Tag Archives: WOSB

And Then There Were None!

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The number of small businesses winning federal contracts is declining. Many attribute the decrease to the growing practice of using large “multiple awards contracts” or MACs, which pick 10-100 businesses to compete for billions of dollars of work. The government has called this effort a number of names over the last two decades – Federal Supply Schedules, Strategic Sourcing, Category Management – all reflecting the same buying philosophy.

The rationale driving these changes is buying smarter; it is the taxpayer’s money after all. The problem, however, is that these policy proposals limit the ability of women-owned businesses and all businesses to compete for and win government contracts.

It is for that reason that last week, WIPP submitted public comments on a proposed rule that will encourage federal agencies to do more strategic sourcing. For years, WIPP has consistently raised concerns around categorizing diverse solutions into narrow groups under the Federal Strategic Sourcing Initiative (FSSI), Category Management, or any other policy that limits the ability for women-owned businesses to bring their innovations and services to the federal market

As WIPP member Gloria Larkin informed the House Small Business Committee in 2013, “WIPP opposes the implementation of Strategic Sourcing methods without adequate consideration and protection of small business concerns. We recognize that increased consolidation and bundling of contracts are symptomatic of this Strategic Sourcing initiative.”

This proposed rule would require contracting officers when purchasing services or supplies offered under FSSI, but when FSSI is not used, to document on the contract file why FSSI has not been utilized. The documentation must include a comparative value analysis of price and non-price factors between the supplies and services offered under the FSSI, and what has been offered from the outside source being used for the purchase.

While the rule does not require use of FSSI, requiring an overworked contracting officer to to produce additional documentation is not in their best interest. Therefore, the clear result of this rule will be much broader use of strategic sourcing and will have an even more harmful impact on the small business community, including the women entrepreneurial community, than it already has.

Acquisition policies like FSSI and Category Management risk eroding our nation’s small business industrial base by maximizing short-term savings through large contract vehicles. Actions taken over the past several years to consolidate contracting have decreased the number of small businesses engaging in federal contracting. While a select few small business benefit from these large contract vehicles, it comes at a high price.

Women entrepreneurs continue to struggle with access to federal markets and greater use of strategic sourcing will set women business owners back, by making it harder to compete. WIPP is committed to working against broader strategic sourcing and the full comments can be found here.

Real Experience and Tips from Transition Music and Media on Federal Contracting

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Interview with Donna Ross Jones, Founder and CEO of Transition Music and Media Corporation

Donna Ross Jones1. Tell us a little about your company and its mission.

Music is the heartbeat of our culture and our hand is forever on the pulse. We are passionate about music and the people who create it. Transition Music was originally formed with the mission to create new opportunities for artists, songwriters and composers. This became especially important when technology hit the industry, causing a massive music industry decline.

Today Transition is one of the top 100 music publishers in the world, with more than 1 million music performances globally each year. We unite music with some of the most watched content on the planet. We own a global music library and have a staff of award winning music creators and executives working daily to provide music and manage music process’s for all forms of visual media, from TV series, feature films to corporate productions to webisodes. Our first national production for the National Center for Missing and Exploited Children went viral and ignited a global conversation increasing awareness about wandering and the dangers facing children with autism.

2. Have you always planned on doing business with federal government?

No we had not always planned on doing business with federal government. In our continual goal of expansion and creating more opportunities for music creators, we routinely look at new markets. Knowing that the Federal Government is the largest purchaser of goods and services in the US we began exploring how and if there was an opportunity for us.

3. How have you proceeded with pursuing Federal Contracts?

We decided to invest in educating ourselves as to how and if the federal market place was a match for us. I began going back and forth to DC, working with the SBA and the Department of Commerce to understand the market and how Transition could be successful. We decided to invest the time and resources needed to obtain certifications when we learned Transition Music Corporation was the only WOSB music library of our size and scope, who was also an MBE and an 8a. We saw an opportunity to bring our “Hollywood” brand of expertise to the federal government through music and visual content creation, while assisting them in reaching their diversity goals.

How has this shaped your business?

It is still shaping our business. I keep going back to our mission “to create new opportunities for our creative community”. Pursuing business opportunities outside of mainstream entertainment creates new revenue streams making it possible for producers, writers, musicians, artists and so on to make a living using their gifts and doing what they love.

4. How do you think can ChallengeHER and Women Owned Small Business (WOSB) program help women-business owners in the process?

