NAVFAC Southwest

Lora E. MorrowDeputy for Small BusinessNAVFAC Southwest

NAVFAC Southwest

SAME San Diego

January 14, 2015

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Who is NAVFAC Southwest?

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Naval Facilities Engineering Command, Southwest, headquartered in San Diego, CA, provides all facilities

acquisition, installation, engineering support, and base operating and maintenance services required to support Navy and Marine Corps

Servicemen ashore throughout our six-state area of responsibility.

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NAVFAC Southwest Mission

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PWD CoronadoPWD San DiegoPWD Point LomaMCRD

PWD El Centro (BOS)

PWD Monterey

ROICC Barstow PWD Seal Beach

PWD Ventura County

PWD Lemoore

ROICC San Francisco BayPWD Fallon (BOS)

PWD China Lake

NAVFAC SW Area of Responsibility

ROICC Travis

OICC MCI WestROICC Camp PendletonMCAS Camp Pendleton

ROICC Miramar

ROICC Twentynine Palms

ROICC Yuma

ROICC Bridgeport NOSC Denver

NOSC FT Carson

NOSC Albuquerque

NOSC Salt Lake City

NOSC Tuscon

NOSC Phoenix

NOSC Reno

NOSC Reno

NOSC Sacramento

NOSC San DiegoNOSC North Island

NOSC AlamedaNOSC San Jose

NOSC Los AngelesNOSC Moreno ValleyNOSC Port HuenemeNOSC Point Mugu

Navy Installation - 10

Marine Corps - 8 Installation

Air Force Base – 1

Reserve Centers - 18

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What NAVFAC Southwest Buys

•Public Works–Facility Sustainment –Utility & Energy Management–Base Operation and Maintenance–Facility Services

•Asset Management–Real Estate–Land & Installation Planning–Facilities Planning–Encroachment Management–Facilities Integrated Logistics Support

–Real Property Acq, Mgmt & Disposal

•Capital Improvements–Construction Services–Architect & Engineering Services–Design In-House–Specialized Technical Services–Ocean Engineering

•Environmental–Environmental Planning/NEPA–Environmental Compliance & Conservation

–Environmental Restoration–Sustainable Solid Waste Management

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Types of Contracts

• Basic Ordering Agreements (BOA)(Construction only)

• Job Order Contracts (JOC)(Construction)

• Base Operation and Support (BOS) (Services)

• Multiple-Award Contracts (Construction, Environmental, and Services)

• Indefinite Delivery Indefinite Quantity (IDIQ)(Construction, Environmental, Services,

Architectural & Engineering Services)• Stand-Alone, Single Award Procurement

(All types of services)

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Multiple Award Contracts(MACs)

• NAVFAC Southwest has MACs for • Construction (MACC), • Environmental (EMAC), and • Services (MASC)

• MACs are awarded based on SOURCE SELECTION• Limited number of awards per MAC (usually 3 – 5)

• Types of MACs at NAVFAC Southwest• 8(a) MACs • HUBZone/SDVOSB• SB• Unrestricted with SB Reserves• Unrestricted w/o SB Reserves• Wide Scope of Work • Narrow/Specialty Scope of Work

Procurement strategy is determined by

Market Research and Agency need.

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Top 10 NAICS Codes for FY2014

NAICS Description # of Actions

$000 % of $$ spend

236220 Commercial and InstitutionalBuilding Construction

1154 461,847 32.41%

237310 Highway, Street, and Bridge Construction

306 148,046 10.39%

561210 Facility Support Services 845 123,478 8.66%

562910 Remediation Services 419 113,737 7.98%

541330 Engineering Services 736 104,457 7.33%

237110 Water and Sewer Line and Related Construction

142 83,723 5.87%

237130 Power and Communication Line Construction

128 58,673 4.12%

238220 Plumbing, Heating, and Air Conditioning Contractors

292 55,864 3.92%

238990 Specialty Trade Contractors 481 43,857 3.08%

237990 Heavy and Civil Engineering Construction

105 40,089 2.81%

Totals for FY2014: 6,630 Actions, $1,425,221,774.42

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Top 10 SB NAICS Codes for FY2014

NAICS Description # of Actions

$000

236220 Commercial and Institutional Building Construction

918 315,671

561210 Facility Support Services 827 121,048

237310 Highway Street and Bridge Construction 215 79,602

541330 Engineering Services 242 54,440

238220 Plumbing, Heating, and Air Conditioning Contractors

251 49,444

238990 Specialty Trade Contractors 479 41,790

562910 Remediation Services 199 36,615

237110 Water and Sewer Line and Related Construction

86 22,768

237990 Heavy and Civil Engineering Construction 68 19,715

238160 Roofing Contractors 103 18,096

Total SB for FY2014: 4,713 Actions, $853,251,175.60

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So how did NAVFAC Southwest do relative to SB targets for prime contract awards?

