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The All Small Mentor-Protégé Program Presented by DC SCORE and SBA Karen Williams & JoAnn Braxton washingtondc.score.org www.sba.gov March 21, 2017
The All Small Mentor-Protégé Program
Presented by DC SCORE and SBA
Karen Williams & JoAnn Braxton
washingtondc.score.org www.sba.gov
March 21, 2017
Today’s Presenters
Karen Williams DC SCORE
JoAnn Braxton SBA
Today’s Webinar
• Sponsored by DC SCORE and the Metropolitan District of the Small Business Administration
• Question can be submitted online during the session or sent to [email protected] following the session
• A copy of this webinar will be posted on www.washingtondc.score.org
SBA Washington
Metropolitan Area District
• District of Columbia
• Montgomery County, MD
• Prince George’s County, MD
• Fairfax County, VA
• Loudoun County, VA
• Arlington County, VA
• Cities of Alexandria and
Fairfax
Session Objectives
• Develop an understanding of what’s required to
enter into the SBA-approved Mentor-Protégé
Program.
– This approval is used for Small Businesses selling to
the Federal Government market
• Find out how to move forward
Government Contracting Facts
• Less than 5% of businesses in the United States do business with the U.S. Government.
• The U.S. Government is the largest buyer in the world; in FY14 $447B was spent on products and services:
– 40% spent on products
– 60% on services
• Approximately $1 billion in new opportunities in the services sector of Government contracting are available to be bid on by private businesses every day.
Government Contracting Facts (cont.)
• Companies are awarded new contracts daily.
• Approximately 95% of Federal contracts are awarded to small and medium-sized businesses.
• The U.S. Government procures services ranging from food services to janitorial projects to complex space flight systems engineering support.
Small Businesses: 23%
Service-Disabled Vets: 3%
SDB: 5%
Women-owned: 5%
HUBZone: 3%
PROCUREMENT TARGETS:
$447 Billion + per year
Contracting Goals
U.S. Government: The World’s Largest Customer Provided by the SBA Washington Metropolitan Area District Office
SBA’S
ALL SMALL MENTOR-PROTÉGÉ
PROGRAM
Provided by the Small Business Administration
The New “All Small Mentor-Protégé Program”
Washington, DC SCORE Chapter
Tuesday, March 21, 2017
JoAnn Braxton ASMPP Business Analyst
The Office of Government Contracting & Business Development
The Beginning
• The Small Business Jobs Act of 2010 and the National Defense Authorization Act for Fiscal Year 2013 provided authority for the Small Business Administration to establish mentor-protégé programs for all small businesses.
• Rather than creating separate programs for each constituency Service Disabled Veteran Owned Businesses, Women Owned Small Businesses, Historically Underutilized Business Zones - the SBA chose to create a single, all-inclusive mentor-protégé program.
www.sba.gov 11
The Beginning
• Final Rule Published: July 25, 2016
• Effective Date: August 24, 2016
• Official Launch Date: October 1, 2016
www.sba.gov 12
The All Small Mentor-Protégé Program’s Purpose
• The purpose of the new program is to enhance the capabilities of Protégé firms by requiring approved Mentors to provide business development assistance to: • Improve the Protégé’s capacity to successfully
compete for federal contracts
• Learn new and improved business practices
• Explore export readiness for international trade and contracts
www.sba.gov 13
8(a) Firms
8(a) Firms • If you are an active 8(a) business concern with an existing Mentor-Protégé
Agreement (MPA), you may transfer that relationship to the new All Small Mentor-Protégé Program in the last six months of program participation. To do so, notify the SBA at [email protected] that you wish to transfer your MPA. SBA district office approval is not required to request the transfer.
• If you are an active 8(a) business concern without an existing Mentor-Protégé Agreement (MPA), you may apply to the All Small Mentor-Protégé Program or through the 8(a) Mentor-Protégé Program. Requirements are the same for both Program.
13 CFR 125.9 / 13 CFR 124.520
www.sba.gov 14
Applying to the All Small MPP
To be eligible to participate in the program, the prospective Protégé must be either a for-profit business or an agricultural cooperative that is considered “small” for the NAICS code in which it is requesting a Mentor-Protégé relationship. Additional requirements include:
• Applicants must register in the System for Award Management (SAM) prior to submitting their Mentor/Protégé application
• Protégé must have a Mentor before to submitting their Mentor/Protégé application
• Previous experience working in the NAICS code in which assistance is sought
• Mentor must be organized for-profit and cannot own more than 40% equity in the business
• The SBA has not made a determination of affiliation between the Protégé and Mentor
• The Protégé can only have one Mentor at a time, and cannot have more than two mentors across all SBA-administered Mentor-Protégé programs
• Mentors may have no more than three protégés. The SBA may authorize a small business to be both a Mentor and a Protégé, but only if you can demonstrate that the second relationship won’t compete or conflict with the first Mentor-Protégé relationship
www.sba.gov 15
How To Apply
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• Applicants are required to register in the System for Award Management (SAM)
prior to submitting their Mentor/Protégé application.
• Complete your business profile in Certify.SBA.gov.
• Evaluate and select your Mentor prior to applying. This is not a matching
program. SBA will not find a Mentor for you.
• Begin the ASMPP application process.
• Protégés and Mentors must complete the online tutorial and have certificate of
completion ready for upload.
• Have required documents ready for upload.
www.sba.gov 17
Website: https://www.sba.gov/allsmallmpp
All Small Mentor Protégé Program
• Began accepting applications October 1, 2016.
• Applications must be submitted via
certify.sba.gov. No paper applications are accepted.
• ASMPP will not find a mentor for you.
