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Doing Business with the Department of Health and Human Services
Forward Mission of the Department of Health and Human Services Office of Small and Disadvantaged Business Utilization Small Business Administration Publicizing Procurement Opportunities Unsolicited Proposals Simplified Acquisition Threshold Products and Services Purchased by HHS' Procurement Offices Office of Small and Disadvantaged Business Utilization
The Office of Small and Disadvantaged Business Utilization, (OSDBU) was established in October 1979 pursuant to Public Law 95-507 which assigned it the task of fostering the use of small and disadvantaged businesses as Federal contractors. To accomplish this task, OSDBU develops and implements appropriate outreach programs aimed at heightening the awareness of the small business community to the contracting opportunities available within the Department. Outreach efforts include activities such as sponsoring small business fairs and procurement conferences as well as participating in trade group seminars, conventions, and other forums, which promote the utilization of small and disadvantaged businesses as contractors. The OSDBU establishes and monitors goals for the participation of small businesses in all departmental acquisitions. In order to assist operating components in achieving their established goals, the OSDBU maintains resource information and provides technical advice and assistance to the contracting staffs as needed. OSDBU also provides counseling and advice to inquiring small businesses regarding their possible eligibility for special consideration under preferential procurement programs which the Department employs. OSDBU Web Site
OSDBU has established a web page, which will give you easy access to this and other publications. Our Internet Address is: http://www.hhs.gov/osdbu/index.html Web Site Listing
OSDBU Staff and Program Areas
To assist small businesses in their marketing efforts we have provided a list of the OSDBU staff with their program areas. We suggest you contact the appropriate staff personnel by telephone or E-mail. Verl Zanders Director, Office of Small and Disadvantaged Business Utilization Department of Health and Human Services 200 Independence Avenue, S.W. Washington, DC 20201 Telephone #: 202-690-7300 FAX #: 202-260-4872 e-mail Address: vzanders@os.dhhs.gov Program Areas:
Deputy Director Telephone #: 202-690-6845 e-mail Address: angelg@os.dhhs.gov Program Areas:
Procurement Analyst Telephone #: 202-690-6670 e-mail Address: angelg@os.dhhs.gov Program Areas
Program Analyst Telephone #: 202-690-7302 e-mail Address: lpurnell@os.dhhs.gov Program Areas:
Ruth Lewis Program Assistant Telephone #: 202-690-7301 e-mail Address: rlewis2@os.dhhs.gov Program Areas:
Minority Business Program Executive Order 12432 provides guidance for Federal agencies in implementing the commitment of the Federal government to the goal of encouraging greater economic opportunity for minority entrepreneurs. The Executive Order provides for the establishment of annual minority business development plans, and outlines the minority business development responsibilities of Federal agencies. The latter includes direct assistance, procurement assistance, and technical assistance. Minority business persons interested in doing business with any of the Department of Health and Human Services' operating components should contact the component's Small Business Program Managers directly. Section 8(a) Program Section 8(a) of the Small Business Act, 15 USC 637(a), authorizes the Small Business Administration to enter into contracts with procuring agencies and then to subcontract the actual performance to certain small business concerns. The original intention of this authority appears to have been the assurance that small businesses would be efficiently utilized in war mobilization. However, under President Richard M. Nixon the authority of the SBA was first used to assist small disadvantaged business firms. This authority was further expanded by P.L. 95-507. It redefines, organizes, and updates the Small Business Act specifically authorizing 8(a) contracts. Section 8(a) contracting procedures is covered under the Federal Acquisition Regulation (FAR) 19.8 and the Department of Health and Human Services Acquisition Regulation (HHSAR) 319.8. Whenever the SBA certifies that it is competent to perform a particular contract that is being considered, the contracting officer is authorized in his/her discretion to award the contract to the SBA. Technically, the process is as follows: the contracting officer and SBA must negotiate an agreement on all the terms and conditions of the contract including price; the SBA then, with the assistance of the procuring office if necessary, negotiates placement of the subcontract with the eligible concern; during performance of the contracted work, the procuring agency directly administers the subcontract and makes payment directly to the 8(a) subcontractor. Women-Owned Small Businesses The Department of Health and Human Services, through the Office of Small and Disadvantaged Business Utilization, identifies women-owned small businesses and their capabilities, provides this information to its contracting offices and encourages them to issue solicitations and obtain proposals from qualified women-owned small firms. On June 22, 1983, President Reagan signed Executive Order 12138, which created the President's Advisory Committee on Women Business Ownership to focus the Federal Government's continuing interest in aiding women-owned small businesses. Women-owned small businesses are firms, which are at least 51 percent owned, controlled and operated by a woman or a group of women. Women-owned Business Procurement Pilot Program The Women-owned Business Procurement Pilot Program was developed to increase the federal procurement dollars awarded to businesses owned and operated by women. It provides women business owners with greater opportunities to participate in the federal procurement arena as both prime contractors and subcontractors. Small businesses, which are at least 51 percent owned by women, and whose management and daily business operations are controlled by women are eligible to