DIRECTOR S NOTE FEBRUARY 2011

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________________________________

DIRECTOR’S NOTE

Our Program Manager, Denise Reimer, has accepted the position of Associate Dean, Center for Business and Applied Arts at Madison College. Speaking for myself and all of the BPAC staff, we wish her well in her new role and want to thank her for her fine leadership during the previous 11 years as the BPAC Program Manager. A thank you and good-bye also goes out to Claudette Zweifel. Claudette moved on to a different grant program and has been replaced by Cindy Treige-Onofrey. Cindy is from College’s Grants Office and we welcome her experience and expertise. In addition, Joanne Brockman has been doing an excellent job filling in for me as a Government Contract Specialist while I am serving as BPAC’s Interim Program Manager.

During the year from August 1, 2009 – July 31, 2010, BPAC assisted Wisconsin businesses win a total of $673 million in contract awards:

• 2,175 federal procurement contracts, totaling over $628.4 million • 43 state and local government awards, totaling $1.3 million • 74 subcontracting awards, totaling nearly $43.2 million

Ninety-two percent of businesses served by BPAC were small Wisconsin businesses. The Department of Defense estimated a total of 13,460 jobs were created and/or retained based on BPAC assistance during this time period.

We are excited about our new outreach efforts. Last week, Marinette Marine Corporation and Wisconsin Procurement Institute, with BPAC as a co-sponsor, held a very successful Small Business Industry Day conference in Green Bay with 600 attendees. Senator Kohl made a special appearance in Green Bay. BPAC is currently working with the US Small Business Administration on scheduling a new series of outreach events to provide information on the Small Business Job Act of 2010 including the new woman-owned business certification program and changes to the Mentor Protégé program. Stay tuned for further details and locations at http://matcmadison.edu/bpac-training

Mark your calendar – Business Opportunities in the Government Sector (BOGS) is on April 26, 2011 at the Monona Terrance in Madison. This conference is for small businesses as well as State prime vendors. BOGS is sponsored by the WI

Departments of Administration and Transportation, UW Small Business Development Center and BPAC. This year’s event will include special training on the State’s new contracting opportunities for businesses owned by Service Disabled Veterans. A special thank you to Eric Ness, SBA Wisconsin District Director, for his article on the Jobs Act found on page 4.

Did you notice our new look? This is our first newsletter using our new marketing brand. As part of the Center for Community and Corporate Learning at Madison College, BPAC recently developed new marketing materials that all follow a similar color schemeand image. We hope you like BPAC’s new look!

Best Regards,

FEBRUARY 2011

Director’s Note Counselor’s Corner - Changes in

Reporting Requirements Small Business in Wisconsin

Benefit from Job Act Training Opportunities

SBIR/STTR Conference Marinette Marine Corporation Small Business Industry Day Basics on Federal Contracting E-Verify Power and Energy Defense

Cluster Business Opportunities in the Government Sector Attention Veterans BPAC Offices 302 S. Gammon Road Madison, WI 53717 Office: 608.243.4490 [email protected] madisoncollege.org/bpac

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Executive Compensation

and First Tier Subcontract

Awards Reporting

By: Ralph Steckman

Wisconsin businesses need to be aware of reporting requirements which may or may not apply to them. One is the reporting requirements for executive compensation and the other is for first-tier subcontract awards.

Executive Compensation

The executive compensation reporting requirement applies if:

1. The contractor, in its preceding fiscal year, received: (a) at least 80% of its annual gross revenue from federal contracts,

subcontracts, loans, grants, and cooperative agreements and (b) $25 million or more in annual gross revenues from federal contracts, subcontracts, loans, grants, and cooperative agreements; and 2. The public does not already have

access to information about the compensation of the relevant executives via the contractor’s SEC reports. See FAR 52.204-10(b)(2).

Where these conditions are met, the business will need to report the names of their top five highest compensated executives and the total compensation paid to them for the contractor’s preceding completed fiscal year. This information will be reported in the CCR and available to the public.

