Wyoming Entrepreneur Blog

What's the deal with getting a DUNS number?

A DUNS (Data Universal Numbering System) number is a unique nine-digit number assigned by Dun and Bradstreet (D&B) for each physical location of a business. The Federal Acquisition Regulation (FAR) provision or clause 52.204-6 requires an offeror to provide its DUNS number when it submits an offer to the federal government. FAR 4.11 also requires contractors to complete their Central Contractor Registration (CCR) before receiving government contract awards above the micro-purchase threshold (generally $3,000, but $2,000 for construction and $2,500 for services). Obtaining a DUNS number is the first step in the CCR registration process.

The General Services Administration (GSA) has a contract with Dun & Bradstreet to provide free DUNS numbers to businesses that need them in order to register in CCR. In the past, a business that needed a DUNS number for government contracting purposes could just call D&B, verify their information, and often receive it right over the phone. The process used to be really quick and easy! D&B now requires business owners to request DUNS numbers through their online webform and iUpdate process (this is the link for government contractors and grant applicants; if you click on any of D&B’s other links to obtain a DUNS number, you may find yourself inadvertently subscribing to a fee-based service). Quick and easy? Not so much.

Before beginning the iUpdate process, it is important to understand that D&B is in the business of selling credit information and other data about the companies in its database. D&B tracks public company records, such as UCC filings and bankruptcy filings, as well as business credit information that you might not have realized was out there. The firm even applies mathematical models to data about your business to develop a commercial credit score for it. You may be more familiar with the information in your personal credit report; your commercial credit score is an analogous evaluation of the risk involved in dealing with your company. However, the truth is that most owners of very small businesses are required to sign personal guarantees to obtain business credit, and their personal credit scores are likely to be far more important than their commercial credit scores in determining their creditworthiness. Also, just as there may be inaccurate information in your personal credit file disclosure, it is possible that D&B has inaccurate information on file for your business, so it’s not a bad idea to review this information. The good news is that if you use D&B’s new iUpdate process to create an account and obtain your DUNS number, you will be able to review and update the information that D&B has on file for your company, free of charge. You do not need to purchase anything that D&B sells in order to do business with the federal government.

If your business legal structure required a filing with the Secretary of State (such as a corporation or limited liability company), if you have ever applied for a business loan, or if you have a business telephone number, D&B may have already assigned a DUNS number for your business. You can find out by searching for your company and continuing to the iUpdate portal. Once you verify your identity, create an iUpdate account, answer security questions, and identify yourself as a government contractor, you will have access to your business summary and DUNS number. If you search and find that D&B doesn’t have your company on file, you will be able to go through a similar process to request a DUNS number.

The Wyoming PTAC team will be providing a free pre-conference training session at the GRO-Biz Conference & Idea Expo on February 22, 2012 in Laramie, and we will go over the new process for obtaining a DUNS number and other government contracting basics. For free and confidential one-on-one assistance with obtaining a DUNS number, using the iUpdate system to manage the information in your D&B report, or to find out more about the GRO-Biz Conference & Idea Expo, contact the Wyoming PTAC team: Jeff Sneddon in Casper (jsneddon@uwyo.edu, 307.234.3203); Natasha Stahla in Cheyenne (nstahla1@uwyo.edu, 307.637.5029); or me in Thermopolis (alea@uwyo.edu, 307.921.8499).

Creating a Capabilities Statement

Last week, I was on the phone with a business owner who mentioned they were planning to attend the GRO-Biz Conference & Idea Expo next month. We were getting ready to end our call when I said, "Don't forget to bring a capabilities statement to the conference!"

The person responded, "What is that?"

"Well, it's a summary of what your business offers to meet the needs of a specific government agency, customer, or opportunity. You might think of it as an expanded business card. It conveys that you understand the language and processes of government contracting. You can provide a general capabilities statement to any of your potential federal customers when you are getting started in government contracting, but a more experienced contractor will prepare a specific capabilities statement for each agency or opportunity."

