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Talk to Your Senator About the Small Business Provisions in the National Defense Act

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Bill Jaffe
August 29, 2012
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The following press release was published in early June 2012, right after the House of Representatives passed the National Defense Authorization Act of 2013 (NDAA). The big news here for small business was that the act includes all of the separate small business provisions in one place, making it much easier to get them passed in one fell swoop. Since this bill had to go through in order for the Defense Department to operate, this was the fastest and easiest way to get these small business bills passed.

Unfortunately, the Senate equivalent of this act does not have any of these provisions (a highly anti-jobs and anti-small business approach). Luckily, there is a process whereby the two versions are reconciled, and small business can still win if the provisions are included in this reconciled version.

The reason this is news today is because the reconciliation process is coming up, and you can make a difference in the outcome by discussing the situation with your senator and letting him or her know how much you care about these small business issues.

Here’s the press release from the MTA (Mid-Tier Advocacy Group):

MTA Urges Senate Leaders to Pass Defense Legislation that includes “The Advanced Small Business Pilot” and Other Subcontracting Provisions

  • Raise from 23% to 25% the amount of federal contracts to small and minority businesses and subcontracts from 35.9% to 40%
  • Make it easier for Small Business Directors to advocate for small businesses and participate in the contracting process
  • Stop large businesses from winning contracts using small companies as fronts
  • Expand mentorship programs in federal agencies
  • Overhaul appeals process for contract bundling

Washington, DC – June 4, 2012 – Mid Tier Advocacy (MTA) applauds the efforts of the House of Representatives for passing the National Defense Authorization Act of 2013 (NDAA) last month. “Our coalition strongly supports the subcontracting provisions that received bi-partisan support by House members which recognizes the contributions that small and mid-sized firms make to the federal government and the economy. Amidst those provisions is a demonstration pilot which will provide a much needed growth path for emerging small business, which otherwise find it difficult to survive, says Tonya Speed, Executive Director of MTA. “Given that about 70% of government contracts are awarded by the Department of Defense, these sub-contracting improvements will help create jobs by providing increased opportunities for small and mid-tier business.”

MTA supports increasing goals for small business and unbundling contracts as a means to reduce cost to the federal government, while creating thousands of jobs for highly skilled workers, many of whom are returning veterans.

We encourage Senate Leaders to include these important subcontracting provisions that will create jobs, reduce cost, foster growth and increase diversity within the federal procurement data base.

About Mid-Tier Advocacy (MTA): MTA is a non-partisan coalition that consists of “premier companies” that are either small or mid-sized. These dedicated entrepreneurs are committed to being engaged in the policies affecting the sustainability and survivability of small business.

Related posts:

  1. A Pilot Program to Assist Mid-Tier Growth
  2. What the MTA is Doing for Mid-Tier Businesses
  3. Advocating for Mid-Tier Government Support Services Companies
  4. The Small Business Advocate Act 2012
  5. H.R.3985: Building Better Business Partnerships Act of 2012
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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.
Bill Jaffe
August 23, 2017
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