SBA Amends and Improves HUBZone Regulations

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The U.S. Small Business Administration is making major updates to the Historically Underutilized Business Zone (HUBZone) Program, which comes as good news to those small business concerns who have struggled with the 1997 law. These revisions, becoming effective on December 26, 2019, are just in time for the holidays, and a wonderful present it is for the HUBZone program and all those involved.

The HUBZone program has faced a great deal of challenges since its inception in 1997. The program, which was designed to bring opportunity and growth to underutilized zones, has yet to flourish. Agencies to date have not yet been able to fulfill the government wide goal of awarding at least 3% of all contracts to HUBZone companies. This does not come from lack of effort, however.

On January 30, 2017, the executive branch issued Executive Order 13771 directing federal departments and agencies to reduce regulatory burdens and control regulatory costs. In response to this directive, SBA initiated a review of all of its regulations to determine which might be revised or eliminated, the HUBZone Program standing out as an area of improvement.  The revisions to the HUBZone Program effective December 26th clarify current HUBZone Program policies and procedures and makes changes that will benefit the small business community by making the HUBZone Program more efficient and effective.

With these new updates, many of the challenges facing HUBZone small business have been addressed and improved upon, namely the certification process. For service firms, winning contracts to perform services in another state would often require them to hire from non-HUBZone areas, disqualifying them from eligibility for future HUBZone contracts. To alleviate these problems, § 126.500(a) of the final rule requires only annual recertification rather than immediate recertification at the time of every offer for a HUBZone contract award.

Additionally, the SBA modified the process of determining which areas would be classified as HUBZones and when the qualifications would change. HUBZones previously would shift based annually based on the most recent income and unemployment numbers.  This made it extremely difficult to maintain compliance. The Final Rule solves this problem, offering a public online tool that depicts HUBZONEs and is update every five years rather than updating annually.

The current trend in HUBZone contract awards reported shows 1.65% in FY2017 and 2.05% in FY2018. Look for these numbers to increase in the coming years.

Author: Paul McVeigh

Sources:

https://www.federalregister.gov/documents/2019/11/26/2019-24915/small-business-hubzone-program-and-government-contracting-programs

Microsoft’s Pentagon Cloud Contract Controversy: Why It’s a Big Deal

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Microsoft just won a huge cloud contract from the Pentagon, outbidding Amazon and a handful of others. But the Pentagon contract, which is valued at $10 billion over 10 years, isn’t a done deal.

Amazon, which was favored to win the contract, isn’t going away quietly. The company has vowed to protest the decision, claiming bias on the part of the government and unfair intervention on the part of President Trump.

Ever since the Pentagon announced the Joint Enterprise Defense Infrastructure (JEDI) cloud contract, the leading cloud players had been pulling out all the stops to win it. JEDI is one component in the Pentagon’s efforts to modernize. The initiative relies on artificial intelligence, Internet of Things devices, and data analytics to enable the Pentagon to be more agile.

Pentagon contract mired in controversy from the start

Through JEDI, the Pentagon wants to be able to access data from the cloud, whether it’s on the battlefield or in a remote corner of the world. As it stands, the Pentagon’s systems are antiquated, making it hard to access and share data. Given the size and scope of the contract, it was expected that Amazon and Microsoft would go head to head to win it.

Bidding for the contract had been mired in controversy from the start. Some of the bidders — including IBM, Microsoft, and Oracle did not like that the Pentagon wasn’t splitting the contract across vendors. The Pentagon wanted a single vendor because it believes that it’s the best approach to enhance security, improve data access, and make it easier to incorporate more cloud computing technology in the future. Microsoft argued that approach was the opposite of the one the cloud industry was taking but was all in with its bid nonetheless.

Oracle and IBM emerged as vocal critics of the process, crying foul over Amazon’s unfair advantages. After all, Amazon Web Services (AWS) is the undisputed leader in the sector, even if Microsoft is chipping away at its dominance.

Despite all the pushback in August, it appeared Amazon would be the eventual winner. Then President Trump stepped in. According to media reports, the contract decision was placed on hold as the Trump White House began an examination of Amazon’s bid. Trump was already a critic of Amazon CEO Jeff Bezos and told the press during a meeting with the prime minister of the Netherlands that his administration was receiving complaints about the bidding process. A few months later, the Pentagon decided to award the contract to Microsoft, sending its stock higher and prompting Amazon’s warning that it will challenge the decision.