The business owner asked if I had any tips for putting one together. Although I had read various capabilities statements, I had never really found any clear and simple guidance on how to put an effective one together. Much of what I read was either pretty vague, or seemed to be directed towards really large companies. I told the person I'd find some resources for them and get back to them shortly.

I immediately sent a Skype-chat to Jeff Sneddon, a procurement specialist in our Casper office, and former CO (contracting officer), for the low-down. Our conversation went like this:

Amy Lea

So Jeff...tell me about capabilities statements. You probably received tons of them when you were a CO. Do contracting officers actually read those things?

Jeff Sneddon

Nobody actually reads a capabilities statement, it's something you glance over. If it's not brief and very easy-to-read, it's useless. I met a lot of business owners at conferences like the GRO-Biz Conference, and if someone gave me a capabilities statement, it helped me to remember what they did later on. I kept a file with capabililities statements from companies I might be interested in asking for a quote or proposal if I ever needed what they offered. The key is that is has to be very clear and very brief - a contracting officer won't dig through a capabilities statement to try to figure out what a business does.

Jeff sent me some information, and I did some research on what was out there in cyberspace, but I still didn't feel like I had a useful summary to send to my client. So, I decided to try to try to distill the research I had done and come up with some guidelines.

Just as a resume or business card might be formatted slightly differently from business to business, you can determine how best to organize the information in your capabilities statement, but it will typically include the following:

1. Core competencies:
   Core competencies (also called “capabilities” or “core capabilities”) are the things your company does best. Differentiators (also called your “unique selling proposition” or “competitive advantage”) indicate what is special about your firm that distinguishes you from your competitors. You may also include bullet points with key personnel, special qualifications, facilities, and/or equipment, if the information is directly relevant to the agency or opportunity you are pursuing.
2. Corporate data (also called “company data” or “business information”):
   Provide a sentence or two describing your company’s history, the size of your firm, and the geographic area you serve. Include bullet points with any of the following information that pertains to your business (Note: this list includes a number of terms and acronyms for which full definitions and explanations are beyond the scope of this article, but the PTAC team can assist you with finding any of this information for your business.):
   • Data Universal Numbering System (DUNS) number
   • North American Industry Classification System (NAICS) codes and Product Service Codes (PSC) or Federal Supply Codes (FSC)
   • Commercial and Government Entity (CAGE) Code (this signals that your firm is registered in the Central Contractor Registration (CCR), because a CAGE code is assigned during CCR registration)
   • Any certifications/self-certifications that are relevant to government contracting (Historically Underutilized Business Zone (HUBZone), Woman-Owned Small Business (WOSB/EDWOSB), Service-Disabled Veteran-Owned Small Business (SDVOSB), 8(a), etc.)
   • Bonding capacity (construction firms)
   • Whether or not you accept credit and purchase cards
   • Contract number for your General Services Administration (GSA) schedule, Blanket Purchase Agreement (BPA), or other relevant federal contract (if any)
3. Past performance (also called “clients”):
   Provide three or four agencies or customers you have done business with, starting with those as similar to your target agency as possible. If you haven’t done other federal work, provide state or local government or commercial references.
4. Contact information:
   If you use company letterhead with your firm’s name, logo, and general contact information as a starting point for your capabilities statement, you may not need a separate section with this information. If you don’t have company letterhead, make sure to include a section with this information. Either way, make sure that somewhere on your capabilities statement you very clearly identify the person who handles government business for your company, and provide their direct email address and phone number.

Your capabilities statement should reinforce your company’s branding, so include your company logo, and use the same fonts and colors as your web site and other marketing materials. It’s also a good idea to clearly indicate that the document is a capabilities statement by putting the words “Capabilities Statement for Business XYZ” at the top.