First-Tier Subcontract Awards

Effective March 1, 2011, the

requirement to report first-tier subcontract awards will apply to all prime contracts with a value of at least $25,000. Contractors will be required to report the following information:

• The name and DUNS Number of the subcontractor and its parent

• The date and amount of the contact award

• A general description of the products or services

• The subcontract number

• The subcontractor’s address and place of performance

• The prime contract and order number

• The awarding and funding agency names and codes

• The Government contracting office code

• The Treasury account symbol

• The applicable NAICS code Finally, the interim rule also includes a separate requirement for contractors to report “the names and total

compensation of each of the five most highly compensated executives for each first-tier subcontractor.” FAR 52.204-10(c)(3). The requirement to report subcontractor executive compensation applies if all of the following conditions are met: 1. The first-tier subcontract is

valued at $25,000 or more;

2. The first-tier subcontractor, in its preceding fiscal year,

received: (a) at least 80% of its annual gross revenue from federal contracts, subcontracts, loans, grants, and cooperative

agreements and (b) $25 million or more in annual gross revenues from federal contracts,

subcontracts,loans, grants, and cooperative agreements; and

3. The public does not already have access to information about the compensation of the relevant executives viathe first-tier subcontractor’s SEC reports. If you would like any assistance related to executive compensation and first tier and subcontract award reporting please contact:

Stephanie Barganz at Bodilly CPA & Consultants 608-664-1047 or email [email protected] Introduction to Federal Construction Projects February 17, 2011 ~ Madison 9:00am-12:00pm

Fee: $35.00 per person

Learn about contracting with the Federal government for

construction work. Topics that will be discussed include: types of contracts and solicitation methods, the Federal Acquisition Regulations related to construction contracting, and understanding contract requirements.

Create an Offer to a Federal Government Solicitation

February 24, 2011 ~ Fort Atkinson 9:00am-3:30pm

Fee: $65.00 per person Create a winning offer to real government solicitations in this full day interactive workshop. Choose from product, service, or

construction solicitations issued from the Federal government and try to win that contract.

Introduction to Custom Manufacturing for the Military

March 15, 2011 ~ Green Bay 1:00pm-4:30pm

Fee: $30.00 per person This training is geared for the manufacturer that focuses on fabricated metal products, castings, non-metal components and other related industries, who are interested in selling to the Department of Defense.

Introduction to Federal Construction Projects

March 31, 2011 ~ Camp Douglas 9:00am-12:00pm

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Throughout my travels in Wisconsin I see the challenges that small businesses face - finding ways and resources to meet the day to day operations.

The Jobs Act provides more con-tracting opportunities for small businesses by eliminating the “Competitiveness Demonstration” program which limited opportuni-ties for small business contractors in about 11 industries such as con-struction, landscaping and pest control. Contracting officers will have the ability to reserve orders for small business participation on contracts with multiple awards. In an effort to combat fraud, waste and abuse in government con-tracting, the law will put in place a legal standing of “presumption of loss” when a business misrepresents its ownership status or size in win-ning a government contract. The law will hold large prime contrac-tors more accountable to their own subcontracting plans by requiring written justification when plans aren’t met and when small busi-ness subcontractors aren’t paid on time.

SBA will begin implementation of its women-owned small business (WOSB) contracting program. This is part of the Obama Administration’s overall commitment to expanding opportunities for small businesses to compete for federal contracts, in particular those owned by women, socially and economically disad-vantaged persons and veterans. In addition to opening up more op-portunities for WOSBs, this is another tool to help achieve the statutory

goal that 5 percent of federal con-tracting dollars go to women-owned small businesses. SBA ex-pects this program to be available for WOSBs in early 2011.

