Increasing Opportunities and Access for Disadvantaged Businesses

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It is the policy of the Department of Housing and Urban Development (HUD) to ensure non-discrimination in Federal procurement opportunities for businesses in the Small Disadvantaged Business Program (SDBs), businesses in the Section 8(a) Business Development Program and the Small Business Administration (8(a)s), and Minority Business Enterprises (MBEs) as defined in Section 6 of Executive Order 11625, of October 13, 1971, and to take affirmative action to ensure inclusion of these businesses in HUD contracting. The Department recognizes that these businesses are of vital importance to job growth and the economic strength of the United States and but have faced historic exclusion and underutilization in Federal procurement. A successful and strong small business community is an integral component of the Department's overall mission of job creation, community empowerment and economic revitalization.

The Department has designated the Deputy Secretary as the individual responsible for implementing the terms of the Executive Order 13170, Increasing Opportunities and Access for Disadvantaged Businesses, of October 6, 2000.

In implementing the Executive Order, the Department shall:

1. Aggressively seek to ensure that 8(a)s, SDBs, and MBEs are aware of future prime contracting opportunities through wide dissemination of contract announcements, including sources likely to reach 8(a)s, SDBs and other small businesses and MBEs. HUD shall all available forms of communication to implement this provision, including the Internet, specialty press, and trade press.
   
   The Department advertises contracting opportunities and posts solicitations on the Federal Business Opportunities website, www.FedBizOpps.gov, and the HUD website, HUD.gov. Small businesses can register on the HUD website to receive electronic notice of changes to the solicitation list. The Department's Forecast of Contracting Opportunities (Forecast), updated weekly, is posted on the HUD Contracting homepage and the Office of Small and Disadvantaged Business Utilization (OSDBU) website. Also, it is e-mailed to approximately eight hundred small, minority or women-owned businesses, trade associations and chambers of commerce to increase awareness of contracting opportunities. The Forecast is distributed at over 80 small business outreach events that the OSDBU attends across the nation. It is also given to the 70-80 businesses that visit the OSDBU a week. In addition, the Department conducts annual Contracting Previews of upcoming procurement activities for major functional areas within the Forecast, exclusively for SDBs, 8(a)s, Small Women-Owned Businesses (SWOB), HUBZone and Service Disabled Veteran-Owned Small Businesses.
   
   The Department will continue its outreach to minority trade associations and chambers of commerce, entering into a Memorandum of Understanding with major national and regional minority organizations to establish better avenues of communication and support.
   
   
2. Work with the Small Business Administration (SBA) to ensure that information regarding sole source contracts awarded through the Section 8(a) program receives the widest dissemination possible to 8(a)s.
   
   The Department supports the SBA in its efforts to disseminate information to 8(a) businesses. In addition to the outreach cited in Item (i), HUD participates in SBA training sessions for new 8(a) businesses, and provides information and briefings on contracting opportunities to local area Small Business Development Centers and Procurement Technical Assistance Centers. HUD uses the SBA's PRONET directory to notify 8(a) businesses of potential contracting opportunities and will use other SBA resources as they become available.
   
   
3. Ensure that the price evaluation preference programs authorized by the Federal Acquisition Streamlining Act of 1994 are used to the maximum extent permitted by law in areas of economic activity in which SDBs have historically been underutilized.
   
   The Department includes all appropriate Federal Acquisition Regulation language in its solicitations. The Department uses Federal Procurement Data System statistics on HUD contracting arrayed by the North American Industry Classification System, to identify areas which previously have not afforded contracting opportunities for SDBs or 8(a)s. The Department will make every attempt to break down barriers to awarding contracts to 8(a)s and SDBs in areas in which they have previously been under utilized.
   
   
4. Aggressively use the firms in the Section 8(a) program, particularly in the developmental stage of the program, so that these firms have an opportunity to overcome artificial barriers to Federal contracting and gain access to the Federal procurement arena.
   
   The Department sponsors a number of activities to ensure that new 8(a) businesses have access to and an enhanced ability to compete for HUD contracting opportunities and set-asides. In addition to participating in SBA sponsored training for new 8(a)s, HUD conducts monthly training for small businesses, particularly 8(a)s and SDBs. The Department also invites all 8(a)s and SDBs to Contracting Previews of procurements in their functional areas. When utilizing the Federal Supply Schedule, the Department has adopted a "Rule of One" policy where at least one SDB or 8(a) business will be solicited if such businesses are on the Federal Supply Schedule.
   
   
5. Ensure that prime contractors meet or exceed Federal subcontracting goals, and enforce subcontracting commitments as required by the Small Business Act and other related laws.
   
