had to disqualify a lot of small businesses because they did not even maintain the basic requirements needed. 

For example, in putting solicitations online, they use keywords that only certain companies know. Why? Because this shows the level of expertise that that company has.

Apart from that, contracting officers have specific requirements depending on the contract. So, if you don’t follow any of these, then you can certainly be disqualified. 

For instance, if it is written that you need to use an 8 1/2 X 11 size of paper, then you need to really send your proposal using this size.

These are just the little things people on the government side uses in order to eliminate companies that could really not fulfill the requirements.

THE CONTRACTING PROCESS

The government usually receives two proposals: the technical proposal and the pricing proposal. 

The technical proposal is going to address how you are going to match or apply the requirements. Within this, the agency usually asks for your resumes, technical capabilities, resources, and past performance. 

Meanwhile, the pricing proposal is how are you going to price it. This includes what labor rates you are going to use and what labor categories you are going to use to accommodate these requirements.

Now, let’s say your technical proposal and your price proposal are both acceptable and you won a single award. Then, you will move to the negotiation, the final offer, and the kick off meeting about certain requirements. Lastly, you will start working.  

On the other hand, if it is going to be a multiple award, that’s when the agency will issue different task orders or requests for quotes towards you and other companies in the pool. 

What will happen in this kind of award is that you will price every time there’s a task order and that agency will choose the lowest bidder.  

RESOURCES

If you want to learn more on how to navigate the government contracting market with retired military contracting officer Donnie Harris, then be sure to click the resources below.

You can also visit the GovCon Giant website or the new GovCon Edu where you learn everything about government contracting!

011: Donnie Harris – Unlimited Warrant to Write Billions in Contract Actions

https://www.youtube.com/watch?v=R_H15m0jKgY