Certify.SBA.Gov
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Mentor Provided Assistance
Mentor-provided assistance can be sought for any, or all of the following activities:
• Management and Technical Assistance Internal business management systems; accounting processes; marketing and business/strategic planning assistance; technology transfers; and manufacturing assistance.
• Financial Assistance In the form of equity investments and/or loans; and bonding.
• Contracting Assistance Contracting processes; capabilities; acquisitions; and performance.
• International Trade Education International Trade business and strategic planning; finding markets, and learning how to export.
• Business Development Assistance Strategy; and identifying contracting and partnership opportunities.
• General and/or Administrative Assistance Business processes and support; human resource sharing; security clearance support; and capacity building.
www.sba.gov 21
Benefits of the ASMPP
One of the most tangible benefits of the ASMPP is the ability to receive an exclusion from affiliation. The ASMPP allows a small business to leverage the experience and relationships of a mature company.
• What is an exclusion from affiliation? To better understand this concept and the benefit, it’s important to understand how federal set-aside contracts are bid on and awarded.
• When a federal set-aside contract is made available, qualifying businesses (in this case small businesses) can bid on the contract. If the small business lacks the capacity required in the contract, they can enter a joint venture with another small business to supplement their capacity and bid on the contract together.
• With an exclusion from affiliation, a qualifying small business can enter a joint venture agreement with a business of any size. That is, if SBA approves your Mentor-Protégé Agreement, you and your Mentor may joint venture for any small business set-aside that the Protégé qualify for, regardless of your Mentor’s size.
www.sba.gov 22
Program Administration
• Central HQ opposed to 8(a) distributive model
• Online Application – certify.sba.gov
• Online course tutorial requirement
• Annual Review and Evaluation
• Template agreements i.e. MPA
• Volume unknown at this point
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ASMPP Highlights
Description
Protégé may generally only have one Mentor at a time; SBA may approve a second where no competition exists/new NAICS/new Mentor skills; Two maximum.
Both Protégé and Mentor must be for-profit (with exception of Protégé being agriculture cooperative).
Mentor – no more than 3 Protégés at same time (not lifetime).
A participant can be both a Protégé and Mentor at the same time, if no competition or conflict.
Self-certifying; small in size standard corresponding to primary NAICS; or seeking BD assistance in a secondary NAICs and qualify as small. (SAM.gov) If redetermination letter to affirmative, they qualify.
SBA will not authorize MPAs in second NAICs in which firm has never performed any work; or where firm would only bring status as “small” to Mentor and nothing else.
Existing 8(a) firms in last 6 months of the 8(a) program wishing to transfer the MPA to ALL Small – online application (coordinating with 8(a) office to fine tune process) – no reapplication required
Requiring upload of Business Plan; no financial statements or tax returns as part of application process.
JV Agreements: ASMPP – will not review and approve Joint Venture agreements
MPA
Protégé – Small
Mentor – OTS or Small
Can apply to ASMPP only
13 CFR 125.9
Joint Venture
Eligible to bid small business set-aside
only
Ensure JVA adheres to 13 CFR 125.8
(protection against protest)
MPA
Protégé (8a)
Mentor – OTS or Small
Can apply to 8(a) MPA or ASMPP
13 CFR 124.520 or 13 CFR 125.9
Joint Venture
Eligible to bid SB, 8(a) SS & 8(a) Comp
set-asides only
Ensure JVA adheres to 13 CFR 124.513 or
13 CFR 125.8
MPA
Protégé – HZ, SDVO, ED/WOSB
Mentor – OTS or Small
Can apply to ASMPP only
13 CFR 125.9
Joint Venture
Eligible to bid SB, HZ, SDVO,
EDWOSB,WOSB set-asides
Ensure JVA adheres to 13 CFR 125.8
(protection against protest)
Same Requirements
Same content in both
citing. 124 speaks
specifically to 8a
contracts; 125
reference government
contracts (all other)
JV entity takes on
the form of the
protégé
ASMPP does not
review, approve or
decline JVs
8(a) BOS reviews,
approves or
declines JVs for
8a set-asides only,
even if 8a firms
apply thru ASMPP
Mentor-Protégé Process
How Do I Find a Good Mentor?
• Research - Make sure they have a good reputation and are willing and able to coach and mentor you
• Verify that the Mentor is not just looking for access to federal small business set-aside contracts
• Do they have good supplier relationships
• Do they have experience working with the federal government
• Be clear about goals and objectives outlined in Agreement
• Make sure it fits with the growth (business plan) mapped out for the business
www.sba.gov 26
Resources
• SCORE
• Small Business Development Centers (SBDCs)
• Women’s Business Centers (WBCs)
• SBA District Offices
• Procurement Technical Assistance Centers (PTACs)
• The SBA Learning Center (online training)
www.sba.gov 27
For More Information contact
The All Small Mentor-Protégé Program
www.sba.gov/allsmallmpp
NEXT STEPS
Steps to Sell to the Government
• Register in the SAM database
– Must have an EIN
– Must have a DUNS number
– Must know your NAICS code(s)
• https://www.census.gov/eos/www/naics/
• Determine small business program set aside eligibility – does your firm qualify?
• Begin market research; identify Federal Agencies (and prime contractors) who buy what you sell
Questions?
• Assistance in the All Small Mentor-Protégé submission
process available from SBA and at the DC SCORE
office
• Contact SCORE:
– Request a mentor at www.score.org
– Call (202) 619-1000 and request an appointment
with a SCORE mentor with Federal expertise
• Prepare for a long, but fruitful journey
Summary
• Question for DC SCORE can be sent to
• Question for SBA can be sent to
• A copy of this webinar will be posted on
www.washingtondc.score.org
Contact SCORE:
washingtondc.score.org
(202) 619-1000
