Small Business Government Contracting CEO of Small

Small Business Government Contracting CEO of Small Business that Provides Service Expansion by Competing for Navy Contracts at a Base Several Miles Away The objective of this study is to examine the scenario of a CEO of a small business that provides a service and business expansion through competing for Navy contracts at a base several miles away. This work will: (1) Determine how the federal government encourages small businesses and how passing of " The Historical Underutilized Business Zone (HUBZone) Act, 15 U.S.C.

631 of 1997, increases the chances of landing a government contract; and (2) Determine how SmartPay and similar programs in electronic contracting will assist the small-business owner in obtaining more contracts. This will involve description of the nature of government contracting including authority, responsibilities, and legal considerations and providing and explanation of the government acquisition process using sealed bidding, negotiations, and alternative contracting methods. I. HUBZone Act, 15 U.S.C.

631 (1997) The Historically Underutilized Business Zones (HUBZone) Empowerment Contracting program is reported to have been enacted into law "as part of the Small Business Reauthorization Act of 1997." (U.S. Small Business Administration, 2012, p.1) This program is reported to "fall under the auspices of the U.S. Small Business Administration." (U.S. Small Business Administration, 2012, p.1) The program is designed to encourage economic development in "historically underutilized business zones -- 'HUBZones' -- through the establishment of preferences." (U.S. Small Business Administration, 2012, p.1) II.

How the HUBZone Program Works The HUBZone program is regulated and implemented by the Small Business Administration which: (1) conducts determination of which businesses are eligible to receive contracts under HUBZone; (2) conduct maintenance of a listing of HUBZone small businesses that are qualified that can be used to locate vendors by federal agencies; (3) adjudicates protests of eligibility to receive contract via HUBZone; and (4) provides reports to Congress on the impact of the employment and investment of the program in HUBZone areas. (U.S. Small Business Administration, 2012, p.1) III.

Benefits of the Program The benefits of the HUBZone program include those as follows: (1) Competitive and sole source contracting; (2) 10% price evaluation preference in full and open contract competitions as well as subcontracting opportunities. (U.S. Small Business Administration, 2012, p.1) IV. Eligibility In order to qualify for the HUBZone program a business must meet the following stated criteria: (1) The business must be a small business according to the Small Business Administration standards; (2) the business must be owned and controlled at least 51% by U.S.

citizens or a Community Development Corporation, an agricultural cooperative, or an Indian tribe; (3) The businesses' principal office must be located with a 'Historically Underutilized Business Zone' which includes lands considered 'Indian County' and military facilities closed by the Base Realignment and Closure Act; and (4) At least 35% of its employees must reside in a HUBZone. (U.S. Small Business Administration, 2012, p.1) V.

Smartpay and Electronic Contracting The government purchase card is reported as the "preferred method for making purchases at or below the micro-purchase threshold." (GSA Smartpay, 2012) There are three types of GSA SmartPay programs: (1) centrally billed accounts (CBA) -- car accounts where payment is made directly to the government; (2) Individually billed accounts (IBAs) -- card account where payment is made directly to the bank by the individual; and (3) Integrated Accounts -- Integrated accounts are CBAs.

(GSA Smartpay, 2012) GSA SmartPay is reported as the government's charge card program in which cardholders use the program to pay for: (1) commercial goods and services; (2) travel related expenses; and (3) fleet expenses. (GSA Smartpay, 2012) VI. Government Bidding on Contracts Sealed bidding is the method that the government utilizes for competitive buying involving specific and clear government requirements. The IFB or 'initiation for bid' is the method utilized for the sealed bidding process. IFBs are available for review online at www.fbo.gov.

(Government Contracting 101 -- PART 2, 2012 ) The IFB will include a "description of the product or service to be acquired, instructions for preparing a bid, the conditions for purchase, delivery, payment and other requirements associated with the bid, including a deadline for bid submissions." (Government Contracting.