INDUSTRY DAY Overview of USACE Small Business Goals/Targets: How They are Determined and Achieved
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1 INDUSTRY DAY 2017 Overview of USACE Small Business Goals/Targets: Bonita M. Carroll Deputy for Small Business US Army Corps of Engineers Chicago District February 21, 2017 The views, opinions and findings contained in this report are those of the authors(s) and should not be construed as an official Department of the Army position, policy or decision, unless so designated by other official documentation. 1
2 Overview of USACE Small Business Goals/Targets: AGENDA Definitions Purpose History of Goaling Assignment Process of Goals/Targets National, USACE Division, and District Annual Scorecard Questions 2
3 Definitions 3
4 Overview of USACE Small Business Goals/Targets: goal (ɡōl/) noun. An indicator established to determine whether you have achieved your objective. A desired result that can either be achieved, or not achieved. 4
5 Overview of USACE Small Business Goals/Targets: tar get (ˈtärɡət/) noun. An indicator established to determine how successfully you are achieving an objective. Measurement based 5
6 Purpose 6
7 Overview of USACE Small Business Goals/Targets: To ensure that small businesses receive maximum practicable opportunity to compete for work with the federal government. 7
8 History of goaling 8
9 Overview of USACE Small Business Goals/Targets: The concept of goals for small business procurement has its origins, qualitatively, in the original Small Business Act of The concept evolved, and 25 years later, Congress authorized, but did not set explicit goals. Then in 1988, Congress began quantifying goals because the desired result was not being realized. 9
10 Overview of USACE Small Business Goals/Targets: With a continuing shortfall, the National Defense Authorization Act (NDAA) for FY 2013 ordered an independent assessment 10
11 Overview of USACE Small Business Targets: The NDAA directed review and revision of goaling guidelines. 11
12 Overview of USACE Small Business Targets: One change that emerged was: Effective October 2016, the funding agency now receives credit for subcontracting small business and socio-economic category achievements. 12
13 Overview of USACE Small Business Targets: The Small Business Administration (SBA) ensures government-wide goal for participation of small business concerns is established annually at the statutory levels and the reporting agencies' achievements are relative to the goals. 13
14 Overview of USACE Small Business Targets: The national goals (statutory goals) for small business procurement are: 23% of prime contracts for small businesses 5% of prime and subcontracts for women owned small businesses 5% of prime and subcontracts for small disadvantaged businesses 3% of prime and subcontracts for service-disabled veteran-owned small businesses 3% of prime and subcontracts for HUBZone certified small businesses 14
15 Assignment of goals/targets-national 15
16 Overview of USACE Small Business Targets: Setting small business goals/targets is complex; it is not a precise science as they in effect comprise a quantitative number (e,g. 23 percent) and a qualitative concept ( maximum practicable opportunity ). 16
17 Overview of USACE Small Business Targets: Achievement of goals (the measured procurement rate) can be impacted by factors such as changes in applicable size standard without any real shift in procurement. In any one industry or agency application, quantitative number and qualitative concept may not coincide. 17
18 Overview of USACE Small Business Goals/Targets: Each federal agency must set an annual goal for participation in its contracts by various socio economic groups. 18
19 Overview of USACE Small Business Targets: There are 24 agencies that are subject to the Chief Financial Officers (CFO) Act of 1990 The Department of Defense (DoD) (9700) under which the Army and USACE fall, is one of those agencies 19
20 Overview of USACE Small Business Targets: The SBA has responsibility for ensuring that agency goals add up to the national goals 20
21 Assignment of Targets DoD and USACE 21
22 Overview of USACE Small Business Targets: For FY 2017, the DoD has established the following 22% of prime contracts for small businesses; 34% of subcontracts 5% of prime and subcontracts for women owned small businesses 5% of prime and subcontracts for small disadvantaged businesses 3% of prime and subcontracts for service-disabled veteran-owned small businesses 3% of prime and subcontracts for HUBZone certified small businesses Source: 22
23 Overview of USACE Small Business Targets: Assignment of Small Business Program Targets is in accordance with Department of Defense Instruction (DoDI) , dated June 8, 2016 Establishes procedures to permit timely and effective goaling of U.S. Army Corps of Engineer Command s subordinate contracting activities and contracting offices. 23
24 Overview of USACE Small Business Targets: Federal Procurement Data System-Next Generation (FPDS-NG) is the government s official system for collecting, developing and disseminating procurement data. Agencies report each award over $25,000 Note: the Department of Defense (DoD) only releases contract data after a 90- day waiting period. 24
25 Overview of USACE Small Business Targets: The Federal Procurement Data System-Next Generation (FPDS-NG) Small Business Achievements by Awarding Organization Report is the official report of record for measuring small business performance at levels below the DoD (9700) level. 25