The Job Act offers eight new tax cuts totaling $12 billion. These are targeted to small business owners so that they can focus more on investing in their business and cre-ating jobs. The Jobs Act has a number of other provisions aimed at expanding access to capital. The law permanently increases the maximum size in SBA’s top two loan programs - 7(a) and 504 - from $2 million to $5 million. The law also permanently increased the maxi-mum size of our microloans from $35,000 to $50,000. In addition, there are two temporary changes that will help small business owners. First, we increased the maximum amount of our SBA Express loans from $350,000 to $1 million. Express loans use a streamlined application process. Second, some small busi-nesses will be allowed to refinance their commercial real estate mort-gages into our 504 program. This will provide the business owner with more stable financing.

For more information about the new Small Business Jobs Act, go to

www.sba.gov/jobsact

We look forward to putting these tools in the hands of Wisconsin’s small businesses so they can grow, create jobs, and continue to lead our economic recovery.

Small Business in Wisconsin

Benefit from Job Act

By: Eric Ness, SBA Wisconsin District Director _{Understanding Federal}

Construction Requirements

March 31, 2011 ~ Camp Douglas 1:00pm-4:00pm

There are unique requirements and regulations that apply to federal construction contracts. Learn how to comply. This session is geared to prime contractors and

subcontractors.

Getting Started in Federal Contracting

April 7, 2011 ~ Rhinelander 1:00pm-3:30pm

The United States Government is the largest purchaser of goods and services in the world. This is an entry-level seminar that provides a solid orientation to the federal

contracting environment.

Finding Federal Opportunities – Computer Lab

April 14, 2011 ~ Wisconsin Rapids 9:00am-12:00pm

This is an interactive workshop. The first half of the training will be devoted to providing tips and techniques on how to search the Internet and government websites. During the second half of the workshop, go online to locate government contracting opportunities targeted to your business.

Marketing to the Federal Government

April 14, 2011 ~ Wisconsin Rapids 1:00pm-3:30pm

Fee: $35.00 per person You’ve searched some of the Federal government websites and have located a contracting opportunity. Or perhaps you have identified several federal agencies and a major prime contractor that buys your product or service. What do you do next?

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2011National SBIR/STTR

Spring Conference

April 10-13, 2011 Madison, WI

Leveraging federal funds for

your small business.

www.wisconsinsbir.org/

What you will learn?

At this conference, you will hear about key facets of the federal SBIR/STTR programs. Specifically you will:

• Hear from attending federal SBIR/STTR agency representatives • Hear from government, industry and academic experts in the federal SBIR/STTR Programs • Meet with agency

representatives at one-on-one sessions

• Connect and network with technology entrepreneurs, innovators, researchers • Learn about cutting-edge technology opportunities in defense, agriculture, energy and life sciences

• Learn how to successfully submit competitive research proposals • Learn about large companies and their partnering opportunities with small businesses

• Learn about many research oriented organizations (private and public) in the Midwest

What are the SBIR and STTR Programs?

SBIR is a highly competitive program that encourages small business to explore their

technological potential and provides the incentive to profit from its commercialization. By including qualified small businesses in the nation's R&D arena, high-tech innovation is stimulated and the United States gains

entrepreneurial spirit as it meets its

specific research and development needs

STTR is an important small business program that expands funding opportunities in the federal innovation research and

development arena. Central to the program is expansion of the

public/private sector partnership to include the joint venture

opportunities for small business and the nation's premier nonprofit research institutions. STTR's most important role is to foster the innovation necessary to meet the nation's scientific and

technological challenges in the 21st century.

Marinette Marine

Corporation

Small Business Industry Day

On December 29, 2010, the U.S. Navy awarded contracts for Marinette Marine Corporation (MMC) to build as many as 10 littoral combat ships through fiscal 2015. As a result of this contract, Marinette Marine Corporation hosted a Small Business Industry Day on February 8, 2011 in Green Bay. The event was co-sponsored by BPAC and the Wisconsin Procurement Institute (WPI). Attendees were treated to a variety of presentations, resource booths, networking opportunities, and one-on-one meetings with MMC buyers. Presentation topics covered all aspects of doing business with prime contractors, and specifically, requirements for subcontracting with MMC. WPI/BPAC proudly hosted 600 attendees, representing over 250 Wisconsin businesses. Thanks to all attendees and partners who made the event such a success. And thank you to Marinette Marine, for seeking to share their federal contractin g success with Wisconsin businesses.

