Small Business Perspectives MA Military Asset & Security Strategy Task Force USAF Life Cycle Management Center Hanscom AFB Office of Small Business Programs December 11, 2015 Small Business Topics Presented by Bill Donaldson (781) 225-6470 1
OVERVIEW Federal Small Business Contracting @ HAFB Hanscom s Mission Types of opportunities at Hanscom: Operational (Base) Contracts Not High Tech C5ISR Contracting - Development & Production NETCENTS for USAF IT Products and Services General Advice to Small Businesses Prime- or Subcontracting Hanscom Points of Contact Questions 2
Hanscom s Mission Hanscom AFB is part of the USAF s Life Cycle Management Center Headquartered at Wright- Patterson AFB in Ohio. Part of USAF Material Command: Development, Sustainment, Test, Labs Hanscom s mission is to develop and deliver C5ISR Products & Services Home of two USAF Program Executive Officers: PEO Battle Management Appox $2B+ annual obligations PEO C3I&N Appox $1B+ annual obligations 3
The State House reporter for the Worcester Telegram and The Evening Gazette Laurence G. Hanscom The founder and first president of the Massachusetts Wing of the Civilian Air Reserve (1940) Just prior to his death he had been lobbying for the establishment of an airfield in Bedford He was performing acrobatics when his plane crashed on February 9, 1941 Land named Laurence G. Hanscom Field, Boston Auxiliary Airport at Bedford in June 1941 and subsequently Hanscom Air Force Base 4
Operational Contracting Operational Contracting contracts for base operation and sustainment, works primarily w/base Civil Engineering to procure required products and services akin to public works in cities and towns Most buys (over 65% dollar-wise) go to small businesses Budget varies & is highly controlled - SRM Program Kanna Annamalai-Brown - Division Chief Annamalai-Brown@us.af.mil 781-225-0073 Capt Ken Haile, Installation Contracting Kenneth.haile1@us.af.mil 781-225-0069 5
Development & Production Hanscom Programs develop command, control, communications, computer & cyber capabilities Two PEO Directorates Two ways of doing business Most programs/contracts are multi-year ALL USAF PEOs are dedicated to increasing contracts, both prime- and subcontracts to small businesses PEO/BM & PEO C3I&N were recognized at USAFlevel for their outstanding small business performance FY13 & FY14 Two diverse acquisition methods driven by mission 6
C5ISR Contracting PMOs use market research to determine industry capability Sometimes requirements push the edge Who is capable? Defense Technology Readiness Levels Small business laws and requirements 1956 Small Business Act established the Rule of Two Avoids CICA conflict and narrows field to SBs Market Research FedBizOps (FBO.GOV) - satisfies Gov s legal requirement Web Searches Professional knowledge Can/Should I met w/officials? Anything Goes! 7
Getting Started C5ISR Contracting (Continued) Get your bona fides SAM.GOV and use the PTAC: http://www.dla.mil/smallbusiness/pages/ptac.aspx Know the rules of the game FAR, Particularly FAR 5 & FAR 19! Limitation on Subcontracting Requirements FAR 52.219-14 Other capabilities: Accounting System, Lines of credit EVMS Geographical reach Clearances Facility & Personnel Network, Network, Network! Hanscom Industry Days, AFCEA, Hanscom Reps Assn, Etc. 8
C5ISR Contracting (Continued) Building the USAF Acquisition Strategy: Gather Data: Requirements, Schedule, Financials, etc. Perform Market Research Develop a Notional Acquisition Strategy: Risk Assessment & TRLs Develop the Government Cost Estimate Devise, Examine and Recommend Courses of Action BRIEF: Functional Reps Quick Preliminary Acquisition Strategy Session (Ouick PASS) or Early Strat Info Session (ESIS) Senior Management Preliminary Acq Strat Session MDA Acquisition Strategy Session Ultimate Decision PEO or Higher, depending on value or special interest Many Variations on Theme May Occur 9
C5ISR Contracting (Continued) Implementing the Strategy We re not good at what you do! Ref: USSR! Diff is we know it! We value your input REALLY! Meet w/officials as circumstances allow but be careful. Use the Small Business Specialist WHAT? Consider your role Prime or Sub-contractor or JV? Attend Program Industry Days Don t have to prime Best Networking Strategy Going Build on them! Difference between Polite and Timid Winning/Losing Small Business Specialists are in the loop keep us in yours! 10
C5ISR Contracting (Continued) Time Machines Do Exist And we use them! Enterprise contracts everybody has one, or more Consistent w/approved Acquisition Strategy Period of Performance Dollar Ceiling Most Importantly SCOPE Economy Act Compliance USAF = NETCENTS II Gunter AFB Alabama Following slides borrowed from NETCENTS II PMO 11