participate in this program. SBA has identified key federal agencies to participate in the pilot program. Together with other resource partners, SBA and these agencies are developing a systematic approach to expand the pool of women-owned firms receiving federal contract awards. Participating agencies have designated women-owned business advocates to work with SBA and women business owners to provide outreach, training and marketing assistance. The SBA and the liaisons from the participating agencies meet to assess the progress of the program, resolve problems and develop new initiatives. Ms. Y. Angel Graves, DHHS Office of Small and Disadvantaged Business Utilization, has been designated the Women-owned Business Advocate for the Department. For further assistance, Ms. Graves e-mail address is angelg@os.dhhs.gov. Small Business "Set-Asides" It is the policy of the Department to set aside procurements entirely for small business concerns when there is a reasonable expectation that responses will be received from small businesses to ensure adequate competition. The Small Business Program Managers and the contracting officer make determinations for set-asides. An individual procurement or class of procurements shall be set-aside entirely for small business when the contracting officer can identify two or more qualified sources and adequate competition can be ensured. If a total set-aside is inappropriate, a partial set-aside shall be considered using the same criteria as a total set-aside. Small Business Innovation Research Program The Small Business Innovation Development Act of 1982, (P.L. 97-219) was enacted to give small high technology firms a greater share of Federal research and development awards. The Act requires all Federal agencies with extramural budgets for research and development in excess of $100 million to establish Small Business Innovation Research (SBIR) Programs. There are twelve Federal agencies meeting this requirement. This Department's SBIR program was implemented in the fall of 1982 and has been designed to:
The Small Business Administration publishes an informational pamphlet entitled, "Pre-Solicitation Announcement - Small Business Innovation Research Programs". This pamphlet provides information on the SBIR topics of all participating agencies and instructions for obtaining copies of solicitations. If you wish to be added to the mailing list for this publication please write or call the U.S. Small Business Administration, Office of Innovation, Research and Technology, 409 Third Street, S.W., Mail code 6470, Washington, D.C. 20416, (202) 205-7294. Small, Small Disadvantaged, and Women-Owned Small Business Subcontracting Program Public Law 95-507 requires all organizations (except small business concerns) receiving contracts, amendments, and modifications exceeding $500,000 ($1,000,000 for construction) with subcontracting opportunities, to prepare a subcontracting plan for the participation of small, small disadvantaged and women-owned small businesses in the organization's subcontracting programs. These subcontracting plans are to include percentage goals for small, small disadvantaged and women-owned small businesses subcontracting, and details on how the goals will be met. The Office of Small and Disadvantaged Business Utilization annually publishes a "Subcontracting Directory" as a marketing aid for small business concerns seeking subcontracting opportunities with the Department of Health and Human Services' prime contractors. The Directory is also intended to expand the participation of these concerns as subcontractors in providing the products and services required by the Department. THREE NEW INITIATIVES FOR THE FEDERAL SMALL BUSINESS PROGRAM
I. The HUBZone Empowerment Contracting Program
This program seeks to encourage economic development in historically underutilized business zones - "HUBZone" - through the establishment of preferences for award of Federal contracts to small businesses located in such areas. The HUBZone Empowerment Contracting Program was enacted into law as part of the Small Business Reauthorization Act of 1997. The program falls under the auspices of the U. S. Small Business Administration. Final rules on the HUBZone Program were published in the Federal Register: June 11, 1998 (Volume 63, Number 112). Fostering the growth of federal contractors in this area and ensuring that these contractors become viable businesses for the long term will help to empower these areas while not adversely affecting recent efforts to streamline and improve the federal procurement process. Under the statute, SBA is responsible for: publishing final regulations to implement the program; determining whether or not individual concerns are qualified HUBZone small business concerns, eligible to receive HUBZone contracts; maintaining a listing of qualified HUBZone small business concerns for use by acquisition agencies in awarding contracts under the program; making a listing of current HUBZones (listed by county for rural areas and by census tract for metropolitan areas) available on the SBA web site, at http://www.sba.gov/hubzone; examining and verifying the representations of concerns to ensure that they are eligible to receive HUBZone contracts; adjudicating protests of eligibility to receive HUBZone contracts; and reporting to Congress the degree to which the HUBZone Empowerment Contracting Program has yielded increased employment opportunities and investment in HUBZones. Order of Precedence The following order of precedence will be applicable in the small business consideration review of tentative acquisitions:
The statute sets government-wide goals for HUBZone contracts as follows:
A category for HUBZone Small Business Concerns will be included in the formal subcontracting plans required by Prime Contractors. Accordingly, subcontracting reporting forms (S.F. 294 and S. F. 295) will be amended to reflect the inclusion of HUBZone SBC. Affected Procuring Agencies Until September 30, 2000, the HUBZone Empowerment Contracting Program applies only to procurements by the following agencies: Department of Health and Human Services, Department of Defense, Department of Agriculture, Department of Transportation, Department of Energy, Department of Housing and Urban Development, Environmental Protection Agency, National Aeronautics and Space Administration, General Services Administration, Department of Veterans Affairs. II. Small and Disadvantaged Business (SDB) Program