If you take the time to create a capabilities statement now, when you have a conversation with a federal agency representative at the GRO-Biz Conference & Idea Expo next month, you will be ready to provide it to them. This will help them remember your business the next time they are looking for the supplies, services or construction that you offer. For free and confidential one-on-one assistance with developing a capabilities statement or other aspects of government contracting, contact the Wyoming PTAC team: Jeff Sneddon in Casper (jsneddon@uwyo.edu, 307.234.3203); Natasha Stahla in Cheyenne (nstahla1@uwyo.edu, 307.637.5029); or me in Thermopolis (alea@uwyo.edu, 307.921.8499).

Is Teaming with a Strong Sub a Guaranteed Contract Winner?

Teaming arrangements can enable companies to win contract awards they may not qualify when “standing alone.” Utilizing a teaming arrangement by including a member who can bring a high level of experience, technical capability, and past performance the team can score high on the evaluated criteria of the proposal and win the award.  

The Federal Acquisition Regulations (FAR) Subpart 9.6 describes contractor team arrangements as an arrangement in which two or more companies form a partnership or joint venture to act as a potential prime contractor; or a potential prime contractor agrees with one or more other companies to have them act as its subcontractors under a specified Government contract or acquisition program.

There are also a number of benefits for the government to deal with firms involved in teaming arrangements including a single point of contact, reduced program management, increased completion and opportunities for small businesses, increased innovation, and support of small business development.

A partnership is a business enterprise consisting of two or more individuals or concerns who come together to co-own a trade or business for profit. The partners share ownership of a single business.  The partnership, and the members of the partnership, are in privity of contract with the government.

A joint venture is an association of two or more individuals or concerns formed to undertake a particular business transaction or project, rather than one intended to continue indefinitely. The members of the joint venture share in the profits and risk of loss. The joint venture entity, and its members, are in privity of contract with the government.

A subcontractor is any supplier, distributor, vendor, or firm that furnishes supplies or services to or for a prime contractor or another subcontractor.

Privity refers to the direct relationship between the parties to a contract. Thus, there is privity between the government and the business (prime contractor) with whom the government has directly awarded the contract. Because the teaming arrangements of partnerships or joint ventures results in a legal entity which can directly be awarded a contract there is privity. There is no privity between the government and a prime contractor’s supplier or subcontractor.

This post was written by Jeffrey W. Sneddon, Wyoming Entrepreneur Procurement Technical Assistance Center (PTAC) Procurement Specialist

 

Are You a Responsible Contractor?

I was recently reading a synopsis of a government contracting solicitation on FedBizOpps, and I noticed that it said “All responsible small business sources may submit a bid, which if submitted in a timely manner, will be considered.” This got me thinking, what exactly (precision matters greatly in government contracting) is a “responsible” contractor? I mean, I had a general sense of it - a firm that could perform the work - but if someone pushed me to define it during a presentation, could I? I wasn't so sure, so I went to the FAR (Federal Acquisition Regulations).

 

The FAR, specifically FAR 2.101, definitions, is the place to start when you’re trying to figure out what a government contracting term means. Here (scroll down, the terms are alphabetical), we find that a responsible prospective contractor means a contractor that meets the standards in 9.104. This is a typical FAR experience – a wild goose chase, jumping from place to place in search of the answer. FAR 9.104 summarized here (but do read the full text for details) indicates that in order to be determined responsible, a contractor must have:

• Financial capacity - adequate financial resources to perform the contract

• Technical capacity - the necessary experience, accounting and operational controls, technical skills, equipment, and facilities to perform the contract

• A satisfactory record of past performance

• Ethics and integrity

How does a contracting officer determine if your company meets these criteria? Starting with ethics, the first question is whether your firm has been suspended or debarred from working with the federal government. FAR 9.405 requires contracting officers to review the Excluded Parties List System (EPLS), to ensure that no award is made to a listed contractor. The contracting officer will probably also check the Federal Awardee Performance and Integrity Information System (FAPIIS), which pulls proceedings information from the Central Contractor Registration (CCR) database and suspension/disbarment information from EPLS. It also provides information that federal agency representatives have entered about contract terminations, defective pricing, prior non-responsibility determinations, and other serious issues. As a contractor, you also provide ethics information in your Online Representations and Certifications Application (ORCA). If no negative information is found, your firm will likely pass muster on ethics.