. Introduction to GSA Schedules Programs TBA ~ Pewaukee 9:00am-11:30am Fee: $45.00 per person

Every year Federal buyers use the GSA (General Services

Administration) Schedules as their preferred method of purchasing. This course will help you decide whether pursuing a GSA Schedule contract is right for your business. GSA Solicitation – Responding to Requirements

TBA ~ Pewaukee 1:00pm-3:30pm Fee: $45.00 per person

This in-depth seminar focuses on how to complete the GSA Schedule solicitation paperwork and how to make a successful proposal/offer.

Wide Area Workflow (WAWF) April 29, 2011 ~ Fort Atkinson 9:00am-12:00pm

Fee: Free

You will learn how to effectively use the WAWF system, how to develop Invoices, Receiving Reports and other billing documents; and how to correct and resubmit rejected documents. This seminar will cover the current DoD supplier

requirements/ mandates for Wide Area Workflow.

Introduction to Federal Construction Projects May 4, 2011 ~ Fond du Lac 9:00am-12:00pm

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Many businesses across the nation have been impacted by the economy. With layoffs, rising unemployment and reduced sales, many businesses are struggling and are desperately looking for new

customers. One potential new customer that many businesses are looking toward today is the Federal government. The U.S. government is the world’s largest buyer of goods and services— from spacecraft and scientific research to paper clips; from building airstrips and highways to federal office buildings, courthouses, hospitals, barracks and landscaping services. The federal government spends $538 billion or more per year.

Is Government Contracting Right for You?

Government contracts can provide significant revenue but you must be willing to:

Register with the Central Contractor Registration and agency websites

Conduct research to find procurement opportunities Take the time to prepare and

present offers (including bids and quotes)?

Learn and follow the rules relating to federal acquisitions? Be technologically proficient and

adaptable to new business models There are several steps you will need to take to become a federal contractor or subcontractor and they include:

Step 1: Identify your service. Know the

North American Industry Classification System (NAICS) code:

http://www.census.gov/epcd/www/naics.ht ml and the Federal Supply Classification (FSC) code:

http://www.drms.dla.mil/asset/fsclist.html

for your product or service.

Step 2: Obtain a Data Universal Numbering System (DUNs) Number from Dun & Bradstreet. This is a unique

business identification number. There is no charge for assigning a DUNS number and you must have one to register in CCR. Call (866) 705-5711 or use its website

http://fedgov.dnb.com/webform

Step 3: Register in the Central

Contractor Registration (CCR) System.

CCR is a database designed to hold contractor information required for Federal procurement and financial transactions. The information in the CCR also facilitates fast electronic payment of contractor invoices. http://www.ccr.gov

Step 4: Register in Online

Representations and Certifications Application (ORCA). ORCA is the

primary federal government repository for all of your company's required

representations and certifications and can be accessed by federal procuring agencies.

https://orca.bpn.gov/

Step 5: Begin to search for current Federal Government procurement opportunities. Identify opportunities by

visiting the Federal Business Opportunity website; also called FedBizOpps or FBO. FBO is the mandatory posting site for all Federal contracting opportunities that are over $25,000. The website is

http://www.fbo.gov

Step 6: Familiarize yourself with the procurement forecasts for your targeted agencies. On the home page of FBO, click

on the link Federal Agency Business Forecasts under “Additional Resources”. Use the forecast to identify future opportunities for your firm.

Step 7: Be Familiar with Regulations.

The Federal Acquisition Regulation (FAR) and the supplemental procurement regulations, such as the Defense Federal Acquisition Regulation Supplement (DFARS) can be found at:

http://farsite.hill.af.mil/.

