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Training on the Surplus Property Program

Training on the Surplus Property Program. Agreement Between The U.S. Small Business Administration and the State Agencies For Surplus Property Training Conducted by: The Office of Business Development Fiscal Year 2009. What are the Objectives of the 8(a) Program?.

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Training on the Surplus Property Program

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  1. Training on theSurplus Property Program Agreement Between The U.S. Small Business Administration and the State Agencies For Surplus Property Training Conducted by: The Office of Business Development Fiscal Year 2009

  2. What are the Objectives of the 8(a) Program? • To help socially and economically disadvantaged businesses compete in the American economy through business development • To enable firms to compete successfully in the open market upon completion of a nine year term

  3. Small businesses that are owned and controlled by socially and economically disadvantaged individuals (See 13 C.F.R. § 124.101) Who Are the 8(a) Participants?

  4. Must be a small business concern -- Independently owned and operated, organized for profit, and not dominant in its field. • Must be unconditionally owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of the U.S. • -- Social disadvantage - refers to individuals who (beyond their control) have been subjected to racial or ethnic prejudice or cultural bias because of their group membership identity. • -- Economically disadvantage. – refers to socially disadvantaged individuals with an impaired ability to compete in the free enterprise system because of diminished capital and credit opportunities. • Firms that have not been in business for 2 years do not meet potential for success, but may seek a waiver of the requirement by meeting certain conditions. What are the 8(a) Participant Requirements?

  5. Companies can participate in the program for a maximum of 9 years, in two stages: • -- DEVELOPMENTAL STAGE • -the first 4 years • -assist 8(a) certified firms overcome their economic • disadvantage by providing business development • assistance; • -- TRANSITIONAL STAGE • -the next 5 years • -designed to prepare participant firms for the competitive • marketplace. Term of 8(a) Participation

  6. What are the Benefits of the 8(a) Program? • Support for Government Contractors • Access to Capital • Management and Technical Assistance • Access to Surplus Property • One-on-one counseling assistance • Export Assistance • Marketing and Outreach Assistance • Procurement Assistance • Participation in the Mentor/Protégé Program

  7. Marketing • Finance • Management • Procurement • Training The Business Development Components of the 8(a) Program • One-on-One Counseling • Surplus Property • Mentor/Protégé • Joint Venture

  8. Excesspersonal property no longer required by the Federal agencies as determined by GSA What is Surplus Property?

  9. How Does the Surplus Property Program Assist 8(a) Participants? Provides property that a federal agency no longer needs For Example: -- Heaters -- Trucks -- Tools -- Air Compressor -- Generators -- Furniture

  10. Regulations Governing Surplus Property 13 C.F.R. § 124.405 provides for eligible 8(a) participants to receive surplus federal government property from State Agencies for Surplus Property (SASP) pursuant to 15 U.S.C. 636(j)(13)(F)

  11. Firm must be certified for participation in SBA’s 8(a) Program (See 13 C.F.R. § 124.405(b)(1)) • Firm must be in compliance with all program requirements, (i.e. financial statements, updated forms, etc.) (See 13 C.F.R. § 124.405(b)(2)) • Firm must not be debarred, suspended, or otherwise ineligible for federal contracts (See 13 C.F.R. § 124.405(b)(3)) Eligibility Criteria

  12. Firm must not be under pending termination, suspension or early graduation proceedings • Firm must be engaged in business activities to use the property (See 13 C.F.R. § 124.405(b)(5)) Eligibility Criteria (Continued)

  13. Transferred surplus property to the 8(a) participant is only for the sole use of the participant • Must be used in normal business operations • The firm agrees not to sell or transfer property to any party other than the federal government during the term of participation in the 8(a) program and for one year after it leaves the program Terms and Conditions

  14. Terms and Conditions (Continued) • That it will at its own expense, return the property to a SASP or transfer it to another participant if directed to do so by SBA because it has not used the property as intended within one year of receipt • If the participant breaches its agreement not to sell or transfer the property, it will be liable to the Government for the established fair market value or the sale price, whichever is greater, of the property sold or transferred • That it will give SBA access to inspect the property and all records pertaining to it

  15. Terms and Conditions (Continued) • A firm receiving surplus property pursuant to this section assumes all liability associated from the use of the property (See 13 C.F.R. § 124.405(c)(vi)(2)) • If the property is not placed in use for the purposes for which it was intended within one year of its receipt, SBA may direct the concern to deliver the property to another Participant or to the SASP from which it was acquired (See 13 C.F.R. § 124.405(c)(vi)(3)) • Failure to comply with any of the terms and conditions under the participants use of acquiring surplus property constitutes a basis for termination from the 8(a) program (See 13 C.F.R. § 124.405(c)(vi)(4))

  16. State Agency for Surplus Property (SASP) Responsibilities • Distributing property to Participants • Withholding any surplus property transfer until it receives written confirmation from the SBA district office that the firm is in compliance with all program requirements • Collecting acquisition and service/handling fees in accordance with this MOA

  17. State Agency for Surplus Property (SASP) Responsibilities • Maintaining accurate records on all 8(a) transferred property for 3 years in accordance with the MOA • Entering into agreements with Participants to ensure Participants understand the terms, conditions, and limitations to property transferred

  18. SBA’s Responsibilities • Assist in the education of 8(a) Participants regarding the terms of this MOA • SBA District Office will verify the eligibility requirements of a 8(a) Participant via notification to the SASP • Monitor compliance of firms and notify the SASP if a 8(a) Participant is not maintaining property in accordance with the MOA

  19. Amendment/Termination • MOA may be modified by written mutual consent • Either party may terminate this MOA with 30 day notification • This MOA is not a binding legal obligation between the parties

  20. Term of Memorandum of Agreement • 3 Year Term • MOA will expire, July 1, 2010

  21. SBA’s Point of Contact Sheila D. Thomas Director, Office of Program Review Office of Business Development U.S. Small Business Administration 409 3rd Street, SW Washington, DC 20416 (202) 205-5852 sheila.thomas@sba.gov

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