SELLING TO THE GOVERNMENT
The Quarterly Newsletter of the North Carolina Procurement Technical Assistance Center (NC PTAC)
Fall 2008 • Vol. 4 Issue 4
Directors Corner
The NC PTAC has finished the first half of the year in a strong, very strong
fashion. Though the results are not complete nor sent to Department of
Defense, I do have the preliminary numbers and they are impressive. I want to
thank all of you who responded to the survey and special thanks to the PTAC
counselors for their great effort. We have the strongest group of counselors I
have ever seen in the NC PTAC, so if you are not actively working with one,
my suggestion is contact them and get started.
We just completed the Small Business Liaison Officer (SBLO)/Supplier
Diversity Workshop training and as usual, it was very thorough and well accepted. I want to
thank our partners in this effort, Corning Cable Systems, Curtis-Wright Controls, and General
Dynamics Armament and Technical Products. Without them, we would not be able to offer this
training.
We are considering two new training programs. We plan to try to get the Veteran Owned
Business program rescheduled and with the help of DSC-Columbus and others, we are looking at
a program focused on the machine shops. At the current time, we are looking at the feasibility of
putting these together, trying to select the best training site and adjusting the curriculum to fit the
needs of the specific groups.
In early October the NC PTAC will travel to Washington for four days of intense training and
updates on federal procurement policies and procedures. This can and will benefit you, the client.
Tom Elam
Program Director
NC PTAC
Small Business Liaison Officer (SBLO) and Diversity Manager Workshop
Small Business Liaison Officers (SBLO) and Diversity Managers from across the United States
traveled to the Renaissance Charlotte Suites Hotel in Charlotte, North Carolina to attend the one-
day supplier diversity workshop. Attendees came from Colorado, Kentucky, New York,
Virginia, Illinois, South Carolina and North Carolina.
During the 8-hour workshop the participants learned about small business requirements for
subcontracting plans, federal reporting requirements, Department of Defense Mentor-Protégé
Program, and the Electronic Subcontracting Reporting System (eSRS) basics. The attendees also
had the opportunity to engage prime contractor SBLO’s from General Dynamics Armament and
Technical Products, Michelin, RTI International and Mr. Jay Howell from Deep Reflections
Products & Services, Inc. The last speaker of the day was President & CEO of Carolinas
Minority Supplier Development Council (MSDS), Ms. Robyn Hamilton. Robyn talked to group
about minority purchasing power, business case for supplier diversity, and the organization as a
whole.
The workshop committee plans to make this an annual event for procurement specialists,
diversity managers, and SBLO’s. For additional information about this workshop please visit the
SBLO website [http://www.sbtdc.org/events/sblo].
SBA Small Disadvantaged Business Certification (SDB) - Questions &
Answers
Release Date: October 1, 2008
Contact: Christine Mangi (202) 205-6948 / Tiffani Clements (202) 401-0035
Release Number: 08-101
Internet Address: http://www.sba.gov/news
SBA Small Disadvantaged Business Certification (SDB) Questions and Answers
Q. Why did the SBA suspend the receipt of applications for the SDB program?
A. Since FY 1999, SBA, on behalf of federal procuring agencies, certified Small Disadvantaged
Businesses (SDBs), which were then entitled to receive price evaluation adjustments of up to 10
percent for federal procurement. The SDB certification process is meant to ensure that only
eligible firms received the SDB benefit (price evaluation adjustment).
On December 9, 2004, statutory authority to use the SDB price evaluation adjustment ended for
the majority of federal procuring agencies. Authority to use the adjustments was still permitted
to three agencies, the Department of Defense, NASA, and the Coast Guard, which used it under
separate authority running through 2009. Over the last six years, DOD, the largest procuring
federal agency which represents approximately 68 percent of federal procurement, met its SDB
procurement goal without the use of the price evaluation adjustment tool.