Category FY14Prime Award Target (Goal)

FY14Actual Prime Awards

FY14% above/below target

Total number of actions to SB

Total dollars to SB ($000)

Small Business

50.00% 60.46% 20.92%Above

4,713 853,251

HUBZone 10.00% 16.94% 69.40% Above

695 236,868

SDVOSB 4.00% 7.62% 90.50%Above

524 107,362

SDB 29.00% 46.52% 60.41%Above

3,651 654,114

WOSB 7.00% 14.22% 103.14%Above

958 198,777

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Market Research

• Sources Sought Announcements

• Dynamic Small Business Search (DSBS)

• Solicitation Websites (FBO and NECO)

• Historical Information

• Industry Forums

• Other

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Set-Aside Priorities

1. Parity HUBZone SDVOSB WOSB/EDWOSB 8(a)

2. Small Business

3. Unrestricted (with SB reserves) Set aside task orders for SB

4. Unrestricted (without SB reserves)

All are equal first priority

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What is a Small Business?

• Entity organized for profit

• Place of business in U.S. and operates primarily in U.S.

• Entity whose average annual revenues or number of employees are below the size limit set for NAICS Code.

• Can be small business and large business at the same time.

• Affiliations count toward size determination

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Types of Affiliation

–General Affiliation •On going basis•Common ownership, common control, economic dependence, etc.

•Ability of one entity to control another•Applies to the company in all business transactions

–For a specific procurement•Joint Venture•Only applies to the instant contract

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Types of Joint Ventures

• SB –13 CFR 121

• 8(a) – 13 CFR 124

•SDVOSB – 13 CFR 125

• HUBZone– 13 CFR 126

• WOSB/EDWOSB– 13 CFR 127

Joint Ventures must…

• Be in writing

• Conform to appropriate section of 13 CFR

• Be approved prior to award

–by SBA for 8(a) set-aside–by KO for all other set-asides

• Comply with limitations on subcontracting

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Mentor Protégé Agreements

• DoD MPA– Mentor is LB – Protégé can be any type of SB – Mentor can chose reimbursement or subcontracting credit

– If JV, affiliation is not waived (JV is LB)

• SBA MPA – Mentor can be any sized business except 8(a) – Protégé must be 8(a) – Can form JV on SBSA and 8(a) set-asides and rules of affiliation are waived

• JV maintains the size status of the protégé firm – Maximum of 3 awards in 2 years

•Excessive use of JVA for contract awards may lead to a finding of general affiliation

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Joint Venture Rules

• Size of procurement matters. – Less than or equal to half the size standard: Affiliation not waived.

– Greater than half the size standard – Affiliation may be waived IF:

• All parties to JV are small in NAICS• JVA complies with approved SBA MPP• JVA conforms to appropriate section of 13 CFR

• SBA MPP JVAs –Can only JV on procurements set-aside for SB or 8(a)

• Ostensible subcontracting – SB prime relies too heavily on subcontractors. Parties may be considered JV. Affiliation not waived.

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Summary

• Know the rules as they pertain to JVAs

• Understand how JVs will be evaluated on procurements

• Beware of Ostensible Subcontracting

• Be knowledgeable of 13 CFR requirements

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Additional Resources

Small Business Administrationhttp://www.sba.gov

Procurement Technical Assistance Centerhttp://www.dla.mil/SmallBusiness/Pages/ProcurementTechnicalAssistanceCenter.aspx

DoD Small Business Professionalshttp://www.acq.osd.mil/osbp/doing_business/DoD_Contracting_Guide.htm

NAVFAC Small Business Websiteshttps://smallbusiness.navfac.navy.milhttps://portal.navfac.navy.mil/portal/page/portal/navfac/navfac_ww_pp/navfac_navfacsw_pp/sw_sb

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Questions?