   The HUD OSDBU reviews all Subcontracting Plans and compares submitted goals against an OSDBU record of the contractor's past subcontracting performance. Primes are expected to adopt the Federal subcontracting goals for small business and SDBs as a minimum requirement. Biannual submissions of SF- 294s are tracked and compared to a prime's subcontracting goals. All primes receive a copy of their portion of the biannual Subcontracting Report as part of a review of their SF-294s with praise for achieving goals or recommendations on resources for identifying qualified businesses where goals are not being met. Primes participate in an Annual Small Business Marketing Fair where all SDBs and 8(a)s in Washington, Maryland and Virginia are invited to market their services. A list of HUD prime contractors and their subcontracting requirements are posted on the HUD web site and distributed during small business outreach efforts. HUD primes are encouraged to post their subcontracting requirements on the SBA's SUBNET.
   
   HUD bid solicitation documents contain all required Federal Aquisition Regulation language for subcontracting with SDBs, and specify that the Subcontracting Plan meet, at least, the minimum Federal Preference Program subcontracting goals. In certain circumstances, the Department may decide to specify higher minimum subcontracting goals. To further ensure that the maximum use of SDBs as subcontractors is promoted, the Department shall, to the maximum extent practicable, include a source selection evaluation factor related to SDB participation in the solicitation. Proposals shall be evaluated in terms of the total value of the proposed subcontracting effort as it relates to the total value of the prospective contract and the meaningfulness or substantiveness of the work to be performed. The specificity of the Subcontracting Plan, relative to the identification of the small businesses to be utilized and the extent of a contractual commitment between the prime and the subcontractor will be evaluated.
   
   The Department has adopted a subcontracting policy in which HUD OSDBU, Office of Chief Procurement Officer (OCPO) and Program staff will review upcoming procurements to determine which solicitations should include a specified amount of work to be subcontracted to small businesses. The Department will utilize positive incentives to the maximum extent practicable, and devise non-monetary penalties for prime contractors who fail to meet stated goals.
   
   
6. Encourage the establishment of business-to-business mentoring and teaming relationships, including the implementation of Mentor-Protégé programs.
   
   The Department's policy is to encourage teaming relationships in bidding on HUD procurements, actively promoting partnerships by large contractors with 8(a)s and SDBs. In Fiscal Year 2004, the Department will establish a Mentor-Protégé Program as a means of fostering the development of the technical and managerial capabilities of 8(a)s and SDBs and to facilitate long-term business relationships. In addition, each program office will annually sponsor a business to business (B2B) networking session which will provide an opportunity for new 8(a)s and SDBs to participate in a dialogue with program office prime contractors on upcoming initiatives, prime contractor subcontracting needs and the roles and responsibilities inherent in a contractor-subcontractor relationship.
   
   
7. Offer information, training and technical assistance programs for 8(a)s and SDBs including Government Acquisition forecasts in order to assist 8(a)s and SDBs in developing their products, skills, business planning practices and marketing techniques.
   
   HUD offers one-on-one assistance to 8(a)s and SDBs as well as monthly training classes on HUD contracting opportunities and marketing to the Federal government. The OSDBU and OCPO web sites offer information on current solicitations, subcontracting opportunities, marketing contacts, a Small Business Resource Guide, and links to the SBA and other Federal agencies. The OSDBU has a working relationship with the area Small Business Development Centers and Procurement Technical Assistance Centers, providing information and briefings on HUD programs and contract opportunities. The Department also sponsors an Annual Small Business Marketing Fair which enables 8(a)s and SDBs to network with HUD prime contractors, and a series of Contracting Previews which enable 8(a)s and SDBs to receive in-depth program briefings by senior managers on specific functional area needs and requirements. The Department also participates in major conferences and exhibits undertaken by trade associations and meets with local minority business groups and chambers to brief members on HUD programs and contracting opportunities.
   
   
8. Train program and procurement officials regarding the policy of including 8(a)s and SDBs in Federal procurements.
   
   HUD provides annual training to procurement and program staff on the requirements of the 8(a) and SDB programs and ad hoc training when new legislation or changes in regulation impact the procurement official's responsibilities. As the occasion warrants, the Department has invited and will continue to invite the Small Business Administration to conduct training on specific regulations and small business initiatives.
   
   
9. Provide the information required by the Department of Commerce when it requests data to develop the benchmarks used in the price evaluation programs authorized by the FASA of 1994.
   
   HUD will provide all information required by the Department of Commerce in a timely manner.
   
   
10. Ensure that the Directors of the OSDBU carry out their responsibilities to maximize the participation of 8(a)s and SDBs in Federal procurements and, in particular, ensure that the Directors report directly to the Secretary/Deputy Secretary as required by law.
    