Without the SDB price evaluation adjustment for prime contracts, there is no direct benefit to the
SDB firm, and the SDB designation is only used for statistical purposes to determine
government-wide SDB goal achievement.
Federal procuring agencies have expressed concerns of having firms go through the time and
expense of the SDB certification process when there is little-to-no benefit. In addition, the
agencies have met the government-wide SDB procurement goal through the use of the 8(a)
program and award of contracts to SDBs through small business set-asides and full and open
competition contracts.
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NC Procurement Technical Assistance Center | www.sbtdc.org/ptac
From Fiscal Year 1999 to Fiscal Year 2007, contract dollars going to SDBs increased from $6.2
billion to more than $25 billion. The percent of federal procurement dollars going to SDBs
doubled during the same period from 3.3 percent to approximately 6.6 percent. These
accomplishments were achieved with limited-to-no use of the price evaluation adjustments.
Procuring agencies have been notified that effective October 1, 2008, the SBA will no longer
charge them for SDB certification and small businesses will be allowed to self-certify.
Q. How will this affect small businesses certified in the SDB program?
A. The SDB certification process is time consuming and costly for small businesses and offers
little-to-no benefit. Since the federal government has exceeded the statutory five percent SDB
goal with limited-to-no use of the SDB price evaluation adjustment, which was put in place to
benefit SDB firms, it is unreasonable for the federal government to require these firms to incur
the unnecessary expense of filing detailed applications for SDB certification when the price
evaluation adjustment is no longer used. In some cases, small businesses were paying third
parties thousands of dollars to prepare their SDB application.
Q. How will the suspension of the SDB program affect the 8(a) program?
A. The suspension of the SDB applications will have no effect on SBA’s 8(a) Business
Development program. In fact, small businesses that participate in the 8(a) program are also
small disadvantaged businesses.
Q. Will small businesses be able to keep their small disadvantaged status and how will they
be certified?
A. Yes. Small businesses will continue to self certify as a small disadvantaged business.
Q. Will there continue to be an SDB federal contracting goal?
A. Yes, there will continue to be an SDB federal contracting goal. The federal government has
either met or exceeded the five percent goal for the past seven years.
Q. What is the SBA doing to alert the public and the small business community of the
changes?
A. The SBA published a notice in the Federal Register on September 23, 2008 to alert the small
business community of the suspension of applications for the Small Disadvantaged Business
Program. An Interim Final Rule will be published soon that will revise the 13 CRF 124 to reflect
the authority to allow small businesses to self certify their SDB status, if they meet the criteria
established by the SBA.
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Selling to the Government • Fall 2008
NC Procurement Technical Assistance Center | www.sbtdc.org/ptac
Attention Service Disabled Veteran-Owned Small Businesses Training
Opportunity at U.S. Department of Agriculture Invitation and Registration
The U.S. Department of Agriculture (USDA) is sponsoring a Training Conference for Service
Disabled Veteran-Owned Small Businesses (SDVOSBs) on Wednesday, November 19, 2008,
from 8:00 a.m. – 4:00 p.m. in the Jefferson Auditorium, 1400 Independence Avenue,
Washington, D.C.
During the training session, you will have an opportunity to meet senior management and
procurement executives and learn about contract and subcontracting opportunities at USDA. The
event will utilize an interactive panel format to facilitate discussions and information
exchange. Panelists will include: Procurement Officials, Chief Information Officers, SDVOSBs,
and USDA large Prime Contractors.
Registration is free and does not include lunch. If you would like to attend, please complete and
submit the registration form (see last page of newsletter) to Linda Epstein, Program Manager,
SDVOSB, Office of Small and Disadvantaged Business Utilization by no later than November
14, 2008. Contact Information: Linda.Epstein@USDA.gov; Fax: (202) 720-3001; Phone: (202)
720-2212.
