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Current Events

2013 Navy Gold Coast Small Business Procurement Event Legislative Update Pete Steffes August 28, 2013 Vice President Government Policy NDIA. Current Events. FY-14 DoD National Defense Authorization Act Full House Passed Bill on June 14, 2013

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Current Events

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  1. 2013 Navy Gold Coast Small Business Procurement EventLegislative UpdatePete Steffes August 28, 2013 Vice President Government Policy NDIA

  2. Current Events • FY-14 DoD National Defense Authorization Act • Full House Passed Bill on June 14, 2013 • Senate Committee Passed Bill on June 20, 2013 • Senate Floor Action Expected in September • FY-14 DoD Appropriations Act • Full House Passed Bill on July 24, 2013 • Senate Committee Passed Bill on August 1, 2013 • Senate Floor Action TBD • FY-14 Authorization and Appropriations Bill are based on the FY-14 President’s Budget Request Which Does Not Include Any FY-14 Sequestration Reductions

  3. Current Events Continued • Congress Returns on September 9th • Nine Legislative Days Until End of the Fiscal Year • Pending Business: • Government-Wide Appropriation Bills • Must pass by September 30th or Pass a Continuing Resolution • Debt Ceiling • Must pass in October/November or Risk Government Shutdown • Immigration Bill • Passed Senate, House Far Apart • Transportation Bill

  4. Current Events Continued • Since January 2013, Congress Has Introduced 59 Separate Bills Concerning Small Business • To Date, None Have Been Passed Into Law

  5. Small Business Legislation Introduced in 2013 House Provisions H.R. 27 Fairness in Bidding Competition Act of 2013 H.R. 30 Small Business Investment Enhancement and Tax Relief Act H.R. 120 Create Jobs by Expanding the R&D Tax Credit Act of 2013 H.R. 122 Creating Jobs From Innovation Small Business Act of 2013 H.R. 168 Small Business Freedom of Commerce Act of 2013 H.R. 489 HUBZone Expansion Act of 2013 H.R. 719/1105 Capital Access for Small Business and Jobs Act H.R. 746 Protect Small Business Jobs Act H.R. 774 Small Business Start-Up Savings Act of 2013 H.R. 886 America’s Small Business Tax Relief Act of 2013 H.R. 947 Small Business Accounting and Tax Simplification Act

  6. Small Business Legislation Introduced in 2013 Continued H.R. 1138 Small Business Clean Energy Financing Act of 2013 H.R. 1184 Small Business Deposit Relief Act of 2013 H.R. 1321 Small Business Paperwork Relief Act of 2013 H.R. 1323 Small Business Start-Up Savings Accounts Act of 2013 H.R. 1622 Fairness and Transparency in Contracting Act of 2013 H.R. 1800/2136 Small Business Credit Availability Act H.R. 2056 Veteran Employment Transition Act H.R. 2098 Federal Prison Industries Competition in Contracting Act H.R. 2232 Make Every Small Business Count Act of 2013 H.R. 2240 Small Business Tax Equality Act of 2013 H.R. 2333 Next Step Act of 2013 H.R. 2358 Preference for Local Veteran Contractors Act H.R. 2419 Small Business Credit Card Act of 2013

  7. Small Business Legislation Introduced in 2013 Continued H.R. 2441 Small Business Fairness Act H.R. 2451 Strengthening Entrepreneurs' Economic Development Act of 2013 H.R. 2452 Women’s Procurement Program Equalization Act of 2013 H.R. 2460 Ports as Small Business Incubators Act of 2013 H.R. 2461 Small Business Administration Loan Paper Reduction Act H.R. 2462 Small Business Opportunity Acceleration Act of 2013 H.R. 2474 Community Lending and Small Business Jobs Act of 2013 H.R. 2550 Minority Small Business Enhancement Act of 2013 H.R. 2551 Expanding Opportunities for Main Street Act of 2013 H.R. 2558 Incentivize Growth Now in Tomorrow’s Entrepreneurs Act of 2013 H.R. 2674 Job Creation Act of 2013 H.R. 2751 Commonsense Construction Contracting Act of 2013 H.R. 2827 American Jobs Act of 2013

  8. Small Business Legislation Introduced in 2013 Continued Senate Provisions S. 6 Putting Our Veterans Back to Work Act of 2013 S. 97 Small Business Paperwork Relief Act S. 115 Small Business Jobs Creation Act S. 206 HUBZone Expansion Act of 2013 S. 259 Assuring Contracting Equality Act of 2013 S. 430 Veterans Small Business Opportunity and Protection Act of 2013 S. 479 Small Business Efficiency Act S. 511 EXCEL Act S. 535 The Regulation Cost to Small Business Act S. 537 CLEAR SBA Act S. 550 Small Business Investment Company Modernization Act of 2013 S. 725 Small Business Taxpayer Bill of Rights

  9. Small Business Legislation Introduced in 2013 Continued S. 900 Small Business Payroll Protection Act of 2013 S. 936 Transparency in Small Business Assistance Act S. 968 Small Business Lending Enhancement Act of 2013 S. 1085 Small Business Tax and Certainty and Growth Act S. 1190 Small Business Fairness Act of 2013 S. 1285 Small Business Innovation Act of 2013 S. 1325 Small Business Tax Credits Improvement Act S. 1327 Healthy Competition for Small Business Act

  10. Small Business Legislation Introduced in 2013 Continued For a summary, current status, and/or the full text of each bill, go to: http://thomas.loc.gov/home/thomas.php Click on “Bill Number”, enter the bill you are looking for and click on search. Any questions/comments contact me at: psteffes@ndia.org If you would like a copy of this presentation, please go to the NDIA website: http://bit.ly/13eRWQD