Next, the contracting officer will evaluate your past performance. FAR 15.304(c)(3)(i) states that “past performance shall be evaluated in all source selections for negotiated competitive acquisitions expected to exceed the simplified acquisition threshold.” Past performance is probably also the best way for a contracting officer to evaluate your firm’s technical capability. Why? If your firm has done a similar project before, it can probably do it again. The contracting officer may ask you for references, and they will check the Past Performance Information Retrieval System (PPIRS), which provides “report cards” on how your firm has performed on most contracts of $100,000 or more. Contracting officers will consider your past performance on private sector work by checking your references if you have never done the same type of work for the government. As a contractor, you definitely want to be aware of the information that is contained about your business in FAPIIS and PPIRS.

Financial capacity can be more challenging to assess. A contracting officer may consider the size of the projects your firm has completed, request your current financial statements, ask to speak to your banker to verify your access to capital, check your bonding capacity (construction firms), and/or pull your business credit report from D&B.

What happens if a contracting officer determines that your business is not responsible? They must specify the elements of responsibility they found lacking, and refer the matter to the appropriate U.S Small Business Administration (SBA) office. The SBA will contact you, and offer you a chance to apply for a Certificate of Competency (COC, FAR 19.602) to show that you are capable of performing the contract. If the SBA issues a COC, the contracting officer is generally required to accept it.

How do you become a responsible contractor? Begin with smaller projects and develop a strong past performance record. Work with your lender to increase your access to capital. Explore opportunities to joint venture with more experienced firms. For free & confidential assistance, contact the Wyoming PTAC team: Jeff Sneddon in Casper (307.234.3203); Natasha Stahla in Cheyenne (307.637.5029); or Amy Lea in Thermopolis (307.921.8499).

Are you a responsible contractor? Has a contracting officer ever challenged your firm on responsibility?

This post was written by Amy Lea and Jeff Sneddon.

Resources for Doing Some Government Contracting Detective Work

Have you ever wondered how much money the Federal government spends in Wyoming, or what types of products or services a particular Federal agency buys? It's not as hard as you might think to find out!

The Federal Acquisition Regulations (FAR 4.6) require agencies to report all contracts for $3,000 or more, and all modifications to these contracts, to the Federal Procurement Data System (FPDS). FPDS allows users to access standard reports without registering, but registered users can access more detailed information. Either way, the information is free.

An FPDS standard report shows that during the 2010 federal fiscal year (10/01/09 - 9/30/2010), the government spent nearly $400 million on contracts where the place of performance was Wyoming. Of this, 70% of the dollars, just over $281 million, went to small businesses (this includes awards to out-of-state firms doing business in Wyoming). During the same period, the government spent $124.7 million on contracts where the vendor location was Wyoming. Of this, 82% of the dollars, $102.5 million, went to small businesses. Whichever way you look at it, the federal marketplace offers tremendous opportunity to Wyoming firms.

If you spend some time learning how to use FPDS (see the Quick Start Guide), you’ll be able to run more complex reports. You can do detective work on your competitors and find out how much they received in awards from a particular agency or during a given time period. You can also research the types of products and services different agencies purchase, by North American Industry Classification System (NAICS) Code or Product Service Code. Many other reports are available as well.

USASpending.gov is another free site for researching procurement data. It pulls data from FPDS and other sources, and provides information about contracts as well as grants, loans, and direct payments. It doesn’t offer as many report options as FPDS, but it has a more user-friendly interface.