Working in the government space, like working any other market sector, is about investing time learning, making new contacts and building relationships. ChallengeHER and the Women Owned Small Business (WOSB) program give women the opportunity to make contacts and connect to resources to get the information needed to make informed decisions on all aspects of their business.

How has it helped your business?

Our efforts have resulted in contracts to produce marketing videos, and PSA’s for government agencies. Our music library is competing for music contract in multiple federal agencies and awards in recognition of our work, including Transition Music and Media being named the Minority Media Firm of the Year for the City of Los Angeles, by the Department of Commerce and the MBDA.

5. Could you share the key takeaways you took from the event?

I’ve attended several ChallengeHER and Women Owned Small Business (WOSB) events, and the key takeaways are always the same; come prepared knowing
who you want to talk to and why. Listen, you never know who you will learn from.

6. If you have won contracts under WOSB would you be willing to share size of the award? How has it impacted/grown you business? Hired new employees?

Transition holds multiple certifications; 8a, WOSB, and WMBE. Our contracts to date have been based on our 8a certification, however being a WOSB has been a part of every conversation, and people are probably checking that box too!

7. What percentage of your revenue comes from government contracts?

For YE 2016 we have forecasted 15%.

8. What contracts are you currently working on?

We are currently in production on 5 videos for the MBDA a division of the Department of Commerce. The videos being produced will tell the Minority Business Development Agency (MBDA) story, and educate the public, employees and stakeholders on MBDA products and services.

9. What have you worked on in the past?

More than 26 television series & 6 networks rely on Transition Music as their exclusive source for “ALL” things music; from composers, to production music, to licensing, to new artist, music supervision & building music revenue streams. Specifically, in the federal market Transition Music and Media has provided video production services and music for the SBA, MBDA, Center of Exploited and Missing Children (Funded by the DOJ).

10. What would you recommend other WOSBs doing business with federal government?

Do your research to determine the feasibility of opportunities, their size and scope and how long it typically takes to get a contract awarded to an incumbent. Over and over business owners say the certifications did not work for them and they wasted their time. It is critical to know that with our without any certifications, the federal government consists of people and people buy from who they like, so if you go into this with an expectation that the certifications will get you on a list, and the list will bring business opportunities to you, you will be disappointed and waste your company time and resources.

Federal Contractor, The Boeing Company, Shares Tips with WIPP on Subcontracting

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Interview with Boeing Supplier Diversity Manager, Champagne Bell.

  1. Tell us a little about The Boeing Company.

Champagne Bell: Boeing is the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space, and security systems. As a top U.S. exporter, Boeing supports airlines and provides products and services support to customers in 150 countries. We have global footprint and continue to expand it.

Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training.

  1. How does Boeing work with small businesses?

Champagne Bell: Boeing has contracts with 21,500 suppliers and partners globally and we focus on partnering worldwide for mutual growth and prosperity. Currently, we contribute over $5B to small and diverse businesses annually and Boeing is a part of the Billion Dollar Roundtable (note: an organization that brings together major corporations that make meaningful and measurable contributions to the economic growth of woman-owned and minority-owned companies).

  1. Do you have a supplier diversity program? Can you tell us little more about it?

Champagne Bell: Since 1951, Boeing has had a Supplier Diversity Program in place. In addition, we have also targeted initiatives and one of them focuses on women-owned enterprises.

Our commitment to small and diverse business enables us to manage our businesses and deliver value and solutions where our suppliers, Boeing, and customers win.

We are proud that our Supplier Diversity Program has demonstrated results including:

  • Highest rating from Government customer.
  • Received national industry awards.
  • Dedicated enterprise Supplier Diversity team.
  • Boeing has received recognition from our external and industry partners for its supplier diversity work.
  1. What role do subcontractors play in your government business?

Champagne Bell: Our subcontractors play a critical role on our business and help support our commitment to adhering to DOD Statutory Contracting and Subcontracting Goals.

  1. Do you have any programs to target women owned businesses for subcontracting?

Champagne Bell: Yes. One of our Strategic Initiatives focuses on enhancing relationships with eligible women-owned small businesses to ensure we maintain a viable supply chain of WOSBs to support our businesses.