    At HUD, the OSDBU Director reports to the Deputy Secretary and directs the Department's initiatives to maximize the participation of 8(a)s and SDBs in HUD procurements.
    
    
11. As required by law, establish with the SBA, small business goals to ensure that the government-wide goals for participation of small business concerns is not less than 23 percent of Federal prime contracts. Where feasible, establish a goal of achieving a participation rate for SDBs of not less than 5 percent of the total value of prime contractor awards for each fiscal year and not less than five percent of the total value of subcontract awards for each year.
    
    Each year the Deputy Secretary leads an effort to define procurement goals for the agency. Each program office is provided with a ten-year history of its contracting record with small, SDB and 8(a) businesses and senior management is instructed to identify contracting opportunities within their offices, which address any previous year's deficiencies in meeting the minimum Federal goals. HUD has, and will continue to set a minimum five percent goal for contracting and subcontracting with SDBs and 8(a)s. The OSDBU along with the Chief Procurement Officer counter signs the small business goals prior to their submission to the SBA.
    
    The Deputy Secretary and senior managers receive a quarterly report on the agency's and each office's progress in achieving the annual small business goals. HUD consistently sets and achieves high goals. The Department has established a Small Business Awards program to recognize outstanding SDB, 8(a) and SWOB contractors as well as procurement and program staff who have demonstrated goal achievement and support for small business contracting.

Advertising: The Department takes an aggressive role in ensuring substantial minority-owned entities including 8(a)s, SDBs, and MBEs, participate in its Advertising Program. HUD shall ensure that all creation, placement, and transmission of HUD advertising is fully reflective of the Nation's diversity. To achieve this diversity, special attention shall be given to ensure placement in publications, television and/or radio stations that reach specific ethnic and racial audiences. HUD shall ensure that payment for advertising is commensurate with fair market rates in the relevant market.

HUD is committed to ensuring that all segments of the population are reached through its Advertising Program. In addition to ensuring that a reasonable amount of advertising funds are awarded to minority contractors, the Department's policy is to use all available demographic data in conjunction with media circulation data to ensure optimum access to the target populations.

Traditionally, HUD has targeted unserved and underserved populations with a focus on minority populations. The Department is continuing to target these groups, but with the increase in loan ceilings HUD has expanded the target audience to include a broader range of homebuyers. This strategy increases the customer base while it continues to get HUD's message out to the original audience.

In FY 2004, the Agency shall advertise in newspapers to demonstrate that smaller businesses are encouraged and welcome to do business with HUD. We will target small-established businesses whose owners include African Americans, Hispanic Americans, HUBZones and Service Disabled Veterans/Veterans. HUD will pay special attention to those that do business in categories appropriate to HUD such as information technology, real estate, technical assistance, accounting, loans closings, and lead-based paint analysis. Also, in support of the President's policy, the advertising campaign shall convey that the OSDBU is there to make the process of doing business at HUD as easy as possible by providing "universal access" to the HUD procurement process.

Role of the CIO: HUD shall aggressively seek to ensure substantial 8(a), SDB, and MBE participation in procurements for and related to information technology, including procurements in the telecommunications industry. In doing so, HUD's Chief Information Officer shall coordinate the implementation of this process with procurement officials.

As part of the Department's Information Technology Investment Process, the Chief Information Officer (CIO) manages matrix teams which review the proposed acquisition strategy for each proposed investment and rank them in the IT portfolio. The purpose is to ensure that the strategy is modular in approach; that it is performance or outcome-based; and that there are appropriate opportunities for small disadvantaged and 8(a) businesses. The CIO also sits on the Contract Management Review Board which provides additional scrutiny and once again ensures the Department's commitment to modular contracting, which is performance or outcome- based and that there are appropriate opportunities for SDBs and 8(a)s. In addition, the CIO is an active proponent of B2B networking in the IT arena for the purpose of encouraging teaming between SDBs and large businesses and in promoting increased subcontracting opportunities.

Contract Bundling: HUD shall submit to the SBA for review any contracts that are proposed to be bundled. The determination of the SBA with regard to the appropriateness of bundling in each instance shall be carefully reviewed by HUD and must be given due consideration. If there is an unresolved conflict, then the SBA or HUD shall seek assistance from the Office of Management and Budget (OMB).

The Department understands the negative impact contract bundling can have on small businesses and will work with the Small Business Administration in situations where there is a potential for contracts to be bundled. On a quarterly basis, HUD submits its Contract Bundling Report to OMB, which details its efforts in increasing federal contracting opportunities for small business.

The Department encourages the use of the "cascading" strategy it piloted in awarding its Management and Marketing Contracts as a means to avoid bundling of contracts. HUD is committed to working with the SBA and other Federal agencies in identifying successful approaches to mitigate the need for and use of contract bundling.