FedGovContracts.com

Panoptic Enterprises’

FEDERAL CONTRACTS PERSPECTIVE

Federal Acquisition Developments, Guidance, and Opinions


April 2016
Vol. XVII, No. 4
[pdf version]

CONTENTS


SBA Shifts Number of Eligible Industries In Women-Owned Small Business Program
FAC 2005-87 Requires Reporting on Predecessors
DOD Awakens with Flurry of DFARS Changes
HUDAR Revised
OMB Issues Draft Policy on Mobile Devices



SBA Shifts Number of Eligible Industries
In Women-Owned Small Business Program

To comply with Section 825 of the National Defense Authorization Act of 2015 (Public Law 113-291), the Small Business Administration (SBA) conducted a new study identifying the industries in which women-owned small businesses (WOSBs) are underrepresented in federal contracting and, thus, eligible for set-aside and sole source contracts under the WOSB program. The study found that WOSBs are underrepresented in 21 industries and substantially underrepresented in 92 industries. This means set-aside and sole source contracts can be restricted to economically disabled women-owned small businesses (EDWOSBs) in the 21 underrepresented industries, and set-aside and sole source contracts can be restricted to WOSBs and EDWOSBs in the 92 substantially underrepresented industries. This is a noteworthy shift from 2011, when the WOSB program was instituted, in which WOSBs were found to be underrepresented in 45 industries and substantially underrepresented in 38 industries.

EDITOR’S NOTE: To qualify as a WOSB: (1) the business must be small under the NAICS code assigned to the procurement; (2) women who are U.S. citizens must own at least 51% of the business; and (3) those women must control the management and daily operations of the business. A woman must hold the highest officer position in the business. This woman must have managerial experience of the extent and complexity needed to run the concern, must manage the business on a full-time basis, and may not engage in outside employment that prevents her from devoting sufficient time and attention to the daily affairs of the business.

To qualify as an EDWOSB, the business must meet the qualifications of a WOSB except that the owner(s) must also be economically disadvantaged. To be considered economically disadvantaged, the woman’s personal net worth must be less than $750,000, excluding her ownership interest in the business and her equity interest in her primary personal residence (or less than $6,000,000 including her ownership interest in the business and her equity interest in her primary personal residence). In addition, the woman’s average income during the previous three years must be less than $350,000 per year.

A WOSB or EDWOSB must be certified as eligible to participate in the WOSB program as a WOSB or EDWOSB by a “third party certifier,” of which there are four: the El Paso Hispanic Chamber of Commerce (http://www.ephcc.org); the National Women Business Owners Corporation (http://www.nwboc.org); the U.S. Women’s Chamber of Commerce (http://uswcc.org/certification/); and the Women’s Business Enterprise National Council (http://www.wbenc.org/). Once a firm has been certified as eligible to participate in the WOSB program, the WOSB or EDWOSB must fill out an application at https://certify.SBA.gov and provide required documents, such as birth certificates, articles of incorporation, and SBA forms (SBA Form 2413, WOSB Program Certification (WOSBs only), or SBA Form 2414, WOSB Program Certification – EDWOSBs, as appropriate; and each woman claiming economic disadvantage must submit an SBA Form 413, Personal Financial Statement).

Twelve industries remain “underrepresented” (such as NAICS 3353, Electrical Equipment Manufacturing, and NAICS 5611, Office Administrative Services), meaning that a WOSB must still be economically disadvantaged (that is, be an EDWOSB) to participate in WOSB set-asides and sole source contracts in those industries.

Twenty-seven industries remain “substantially underrepresented” (such as NAICS 3391, Medical Equipment and Supplies Manufacturing, and NAICS 5112, Software Publishers), meaning that both WOSBs and EDWOSBs may continue to participate in WOSB set-asides and sole source contracts in those industries.

Nine industries have changed from “substantially underrepresented” to “underrepresented” (such as NAICS 4841, General Freight Trucking, and NAICS 5621, Waste Collection), meaning that WOSBs are no longer allowed to participate in WOSB set-asides and sole contracts in those industries, just EDWOSBs.

Twenty-eight industries have changed from “underrepresented” to “substantially underrepresented” (such as NAICS 4842, Specialized Freight Trucking, and NAICS 6214, Outpatient Care Centers), meaning that WOSBs may now participate in WOSB set-asides and sole source contracts along with EDWOSBs in those industries.

Thirty-seven industries have been added as “substantially underrepresented” (such as NAICS 5174, Satellite Telecommunications, and NAICS 8131, Religious Organizations), meaning both WOSBs and EDWOSBs may participate in WOSB set-asides and sole source contracts in those industries.

No industries have been added as “underrepresented.”

Four industries have been deleted as “underrepresented” industries, meaning that solicitations for any of those industries may no longer be set aside for EDWOSBs: NAICS 3159, Apparel Accessories and Other Apparel Manufacturing; NAICS 3222, Converted Paper Product Manufacturing; NAICS 3321, Forging and Stamping; and NAICS 4881, Support Activities for Air Transportation.

Finally, two industries have been deleted as “substantially underrepresented” industries, meaning that solicitations for either of these industries may no longer be set aside for WOSBs or EDWOSBs: NAICS 2372, Land Subdivision; and NAICS 5312, Offices of Real Estate Agents and Brokers.

SBA has posted the list of designated NAICS codes at http://www.sba.gov/wosb. Further information on the WOSB program and application procedures are available at the same website.

For more on the original determination of “underrepresented” and “substantially underrepresented” industries, see the November 2010 Federal Contracts Perspective article “SBA Establishes Women-Owned Small Business Contracting Program.” Also, see Federal Acquisition Regulation (FAR) subpart 19.15, Women-Owned Small Business Program.