On June 30, 1998, new regulations were published implementing a policy intended to expand contracting opportunities for small disadvantaged business ("SDB") concerns. (63 Fed. Reg. 35714, June 30, 1998). The new regulations amend the Federal Acquisition Regulation ("FAR") and Small Business Administration ("SBA") rules to implement a limited SDB evaluation preference. The preference will take the form of a 10 percent price credit applied to SDB concerns during bid or proposal evaluation. The new evaluation preference differs from earlier SDB preferences utilized by DOD, NASA and the Coast Guard in that it applies only to certain industries that continue to experience discrimination. The White House has stated that the new evaluation preference was intended to comply with the Supreme Court's June 1995 ruling in Adarand v. Pena which required that federal race-conscious programs must be narrowly tailored to serve a compelling governmental interest -- such as remedying the effects of past discrimination. III. The Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA)
The Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), signed into law on March 29, 1996, provides, among other things, for: (1) judicial review of the Regulatory Flexibility Act; (2) preparation by Federal agencies of "plain English" compliance guides to assist small entities in their efforts to comply with Federal regulations: (3) an Ombudsman to be established by the Small Business Administration (SBA) who will receive comments and complaints from small businesses concerning their experiences in dealing with Federal regulatory agencies: and (4) Regional Small Business Regulatory Fairness Boards, also to be established by the Small Business Administration, to review Administrator and the head of affected agencies concerning those practices. To ensure that there is a meaningful assessment of HHS rules to determine which rules, if any, will have an impact on small businesses, HHS proposes to (1) target regulations that may impact small businesses at the earliest opportunity in the development process; (2) assign oversight responsibility to the Office of Small and Disadvantaged Business Utilization (OSDBU) to review (i) the analysis of economic impact required before the agency head certifies no impact, (ii) the program office's assessment and disposition of all alternative rule implementation strategies submitted by small entities, and (iii) the compliance guides prepared by the program offices where applicable; and (3) maintain the requirements of the SBREFA and Regulatory Flexibility Act on the HHS web site with instructions to small entities on the OSDBU role as small business Ombudsman, as well as copies of compliance guides, names of HHS staff with familiarity in HHS programs that may impact small businesses, to answer questions, and a users forum where representatives of small entities can ask questions on a specific rule as a means of providing a fast means of clarifying issues. Small Business Technical Assistance Resources
International Merchant Purchase Authorization Card (IMPACT) The General Services Administration (GSA), Federal Supply Service, awarded a single schedule contract for Government-wide Commercial Purchase Card Service to Rocky Mountain Bankcard System, Inc., (RRMBCS). The contract provides commercial purchase cards and associated services to federal civilian employees and military members to pay for official Government Purchases. International Merchant Purchase Authorization Card (IMPAC) is the official Government-wide purchase card. The abbreviation "I.M.P.A.C." is printed on all cards. Small, small disadvantaged and women-owned small businesses are reminded that the government purchase card is rapidly becoming a widely used vehicle for micropurchases. Therefore, we encourage these firms to seek assistance in becoming a participating merchant in the VISA/Master card credit card network eligible to accept the government purchase card. Micro-Purchase Under the provisions of FAR Subpart 13.6, purchases of supplies or services under $2,500 are classified as micro-purchases. Federal agencies are encouraged to use the Government-wide commercial purchase card and electronic purchasing techniques, to the maximum extent practicable in satisfying this requirement. Such notices are excluded from any notice, publication or competitive requirements. Acquisition Reform Network (ARNET) The Acquisition Reform Network (ARNET) is an enterprise created to foster and propagate measurable breakthrough improvements in the way that government obtains goods and services. It provides small businesses with information on acquisition opportunities, acquisitions best practices, training on demand, electronic commerce, etc. For information on ARNET send E-mail to: tech-infor@www.arnet.gov. Commerce Business Daily (CBDNet) CBDNet is the official free on-line listing of Government contracting opportunities, which are published in the Commerce Business Daily. It lists notices of proposed government procurement actions, contract awards, sales of government property, and other procurement information. For information on the CBDNet service contact the GPO Access User Support Team by Internet E-mail to: cbd-support@gpo.gov or toll free at 1-888-293-6498. SBA Procurement Marketing and Access Network (PRO-Net) PRO-Net is an electronic gateway of procurement information for and about small businesses. It is a search engine for contracting officers, a marketing tool for small firms and a "link" to procurement opportunities and important information. PRO-Net is a nation wide Internet-based database of information on small, small disadvantaged, 8(a) and women-owned small businesses. It is free to federal and state government agencies as well as prime and other contractors seeking small business contractors, subcontractors and/or partnership opportunities. For additional information about PRO-Net, view SBA's home page at http://www.sba.gov.
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