When you are trying to determine whether the federal government buys the types of products or services that you offer, FPDS and USASpending.gov can be great places to start. If you try to access these systems, and find them confusing, don’t worry – the Wyoming PTAC can help! Contact Jeff Sneddon in Casper (307.234.3203); Natasha Stahla in Cheyenne (307.637.5029); or me in Thermopolis (307.921.8499). Our services are free and confidential, and we often use GoToMeeting™ to see our clients’ computer screens (with their permission), which makes working collaboratively on research like this quick and easy!

Have you ever tried accessing FPDS or USASpending.gov? Were you able to find useful information, or not?

Process mapping?

By Anya Petersen-Frey, Regional Director, MBA, PhD (abd), Certified Global Business Professional

What exactly is process mapping?    Bob,  Torrington

This is a great question, and timely, since I just finished a process mapping project with a local organization.  Here is a very brief overview.

Process mapping is usually considered a quality management tool with an overall goal of improving a process by looking for gaps in service, waste (time or product) or other issues. You may have heard terms such as "Six Sigma", "Lean Six Sigma"  or the Malcolm Baldrige National Quality Program all which provide tools geared toward maximizing efficiency while maintaining control over a process - be it manufacturing or service related.

Process mapping provides business leaders the opportunity to clarify how processes are actually being performed. It reveals problems such as bottlenecks or variations in how the process is carried out by different groups or individuals.  Put simply, process mapping strives to improve business performance by optimizing the efficiency of connecting activities in the creation of a product or service.

A process map is a tool - a means to an end, not an outcome in its own right.

The final output will, hopefully, be an  improvement in the way that the business process works.

 There are two main process models:

• The "current"  model which outlines the current process as it is performed now
• The "future" state model which defines the way the process will look when changes or modifications have been implemented - or the way it is desired to be.

The goals of completing this process are to create value for the customer and to reduce costs for the company

There are many ways to approach creating a process map.  Optimal is to have people at all levels of the organization involved, even in a very small firm. The starting point is to identify and map out a particular process for a "current" state.  If you don't know where the gaps or delays in a process are it can be difficult to identify and correct them. 

For example:  Imagine you own a carpet store that sells carpet as well as offers delivery and installation.  What is the process, from the customer perspective, of purchasing and having carpet installed?  The starting point might be "customer comes into store to look at carpet". Then what?  What questions are asked that direct the next step?  Walk the steps as though you are a customer including communication, time involved, etc. Note where delays occur, or where decisions have to be made.  This can be a messy process as different input creates a map with many divergent paths.  That is ok. 

This may be a simplified example but can give you a hint of how to take a step back and objectively view your business process.  It is important to understand what each person does - so ask them.  The map should have no personal names but rather only list the processes and the differences in how different people handle them.

There are many flow chart and process map examples on the Web as well as software to help you build your final map.  You will notice some standard symbols used to delineate "decisions", or "delays" - these can be helpful but the map can be created in a way that meets the needs of your organization.

It can help to have an objective facilitator guide the original data collection using input from various people in the particular process to get an accurate view of what is actually happening, but again, a business owner can begin the process on his own.

The key goal in using this type of tool is to maintain a competitive edge.  Don't become complacent and fall into the age-old "this is the way it has always been done" trap.  There are times when the an original method is still the best; but many times it is time to re-evaluate and institute more efficient processes.

The Women-Owned Small Business Program is Coming...is Your Firm Ready?

The US Small Business Administration recently published the final rule regarding the long overdue Women-Owned Small Business (WOSB) Federal Contracting Program, and it will be effective February 4, 2011. This means that in 83 North American Industrial Classification System (NAICS) codes where women have been underrepresented or substantially underrepresented, if a contracting officer has a reasonable expectation that two or more WOSBs will submit offers, and if the award price does not exceed $3 million ($5 million in manufacturing), and if the contracting officer believes she can award the contract at a fair and reasonable price, the contract may be set aside for restricted competition among women-owned small businesses.