8: Explore subcontracting opportunities. There is a very large

secondary market - subcontracting opportunities through prime contractors. Although there is no single point of entry for subcontracting opportunities, SBA's SUB-Net is a valuable resource for obtaining information on subcontracting opportunities.

http://www.web.sba.gov/subnet/

Step 9: Seek additional assistance, as needed. Procurement Technical

Assistance Centers (PTACs) are

Federally-funded organizations that offer free or low cost help. The Business Procurement Assistance Center is the state-wide PTAC for Wisconsin. For assistance, call (608) 243-4485 or email

[email protected]. BPAC now offers eLearning training. Simply go to

http://madisoncollege.org/bpac-elearning and click on the blue "BPAC eLearning" link on the bottom of the page. Once you register you can take any of the courses listed free of charge.

Step 10: Develop your one-page capability statement and market your firm to the right contacts. Identify your

prospective Government customers, research their requirements, and familiarize yourself with applicable procurement regulations and strategies. There are many agencies to consider, and educating yourself about their roles and missions will be no small task, but essential nonetheless. Email and/or provide one-page capability statement to government contacts.

FEDERAL GOVERNMENT

CONTRACTING – THE BASICS

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E-VERIFY

By: Joanne Brockman What is it?

E-Verify is an internet-based system maintained by Department of Homeland Security to confirm employment eligibility after I-9 completion. It is required for all new hires and any existing employees working on qualifying federal contracts.

FAR - Contracts Covered

The FAR requires the E-Verify clause in prime contracts over $100,000 and related subcontracts over $3,000. Only subcontracts for services or construction are covered. Prime contractors are responsible for including the FAR E-Verify clause in qualifying subcontracts.

FAR – Contracts Not Covered

Not included in the FAR E-Verify regulation are contracts with only commercially available off-the-shelf (COTS) items; contracts for less than $100,000 or that can be performed in less than 120 days; subcontracts for

supplies; and contracts performed exclusively outside of the United States, Guam, Puerto Rico and the American Virgin Islands.

Compliance

• 30 days to enroll in E-Verify after award or modification of a contract.

• Implementation: 30 days to E-Verify additional, existing employees assigned to contract • Complete E-Verify for all new hires within 3 days

• Complete E-Verify for all existing employees (hired on or after November 7, 1986) who are assigned to the federal contract

• Directly perform work under the contract whether on or off-site

• Excludes those performing support for administrative functions or work related to the bid process

• Employer can choose to complete E-Verify for all existing employees with notice to DHS. Then have 180 days to complete

Failure to Comply

• Ejection from E-Verify Program

• Potential debarment from federal and state contracts • States can suspend business license

• ICE investigations

• Higher fines for I-9 violations See http://www.uscis.gov/e-verify

Business Opportunities in the Government Sector

Power and Energy Defense Cluster

If your company is interested in defense procurement opportunities in the power and energy sector, consider joining the new federally funded Defense Alliance Advanced Defense Technology Cluster, a regional economic initiative among Wisconsin, Minnesota, North Dakota and South Dakota, to support the warfighter. Procurement areas include:

• Alternative Fuels • Renewable Energy • Energy Security • Efficient Engines

• Reduced Total Life Cycle Costs

• Battery and Energy Storage Improvements • Lightweight Components

• Advanced Propulsion

To learn more, visit: www.powerfordefense.com

•

Hybrid Engines

• Conservation Methodology • Infrastructure Improvements • Fault Detection and Isolation • Efficiencies in System Designs • Unmanned Systems Design • Power Grid Improvements • Supporting Systems

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April 26, 2011 Monona Terrace Convention Center

The Business Opportunities in the Government Sector (BOGS) is the leading workshop in Wisconsin specifically geared to promoting inclusionary business practices especially for all firms doing business in the public sector. At this year’s event, BOGS will highlight opportunities for all businesses on government contracts, and will salute Disabled Veteran-Owned Businesses in Wisconsin who are now being included in State of Wisconsin diversity program. This year's BOGS wants to pay tribute to Service Disabled Veterans who have been included in the State of Wisconsin contracting preference program through 1999 Wisconsin Act 299.