  1. What are the key qualifications you are looking for among your suppliers/subcontractors?

Champagne Bell: Boeing is looking for suppliers who:

  • Do their homework to fully understand how their products and services can directly benefit Boeing and the solutions we offer our customers.
  • Share our commitment to performance excellence in terms of cost, quality, and delivery.
  • Are financially healthy and are continuously focused on improving affordability and efficiency through Lean operations.
  • Will share their knowledge for how we can all better manage our businesses and deliver value and solutions where our suppliers, Boeing, and customers win.
  • We need suppliers who are looking toward the future with us, applying what we learn together as we continue to invest in technologies that will help us deliver the critical products and services that our customers will demand. We are looking for long-term partnerships.
  1. What would you recommend to WOSBs looking for subcontracting opportunities?

Champagne Bell: To summarize it:

  1. How do you think can ChallengeHER and WOSB program help women-business owners to get into the federal procurement?

Champagne Bell: As mentioned above, we have a strategic initiative which focuses on WOSB suppliers and we believe that the programs like ChallengeHER are helping a lot to encourage women to enter the federal procurement business. It also helps us, the Boeing Company, to find diversified suppliers that we are looking for.

Other general advice is:

  • Understand the procurement practices and requirements.
  • Understand quality requirements.
  • Small business owners are admired for their ingenuity and aggressiveness so embrace that mindset to find your customers and know their business.
  • Leverage engagement with large primes to understand business needs.

5 Ways To Be An Active WIPP Member/Friend

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WIPP logo final copy

We wouldn’t be where we are without you, your participation is important to us! Whether you are a WIPP member or not there is a way for you to participate. Here are 5 ways you can get started:

  1. Follow WIPP online. Stay up to date by following one of our social media channels.

Facebook: https://www.facebook.com/WIPPWeDecide/

Twitter: @WIPPWeDecide

LinkedIn: https://www.linkedin.com/groups/1808377

Blog: http://WomenInBizBlog.org

  1. Participate in WE Decide 2016 polls. Who knows better than you how policy affects your businesses and your families? As an important voting bloc, women need to be the voice of reason. Now you can make a difference. You can have your voice heard through We Decide 2016.  Learn more about WE Decide 2016 and take the latest quick poll: http://wedecide2016.org/get-involved/todays-quick-poll/
  1. Go to a ChallengeHER event. These events are designed to assist you in competing for government contracts by reducing the competition utilizing the WOSB Set Aside Program. The ChallengeHER events have sessions for those who are just beginning the process of becoming a federal contractor, and for those who have federal experience but looking for higher level content. Read more about the program and register for an event near you: http://www.wipp.org/?ChallengeHER
  1. Become a WIPP Member. WIPP has a wide range of membership levels and benefits. Check them out here and join today: http://bit.ly/1EpjHDm
  1. Join a WIPP Issue Committee. Already a WIPP member but want to do more? Join one of our Issue Committees and be the first to hear about policy issues affecting your business: http://bit.ly/1L8YNxm

 

But Wait – There’s More

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By Ann Sullivan, WIPP’s Chief Advocate

The first quarter of 2016 was big for us. The Federal Government met its goal of awarding 5% of all contracts – $17.8 billion – to women-owned firms. This was only possible because of the Women-Owned Small Business (WOSB) procurement program which allows contracting officers to set aside contracts for women only to bid on.

In February, the FAR Council added sole source authority to the program. Now, contracting officers can use the program to award sole source contracts to women-owned businesses that are uniquely qualified to perform the work the government needs. All of the other small business procurement programs have sole source authority, so it was important to bring parity to the WOSB program.

In March, the WOSB program was expanded to include 113 industry codes. The same law that added sole source authority also called for SBA to update a study on participation in federal contracting by women-owned businesses. The last study was done in 2007. The new study found more industries where women are underrepresented and now those industries are part of the WOSB program – an expansion that will provide additional procurement opportunities.

While we have been making gains on that front, there is much more to do to open doors to federal agency contracts for women-owned companies. Never content to rest on our laurels, the WIPP policy team in Washington, DC is ready to tackle two new procurement issues.

First, we must increase access for women-owned firms to multiple-award contracts. The government increasingly buys its products/services through these ongoing contracts, like Indefinite Delivery, Indefinite Quantity (IDIQ) contracts, and other large contracts. Often, these contracts select vendors through an initial competitive process and then issue task orders to that group of vendors only. Some multiple-award contracts have a “track” for large businesses and a “track” for small businesses. Others, though, have different tracks within the small business track. For example, they may have a HUBZone track, an 8(a) track and a veteran’s track. In those instances, WOSBs should also have their own track. We will be asking for parity in these cases.