  11. Regulatory Actions • Proposed Rule: Task and Delivery Order Contracts, Bundling, Consolidation • Issued: April 15, 2013 • Final Rule: Expected in 2013 or later. • This rule, derived from the Small Business Jobs Act of 2010, would work to create additional opportunities for small businesses in multiple-award contracts (MACs). The rule would create a set of guidelines for reserving MAC funds for small businesses, and would also outline additional SB standards for bundling and joint ventures. • Reference: Federal Register (77FR 29130) • Pages 29130-29165

  12. Regulatory Actions • Final Rule: Small Business Jobs Act: Small Business Size and Status Integrity (RIN: 3245-AG23) Effective: Aug. 27, 2013 • This rule will increase scrutiny of the reported size of a "small business." Given concerns that certain large firms are benefiting from small-business contracting opportunities, all firms registered as such must update their size at least annually, a procedure that must be certified by an authorized official • Reference: Federal Register (78FR 38811) • Pages 38811-38821

  13. Regulatory Actions • Final Rule: Small Business Subcontracting • Effective: Aug. 15, 2013. • This rule, part of the Small Business Jobs Act of 2010, requires that a prime contractor notify the contracting officer in writing whenever subcontracts are not awarded at the same percentage as indicated in the subcontracting plan submitted with the proposal for a contract • Reference: Federal Register (78FR 42391) • Pages 42391-42406

  14. Department of Defense FY2012 Small Business Procurement SBA Scorecard • 2011 Achievement 2012 Goal 2012 Achievement • Small Business 19.80% 22.50% 20.41% ($56.1 B) • Women Owned Small Business 3.43% 5.00% 3.38% ($9.3 B) • Small Disadvantaged Business 6.90% 5.00% 7.30% ($20.1 B) • SDVOSB 2.02% 3.00% 2.33% ($6.4 B) • HUBZone 2.58% 3.00% 2.18% ($6.0 B)

  15. SBA Goal Ratings for 2012 • The Department of Defense was given a “B” grade by the SBA. DoD stated that “there are no small businesses, or a group of small businesses, that have the capacity or infrastructure” to supply much of the military vehicles and warships that the department needs. • The Energy Department had the worst performance of the 10 biggest agencies by contract spending, with 1.24 percent and stated that the nature of its work made it difficult to award contracts to small businesses, NASA, with 2.94 percent of eligible contract dollars cited a lack of women-owned contracting companies in its field. • Across all federal agencies, women-owned small companies attracted about 4 percent of eligible contracts dollars in fiscal 2012.

  16. Impact of Regulatory Costs on Small Businesses • US Small Businesses Represent: • 99% of all employers • 44% of the total US private sector payroll • 40% of high-tech workers • 97.3% of all identified exporters, 30.2% of known export value • 33.3% of federal prime and subcontract dollars • U.S. Small Businesses (20 or fewer employees) pay an average of $10,585 per employee for regulatory costs, which is 36% higher than large firms (500 employees or more) • Environmental regulation costs are 364% more for small firms and 206% more for tax compliance.

  17. Impact of Regulatory Costs on Small Businesses Continued Annual Cost Per Employee of Federal Regulations by Firm Size ______________________________________________________________________ Type of Regulation Cost All Firms Fewer than 20 20-499 500 + Employees Employees Employees All Federal Regulation $8,086 $10,585 $7,454 $7,755 Economic $5,153 $4,120 $4,750 $5,835 Environmental $1,523 $4,101 $1.294 $883 Tax Compliance $800 $1,584 $760 $517 Occupational Safety and Health Homeland Security $600 $781 $650 $520 • Source: The Impact of Regulatory Costs on Small Firms, by Nicole Crain and Mark Crain, 2010. U.S. Small Business Administration, Office of Advocacy

  18. Export Control Requirements for All Manufactures of Products Sold to the Department of Defense • International Traffic in Arms Regulations ( ITAR) is a set of United States government regulations that control the export and import of defense-related articles and services. ITAR 122.1 requires registration. • Purpose.Registration is primarily a means to provide the U.S. Government with necessary information on who is involved in certain manufacturing and exporting activities. Registration does not confer any export rights or privileges. It is generally a precondition to the issuance of any license or other approval under this subchapter.

  19. Export Control Requirements Continued ITAR 122.1 Registration Requirements • “Any person who engages in the United States in the business of either manufacturing or exporting defense articles or furnishing defense services is required to register with the Directorate of Defense Trade Controls. For the purpose of this subchapter, engaging in the business of manufacturing or exporting defense articles or furnishing defense services requires only one occasion of manufacturing or exporting a defense article or furnishing a defense service.”

  20. Export Control Requirements Continued • Exemptions. Registration is not required for:(1) Officers and employees of the United States Government acting in an official capacity.(2) Persons whose pertinent business activity is confined to the production of unclassified technical data only.(3) Persons all of whose manufacturing and export activities are licensed under the Atomic Energy Act of 1954, as amended.(4) Persons who engage only in the fabrication of articles for experimental or scientific purpose, including research and development.

  21. Department of State Contacts for Further Information CONTACT INFORMATION • Response Team: For Defense Trade inquiries related to basic process and status • Hours: 9am - 5pm Eastern U.S. time Phone: (202) 663-1282 E-mail: http://www.pmddtc.state.gov/response_team/index.html • Help Desk: For Technical Issues • Hours: 9am - 5pm Eastern U.S. time Phone: (202) 663-2838 E-mail: dtradehelpdesk@state.gov

  22. For Further Information • If You Would Like A Copy of This Presentation, Please Visit NDIA Web Site At:http://bit.ly/13eRWQD • Or Contact Me At: psteffes@ndia.org

  23. Questions – Comments Pete Steffes (703) 247 9470 psteffes@ndia.org

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