Success Story: Markee Distributors, LLC
Markee Distributors, LLC has been supplying the public and private sector with batteries since
2003. With its humble beginnings as a specialty medical battery supplier based in South Florida,
Markee quickly expanded into several other niche battery categories such as UPS replacement
(sealed lead acid batteries), Land Mobile Radio (LMR) batteries and single cell rechargeable and
non-rechargeable batteries.
It wasn’t long before this little known company was making a big name for itself with the local,
state and federal agencies. Two of the first individuals to recognize their efforts were Wayne
Simpson with the Department of Veterans Affairs’ Office of Small Disadvantaged Business
Utilization (VA OSDBU) and Richard Ramirez formerly with Center for Veterans Enterprises
(CVE). With the counseling of these gentlemen and from the local PTAC officials, Markee had
its products on GSA Schedule 56, and was one of the first Service Disabled Veteran Owned
Small Businesses (SDVOSB) in this category.
In July of 2006 Markee Distributors relocated to the Charlotte, NC metro area. During this time
Markee has continued moving forward, winning several contracts along the way. The most
recent was award of a $140,000 (estimated) two year contract with the VA’s Denver
Acquisitions and Logistics Center (DALC). This contract is to supply DALC with many of their
alkaline battery needs. Again, Joe Marchesani, owner of Markee Distributors reached out to his
local PTAC office for assistance and guidance on proposal development and pricing. It should
be noted that this contract is also available to the DoD, Bureau of Prisons, Indian Health Services
and Health & Human Services.
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Selling to the Government • Fall 2008
NC Procurement Technical Assistance Center | www.sbtdc.org/ptac
As a SDVOSB, Mr. Marchesani understands the value of networking and the challenges small
business face day in and day out. With this insight he and a small group of dedicated veterans
founded the not-for-profit organization, North Carolina Veterans Business Association d.b.a. NC
VetBiz, based in Charlotte. Its mission is to promote, empower and educate North Carolina
veteran business owners and professionals in order to advance veteran interests in the public and
private sectors.
Markee Distributors was recently recognized by Scott Denniston, Director of VA OSDBU,
during an annual report to a congressional sub-committee. He noted that their persistence and
dedication to providing the VA with quality products and service are key elements to their
success. He watched as Markee overcame the “no small business can do my project” attitude
within his agency to become the battery supplier of choice to many VA medical centers. Says
owner Joe Marchesani: “We have worked hard to build our credibility and commitment to our
customers and this recognition (from the OSDBU team) and support from PTAC encourages us
to serve those who serve others.”
PTAC Counselors Attend APTAC Training in Arlington, VA
The Association of Procurement Technical Assistance Centers (APTAC) held their fall
conference in Arlington, VA, October 5th – 8th. The SBTDC's PTAC staff was instrumental in
the success of the program. Kathryn Lobdell (Raleigh) and Katie Harshberger (Greenville)
volunteered to assist guest speakers as they arrived as well as introducing the speakers to the
audience at numerous sessions. The North Carolina PTAC also supported APTAC by providing
laptops and LCD projectors for the entire 4-day conference, with Lynne Crawley (Fayetteville),
Katie Harshberger and Mark Mills (Hickory) troubleshooting as needed during
presentations. Katie Harshberger received her APTAC Level II certification while at the
conference. Congratulations Katie!
The PTAC staff attended some of the following seminars as well as a meeting with
Congressional staffers on the Hill.
• Unlocking GSA Schedules
• Missile Defense Agency Small Business Program
• Federal Procurement Data System – Next Generation
• Teaming and Joint Venturing for Small Business
• Government Contract Law
Tom Elam (State PTAC director) and Mark Mills (APTAC Region 4 director) attended the
APTAC board meeting on Sunday where they discussed issues affecting the organization
nationwide.
Mark Mills is the APTAC Spring Conference Chair and will begin developing the agenda for the
Spring Conference in March 2009 with assistance from the APTAC education committee
(Kathryn Lobdell and Katie Harshberger are both on the APTAC education committee).