Many attendees have used BOGS training workshops to understand the intricacies of doing business in both the public and private sectors. Just a few of the workshops offered will include:

• Estimating for Construction Projects

• Federal and State Contracting Opportunities • How to Source Opportunities by Using the Web • Strategic Thinking

• Architectural & Engineering Opportunities • Building a strong Mentor-Protégé relationship

A panel on “Current Opportunities” of several state projects seeking sub-contractors etc. will be held to allow you to immediately benefit from opportunities.

Federal, State and other specialized procurement assistance agencies will be at the event to help you understand and profit in the world of government contracting. For more information and registration go to:

http://bogs.wi.gov/

ATTENTION!! Veteran and

Service Disabled Veteran Owned Small Businesses!

By Chris Gruneberg The Department of Veterans Affairs (VA) announced that companies identifying themselves as Service Disabled Veteran or Veteran owned businesses in order to gain priority for some VA contracts must now

provide documentation to verify their status. If you are registered in the Veteran Information Pages (VIP) of the VetBiz Registry, you should have received an email notification from the Veterans Administration that you have 90 days from receipt of notice to submit an application to substantiate your status as owned and controlled by Veteran(s,) service-disabled Veteran(s) or eligible surviving spouse(s.) Only companies that submit the information will be listed in the VIP database.

Previously, vendors could self-certify the accuracy of the information provided. But now, officials with the Center for Veterans Enterprise must verify the data as part of the VetBiz application process. The rule applies to small businesses claiming to be owned and controlled by Veterans, service-disabled Veterans or eligible surviving spouses.

Other companies wanting to be listed in the database in order to be considered for future set-aside contracts, will also have to submit application packages substantiating their status. Documents will be processed in the following order: #1: firms in line to receive set-aside contracts, #2: companies that already conduct business with the department and #3: those that have filed an application for verification.

Additional information informing applicants how to submit their documents electronically was to be posted at

VetBiz.gov in early February. (As of 2/15/2011, no information had yet been posted.) In the meantime, VA's notice to currently listed businesses encouraged them to submit their information on CD-ROM.

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___________________________________________________________________________________________________________________________ New to government contracting? Or perhaps you have an employee

that needs to get up to speed? Do you currently contract with the State of Wisconsin but now want to investigate contracting with the federal government? Or maybe you are a federal contractor and would like to see if the state or local governments buy your product or service. To assist you in growing your government sales, BPAC offers free train-ing online through its eLearntrain-ing Suite: a series of online government contract training courses.

Simply go to: http://madisoncollege.org/bpac-elearning

Click on the blue “BPAC eLearning” link on the bottom of the page. Once you register you can take any of the courses listed. We currently offer: “Getting Started in Federal Contracting” and “State, Local and Subcontracting Overview.”

2011 National SBIR/STTR

Conference

April 10-13, 2011 Monona Terrace

Convention Center – Madison, WI Information and registration:

http://madisoncollege.org/bpac

BOGS

April 26, 2011

Monona Terrace Convention Center – Madison, WI

Information and registration:

http://bogs.wi.gov

Moraine Park Technical College

West Bend Campus:

2151 N. Main Street Room 113.3

West Bend, WI 53090 Chuck Wallschlaeger, 262.335.5893 (Mon. and Thurs.)

[email protected] Madison West Campus:

302 S. Gammon Road Madison, WI 53717 Office: 608.243.4490 [email protected] Reedsburg Campus: 300 Alexander St., Room 126 Reedsburg, WI 53959

Dave Olson, 608.212.3546 (Tues.)

[email protected]

Portage Campus:

1800 Kutzke Road Portage, WI 53901

Dave Olson, 608.212.3546 (Wed.)

[email protected] Fort Atkinson Campus:

827 Banker Road, Room 125 Fort Atkinson, WI 53538 608.243.4483 (Mon.)

[email protected]

Madison Area Technical College

Partners for Profit

March 25, 2011

Country Springs Hotel and Conference Center –

Waukesha, WI Information and registration: