FEDERAL Govt Contracting - Life After 8a & Best Practices

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Navigating the Section 8(a) Program Can I
Benefit and If So How? US Federal Government
Contracting Webinar Series - 2016 Presented
By Patrick Fazzone JUNE 9, 2016
YOUR LOGO HERE
2
2016 US Federal Government Contracting Webinar
Series
CALENDAR OF EVENTS (All Webinars are at 12pm EST
Recorded) JUNE 1 - Maximizing The Value of
Your GovCon Business  https//attendee.gotowebinar
.com/register/74156936435694851 JUNE 2 - Capture
Planning - To Bid Or Not To Bid  https//attendee.
gotowebinar.com/register/7051206926535220483  JUN
E 3 - Teaming Agreements - The Good, The Bad
The Enforceable  https//attendee.gotowebinar.com/
register/7352313683359938307 JUNE 6 - Teaming
With Tribally Owned 8(a) Businesses https//attend
ee.gotowebinar.com/register/4324839202604449539 J
UNE 7 - Color Reviews For Successful
Proposals  https//attendee.gotowebinar.com/regist
er/3973323136181419267 JUNE 8 - Preparing The
FSO for a DSS Audit  https//attendee.gotowebinar.
com/register/423786240906737667 JUNE 9 - Life
After 8(a) - Best Practices Case
Study  https//attendee.gotowebinar.com/register/6
473232146721067779 JUNE 10 - The Politics Of
Procurement   https//attendee.gotowebinar.com/reg
ister/3924758807094447107  JUNE 13 - Contract
Administration - Best Practices  https//attendee.
gotowebinar.com/register/2132047978959217667 JUNE
14 - So You Have A Facility Clearance, Now
What?  https//attendee.gotowebinar.com/register/9
028972158695833091 JUNE 15 - Unsolicited
Proposals - Why, What How. https//attendee.goto
webinar.com/register/4729436391901262849 JUNE 17
- SBIR's - The Good, The Bad The
"How" https//attendee.gotowebinar.com/register/63
37198369128857857
3
2016 US Federal Government Contracting Webinar
Series

• AGENDA

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2016 US Federal Government Contracting Webinar
Series

• AGENDA
• Introduction HOST
• Introduction - GUEST
• Presentation
• Conclusions
• Q A

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2016 US Federal Government Contracting Webinar
Series

• INTRODUCTION
• Host

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2016 US Federal Government Contracting Webinar
Series

• Jennifer Schaus
• About The Host

Approx 20 Yrs in Gov Contracting Career
DB (Govt Division) Federal
Sales GSA Scheds Frequent Speaker Chambers,
NCMA, AFCEA, etc Member WIPG Education
Towson University B.A. UC Berkeley -
Leadership Accelerator Cornell University
- Exec Leadership
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2016 US Federal Government Contracting Webinar
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• Jennifer Schaus
• Jennifer Schaus Associates

DC Based Consulting Firm Over 10 Yrs in
Business Support Services for Gov
Cons Proposal Writing / Contract Vehicles
(GSA) Sales Biz Dev Certifications SBA
8(a) SDVO etc. Events
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2016 US Federal Government Contracting Webinar
Series

• INTRODUCTION
• Guest

YOUR LOGO HERE
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2016 US Federal Government Contracting Webinar
Series

• Patrick Fazzone
• ABOUT OUR SPEAKER

Patrick Fazzone Partner, Member Montgomery
Fazzone PLLC Counsels companies on doing business
with the U.S. Government Contracting strategies
Understanding acquisition system and regulations
Opportunities for small to mid-sized businesses
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2016 US Federal Government Contracting Webinar
Series

• Patrick Fazzone
• Montgomery Fazzone PLLC

Montgomery Fazzone PLLC Washington DC based law
firm. Advising clients in a broad range of
matters involving The U.S. Government. Corporate
Commercial law. International transactions
trade regulation, Federal acquisition Facility
(security) clearances for foreign-owned
companies Government relations, litigation tax
matters.
YOUR LOGO HERE
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2016 US Federal Government Contracting Webinar
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• PRESENTATION

