CLM 059 EXAM QUESTIONS AND ANSWERS

Small businesses operate in an environment that includes a variety of entities, each with its own interests and influence on small business participation in Government acquisition Congress generates the legislation that impacts acquisition regulations and policy. Since the Depression of the 1930s, when Congress first enacted legislation to help businesses recover from financial difficulties, Congress has enacted a number of laws; such as the Budget Control Act of 2010 and an annual National Defense Authorization Act (NDAA), that support and promote small businesses. The Small Business Act of 1953 created national policy to provide maximum opportunity for small businesses to participate in Government acquisitions as prime contractors and subcontractors. Additionally, the Act officially established the Small Business Administration (SBA) to implement the national policy. Other laws have established procurement goals for small businesses in Federal acquisitions. Assistance and Advocacy Groups Advocacy groups such as Procurement Technical Assistance Centers, Small Business Development Centers, and Chambers of Commerce provide assistance to small businesses. They educate organizations on how small businesses can help them accomplish business with their agency. Small businesses see the federal government as potential customer that is rich with opportunities Office of Management and Budget (OMB) / Office of Federal Procurement Policy (OFPP) As the President's executive agent for budget, finance, acquisition, and performance management, the Office of Management and Budget (OMB) promulgates many policies that impact small businesses. These are issued as OMB circulars and memos. The Office of Federal Procurement Policy (OFPP), which is part of OMB, provides overall direction for Government-wide procurement policies, regulations and procedures to promote economy, efficiency, and effectiveness in acquisition processes, including Small Business Programs. Federal Agencies All Federal agencies in the Executive Branch of the Federal Government are charged with maximizing opportunities for small businesses. Each agency has small business and socioeconomic goals to achieve, including the Department of Defense (DoD). DoD is the largest Federal agency with the greatest share of the Federal Government's budget and thus the greatest responsibility for doing business with small businesses. For the Government to achieve the Federal-wide small business goal, DoD must achieve its small business goal. Small Business Administration (SBA)The Small Business Administration (SBA) creates regulations that ensure that small business interests will be protected. SBA's representatives are responsible for aiding, assisting, and protecting the interests of small businesses in Government procurements. Other Than Small Business While large businesses, educational institutions, non-profits and other entities that are not small businesses may view small businesses as privileged competitors, they also recognize that there are benefits in partnering with small businesses in Government contracts. Small businesses are important to our nation; they strengthen the foundation of our economic security and industrial base. Additionally, small businesses are just as important to DoD. Because small businesses are nimble and can respond rapidly to our needs, they can help DoD realize greater efficiency and flexibility, take advantage of innovative technologies and approaches, and improve military readiness. Small businesses drive economic growth in the United States. The Small Business Administration (SBA), Office of Advocacy, is the statistical arm of SBA. Part of their mission is to conduct, sponsor, and promote economic research that provides an environment for small business growth. While they regularly publish reports and other documents on economic research and statistics, their Frequently Asked Questions (FAQ) document is very helpful for learning and communicating national small business contributions. Summary statistics on tangible small business contributions on a per project or program basis (cost, schedule and performance contributions) are difficult to track in DoD. There is no centralized database to capture and report these types of small business success stories. As Acquisition Professionals, you can help mitigate these challenges by sharing your small business success stories (quantitative and qualitative) with your local SBP and leadership. These success stories generally make it into public affairs articles, annual performance appraisals/recognition, and your Component/agency annual inputs for SBA's Scorecard, which SBA uses for measuring and grading agency small business performance. Despite the difficulties in manually collecting/reporting the tangible small business contributions, the DoD is the most significant agency when it comes to influencing Federal small business performance outcomes. This is because the DoD budget and contract dollar obligations are very large in comparison to other Federal agencies. For example, from a quick glance at the SBA's FY16 Scorecard at the above link, you can see DoD obligated 61% ($252B) of the Federal contract dollars ($411B). In other words, when DoD meets its small business goals, so does the Federal Government. Unfortunately, the reverse is true also which is why we're counting on each of you to do your part. Improved DoD small business performance means more opportunities for small businesses which, in turn, increases competition and helps to strengthen the national economy