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Part One of my look into the changes in NDAA FY2016 and how they will impact small business federal contractors.
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Another year, another National Defense Authorization Act, littered with small business actions and policy decisions!

Let’s go through the first section of the list of provisions and descriptions, and I’ll follow up with more later on – after I’ve digested them myself!

Section 821 – Acquisition strategy required for each major defense acquisition program, major automated information system, and major system 

Requires that an acquisition strategy be developed for every contract opportunity, with a recognition of small business potential for priming or utilization.

Section 844 – Mandatory requirement for training related to the conduct of market research

A Sources Sought notice is a research tool used by government agencies as a key way to determine if there are two or more capable small businesses that can perform the requirements of a planned contract. This section requires training for contracting staff in conducting Sources Sought and market research.

Section 851 – Procurement of commercial items 

For commercial items (products), each system of defining these can be different and require multiple submissions across civil, defense, and other non-FAR agencies (like FAA). This section tries to start this process becoming homogenized for all submissions.

Section 854 – Report on defense-unique laws applicable to the procurement of commercial items and commercially available off-the-shelf items

This section specifically asks that DoD justify any unique DFAR (Defense Federal Acquisition Regulation Supplement) provisions specifically related to commercially available items (products, mostly).

This is trying to reduce the DFAR versus FAR differences by reducing those sections of the DFAR that cover the same types of items acquired by other FAR provisions.

Section 857 – Treatment of goods and services provided by nontraditional defense contractors as commercial items

Ordinarily, the complex government regulations for FAR and DFAR contracting requires a contracting specialist or even a lawyer to interpret. This is especially true when it is a firm’s first attempt to sell to the Federal Government. This clearly stifles innovation, so Section 857 establishes new FAR/DFAR guidelines that simplify procedures for commercial items, rather than requiring the full-blown contracting procedures. While this mostly applies to products, it does establish a pathway for simpler acquisitions.

Section 861 – Amendment to Mentor-Protégé Program 

The DoD Mentor-Protégé program requires specific tri-annual re-authorization, and this section accomplishes that. This is a good thing, since it means more money for small business and help for the small protégés from the big guys.

Related Posts

The All-Small Mentor-Protégé Program

SBA had a well-established mentor-protégé program (MPP) for SBA 8(a) certified firms but lacked an MPP program for other small business concerns and specifically, one for specialized certified concerns such as WOSB, EDWOSB, SDVOSB, & HubZone. The 2010 Jobs Act and 2013 NDAA gave SBA the authorization to address this by establishing an all-encompassing mentor-protégé program. Ms. Sandi Clifford, deputy director of the All Small Mentor-Protégé Program (ASMPP), visited the Mid-Tier Advocacy (MTA) earlier this year to discuss the program. Here are some of the highlights of this candid and informative discussion: As Ms. Clifford explained, mentor services to protégés include: • Management and technical assistance (internal business management systems) • Financial assistance (in the form of equity investments and/or loans) • Contracting assistance (contracting processes, capabilities acquisitions and performance) • International trade education (learn how to export, international trade business plan, finding markets) • Business development assistance (strategy, finding contracting and partnership opportunities) • General and/or administrative assistance (business processes and support) As administrators of the program, SBA provides: • Central HQ as opposed to 8(a) distributive model • Online application – certify.sba.gov • Online course tutorial requirement • Annual review and evaluation • Template agreements, i.e., MPA (Mentor-Protégé Agreement) Other All-Small Mentor-Protégé Program (ASMPP) details: • A protégé may generally only have one mentor at a time; SBA may approve a second (two is the maximum) where no competition exists, or if the protégé registers under a new NAICS or otherwise requires new mentor skills.  • Both protégé and mentor must be for-profit (with exception of protégé being an agriculture cooperative). • A mentor may have no more than three protégés at same time (no lifetime limit). • A participant can be both a protégé and mentor at the same time, if there is no competition or conflict. • The ASMPP is self-certifying and is open to businesses who qualify as small in their primary NAICS code, or who are seeking business development assistance in a secondary NAICs where they also qualify as small.  • SBA will not authorize MPAs in second NAICS in which firm has never performed any work; or where firm would only bring “small” status to Mentor and nothing else. • Existing 8(a) firms in last 6 months of the 8(a) program may transfer their MPA to the ASMPP via the online application process. Coordinate with 8(a) office to fine tune the process but there is no reapplication required. • Application requirements include upload of business plan, but no financial statements or tax returns. • JV agreements: ASMPP will not review and approve joint venture agreements. How to apply for the ASMPP: • 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 their certificate of completion and all other required documents ready for upload Thank you to Sandi Clifford, Deputy Director, All Small Mentor-Protégé Program, for this helpful overview. TAPE has mentored several small businesses over it’s life as a large business (we’re large in some NAICS codes, though still small in others) and it has been gratifying, satisfying, and integral to our success. As protégés ourselves, we have benefitted from working with some really classy large businesses, and have also had the experience of being a protégé and really getting no tangible benefits. We are currently working with two small businesses, and negotiating ASMPP agreements. You can learn more about the ASMPP on the SBA site. To join MTA and attend future events like this one, please visit www.midtier.org.
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