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Tracking Small Business Participation
Through the SBA Report Card is Unrealistic
Over $50 Billion are not been Counted
or Have Gone to Ineligible Large Firms
This is What the SBA Report Card Has Claimed
FY 2009 FY 2010 FY2011 FY2012
$96.8 B $97.9 B $91.5 B $90 B
21.8% 22.6% 21.6% 22%
The Actual Results Look Like
18.5 % 19.3 % 17.1 % 16.5%
The Potential Does Exist, however, to Reach as Much as 30%
DEFINITION OF SMALL BUSINESS
BY STATES AND LOCAL GOVERNMENTS
* Less than 100 employees
* Limited Gross Revenues (e.g., < $1M, $7M, $25M)
* Archaic & duplicative registration & certification process
VIEW THIS NBC-TV
INVESTIGATIVE REPORT
http://bit.ly/Np10d8
OR
READ THIS REPORT TO
A CONGRESSIONAL COMMITTEE
http://bit.ly/phUhkN
DEFINITION OF SMALL BUSINESS
BY THE FEDERAL GOVERNMENT
* Any business meeting a very complex 57 page methodology
* Not dominant in their own NAICS code(s)
* Employs less than a defined percentage of dominant businesses in
a NAICS code(s)
• Grosses less than a % of dominant businesses in a NAICS code(s)
DISADVANTAGED BUSINESSES
According to P.L. 95-507
* Owned/controlled by a Member of a group Congress has
determined is underserved
• Race, Ethnicity and Gender are simply ‘characteristics’ of the
groups involved
• Characterized by Archaic & Duplicative Certification Processes
• Lack of Diversity Metrics Prevents Participation and Causes
Waste, Fraud and Abuse
SMALL BUSINESS CONTRACTS
referred to as ‘set-asides’
* Established to prevent monopolies, build capacity and level the playing field
* Reserved for competition solely among small and disadvantaged businesses (DBE)
* Public Agencies are ‘supposed to’ establish goals
* Regulations and Statutes are ‘supposed to’ provide guidance
* Size Protests are ‘supposed to’ prevent abuses and safeguard participation
* Penalties and their enforcement are ‘supposed to’ deter abusive practices or barriers
HOW TO LEVEL THE PLAYING FIELD
* Eliminate the existing ‘barriers’ or ‘abusive procurement practices’
http://bit.ly/Contracting_Barriers
* Enforce the Existing Laws
http://bit.ly/Public_Laws
* Support the Umbrella Initiative Diversity and Inclusion Metrics
http://www.umbrellainitiative.org/portal
The SBA Report Card fpr FY2012 Innacuratley Reports Small Biz participation in Government Contracting
PARTICIPATION IN GOV’T CONTRACTING
2010 U.S. Census CCR
Database
Small Businesses 27.2 M 482,262 (1.7%)
Disadvantaged 21.1 M 260,860 (1.2%)
Minority Businesses 5.8 M 117,636 (2%)
SMALL BUSINESS ELEGIBILITY
27.2 Million
ALL Federal Agencies GSA Schedules
482,262 (1.7%) 13, 337 (< 2%)
HOW TO CONFIRM RESULTS
1. Implement the Data Quality Act (DQA)
2. Order independent verification of results
3. Simplify SBA Size Standards
4. Provide Private training for contracting staff
5. Track ‘diversity & inclusion’ to validate results
For Additional Information
Contacts
Raul Espinosa
Managing Partner
raul@UmbrellaInitiative.org
904.347.4726
Ryan Reid
Chief Technology Officer
Ryan.Reid@UmbrellaInitiative.org
714.881.4574
Jacksonville, FL Falls Church, VA Fullerton, CA

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The SBA Report Card fpr FY2012 Innacuratley Reports Small Biz participation in Government Contracting

  • 1. Tracking Small Business Participation Through the SBA Report Card is Unrealistic
  • 2. Over $50 Billion are not been Counted or Have Gone to Ineligible Large Firms This is What the SBA Report Card Has Claimed FY 2009 FY 2010 FY2011 FY2012 $96.8 B $97.9 B $91.5 B $90 B 21.8% 22.6% 21.6% 22% The Actual Results Look Like 18.5 % 19.3 % 17.1 % 16.5% The Potential Does Exist, however, to Reach as Much as 30%
  • 3. DEFINITION OF SMALL BUSINESS BY STATES AND LOCAL GOVERNMENTS * Less than 100 employees * Limited Gross Revenues (e.g., < $1M, $7M, $25M) * Archaic & duplicative registration & certification process
  • 4. VIEW THIS NBC-TV INVESTIGATIVE REPORT http://bit.ly/Np10d8 OR READ THIS REPORT TO A CONGRESSIONAL COMMITTEE http://bit.ly/phUhkN
  • 5. DEFINITION OF SMALL BUSINESS BY THE FEDERAL GOVERNMENT * Any business meeting a very complex 57 page methodology * Not dominant in their own NAICS code(s) * Employs less than a defined percentage of dominant businesses in a NAICS code(s) • Grosses less than a % of dominant businesses in a NAICS code(s)
  • 6. DISADVANTAGED BUSINESSES According to P.L. 95-507 * Owned/controlled by a Member of a group Congress has determined is underserved • Race, Ethnicity and Gender are simply ‘characteristics’ of the groups involved • Characterized by Archaic & Duplicative Certification Processes • Lack of Diversity Metrics Prevents Participation and Causes Waste, Fraud and Abuse
  • 7. SMALL BUSINESS CONTRACTS referred to as ‘set-asides’ * Established to prevent monopolies, build capacity and level the playing field * Reserved for competition solely among small and disadvantaged businesses (DBE) * Public Agencies are ‘supposed to’ establish goals * Regulations and Statutes are ‘supposed to’ provide guidance * Size Protests are ‘supposed to’ prevent abuses and safeguard participation * Penalties and their enforcement are ‘supposed to’ deter abusive practices or barriers
  • 8. HOW TO LEVEL THE PLAYING FIELD * Eliminate the existing ‘barriers’ or ‘abusive procurement practices’ http://bit.ly/Contracting_Barriers * Enforce the Existing Laws http://bit.ly/Public_Laws * Support the Umbrella Initiative Diversity and Inclusion Metrics http://www.umbrellainitiative.org/portal
  • 10. PARTICIPATION IN GOV’T CONTRACTING 2010 U.S. Census CCR Database Small Businesses 27.2 M 482,262 (1.7%) Disadvantaged 21.1 M 260,860 (1.2%) Minority Businesses 5.8 M 117,636 (2%)
  • 11. SMALL BUSINESS ELEGIBILITY 27.2 Million ALL Federal Agencies GSA Schedules 482,262 (1.7%) 13, 337 (< 2%)
  • 12. HOW TO CONFIRM RESULTS 1. Implement the Data Quality Act (DQA) 2. Order independent verification of results 3. Simplify SBA Size Standards 4. Provide Private training for contracting staff 5. Track ‘diversity & inclusion’ to validate results
  • 13. For Additional Information Contacts Raul Espinosa Managing Partner raul@UmbrellaInitiative.org 904.347.4726 Ryan Reid Chief Technology Officer Ryan.Reid@UmbrellaInitiative.org 714.881.4574 Jacksonville, FL Falls Church, VA Fullerton, CA