Second, there should be parity in sole source contract ceilings. Sole source contracts are capped – they are not unlimited. Every five years, the FAR Council adjusts the cap for inflation. In October, all the other small business programs’ caps were increased. The HUBZone program, for example, now has sole source awards capped at $4 million for most products/services and $7 million for manufacturing. Women did not get an increase — our manufacturing cap is a half a million less at $6.5 million. Again, the theme is parity. We will be pressing the FAR Council to adjust the WOSB sole source to match the increases of other programs.

WIPP’s advocacy is always in motion and in the federal contracting space, there is always much more to be done. So, join us in the effort. When talking to federal agencies or elected officials, echo our two asks. Everyone’s voice is important.

May 2016 WIPP National Partner of the Month – JeFreda Brown

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JeFredaRBMay 2016 WIPP National Partner of the Month

JeFreda Brown, CEO, Goshen Business Group, LLC

 

WIPP sat down with JeFreda to hear a little bit more about her business and relationship with us:

Tell us a little about your company and its mission.

Goshen Business Group, LLC is a full service consulting firm. We provide financial and business compliance consulting services. Our focuses are compliance, risk management, and fraud. We service small to large sized organizations in the US and are looking to expand internationally. We provide our services through consulting and professional development training. We also can develop training courses.

Our mission is to educate organizations on their financial responsibilities. This includes helping them learn and understand federal, state, local, and industry regulations and laws to develop and maintain compliant financial practices.

 

Have you always been an entrepreneur? If not, what inspired you to take the leap?

Actually, when I was 7 I used to pray and tell God I wanted to be a business owner one day so I could be rich and help people. I left my job with the Federal Government in January 2011 to go full time into my business. I felt like I wasn’t using my full potential and that I needed to do more to help others. I have so much knowledge that can be very valuable to those who need it. My grandfather worked for the federal Government, but he also had his own construction business. He was my biggest inspiration growing up. Seeing him as an entrepreneur and how he helped so many people gave me the courage to take the leap.

 

What is your biggest lesson learned working with the Federal Government?

I would say the biggest lesson I learned while working with the Federal Government was to be very detailed. I was a Senior Auditor with Defense Contract Audit Agency (DCAA). We were trained to be very thorough and detailed. That has helped me tremendously in my business. I also learned how very important risk assessments and fraud detection are. I have taken those lessons and now teach them to my clients.

 

Do you have a success story that you are particularly proud of? Tell us about it!

I have several, but I can roll them up into one. I am always getting feedback from my clients letting me know how much they appreciate my help. They say, “we don’t know these things, and we need someone like you to help us and keep us out of trouble”. One client told me that she doesn’t think enough people recognize how much knowledge I have and how much I can help their companies. I have had so many clients who have received bad advice from others, but they found me, and I was able to fix things that were done incorrectly by others.

 

Tell us about your experience as a WIPP member? What resources/value has WIPP provided that has been helpful to you and your company?

I have truly enjoyed being a WIPP member the last 5 years. It has been a great learning experience for me. WIPP provides so many valuable resources for women owned businesses and professionals. The monthly webinars are awesome. I was even asked to do a webinar training a couple of years ago on DCAA Audits, and it’s now part of the contracting certification program. Not only am I learning what I need for my business, but I’m also connecting with and interacting with other amazing women. I’m building great business relationships with these women. WIPP has also shown me that they value me and trust me by selecting me to be a part of the Procurement Committee, Leadership Advisory Council, and now Treasurer on both the WIPP Board of Directors and Education Foundation Board of Directors. You have to be involved to get value out of WIPP. You have to actively participate in the things WIPP offers. No other organization for women offers what WIPP offers, in my opinion. WIPP has a reach across the globe, and it’s growing more and more. It will soon be up there in the ranks like huge international nonprofits such as UNICEF.

Twitter: @GoshenBG

Facebook: https://www.facebook.com/GoshenBG/

Access to Angel Investors Just Got Easier

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By: Jake Clabaugh, WIPP Government Relations

AI

Seeking to clear up a gray area triggering securities registration, the House of Representatives passed The Helping Angels Lead Our Startups (HALOS) Act pushed by Small Business Committee Chair Steve Chabot (R-OH).

Pitch events or demo days are common methods for business owners to showcase their companies and products to a room full of investors. Right now, there is confusion about whether these events are allowed because the Securities and Exchange Commission’s rules prohibit “general solicitations.” The HALOS Act would clarify that pitch events hosted by angel investors are not general solicitations and do not require securities registration – a complex and expensive process for both angel investors and companies seeking investment.