26 Overview of USACE Small Business Targets: The U.S. Army Corps of Engineers establishes, in coordination with the subordinate contracting activities, targets/goals for the following small business concerns not later than 15 th of November each fiscal year. 26
27 Overview of USACE Small Business Targets: (1) Small Business Percentage; (2) Small Disadvantaged Business Percentage; (3) Service Disabled Veteran Owned Small Business Percentage; (4) Women Owned Small Business Percentage; and (5) Certified HUBZone Small Business Percentage. 27
28 Overview of USACE Small Business Targets: The District Small Business Professional (SBP) conducts market research, considers several factors, and works in concert with the contracting officer prior to recommending target estimates in dollars and percentages to the Deputy Commander, and the Small Business Assistant Directors, Small Business Programs, servicing the Divisions. 28
29 Overview of USACE Small Business Targets: The Small Business Assistant Directors, Small Business Programs, servicing the Divisions, shall, after coordination with the Deputy Commander, PARC, and Program offices submit a goal recommendation memorandum for the Divisions and each of the subordinate contracting offices to the Associate Director not later than October 28th. The Associate Director, Small Business Programs, U.S. Army Corps of Engineers, submits a proposed goaling memorandum from the U.S. Army Corps of Engineers HCA LTG to the Divisions and PARCs, not later than November 20th 29
30 Overview of USACE Small Business Targets: The Associate Director, Small Business Programs, U.S. Army Corps of Engineers, will provide goals for each U.S. Army Corps of Engineers Command subordinate contracting office to which a Department of Defense Activity Address Code (DoDAAC) has been assigned Note: Chicago District DoDAAC is W912P6 30
31 Overview of USACE Small Business Targets: Subsequently, the SBA notifies the agencies of their final agency targets. Once the goals are established, a letter is sent to each agency head accepting agency goals. Agencies are informed that achievements will be measured against the accepted targets. 31
32 Overview of USACE Small Business Goals/Targets: Our FY17 targets aggressively support the achievement of the overall Army and DoD Small Business Program targets and represent the maximum practicable opportunity for small business entities to participate in USACE procurement activities 32
33 Overview of USACE Small Business Goals/Targets: Assignment of Targets USACE The Department of the Army continues to challenge the US Army Corps of Engineers (USACE) to lead the Army in supporting Small Business. The USACE wide target of 41.5% for Small Business awards shows the commitment our leadership and contracting community has for the Army program. 33
34 Overview of USACE Small Business Goals/Targets: Assignment of Targets Division Great Lakes & Ohio River Division Prime FY17 Targets Small Business 30.85% Small Disadvantaged Business 7.00% Service Disabled Veteran Owned Small Business 4.53% Woman-Owned Small Business 7.36% HUBZone Small Business 8.86% 34
35 Overview of USACE Small Business Goals/Targets: Assignment of Targets District Chicago District Targets FY17 Assigned FY16 SB Targets Achievement Small Business (SB) 43.50% 63.54% Small Disadvantaged (SDB) 3.50% 9.44% Service-Disabled VOSB 2.00% 2.97% Woman-Owned (WOSB) 8.99% 8.97% HUBZone 14.90% 15.51% 35
36 Overview of USACE Small Business Goals/Targets: USACE Small Business focus goes beyond meeting goals/targets, but toward increasing the use of Small Business as a valued source of capabilities for innovative, cost effective, customer- focused solutions to USACE requirements and mission. 36
37 Annual Scorecard 37
38 Overview of USACE Small Business Goals/Targets: The annual Scorecard is an assessment tool to (1) measure how well federal agencies reach their small business and socio-economic prime contracting and subcontracting goals, (2) provide accurate and transparent contracting data and (3) report agencyspecific progress. Link: 38
39 Overview of USACE Small Business Goals/Targets: Each agency s overall grade will show an A+ for agencies that meet or exceed 120 percent of their goals, an A for those between 100 percent and 119 percent, a B for 90 to 99 percent, a C for 80 to 89 percent, a D for 70 to 79 percent and an F for less than 70 percent. An agency s overall grade is comprised of three quantitative measures: prime contracts (80 percent), subcontracts (10 percent) and its progress plan for meeting goals (10 percent). 39
40 Questions? 40
41 Sources Evaluation of the Small Business Procurement Goals Established in Section 15(g) of the Small Business Act: A Report Pursuant to Section 1631(d) of the National Defense Authorization Act of 2013, Henry B. R. Beale Microeconomic Applications, Inc. Washington, D.C., for the Small Business Administration Office of Advocacy, June 2014 Small Business Policy #16-SB-04 Small Business Goaling Joint Statement Steve Chabot, Chairman, and Nydia Velázquez, Ranking Member, Committee on Small Business Before the Committee on Armed Services of the House of Representatives On the FY 2017 National Defense Authorization Act, March 1,
42 The End 42
43 Points of Contact Deputy for Small Business Chicago District and Detroit District Phone: Website: Assistant Director Office of Small Business Programs U.S. Army Corps of Engineers Lakes and Ohio River Division Telephone: Chief of Contracting, Chicago District Phone: Website: Regional Contract Chief Phone:
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