Amazon is not going away quietly

Amazon’s move will likely draw out the final awarding of the contract, which has already been delayed. And landing it would be important for both Amazon and Microsoft, which is why the e-commerce giant is willing to fight. Both companies are aiming to expand their cloud businesses by getting more government work. The JEDI contract will be a huge selling point when bidding on other government contracts. The military takes security seriously when working with vendors, and if one already has a proven track record, it’s likely to get more business. It doesn’t hurt that the federal government is reportedly gearing up to spend $40 billion on cloud computing initiatives in the coming years. Losing the contract also hurts Amazon’s reputation more than it would Microsoft’s. AWS is the leader in the cloud market, having entered it earlier than its rivals. Sure, Microsoft has been slowly chipping away at AWS’s dominance, but it still remains a distant second-place player. Amazon has also shown it is serious about winning government contracts, recently beginning to hire for its second headquarters, which will be located just across the Potomac River from Washington, D.C., and near the Pentagon.

While the saga of the JEDI deal won’t end anytime soon, one thing is for sure: Winning the contract would be in the best interest of both cloud players and their investors now and in the years to come, especially as the government gears up to spend tons of money modernizing its vast computer systems.

Author: Prasanna Haresh Patil

Reference: https://www.nytimes.com/2019/10/25/technology/dod-jedi-contract.html

https://www.cnbc.com/2019/10/31/microsoft-wins-pentagons-jedi-contract-and-the-cloud-wars-heat-up.html

https://www.fool.com/investing/2019/11/22/microsoft-pentagon-cloud-contract-controversy-why.aspx

Sabre88 Supports Small Business Saturday

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It is that time of year again, folks! As we round the Thanksgiving corner and break into one of the busiest shopping weekends of the year, don’t let Black Friday and Cyber Monday distract you from the opportunity to support our country’s small businesses on Small Business Saturday, observed on Saturday, November 30th this year.

What is Small Business Saturday? Simply put, it is a day to support small businesses and communities throughout the country. The idea is that, as consumers, we play a key role in facilitating the success of our nation’s small businesses.

Small Business Saturday was the brainchild of the credit card giant American Express, who set out to promote this idea to help our communities thrive and stay vibrant. According to their website, since it started in 2010, consumers have reported spending an estimated $103 billion across all Small Business Saturdays combined.

Sabre88 is proud to be a small business supporter. Sabre88 believes that in order to be a member of a sustainable community both locally and globally it is important to participate in and contribute to ongoing activities within that community.

As a small business, we at Sabre88 are tremendously thankful for the support of our customers and clients. The successes and achievements we have made over the last ten years would not have been possible without said support.

Pass on the support this Saturday, as it goes beyond the material goods or services purchased. Whether dining at a local café or finding a new niche clothing shop in town, any contribution will be felt by the families and communities in which those small businesses reside. Join the movement and Shop Small!

Author: Paul McVeigh

Sources:

https://www.americanexpress.com/us/small-business/shop-small/faqs

Federal Government Launches Online Scam Reporting System

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The Social Security Administration and Inspector General launch an online form to report Social Security-related scams.

These scams—in which fraudulent callers mislead victims into making cash or gift card payments to avoid arrest for purported Social Security number problems—skyrocketed over the past year to become the number one type of fraud reported to the Federal Trade Commission and the Social Security Administration.

Social Security and the Office of the Inspector General (OIG) will use the new online form to capture data that will be analyzed and used to identify the source of the scams. Officials said the end goal is to disrupt the scammers and reduce the number of scam victims reported.

“We are taking action to raise awareness and prevent scammers from harming Americans,” Social Security Commissioner Saul said. “I am deeply troubled that our country has not been able to stop these crooks from deceiving some of the most vulnerable members of our society.”

You can report any type of phone scams, including live calls, robocalls and text scams. You can also report email, mail and in-person scams.

“Awareness is our best hope to thwart the scammers,” said Inspector General Ennis. “Tell your friends and family about them and report them to us when you receive them, but most importantly, just hang up and ignore the calls.”

