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SUB-CONTRACTING: A PRIME STRATEGY

Join us at the National 8(a) Summer Conference in Anchorage, Alaska, on June 18, 2014, for insights into utilizing subcontracting as an effective prime strategy. Learn from industry leaders Ronetta Keeter and Leigh A. McGee of O.S.I.Y.O. Consulting about aligning teams with expertise for successful 8(a) set-aside contracts. They will discuss the latest trends in government contracting, the importance of subcontractors, and the risks associated with affiliation. Enhance your understanding of strategic partnerships to boost your business's growth and competitive edge.

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SUB-CONTRACTING: A PRIME STRATEGY

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  1. SUB-CONTRACTING: A PRIME STRATEGY National 8(a) Summer Conference Anchorage, ALaska, June 18, 2014 RonettaKeeter Briggs & Leigh A. McGee Co-founders, osiyo consulting

  2. GBS OSIYO NNI Prime/Sub = Win/Win Strategic Partners – Sitnasuak Native Corporation’s GBS LLC, OSIYO Consulting, and Native Nations Institute Teaming Objective – Align a team with past experience and multiple specialized skills to capture an 8(a) set-aside contact Contract Awarded – Department of Treasury’s CDFI Fund awarded GBS LLC a contract for eight Tribal consultations, research, and writing an “Access to Capitol and Credit in Native Communities” Study

  3. Participant PollingQuestions How many prime contractors? How many sub-contractors? How many of you would consider sub-contracting as a prime strategy?

  4. To Prime or Not to Prime – That is the question? What's Your Best Strategy? What should you consider?

  5. It’s Your Strategic Choice!

  6. To Prime or Sub: 4 Big Questions?

  7. SBA’s 2012 Scorecard on Small Business Spending

  8. Government’s Subcontracting $ Goals

  9. Prime or Sub? General Rules & Considerations

  10. Risks in the Prime/Sub Affiliation • Division of Work - The larger the subcontractor’s share of work, the greater the risk of affiliation concerns • Incumbency - SBA is more likely to question a subcontractor relationship if the subcontractor was previously the incumbent for the contract work • Management - The larger the management role played by the subcontractor and its employees, the greater the likelihood of affiliation issues • Proposal Terminology – If the terminology and content of the proposal suggest that the subcontractor is an equal partner, or worse, the lead partner, repeated references to the subcontractor can backfire • Relative Experience - When an inexperienced small prime teams with a large, experienced subcontractor, SBA may decide that the prime could never have been awarded the contract without the subcontractor’s experience Source * Contract Management Article by Steven Kopeince

  11. Required Federal AgencySubcontracting Plans • The Small Business Act requires the prime contractor to: (1) make a “good faith effort” to acquire goods and services from the small businesses “used” in the bid/proposal and “in the same amount and quantity” (2) notify the contracting officer in writing if paying a reduced price to a subcontractor, or if payment to a subcontractor is more than 90 days past due (for which the government has paid contractor) • Requires agencies to collect and report data on the extent to which prime contractors meet the goals in their subcontracting plans • A prime’s failure to comply with a subcontracting plan may be considered in the evaluation of past performance for future contracts

  12. Why Sub-Contract as a Prime Strategy?

  13. Finding a Prime Contractor Top 10 Federal Contractors FY 2014 YTD Marketing and Relationships

  14. Marketing to the Prime Contractor Entrance Tickets: Credentials Game Changers: Added Value • We do it BETTER, CHEAPER, FASTER • We have CAPACITY • We are ABLE: Reliable, Dependable, Flexible, Can-doable, and valuable • We are cost-saving, money-adding PARTNERS. We bring future opportunities, relationships, and capabilities. • Quality Core Capabilities • Reputation & Past Performance • Licenses & Professional Certifications • Insurance & Worker's Compensation Certificates • Reputable References & Contacts

  15. Closing Comments and Questions Thank youfor Sharing yourself and time with us!

  16. Innovative tools and methods helping organizations adapt, grow, and prosper. -Visioning & Strategic Planning - Organizational Assessment - Leadership Development - Facilitation & Mediation - Board Governance o s I y o Est 2003 Leigh A. McGee| 410-330-7484 | lamcgee@osiyo.biz Roni K. Briggs| 972-720-9953 | rbriggs@osiyo.biz www.osiyo.biz

  17. Sources • 15 U.S.C. §644(g)(1) • Contract Management | September 2011 Article by Steven Koprince • Congressional Research Service www.crs.gov • http://www.sba.gov • http://www.onvia.com/business-resources/find-prime-contractors-subcontracting • The Federal Market Group Daniel M. Jacob www.fmg-ltd.com

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