and industrial base. Select the PDF icon to view DoD small business performance trends, and see where small business contributions were the highest in terms of support for the warfighter. The SBA's representatives are responsible for aiding, assisting, and protecting the interests of small businesses in Government procurements. The Office of Federal Procurement Policy provides overall direction for Government-wide procurement policies, regulations, and procedures to promote economy, efficiency, and effectiveness in acquisition processes, including Small Business Programs. Within the Department of Defense (DoD), small business begins with the Department's Office of Small Business Programs (OSBP). The DoD OSBP, an arm of the Office of the Under Secretary of Defense (OUSD) for Acquisition, Technology, and Logistics (AT&L), provides policy and oversight for the Department's Small Business Programs through the operation of Component (Military Departments and Other Defense Agencies) Small Business Program offices across DoD. OSBP's focus on small business utilization in acquisitions supports several key initiatives within DoD, such as Better Buying Power (BBP). Small business acquisitions contribute directly to achieving these DoD initiatives and objectives for improved efficiency, increased innovation, and improved tradecraft in the acquisition of services. To achieve the DoD objectives for improved efficiency, increased innovation, and improved tradecraft in the acquisition of services, DoD uses a variety of Small Business Programs to support DoD's missions, which in turn ensures compliance with national policy to maximize opportunities for small businesses. Small Business Programs The Small Business Administration (SBA) is the Executive Branch Government agency responsible for administering the Small Business Programs. The categories of Small Business Programs include small business and small businesses in the socioeconomic categories which are: Small Disadvantaged Business (SDB) and 8(a) Historically Underutilized Business Zone Small Business (HUBZone) Veteran-Owned Small Business (VOSB)Service-Disabled, Veteran-Owned Small Business (SDVOSB) Women-Owned Small Business (WOSB)/Economically Disadvantaged Women-Owned Small Business (EDWOSB) Mentor-Protégé Program Through this program DoD encourages prime contractors to support the development of technical, management, and other business capabilities of small businesses to enable them to be viable DoD contractors. Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs These programs provide research and development funding to small businesses to promote development of innovative technologies. Indian Incentive Program Through incentive payments to the prime contractor, this program incentivizes subcontracting to Indian-Owned Economic Enterprises or Indian Organizations. Rapid Innovation Fund (RIF) This competitive, merit-based program accelerates the fielding of innovative technologies into military systems. Its purpose is to stimulate innovation while reducing acquisition or life cycle costs, addressing technical risks, and improving the timeliness and thoroughness of test and evaluation outcomes. The Small Business Subcontracting Program Under defined circumstances, requires that negotiated and sealed bid acquisitions include a subcontracting plan requirement when subcontracting possibilities exist. A primary overarching objective for the 2017 fiscal year of the Department regarding small business is to access innovations and realize efficiencies that will result in improved support of the warfighter. To achieve this objective, DoD's OSBP strives to increase small business utilization in DoD acquisitions. One measure of success of increased small business utilization is to achieve or exceed the department's small business and socioeconomic program goals. overarching objective: access innovation, realize efficiencies and improve support to the warfighter accomplished by: increased small business utilization in DoD acquisitions measured By: DoD Prime contracting goals and DoD Subcontracting goals DoD uses a number of small business programs to maximize opportunities for small businesses to support DoD's missions. Meeting or exceeding your organization's assigned small business and socioeconomic program goals is one way to demonstrate successful small business performance. Your organization's performance is aggregated at the agency level to help in meeting or exceeding agency goals. The phrase "Small Business Professional" encompasses a broad range of job titles, such as Small Business Specialist, Procurement Analyst, and Small Business Technology Specialist. Small Business Professional (SBP) responsibilities are categorized into ten functional areas as shown below. In some instances, Small Business Professionals specialize in one or more areas Small Business Legislation, Regulation, and Policy SBP's perform small business policy analysis to review influence and develop policies related to small business utilization as well as create legislative proposals SB Advocacy and Outreach SBP's perform small business policy analysis to review, influence, and develop policies related to small business utilization in acquisitions as well as create legislative proposals. Socioeconomic Program Management Given the complexities of DoD acquisitions, SBPs may be assigned specialized program management or oversight duties to enhance utilization of socioeconomic small business programs within the agency. SB Program Evaluation and Goals SBPs examine small business programs performance in relation to