Social Security employees do occasionally contact people–generally those who have ongoing business with the agency–by telephone for business purposes.  However, Social Security employees will never threaten a person, or promise a Social Security benefit approval, or increase, in exchange for information or money.  In those cases, the call is fraudulent and people should just hang up.

 Generally, the agency mainly calls people who have recently applied for a Social Security benefit, someone who is already receiving payments and requires an update to their record, or a person who has requested a phone call from the agency.  If a person is not in one of these situations, they normally would not receive a call from the agency.

Social Security will not:

·       Tell you that your Social Security number has been suspended.

·       Contact you to demand an immediate payment.

·       Ask you for credit or debit card numbers over the phone.

·       Require a specific means of debt repayment, like a prepaid debit card, a retail gift card, or cash.

·       Demand that you pay a Social Security debt without the ability to appeal the amount you owe.

·       Promise a Social Security benefit approval, or increase, in exchange for information or money.

If there is a problem with a person’s Social Security number or record, in most cases Social Security will mail a letter.  If a person needs to submit payments to Social Security, the agency will send a letter with instructions and payment options.  People should never provide information or payment over the phone or Internet unless they are certain of who is receiving it.

 The Social Security OIG will also continue to take reports of fraud, waste, and abuse in Social Security’s programs and operations.  A separate online form for those reports remains available at their website.

Author: Prasanna Haresh Patil

Reference: https://www.fcc.gov/consumers/guides/one-ring-phone-scam

https://www.usa.gov/common-scams-frauds

Federal government launches online scam reporting system

NEWARK’S SABRE88 LLC NAMED ONE OF NATION’S FASTEST-GROWING INNER CITY BUSINESSES

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Company included in Initiative for a Competitive Inner City Ranking; list to be published in Fortune

Newark, November 15, 2019 – The Initiative for a Competitive Inner City (ICIC) announced that Newark’s Sabre88 LLC has made the 2019 Inner City 100 list of the fastest-growing inner city businesses in America based on revenue growth.

The list was revealed at the 2019 ICIC National Conference in Boston on November 13. The full list is available on Fortune’s website here. Sabre88, led by CEO Robert Cottingham Jr., was ranked 52 based on its five-year growth rate of 113.82%. Its 2018 revenue was $27,730,226.

“It is a great honor to be included on the IC100 list,” said Robert Cottingham Jr. “It is gratifying and rewarding to be recognized alongside national leaders from so many industries.” 

ICIC is a national Boston-based nonprofit created by Harvard Business School Professor Michael Porter in 1994 on the premise that under-resourced communities have vast, untapped potential, purchasing power and labor markets, which can only be realized by small business owners who are growing and creating high-quality jobs. Over the past 25 years, ICIC has built a foundation for inclusive economic prosperity, proving Porter’s theory time and again.

“Inner City 100 companies are forces of economic opportunity, optimism and transformation in their communities, and Sabre88 LLC is a shining example,” said ICIC CEO Steve Grossman.  “It leads the way in innovation, job creation and economic revitalization and it’s an honor to recognize the company’s leadership.  In addition to excellence in business, these pioneering entrepreneurs have demonstrated a deep commitment to and passion for their local communities, which significantly impacts the well-being of their local economies.”

ICIC’s Inner City 100 list has long celebrated entrepreneurship in under resourced communities. Since its inception, ICIC’s list has recognized over 1,000 companies. The 2019 winners employed 8,743 people as of 2018. The Inner City 100 program opens doors for other budding entrepreneurs from under resourced communities and stimulates inclusive economic prosperity through recognition, networking and learning.

2019 Inner City 100 by the numbers:

  • Average growth rate of 227% between 2014 and 2018
  • Represent 47 cities in 25 states
  • Created 4,299 new jobs in the last five years
    • 86% of those jobs are full-time
  • On average, 33% of employees live in same neighborhood as the company
  • Average company age:  17 years
  • Average 2018 revenue:  $12.2 million
  • 31% of companies are women-led
  • 38% of companies are minority-led
  • Represent 19 industries

2019 Inner City 100 and Sabre88:

This year, Sabre88 celebrates its sixth time being recognized on the ICIC’s Inner CIty 100 list. In fact, having been on the list 5+ times, Sabre88 is recognized in the ICIC’s Hall of Fame. This is no small feat, as Lauren Cataldo of the ICIC states, “being part of the Hall of Fame is truly an impressive achievement! We were so happy to recognize Sabre88 during the National Conference for its continued growth, and for being on the list six times!”