The details are still being worked out, but according to the Small Entity Compliance Guide to the WOSB Program, the SBA does not plan to certify firms as it does for some of its other programs.  It appears that self-certifications with supporting documentation and certifications from yet-to-be-announced third party certifiers will both be acceptable.  However, one thing is quite certain: the first step will be for women-owned firms to get registered to do business with the Federal Government in the Central Contractor Registry and provide additional information about their firms in the SBA’s Dynamic Small Business Search (DSBS).  The DSBS is a database contracting officers often use to find potential vendors for procurements under $25,000 because it is easily searchable and includes keywords, capabilities, and references. 

A DSBS search on January 14, 2011 for woman-owned small businesses located in Wyoming returned only 228 firms, out of 1,237 total small businesses in Wyoming.  This means that only 18% of the Wyoming small businesses that are ready to do business with the Federal Government are women-owned.  Join the Wyoming Entrepreneur Procurement Technical Assistance Center’s campaign to increase this number by over 50% in 2011, from 228 to 350!  Getting registered in CCR is free, and so are our services.  Contact Natasha Stahla in our Cheyenne office, Jeff Sneddon in our Casper office, or me in Thermopolis.  We’ll walk you through every step of the registration process.  We’ll also be ready to help you document your women-owned small business status as soon as additional guidance becomes available. 

The SBA has confirmed that it will be sending at least one representative to the 2011 GRO-Biz Conference & Idea Expo that will be held February 22-24 in Evanston.  This will be a great place to learn more about the WOSB program and other government contracting opportunities for your business.  I'll be there, and I hope you will too! 

Are is your business in CCR & DSBS?  What did it take for you to get through the process?

Government Contracting …..is it transparent enough?

Operating in a fishbowl, working in a glass house, transparent contracting, these terms all refer to the way that federal contracting must conduct business in order to be completely open in its process.

The Federal Government has an overriding obligation to American taxpayers. It should perform its functions efficiently and effectively while ensuring that its actions are in compliance with procurement laws.

This transparency approach is necessary to ensure accountability, provide oversight mechanisms, comply with ethical requirements, and fulfill the obligation to taxpayers that funds are being spent wisely and fairly.

This transparency is accomplished in a number of ways.

Part 5 of the Federal Acquisition Regulations (FAR) provides rules concerning publicizing contract actions. This requires contracting officers to disseminate information on proposed contract actions expected to exceed $25,000, by synopsizing in the FedBizOpps.gov. It also requires that proposed contract actions expected to exceed $15,000, but not expected to exceed $25,000, be displayed in a public place, or by any appropriate electronic means, an unclassified notice of the solicitation or a copy of the solicitation.

There are other posting requirements in FedBizOpps including sources sought, notices of intention to award sole-source, and contract award notifications.

FAR 15.506 provides for, and encourages, preaward and postaward debriefing for unsuccessful bidders.

In addition, FAR 4.6 requires that contracts whose value is $3,000 or more and every modification to that contract, regardless of dollar value must be reported to the Federal Procurement Data System – Next Generation (FPDS-NG). This allows the public to view awarded actions through FPDS-NG or USASpending.gov.

Is it transparent enough? Sure.

There must be a balance between open procurement and protection of the integrity of competition. Further transparency requirements may only serve as additional burdens which can add to the already rigorous internal controls laid upon contracting officers.

Are there any new federal government contracting opportunities for women-owned small businesses on the horizon?

Let's first consider what it means to be a woman-owned small business in a government contracting context.  The Federal Acquisition Regulations (FAR), specifically FAR subpart 2.1, defines terms used in government contracting, and defines a “women-owned small business concern” as one:

1. That is at least 51 percent owned by one or more women; or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more women; and
2. Whose management and daily business operations are controlled by one or more women.

For government contracting purposes, identifying where the control of the firm rests is crucial.  In determining control, several aspects of management are considered, including whether the woman is the highest officer, whether she is working full-time in the business, and whether she has the experience to manage it.