Maximizing the Benefits of the Section 8(a)
Program Best Practices
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2016 US Federal Government Contracting Webinar
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BACKGROUND ON THE SBA 8(a) PROGRAM The Small
Business Administration (SBA) administers
various pgms mandated by the U.S. Small Business
Act (Act). These are designed to assist
qualifying small businesses to grow. To
participate, the business must be unconditionally
owned controlled by an individual who can
demonstrate that he or she has suffered social
economic disadvantages. The business must
also demonstrate potential for success normally
must be in business for at least 2 yrs prior.
SBA will consider the concerns access to credit
capital the technical managerial experience
of the SBCs managers, its prior operating
history performance on previous government
private sector contracts its financial
capacity. There are additional eligibility
criteria as well (Good Character, etc).
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CONSIDERATIONS IN APPLYING FOR CERTIFICATION
Participation 9 Yrs Total - 4 yr
developmental / growth stage - 5 yr
transitional stage. 9 yr term can be
shortened only by (1) termination, (2) early
graduation or (3) voluntary graduation.  
Rigorous certification process. Considerable
documentation both to establish eligibility,
including reasonable prospects for business
success. Post-certification, participant
must submit a business plan which must be
approved by an SBA to be eligible for program
benefits. Business Pllan must include
analysis of the market potential specific
targets, objectives goals for business
development.
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OTHER IMPORTANT CONSIDERATIONS No
Guarantees SBA does not serve up contracts
opps to participating firms. They must undertake
their own independent marketing activities for
contracts both in the public and private sectors.
Post-Award Requirements SBA regulations
mandate non-8(a) business activity targets.
Participants must make substantial sustained
efforts to attain the targeted dollar levels of
non-8(a) revenue established in its business
plan. Limitations There are overall
limits on the total dollar value of sole source
contracts firms can receive while in the program.
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2016 US Federal Government Contracting Webinar
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OTHER IMPORTANT CONSIDERATIONS,
contd. On-going Requirements -- Continuing
to meet size, ownership control criteria for
the term of the prgm -- Maintaining a balance
between govt contracts comml business --
SBA will monitor measure the progress through
annual reviews, business planning systematic
evaluations. -- Back Office reporting and
compliance.
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CONSIDERATIONS IN PUSURING CERTIFICATION ASK
YOURSELF Is your firm eligible, even if
the owner is socially economically
disadvantaged? Is it worth going through
certification? Will your product or service have
a market? Is the govt market for you? Selling
to the USG can be complicated. Contracts are
subject to a variety of special rules
regulations, notably the FAR other agency
procurement regulations. Does your track
record indicate a reasonable prospect of business
success? Are there any issues under the Good
Character requirement? Do you have the staff
to be able to develop implement your business
plan? Is the timing right? Will you be able
to achieve a balance between govt contracting
comml business?
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---- CONSIDER TIMING ----- TIMING IS
EVERYTHING! Even if you are technically
eligible now, its important to wait until the
timing is right. - Get educated about govt
contracting FIRST - Secure contracts and build
relationships - Understand your value and key
differentiators (not 8a status!!) Make sure
your overall business plan has realistic goals
objectives. Ensure you have the resources
staff to be able to benefit from the 8(a)
program. Make sure your business and
products/services will be positioned for both
govt comml markets.
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2016 US Federal Government Contracting Webinar
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MAXIMIZING THE BENEFITS OF 8(a)
CERTIFICATION DO NOT RELY ON (ONLY) THIS TO
WIN CONTRACTS Provides useful support, but it is
up to you / your firm to make the business a
success. DOES NOT ELIMINATE COMPETITION To
benefit from set asides, sole sourcing
subcontracts you still need to compete.
BALANCE BUSINESS PLAN Develop a balance of
govt comml contracts. Implement adapt your
business plan. EXPANSION Initiatives to
expand your products / services. Consider other
ways of growing ie. attract investors or form
alliances. SPRINGBOARD TO FAST GROWTH An
objective for many is to graduate early. Creates
opportunity to pursue growth strategies that may
not be permitted under the program while removing
the requirement for ongoing monitoring
compliance.
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2016 US Federal Government Contracting Webinar
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EARLY EXIT SBA TERMINATION Participation
terminated by SBA for various reasons including
loss of eligibility or failure to adhere to
program requirements. SBA GRADUATION SBA
can also graduate the SBC early if it has
achieved its business plan goals or if the key
individual is no longer economically
disadvantaged. VOLUNTARY GRADUATION (BY
COMPANY) Voluntary Early GraduationPermitted
where a firm has met its business plan goals is
commercially viable. A firm may elect to do this
for greater flexibility in its business
operations.
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2016 US Federal Government Contracting Webinar
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CASE STUDY Client Objective benefit from 8(a)
Cert set-asides, accelerate growth Became 8(a)
Certified After time, contracting opps became
less important to its business. Simultaneously
desired larger company as a significant investor
in the business. The objective was to accelerate
its growth. Client achieved business plan
objectives, had very realistic prospects for
success graduated early.
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LIFE AFTER 8(a) Participant Objective
Develop / grow its business so that it will be
sustainable afterwards. When you graduate,
success is not a given. The playing field is a
lot flatter and the competition can be fierce.
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LIFE AFTER 8(a) Years 1 4 Developmental
Phase Years 5 9 Transition Phase Transition
Phase Plan a graduation strategy to help ensure
a successful transition to the open market place.
SUGGESTIONS Plan on graduating from the
program early. This will help create a sense of
purpose and urgency and a focus on the
longer-term. Dont wait until Year 9 and
find yourself saying Now What? Remember You
can ONLY participate in the 8(a) program ONCE.
During participation consider different
staff for govt and coml sectors to help you
achieve a balance in sales. Dont rely ONLY on
govt markets and ONLY on 8(a).
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LIFE AFTER 8(a) Consider International
Markets Export Sales. Ref Commerce Dept
state govt pgms available. Product
Adaptations Financing If you identify product
adaptations that may be needed, determine what
financing you may require as early as possible so
that you can implement your plans and make sales
during your time in the program. Business
Growth Investors Keep your eye on all potential
strategies for business growth at all stages. You
may not be able to bring in outside investors
while you remain in the program but you can start
positioning your business for early graduation
and this type of expansion thereafter.
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2016 US Federal Government Contracting Webinar
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LIFE AFTER 8(a) Contract Vehicles
Alliances While you are in the program, look
closely at the various ways firms can pursue
government contracts, including through teaming
arrangements, qualifying JVs and listing your
product or service on a GSA Schedule. Many of
these strategies can continue to be used
post-graduation. Be Strategic At the same
time, narrow your focus as you transition.
Identify specific agencies, sub-agencies and
departments. You may want to focus on those
agencies with whom you have been dealing
successfully. (RELATIONSHIPS!)
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LIFE AFTER 8(a) Team / Sub-Con Before
Graduation Get your foot in the door. Forming
teaming relationships with larger firms before
you graduate. They may well find you attractive
to deal with now while you are eligible for set
asides. Mentor-Protégé Program. Talent
Hire the right talent consider employing
ex-government employees who may have good ties
with and knowledge about their former agencies.
Seek advice in advance on the restrictions on
ex-employees that may apply. Financial
Awareness Keep a close eye on expenditures and
finances generally as you near graduation. 8(a)
firms can experience a significant drop in
revenues after they graduate.
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LIFE AFTER 8(a) Dynamic Business
Plan Formally plan ahead for your exit from the
program. Start modifying your business plan as
necessary well in advance of your graduation.
Focus closely in your planning on three key
factors essential to business success
generally Business focus, Sound
finances, Unique characteristics.
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2016 US Federal Government Contracting Webinar
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LIFE AFTER 8(a) REMEMBER Once you are in the
competitive market place, what sets your
business, products / services apart from the
competition becomes essential. Related
equally important building your brand.
Strategic Brand Management good will, IP,
reputation with customers, suppliers and
partners. Invest in your website marketing
materials now. They need to demonstrate your
firms unique value proposition Thinking about
life after 8(a) is always important since your
companys growth following participation will
depend on business other than contracts set
asides.
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• CONCLUSIONS