As of 2019, 1,023 Inner City 100 winners have been recognized. Of those winners, only 92 have been recognized as Hall of Fame winners.

To add perspective to the gravity of this achievement, only 46 companies have ever been recognized on the Inner City 100 list six times. Fewer than 4.5% of companies to make the list have done so six times as Sabre88 now has.

CEOs from the winning companies were invited to the 2019 ICIC National Conference. The event provided an opportunity to network and learn from current ICIC program participants, small business alumni and other high-growth small business owners. Past winners have reported connecting with multi-million-dollar investors as a result of appearing on the Inner City 100 list and attending the conference.

Inner City 100 Methodology: The Initiative for a Competitive Inner City (ICIC) defines inner cities as core urban areas with higher unemployment and poverty rates and lower median incomes than the surrounding metropolitan statistical areas. Every year, ICIC identifies, ranks, and awards the 100 fastest growing businesses located in America’s inner cities. In 2019, companies were ranked by revenue growth over the five-year period between 2014 and 2018.

About ICIC:

ICIC is a national nonprofit founded in 1994 by Harvard Business School professor Michael E. Porter. ICIC drives inclusive economic prosperity in under-resourced communities through innovative research and programs to create jobs, income and wealth for local residents.

Through its research on inner city economies, ICIC provides businesses, governments and investors with the most comprehensive and actionable information in the field about urban market opportunities. Now in its 25th year, the organization supports urban businesses through the Inner City 100, Inner City Capital Connections, Goldman Sachs 10,000 Small Businesses program, and Santander Bank’s Cultivate Small Business program.

Learn more at www.icic.org or @icicorg. 

Government Agencies Need “Data Hunters” to Improve Performance

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Faced with exponential data growth, stakeholders in both the public and private sectors struggle to effectively sort, analyze and leverage data to improve systems and services. In this new ecosystem of big data, many IT pros are turning to advanced analytics solutions, including artificial intelligence and machine learning, to help offload some of this data analysis burden and fundamentally change the way we interpret and use data. 

For the federal government, though, in order for these AI capabilities to be effectively implemented, agencies will require additional resources to locate the data most relevant to improving services and advancing missions. This is where data hunters can play a key role.

What is a data hunter?

Data hunters look for external sources of data that can be combined with internal information to generate new insights and optimize processes for the federal government. Often disguised under several different job titles including data acquisition specialists and data scouts, data hunters are those who have a firm grasp of agencies’ needs or challenges and then move to analyze that data accordingly.

Hunters use their knowledge of both the agency and the external environment to identify which new—often external—data sources could be helpful in addressing a particular issue. They then apply their practical skills to get the data and/or develop the new data streams and make them available to the organization, making them an upstream partner of data scientists and analysts.

Data hunters also play a critical role in data governance and management. Because of their role making data discoverable, data hunters can provide the feedback required to make sure that data is maintained securely, which is a primary concern for most government entities. They also need to be able to explain these issues to others to ensure that data quality is maintained. Finally, they need the skills to manipulate and manage data themselves to the required standards.

Data hunters are already an important part of many data enterprises in the private sector. A recent webinar from Forrester explored experience with data hunters among IT professionals and found that nearly one-third of those on the webinar said that their organization already had at least one data hunter role. Almost half (44%) said that they had a formal process for sourcing external data. Though this sample is not likely to be representative of the entire IT industry, it certainly demonstrates early adoption of the new job role in the private sector and is likely indicative that the trend will soon move to the federal government, if it has not already.

The Path Forward for Advanced Computing in Federal Government

Following the executive order on artificial intelligence and the launch of AI.gov, the federal government is in a position to leverage cutting-edge technologies to keep pace with citizens’ needs. To effectively incorporate AI and ML technologies, however, agencies will require data hunters to look beyond their traditional boundaries for data insights.