NETCENTS II Framework # Title of Acquisition Category Type of Competition Est. # of Awards Pd of Performance Ceiling (in $B) NAICS #1 Netcentric Products Awarded #2 NETOPS & Infrastructure Solutions #3 NETOPS & Infrastructure Solutions - Awarded Full and Open 6-9 6 yrs 6.9 334210 Full and Open 6-9 7 yrs 7.91 517110 Small Business 6-9 7 yrs 5.79 517110 #4 Application Services Full and Open 6-9 7 yrs.96 541511 #5 Application Services Small Business 6-9 7 yrs.96 541511 #6 EISM (A&AS) - Full and Open 6-9 5 yrs.46 541512 #7 ITPS (A&AS) On Hold Small Business (SD Vets) 6-9 5 yrs.71 541512
NETCENTS II Scope Requirements Category Netcentric Products (COTS Only) NETOPS & Infrastructure Solutions Application Services Enterprise Integration & Service Management (EISM) A&AS IT Professional Support & Engineering Services (ITPS) A&AS Description Networking equipment, servers/storage, peripherals, multimedia, software (shrink wrapped), identity management/biometric hardware and associated software, delivery, warranty, maintenance Network mgt/defense, SOA infrastructure, enterprise level security/mgt and implementation/ops, telephony infrastructure & services; managed services/cloud computing Systems sustainment/development, migration, integration and netcentric data services, web services, COTS software integration, smart phone/mobile apps Services to enable enterprise integration service management support for both infrastructure and mission capabilities (enterprise level support) IT Program Management Support and Engineering Services (program level support)
NETCENTS-2 Customer Support Send questions to NETCENTS Customer Support: AFPEO BES/HICI NETCENTS PMO 501 E. Moore Drive, Bldg. 884, Rm. 1300 Maxwell AFB Gunter Annex, AL 36114 Commercial: (334) 416-5070, Option 1 Email: netcents@us.af.mil http://www.netcents.af.mil/ NETCENTS II Small Business Specialist Ms. Denise Baylor: denise.baylor@us.af.mil (334) 416-4137
Advice to Small Businesses Consider RFIs an ESSAY TEST not FIB or T/F! Sure you can t do everything can you do half? Explain how your team will do what you can t be specific! Use big brother to help w/ shortcomings Know FAR 52.219-14 Limitations on Subcontracting 50% v 51%...or 15% (Construction) or 25% (Special Trades).. Timeliness is important, but sometimes not critical. Involve the SB Specialist early Communicate! Sections L & M are critical Incorporate a Requirements Traceability Matrix OR - Don t even get out of bed that morning! 15
Subcontracting May be the Way Need experience? Be a SUBCONTRACTOR! In the DoD, since 1989 - Small Businesses average over 39% of Large Business subcontract dollars! Goal is currently 36.0% Bad years were: 1991 34% 2002 34.1% 2004 34.5% All other years ranged 37.0 to 42.5% There are significant Subcontracting Opportunities! 16
Subcontracting Philosophy FAR 19.7 Requires large businesses to make a good faith effort to increase small business participation in their USG Contracts. 5 U.S.C. 637(d)(4)(f) directs that a contractor s failure to make a good faith effort to comply with the requirements of the subcontracting plan shall result in the imposition of liquidated damages. Contractor Performance Assessment Reporting System (CPARs) now considers subcontracting performance! 17
Did you Know The SBA lists most, if not all LBs doing business with the Federal Government? Since all have small business subcontracting goals, they may need you as much as you them. Here s the website: http://www.sba.gov/subcontracting-directory Disclaimer: SBA obtains the names and addresses for this listing from subcontracting plans that are submitted to the Government when a large business receives a Federal contract over $750,000. 18
How to Become a Supplier/Subcontractor Potential Supplier: Contact LB s Small Business Liaison Officer Become familiar LB s Products & Requirements Submit Letter/Email of Intro & Company Info to SBLO Large Business: Advises Supplier on Potential Subcontracting Opportunities Forwards materials to Purchasing/Engineering/Other Using Organizations Performs supplier evaluation 19
How to Become a Supplier/Subcontractor (cont.) Typical Supplier Information Required: -Type of Business -Number of Employees -Financial Profile -Principal Product/Service -Areas of Product Interest -Description of Facilities/Equipment/Technical Capabilities -Quality Assurance Standards (ISO Certification, Lean Principles, Six Sigma) -Certifications Small Business Categories -North American Industrial Classification Codes 20
How to Become a Supplier/Subcontractor (cont.) What Works: Credibility Quality Products on time delivery cost affordability Proven Performance Conferences/Trade Fairs INDUSTRY DAYS!!! Perseverance Knowing the System What Doesn t: Contacting High Level Executives Demanding Business Being Unprepared Not Doing Your Homework 21
HANSCOM SB POCs Bill Donaldson: (781) 225-6470 William.donaldson@us.af.mil Ellen McDonnell (781) 225-6469 Ellen.mcdonnell@us.af.mil Most, not all USAF email addresses are: Firstname.lastname@us.af.mil Unless there are more than one 22
Hanscom AFB Office of Small Business Programs QUESTIONS? 23