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2016 US Federal Government Contracting Webinar
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• CONCLUSIONS

SBA 8(a) Program can greatly benefit eligible
businesses. Important to choose the right
time to apply. Once youre in, its vital
to take the right steps to expand your business
ensure its long term success.
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• CONCLUSIONS - JS

• 1 - Dont enter the program TOO early set up
  for failure. TIMING, TIMING, TIMING
• 2 - Always lead with your Value Proposition,
  not your set-aside status. 8(a) is a marketing
  tool, no guarantees. Govt will buy based on your
  value. Check box is only an incentive.
• 3 - Make a plan well in advance for
  post-graduation. (Contract Vehicles,
  Relationships w Primes, New Entrees into the 8a
  Prgm pass the batton)

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• Q A

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CONTACT DETAILS Ms. Jennifer L.
Schaus Washington DC 1 - 2 0 2 3 6 5 0 5 9
8 jschaus_at_jenniferschaus.com www.JenniferSchaus.c
om ------------------------------ Patrick
Fazzone Washington DC 2 0 2 8 8 8 2 1 0
3 pfazzone_at_mft-law.com www.montgomeryfazzone.com
33
2016 US Federal Government Contracting Webinar
Series
CALENDAR OF EVENTS (All Webinars are at 12pm EST
Recorded) JUNE 1 - Maximizing The Value of
Your GovCon Business  https//attendee.gotowebinar
.com/register/74156936435694851 JUNE 2 - Capture
Planning - To Bid Or Not To Bid  https//attendee.
gotowebinar.com/register/7051206926535220483  JUN
E 3 - Teaming Agreements - The Good, The Bad
The Enforceable  https//attendee.gotowebinar.com/
register/7352313683359938307 JUNE 6 - Teaming
With Tribally Owned 8(a) Businesses https//attend
ee.gotowebinar.com/register/4324839202604449539 J
UNE 7 - Color Reviews For Successful
Proposals  https//attendee.gotowebinar.com/regist
er/3973323136181419267 JUNE 8 - Preparing The
FSO for a DSS Audit  https//attendee.gotowebinar.
com/register/423786240906737667 JUNE 9 - Life
After 8(a) - Best Practices Case
Study  https//attendee.gotowebinar.com/register/6
473232146721067779 JUNE 10 - The Politics Of
Procurement   https//attendee.gotowebinar.com/reg
ister/3924758807094447107  JUNE 13 - Contract
Administration - Best Practices  https//attendee.
gotowebinar.com/register/2132047978959217667 JUNE
14 - So You Have A Facility Clearance, Now
What?  https//attendee.gotowebinar.com/register/9
028972158695833091 JUNE 15 - Unsolicited
Proposals - Why, What How. https//attendee.goto
webinar.com/register/4729436391901262849 JUNE 17
- SBIR's - The Good, The Bad The
"How" https//attendee.gotowebinar.com/register/63
37198369128857857