FAC 2005-87 Requires Reporting on Predecessors

The Federal Acquisition Regulation (FAR) Council has issued a final rule that implements Section 852 of the National Defense Authorization Act for Fiscal Year 2013 (Public Law 112-239) which requires that the Federal Awardee Performance and Integrity Information System (FAPIIS – https://www.ppirs.gov, then select “FAPIIS”) include, to the extent practicable, identification of any immediate owner or subsidiary, and all predecessors of an offeror that held a federal contract or grant within the last three years. The objective is to provide a more comprehensive understanding of the performance and integrity of the corporation before awarding a federal contract.

To implement Section 852, this rule makes the following changes:

Two respondents submitted comments on the proposed rule, but no changes were made in response to those comments. However, paragraph (b) of FAR 9.104-6, which requires the contracting officer to consider all information available in FAPIIS when making a responsibility determination, has been reformatted for clarity. For more on the proposed rule, see the January 2015 Federal Contracts Perspective article “Two FAR Changes Proposed in December.”



DOD Awakens with Flurry of DFARS Changes

The Department of Defense (DOD) has awakened from its winter hibernation, issuing five final rules, four proposed rules, and one memorandum during a March flurry.



HUDAR Revised

The Department of Housing and Urban Development (HUD) has updated and revised its HUD Acquisition Regulation (HUDAR). Among the significant changes are:

No comments were submitted in response to the proposed rule. However, several changes noted above were made to the final rule. For more information on the proposed rule, see the June 2015 Federal Contracts Perspective article “Four Agencies Address Their Acquisition Supplements.”



OMB Issues Draft Policy on Mobile Devices

The Office of Management and Budget (OMB) is seeking comments on its draft memorandum “Category Management Policy 16-2: Improving the Acquisition and Management of Common Information Technology: Mobile Devices and Services.” The memorandum seeks to improve the acquisition and management of mobile devices and services through consolidation of contracts, mandated use of one or more governmentwide best-in-class contract solutions, improved demand management, and increased accountability of agency officials.

The six-page memorandum is available at https://mobile.cio.gov/ and https://mobile.cio.gov/MobileDevicesandServicesMemo.pdf.

This is the third in a series of policies intended to drive greater performance, efficiencies, and savings in commonly-purchased information technology goods and services. The first policy addressed the acquisition of laptops and desktops (see the November 2015 Federal Contracts Perspective article “OMB Establishes Standard Configurations for Laptop and Desktop Computers”). The second policy addressed software licensing (see the January 2016 Federal Contracts Perspective article “OMB Proposes New Software Licensing Policy”).

The introduction to the memorandum states, “Each year the federal government spends approximately $1 billion on mobile devices and service contracts. Almost all of that spending is paid to four carriers, yet the federal government manages over 1,200 separate agreements and buys more than 200 unique service plans for voice, data, and text capability. Agencies continue to buy more services than needed, often fail to share minutes and data or optimize their calling plans, and struggle to manage their inventories across numerous agreements. The government must do more to reduce the high level of fragmentation and duplication of mobile contracts and simplify the federal marketplace for these services...To improve agencies’ mobile service inventories and move to a government-wide strategy for our common mobile service needs, the Office of Management and Budget (OMB) has determined that covered agencies must take the following actions: (1) report agency usage and eliminate unnecessary inventory and service within 90 days; (2) reduce the number of contracts for mobile services and transition to a government-wide solution or solutions; and (3) modify demand management practices to optimize plan pricing and device refresh schedules.”

In an OMB blog posting written by Anne Rung, Office of Federal Procurement Policy administrator, and Tony Scott, the U.S. Chief Information Officer, they assert that “This policy is estimated to save the federal government up to $230 million annually...Further, by requiring agencies to report all mobile service usage and pricing data and maximize the use of government- or agency-wide solutions, this policy will help agencies determine which services and devices will best suit the delivery of their missions, better position them to leverage the government’s vast buying power, and help develop at least one government-wide solution that incorporates the various requirements of federal agencies domestic and abroad.”

The draft Category Management Policy 16-2 consists of seven sections:

  1. Introduction
  2. Baseline Agency Usage for Devices and Services
  3. Optimize Agency Requirements
  4. Transition to Governmentwide Acquisition Strategies and Create Accountability
  5. Improving Demand Management Practices
  6. Creating a Broker Model to Act as a Single Buyer
  7. Creating Accountability

Comments on the draft policy must be submitted by April 28, 2016, in one of three ways:

  1. “Content suggestions and discussions are welcome via GitHub ‘issues.’Each issue is a conversation initiated by a member of the public. We encourage you to browse and join in on discussions in existing issues [https://github.com/whitehouse/mobile-policy/issues], or start a new conversation by opening a new issue [https://github.com/login?return_to=https%3A%2F%2Fgithub.com%2Fwhitehouse%2Fmobile-policy%2Fissues%2Fnew].”

  2. "Direct changes and line edits to the content may be submitted through a "pull request" [https://help.github.com/articles/creating-a-pull-request/] by clicking "Edit this page". You do not need to install any software to suggest a change. You can use GitHub's in-browser editor to edit files and submit a pull request for your changes to be merged into the document. Directions on how to submit a pull request can be found here [https://help.github.com/articles/creating-a-pull-request/]. Open pull requests for the https://www.govinfo.gov/content/pkg/FR-2016-03-30/html/2016-07192.htmproposed guidance can be found here [https://github.com/whitehouse/software-policy/pulls]."
  3. "We are also accepting content suggestions or proposed revisions through emails sent to the OMB Office of the Federal Chief Information Officer to ofcio@omb.eop.gov.”




Copyright 2016 by Panoptic Enterprises. All Rights Reserved.

Return to the Newsletters Library.

Return to the Main Page.