program goals and develop Action Plans to improve goal achievement. In addition, SBPs analyze the degree to which DoD is including small businesses in DoD acquisitions. The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, are DoD-managed and identify and support small businesses doing innovative research and technology development. This program is administered by the OSBP and the SBPs are assigned those duties. Mentor/Protégé Program Management DoD-managed program that encourage approved mentors to provide various forms of business development assistance from protégé firms. This program is administered by the OSBP and the SBPs are assigned those duties. Subcontracting SBPs help to develop subcontracting strategies for DoD acquisitions and oversee compliance with subcontracting terms. Management/Leadership SBPs fill roles as managers and leaders who oversee programs and initiatives at the headquarters or OSD level. SBPs also oversee headquarters-level functions. SB Industrial Base Analysis, Characterization, and Monitoring SBPs collect a variety of information and conduct extensive analysis of data to understand the marketplace in general and the characteristics of the small business industrial base in particular. SB Market Research and Acquisition Strategy Formulation SBPs participate in conducting market research. SBPs use market research results in order to assist acquisition planners in maximizing small business utilization when developing acquisition strategies. As you can see, Small Business Professionals can perform a variety of acquisition functions, depending on where they work, and like you, where they are in terms of career progression (intern, journeyman level, mid-level management). Many of DoD's Small Business Professionals carry out functions assigned to a "Small Business Specialist" as currently delineated in the regulations and policies shown below. However, some may also serve as the Director of a Component or field Office of Small Business Programs. SBPs execute the functions specified in the Federal Acquisition Regulation (FAR), Defense Federal Acquisition Regulation Supplement (DFARS), DoD Instruction (DoDI) 4205.01 and Component small business program publications or policies, as applicable, in supporting DoD acquisitions. Like you, SBPs are members of the acquisition workforce and support many acquisition teams and programs at a time. Because they are acquisition experts and adept in small business programs and policies, you will want to engage SBPs early in acquisition planning to assist teams in maximizing small business utilization. SBPs also serve as a liaison between the acquisition team, industry, the Small Business Administration, and other Federal agencies Trusted Business Advisor Customer-focused Knowledgeable in small business rules Sound business judgement in acquisitions SBP 1: SBPs are customer-focused when it comes to supporting acquisition teams. They will strive to understand the customer's requirements as well as your team's needs and perspectives. SBPs stay current on small business and acquisition regulations, policies, acquisition approaches, and the marketplace. They are knowledgeable about ways to maximize small business utilization in prime contracts and subcontracts and assist the team during the entire contracting process. Liaison with Other Agencies and Industry Liaison with SBA Educate small businesses SBP 2: One critical role of a SBP is to bring together a wide variety of entities, including small businesses, the Small Business Administration, and other Federal agencies. As the agency's primary liaison with the Small Business Administration (SBA), SBPs will reach out proactively to local SBA Procurement Center Representatives (PCRs) and make him/her aware of current and upcoming local acquisitions. SBPs will also engage with small businesses and educate them on doing business with your agency and local activity. Advocate for Small Business Utilization Maximize small business participation Identify small business opportunities SBP 3: A primary focus of the SBP is to assist the acquisition team in maximizing the utilization of small businesses. To do this, SBPs must be a core member of the acquisition team(s). As advocates for maximizing small business utilization, SBPs will be creative in identifying opportunities and helping you find capable sources. Whenever feasible, those opportunities will be prime contract opportunities (total or partial set-asides); if set-asides are not feasible, they may be subcontracting opportunities. SBPs are proactive and when engaged during early acquisition planning, will assist in conducting market research and identifying small business capabilities to ensure maximum small business utilization. Collaborator Acquisition teams Agency SBPs SBA and other Federal agencies Industry SBP 4: Engaging SBPs early can help to streamline your acquisition planning efforts. SBPs are 'Collaborators.' They routinely engage many concurrent acquisition teams across the local activity as well as industry, agency SBPs, SBA and other Federal agencies. In this role, SBPs build many solid relationships and gain invaluable insights which they can use to help streamline your acquisition planning activities to ensure maximum small business utilization. What should you expect from your local SBP? A good SBP is not narrowly focused on meeting small business goals only. Like any other Acquisition Professional, there are some things you need to do to be successful in your career endeavors. Many of these involve exhibiting certain traits that enable desired outcomes