Data hunting can also help solve challenges for federal benefits programs such as eligibility verification. The government can take a “recipient-centric” approach that incorporates contextual information from outside sources, in accordance with privacy regulations, to understand when changes in a recipient’s life may have altered their needs. Or in social services for example, child welfare caseworkers assigned to families with children at risk of abuse or neglect can make better-informed decisions when data external to the agency—like school records, birth records and law enforcement/emergency services—can be brought to bear to augment their internal data.

The ability to combine internal and external data to glean deeper insights has myriad applications in the public sector and will shape the way that the federal government’s services are delivered moving forward.

Author: Prasanna Haresh Patil

Reference: https://tdwi.org/articles/2016/02/09/mastering-the-big-data-challenge.aspx

https://www.nextgov.com/ideas/2019/11/federal-agencies-need-data-hunters-enhance-performance/161173/

Sabre88 – Hats Off to the Veterans

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In order to commemorate the “eleventh hour of the eleventh day of the eleventh month” which marked the end of World War I, the United States sets aside November 11th each year to honor those who have served their county. Veterans Day, previously known as “Armistice Day,” is a federal holiday reserved as a special time to express our gratitude for the sacrifice that was made by our brothers and sisters both past and present for our safety and freedom.

Sabre88 prides itself on holding firm to its core values, all of which our Veterans embody. From our Veterans we see unrivaled and inspirational teamwork and service to the community, we see cutting edge technology and efficient communication, and we see accountability. This time of year, all of us at Sabre88 tip our caps to those who have sacrificed everything so that we can continue to honor and serve our customers and each other. We would like to express our sincerest gratitude for the incredible men and women whose actions have protected our freedoms and kept us safe.

At this time, we are proud to honor our very own Sabre88 Veterans:

Charlie Cernat

Taylor Collins

Jim Hansel

Kathleen Hull

Howard Johnson

Robert Lightfoot

Lekeisha Mosley

Ron Oliver

Brian J. Schweikert

Daylyn Whitley

On behalf of all of us here at Sabre88, Thank You for Your Service. Our hats are off to you!

Author: Paul McVeigh

Sources:

https://www.history.com/topics/holidays/veterans-day-facts

https://www.defense.gov/explore/story/article/1675470/5-facts-to-know-about-veterans-day/

Tammy Duckworth and Jim Risch Introduce Bipartisan Bill to Promote Small Business Contracting Throughout the Federal Government

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U.S Senators Tammy Duckworth (D-IL) and Jim Risch (R-ID) introduced bipartisan legislation that would strengthen the Offices of Small and Disadvantaged Business Utilization (OSDBU) which exist within each federal agency to maximize contracting opportunities for small businesses.

Since many federal agencies have failed to fully empower their OSDBUs and comply with the Small Business Act, the Small Business Contracting Accountability Act would require those non-compliant agencies to submit a report to the House and Senate Committees on Small Business and Entrepreneurship detailing why the agency is not compliant, as well as the specific actions that the agency will take to comply. Duckworth serves on the U.S. Senate Committee on Small Business & Entrepreneurship.

 “Small business are our nation’s job creators and primary investors in our local economies, which is why it’s critical they have a strong voice within our federal agencies,” Duckworth said. “I’m glad to be working with Senator Risch on this bipartisan bill that would help enforce existing law designed to enable small businesses across the country better access contracting opportunities with the federal government.”  

“Many Federal agencies are required by law to maximize opportunities to contract with America’s small businesses. When agency officials fail to comply with the law, they should have to answer to the authorizing committees,” said Risch. “I am proud to introduce the Small Business Contracting Accountability Act of 2019, a bipartisan, common-sense approach that will level the playing field for small businesses and hold Washington bureaucrats accountable for failing to meet reasonable standards.”

Under the Small Business Contracting Accountability Act, any non-compliant agency would have 120 days upon the enactment of this legislation to submit their report, or 120 days after the Government Accountability Office (GAO) submits another report on agency OSDBU compliance to the Committees, whichever is later. If GAO issues another of these reports, this legislation will also apply should the GAO find agencies non-compliant. GAO is an independent, nonpartisan agency that provides Congress and federal agencies with objective, reliable information.