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Selling to the Government • Fall 2008
NC Procurement Technical Assistance Center | www.sbtdc.org/ptac
Success Story: Maintenance & Inspection Services (MIS)
Maintenance & Inspection Services (MIS), Inc’s headquarters is located in
Morganton, North Carolina with operating facilities in Mayport, Florida /
Norfolk, Virginia / Philadelphia, Pennsylvania / San Diego, California /
Bremerton, Washington / and Aeia, Hawaii (http://www.misnc.com). This
Service Disabled Veteran Owned Small Business is owned and operated by
Mr. David Mugrage. MIS as the business is known to its clients, provides
Technical Services that include non-destructive testing, heat exchanger
cleaning and maintenance, machining, fabrication, welding and pipe fitting, as well as
Engineering Services, Quality Assurance, Planning Services and Training.
In June of 2005 David contacted Appalachian State University’s (ASU) Small Business &
Technology Development Center (SBTDC) requesting assistance on a request for quote and
proposal. A procurement counselor for the North Carolina Procurement Technical Assistance
Center (PTAC) provided the required assistance with the result that MIS was awarded a 5-year,
multi-million dollar contract.
In 2007 MIS was accepted in the Department of Defense’s Mentor-Protégé Program through the
United States Navy with QED Systems Inc. of Virginia (http://www.qedsysinc.com) performing
as the Mentor. Once again David called upon the SBTDC for assistance in developing specific
plans to position the company to expand its role into becoming a prime contractor. In the first
year of a three year program, the SBTDC’s general business counselors, Kevin McConnaghy and
John Manderewicz provided strategic planning, market and trade research and marketing plan
development services. As a result of the mentoring by QED and the assistance provided by the
SBTDC, MIS has been awarded a prime contract under the NAVSEA Seaport-e Solicitation. In
year two of the Mentor-Protégé Program, MIS will focus on the execution of plans developed
during the first year and again utilize the SBTDC as its non-technical service provider.
NC PTAC has five counselors located across the state that provide free one on one counseling to
companies that want to do business with the government (federal/state/local) or have questions
about proposals and/or awarded contracts. For more information on PTAC counseling services or
the Department of Defense’s Mentor-Protégé Program, contact your local PTAC counselor. For
more information on the SBTDC, its services and regional locations visit http://www.sbtdc.org.
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Selling to the Government • Fall 2008
NC Procurement Technical Assistance Center | www.sbtdc.org/ptac
Attention Service Disabled Veteran-Owned Small Businesses
Training Opportunity at U.S. Department of Agriculture
Invitation and Registration
The U.S. Department of Agriculture (USDA) is sponsoring a Training Conference for Service
Disabled Veteran-Owned Small Businesses (SDVOSBs) on Wednesday, November 19, 2008,
from 8:00 a.m. – 4:00 p.m. in the Jefferson Auditorium, 1400 Independence Avenue,
Washington, D.C.
During the training session, you will have an opportunity to meet senior management and
procurement executives and learn about contract and subcontracting opportunities at USDA.
The event will utilize an interactive panel format to facilitate discussions and information
exchange. Panelists will include: Procurement Officials, Chief Information Officers, SDVOSBs,
and USDA large Prime Contractors.
Registration is free and does not include lunch. If you would like to attend, please forward the
following information (no later than November 14, 2008) to Linda Epstein, Program Manager,
SDVOSB, Office of Small and Disadvantaged Business Utilization.
Email: Linda.Epstein@USDA.gov; Fax: (202) 720-3001; Phone: (202) 720-2212.
Name of Firm: ________________________________________
Address: _____________________________________________
Attendee 1:
Name: ______________________________________________
Title: _______________________________________________
Phone: _____________________ Email: ___________________
Attendee 2:
Name: ______________________________________________
Title: _______________________________________________
Phone: _____________________ Email: ___________________
(If there are additional attendees, please submit contact information.)
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Selling to the Government • Fall 2008
NC Procurement Technical Assistance Center | www.sbtdc.org/ptac