Women-owned firms may self-certify their status in the Central Contractor Registration and the Online Representations and Certifications (ORCA) database.  The Wyoming Entrepreneur PTAC can help you with this!
  
Are there any benefits for women-owned small businesses?  The Federal Acquisition Streamlining Act (FASA) of 1994 established a government-wide goal that not less than 5% of the total value of all prime and subcontract awards should go to women-owned small businesses.  However, this goal has never been met, perhaps because contracting officers haven’t had tools to “set aside” contracts for women-owned firms, which would limit the competitive pool and ensure that the award goes to a women-owned firm.  Congress passed the Equity in Contracting for Women Act of 2000 to create a framework for this program, and the SBA has been working to implement it ever since.

What's new with this program?  On March 2, 2010, the SBA issued a press release about a proposed rule to expand federal contracting opportunities for women.  The SBA accepted comments for 60 days, and once it considers them, it is expected to publish a final rule.  If and when that happens, contracting officers may begin setting aside contract opportunities for women-owned small businesses.  They will still be able to self-certify their status, but they will also need to submit supporting documentation to a new, not-yet-established online repository. 

If your firm is women-owned, there couldn’t be a better time to get started in government contracting.  If it's not woman-owned, don't even think about "putting it in your wife's name" to gain contracting advantages - that's fraud. 

Want to learn more?  The SBA has a great online training course Winning Federal Contracts: a Guide for Women Entrepreneurs, and the Wyoming Entrepreneur PTAC provides free assistance with government contracting.  We can help your firm get started, too!

Time to revisit one of the original economic stimulus programs?

Ever heard of the Historically Underutilized Business Zone (HUBZone) program? The US Small Business Administration (SBA) HUBZone program is a place-based, race neutral program, created in 1997, to help stimulate the economy in areas with high unemployment or lower-than-average wages, by providing federal contracting preferences to businesses that are located in these areas and hire people who live in these areas.

If your firm:

• is a small business, and
• its principal office is located in a HUBZone, and
• 35% or more of its employees live in a HUBZone, and
• it is owned and controlled at least 51% by US citizens

it may qualify.

Albany, Fremont, Hot Springs, Lincoln, Niobrara, and Uinta counties and the Wind River Indian Reservation qualify; a number of additional census tracts are eligible, too. To find out if your business is located in a HUBZone, check the SBA’s HUBZone map.

What's the advantage? A HUBZone certification may give you a competitive advantage in obtaining federal contracts. The government’s goal is for 3% of its contract dollars to go to HUBZone firms. When you consider that the federal government spent more than $500 billion on contracts in fiscal year 2009, this translates to more than $15 billion in opportunities last year alone! Contracting officers want to meet this goal, so if they conduct market research and find that two or more HUBZone firms are likely to submit offers for a particular opportunity, they may set it aside. This effectively reduces the competitive pool of firms eligible to bid on the opportunity to just HUBZone-certified firms. It seems counter-intuitive, but actually, it's better if you and your competitors are all HUBZone certified (if you all qualify) because more HUBZone firms that can do the work can result in more work set aside for HUBZone firms. If you are a subcontractor, getting certified can help the primes you are working for reach their goals, too!

Three steps to applying for HUBZone certification:

1. First, make sure your firm is registered in the Central Contractor Registration database, and that all your information is updated. (Note: if getting registered in CCR wasn't confusing, the Wyoming Entrepreneur PTAC probably wouldn't be here to help you with it!)
2. Second, assemble your supporting documentation. You will need this information to complete your application.
3. Third, complete the online HUBZone application.

Once the SBA reviews your initial application, they will ask you to submit your supporting documentation, and make a decision. How long will it take? I'll be straight with you, it's currently taking several months, but the SBA is working hard to decrease HUBZone application processing times. Also, there may be some potential advantages to applying now, before new census data potentially redefine qualified areas.

Sound complicated? The Wyoming Entrepreneur PTAC provides free, confidential assistance with HUBZone applications and other aspects of government contracting!