Author: Prasanna Patil

References: https://www.effinghamradio.com/2019/10/30/duckworth-risch-introduce-bipartisan-bill-to-promote-small-business-contracting-throughout-the-federal-government/

https://www.duckworth.senate.gov/news/press-releases/duckworth-risch-introduce-bipartisan-bill-to-promote-small-business-contracting-throughout-the-federal-government

Small Business Plays Major Role in Federal Contracting Business

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Small business set-asides are contracts “set aside” by the U.S. Small Business Administration (SBA) that must be awarded to small businesses, in order to help them compete for the $500 billion in goods and services the federal government buys from the private sector annually. Set-asides are awarded across a variety of industries, and disadvantaged businesses are given special consideration.

The U.S. Small Business Administration (SBA) works with federal agencies to help ensure that at least 23% of all prime government contracts are awarded to small businesses. This is one way that small businesses can compete with Amazon and the other giants of commerce. There are two main types of small business set-asides: competitive set-aside contracts, and sole-source set-aside contracts.

For competitive contracts, two or more businesses can submit a bit to take on the job. Generally (though not always), this happens automatically when the contract is under $150,000. Some of these contracts are only open to those who participate in SBA contracting assistance programs.

Sole-source contracts are awarded without a bidding process when only a single business can fulfill the contract requirements. These contracts are publicly posted, and potential vendors can still bid on them, assuming the business participates in the relevant contracting assistance programs.

In addition to the government-wide 23% set-aside goal, there are different goals for certain subsets of small businesses:

  • Small disadvantaged businesses (8a program) — 5%
  • Women-Owned Small Businesses (WOSB) — 5%
  • Service-Disabled Veteran-Owned Businesses — 3%
  • Businesses in HUBZones (historically underutilized business zones) — 3%

Not all set-asides are for prime contracts (those directly with a government agency). There are also small business set-asides for subcontracts resulting from a prime contract. For example, if an automotive manufacturer gets a prime contract to build Army jeeps, they could subcontract with a small manufacturer to supply some of the parts. Any qualifying small business has the opportunity to win a set-aside contract. Doing so can open the door to future opportunities, and can be used as an excellent marketing tool for other jobs as well.

Author: Prasanna Patil

References:

https://us.accion.org/resource/what-know-about-federal-small-business-set-aside-contracts/

https://fcw.com/articles/2019/04/18/small-business-rockwell.aspx

Women-Owned Businesses in Federal Contracts

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The contracts awarded to Women-owned businesses was approx. $25 billion of total federal contract spending last year – but that figure accounts for less than 5% of total contracts awarded, according to data provided by American Express. The first step for women interested in winning this business is to expand their view of what goods and services the federal government might need. A recent research revealed that 15% of women-owned businesses in the U.S. are health care or social assistance oriented, and that 13% are in the professional, scientific and technical services category. This includes business types such as law or accounting offices, or even public relations. Those services are perfect matches for what the federal government buys. For example, many types of government offices – from Veterans Administration to Social Security facilities – are in need of day care centers.

There are two primary ways to benefit from government contracts, one is becoming a prime contractor. That means the government buys directly from you and pays you directly. That’s a big challenge, because there are legal responsibilities, there are reporting responsibilities.

A less burdensome approach is to become a subcontractor. An easier way to enter the marketplace is often as a subcontractor, where you are essentially working with another company who has the prime contract and then they subcontract with the women-owned firm to provide the services or products that they offer.

The federal government contracting market is one based on relationship-building.  Buyers want to know who you are. They want to trust that you can do what you say you can do. For women, that comes naturally in building strong, trusted relationships. Also, business owners need to be sure to educate themselves before going after contracts. Educating oneself about the financial demands of being a government contractor is an important step to take. Identifying our limitations, targeting doable businesses, building trust of contractors always helps to grow the business.

Author: Prasanna Patil 

References: https://www.lbbusinessjournal.com/how-women-owned-businesses-can-secure-more-federal-contracts/

https://smallbiztrends.com/2017/10/federal-contract-tips-for-women-owned-businesses.html

https://smartsimplemarketing.com/8-keys-for-women-owned-businesses-to-unlock-government-contracts/