SBA 8(a) Program / GSA Schedule

NORTHEASTA Building Power

Government Procurement Business

2 northeastusa.com

Objectives of Presentation

1. Understanding 8(a) Program & Government

Procurement Opportunities

2. Sharing Vision of Northeast among Employees

3. Announcing the status of Government

Procurement business, such as 8(a) program &

GSA schedule 56

3 northeastusa.com

Index

1. Introduce Government Business & 8(a) program

2. 8(a) Certificate Program /GSA Schedule

3. 8(a) Certificate / GSA Schedule Advantages

4. Our Strategies for Government Business

5. Forecast of Contract Volume

6. Successful Case

4 northeastusa.com

1.Backgrounds for Getting Government Projects

Facing the recession of construction market due to world economic crisis

since 2008

Extent of Government project percentage has been increasing in our

contract.

Being realizing effect of American Recovery & Reinvestment Act of

Federal government and necessity for getting in Federal Market

5 northeastusa.com

Government Procurement Stats(1)Source: Federal Procurement Data for ARRA

6 northeastusa.com

Government Procurement Stats(2)Source: Federal Procurement Data of FY2009

7 northeastusa.com

Government Procurement Stats(3)Source: Federal Procurement Data for FY 2009

8 northeastusa.com

2. 8(a) Certificate ProgramThe 8(a) program originates from Section 8(a) of the Small Business Act, as

amended by Congress, was created so the U.S. Small Business Administration

(SBA) could help small companies owned and operated by socially and

economically disadvantaged persons develop their businesses.

Northeast Siding, Inc. (doing business as Northeast Construction, Inc. Case

number# 303769) was certified in December 2009- 9 year program: from 2009 to

2018 as long as NE fulfills the requirements under 8(a) SBA regulations.

Sole source up to $3.5 Million, no competition, SBA roles as prime contractor and

selects 8(a) company as subcontractor.

Small Business Set- aside opportunities for federal procurement, competition

among the same size company

9 northeastusa.com

3. 8(a) Certificate AdvantagesFederal Procurement goals set up by the negotiations between SBA and each

agency.

Of the $375 billion worth of goods and services in Fiscal Year 2009, 23% of all

prime contracts is to be set aside for small businesses and 5% is to be set aside for

8(a) business.

ARRA Opportunities for Small Business

Other contracting Vehicles, such as GSA schedule- over 75% for Small Business

Competition for the same size company or no competition for sole source

10 northeastusa.com

Status of 8(a) Program

8(a) Program

Northeast was certified by SBA as an 8(a) business in 2009 through 2018.

Our Business Plan under 8(a) program was approved by SBA in June, 2010.

Marketing Northeast to government contract offices & Net-working Events &Home Page

DoD / U.S. Army Corps Engineering / U.S. Air Force / U.S. NAVY

Contacting Small Business Specialist per each contractor officer

Utilizing procurement web-sites

Federal: CCR / FBO / Seaport / FPDS / ARRIVA

State: EVA / VMSDC / DMBE / VDOT- SWaM Certificate

City: Richmond, Minority Owned Business Registered

11 northeastusa.com

GSA ScheduleThe General Services Administration (GSA) is the purchasing and management

agent of the US Government.

Five year contracts for approved vendors to provide products or services to

government agencies.

GSA Schedule contracts are awarded to vendors based upon the contractors’

capacity and past performance“License to hunt” for opportunities in the federal government.

A schedule is a pre-negotiated Contract.

Contracts are Indefinite Delivery and Indefinite Quantities.

- There is no limit to how much business can be conducted through the GSA

Schedule Contract, nor is a minimum guaranteed.

Multiple Award Schedule contract are awarded to multiple vendors for similar

products.

12 northeastusa.com

GSA Schedule Advantages

One of widely and commonly used government contract vehicles

Fit for Small Business, over 75% of contractor holders are Small

Business & a lot of set-aside opportunities

Experience flexibility and choice

Saving time/costs in searching for contractor officer

Achieving transparency

GSA conducted Audit to ensure better services and quality control

13 northeastusa.com

Status of GSA Schedule 56GSA Schedule 56/87

Trying to get SIN 563 4 (Roofing Materials, Products and Services) within June, 2010:

Another GSA schedule for Build and Construction as G.C.

Preparing paperwork and other documentations by contacting PTAC

Review our organization; Implement and Develop internal systems; Identify and

Understand requirements and compliance for government procurement business.

So far, with PTAC’s advice & assistance, we completed the following steps;

Open Ratings Past Performance evaluation (Dun and Broadstreet)

GSA Standard Form 1449

Administrative Proposal

Technical Proposal

Price Proposal

Commercial Sales Practice Format

Submit all required documentation through eoffer.gov

14 northeastusa.com

Open Rating Results- 92 points out of 100

15 northeastusa.com

4.Short term Strategy

o Maximizing Government Business Opportunities for set aside and sole

source, utilizing 8(a) certificate

o Focusing on core business, such as roofing, siding, and gutter to initiate

government business

o Learning the process of Government Procurement Business, such as 7(j)

training programs and Webinars from SBA and other agents

o Advertising Northeast to government contractor offices through net-

working events and matching events, utilizing a retired Major General, John

Philips

16 northeastusa.com

Long term Strategy

o Being a nationwide General Contractor and providing build and design services

o Contact federal agencies- Aggressive Marketing with website and brochure through net-working events

o Obtaining ISO Certificates

o Joint VentureAn agreement between an eligible 8(a) Participant and one or more other

business concerns to establish a new legal entity solely for the purpose of performing a specific 8(a) contract.

o Mentor protégé programTo encourage approved mentors to provide various forms of assistance to

eligible participants such as technical, management and financial assistance.

17 northeastusa.com

5. Forecast of Contract Amount

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

2006 2007 2008 2009 2010* 2011* 2012*

Millions

Year (*Estimate)

Non 8(a)8(a)Combined

18 northeastusa.com

6. Successful Case

Service- Preconstruction Consulting - Estimating - Value Engineering - Construction Management - Design-Build - General Contracting - Building Maintenance

Field- Healthcare- Commercial- Education- Athletics- Aviation- Housing- Historic- Industrial

19 northeastusa.com

Key Factors in Government Business

Past PerformanceReputation

Quality Control ProcessBond Capacity (Requirement)Compliance with Acts and regulationsClear and Transparent Process & SystemNet-Working, Net- Working, & Net Working

20 northeastusa.com

Q&A

Thank you for your attention!