Angel investment is particularly important for women-owned businesses. Recent data indicates that one in four angel-backed companies are led by women. The number of women-led companies receiving angel investments has increased by 234% in just the last decade. Since women-owned businesses receive only 4% of conventional small business loan dollars, it is vital to cultivate other sources of capital.

This bill will now move onto the Senate for consideration. WIPP will continue to engage Members of Congress on access to capital issues. An additional recommendation in WIPP’s access to capital platform, Breaking the Bank, urges Congress to incentivize angel investments with tax credits.

 

 

Costs and Benefits: Paid Sick Leave For Federal Contractors

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By: Jake Clabaugh, WIPP Government Relations

sick leave paidFederal contractors have been hit with a bevy of new regulations over the past few months – everything from increased reporting of labor and safety violations, a raise in minimum wages and increases in mandatory overtime pay. The next shoe will drop in January 2017, when ALL Federal contractors, primes and subs, will have to provide paid sick leave benefits to workers. The Department of Labor (DOL) proposed rules that would implement this change last month.

Contracts issued January 1, 2017 will require all Federal contractors to give employees 1 hour of paid sick leave per 30 hours worked. This rule will only apply to time spent on Federal contracts, so if an employee performs some work for a private sector client, those hours would not count toward sick leave accrual. Additionally, earned sick leave will carry over from one year to the next.

Why just contractors? The President issued an Executive Order to make the change. Like other new regulations pertaining to contractors, the President can make these decisions for his workforce. Congress has been unable to decide if or how to move forward on these issues so the President decided to act on his own. As the Commander in Chief, he can determine procurement policy – including requirements for contractors – without Congress having to pass a law.

While WIPP members support worker benefits in practice, we don’t believe that the DOL gave enough consideration to how this rule will affect small businesses. Without an exception for small businesses, the vast majority of women-owned business will be compelled to provide the same benefits as multi-billion dollar firms.

WIPP’s comments to DOL on the proposed rule can be read in full here.

Major Expansion of WOSB Procurement Program Starts Today

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FB Cover photoBy: Ann Sullivan, WIPP Chief Advocate

A landmark week for women entrepreneurs just got better. Just a day after announcing that federal government had finally met their goal of awarding 5% of contracts to Women-Owned Small Businesses (WOSBs), the Small Business Administration (SBA) announced a significant expansion of the WOSB procurement program.  When the last disparity study was completed in 2007, women were found to be underrepresented in federal contracting in 83 industries, thus making them eligible for participation in the WOSB program. In addition to pressing for sole source contracts, WIPP advocated for a new study to update eligible NAICS codes for the program. The study, completed by the Department of Commerce earlier this year, found that 113 industries and their corresponding NAICS codes are now eligible for the program. The changes take place immediately.

The study, The Utilization of Women-Owned Businesses in Federal Prime Contracting, found two very disturbing facts.  One, that women are 21% less likely to get a government contract after solving for factors such as age and size of the business. Second, the industries in which WOSBs are less likely to win contracts account for about 85% of both total contracts and dollars awarded.

Find out whether or not your business is eligible for participation in the WOSB procurement program by checking your NAICS codes. Even though the program has quadrupled since 2011, expansion of the NAICS codes will result in even greater gains for women-owned businesses to participate in the public sector.

 

 

WIPP Comments on WOSB Certification Changes

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WIPP logo final copyWIPP submitted comments today to the SBA Office of Policy, Planning and Liaison on the SBA Advanced Notice of Proposed Rulemaking (ANPRM) regarding certification in the WOSB Program that was issued on December 18, 2015. The WOSB Program is extremely important in assisting women entrepreneurs entering the federal contracting marketplace. WIPP highlighted the following principles to guide the SBA in their implementation of the changes to the certification process.

Please see a brief outline of the principles below:

  • Third-Party Certification

                 -Keep the Integrity of the Program Intact – we are focused on making sure that    the changes to the certification process do not result in the disruption of the program.

  • State and Federal Agency Certification

                 -Expand Acceptable Certifications in a Uniform Manner – if certification is being accepted from multiple sources then we urge the SBA to have requirements set up so that there is as little duplicative paperwork as possible.

  • SBA WOSB Certification Program

                 -Without Adequate Resources, SBA Certification Will Fail WOSBs  

                 – Strengthen Compliance/Enforce Procedures

To see the submitted comments in their entirety, click here.