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%)
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