GSA STARS II GWAC
DynaGrace Enterprises, Inc. (8a, WOSB, SDB), a trusted partner with the Federal Government, has been awarded the 8(a) STARS II Governmentwide Acquisition Contract (GWAC).
The 8(a) STARS II GWAC is a competitive multiple award, Indefinite Delivery Indefinite Quantity (IDIQ) set-aside contract vehicle for small businesses that participate in the Small Business Administration (SBA) 8(a) program. The efficient, flexible way to order Information Technology services and solutions worldwide, while accruing 8(a) socioeconomic credit, provides Federal agencies a simpler method for procurement of services. Because DynaGrace Enterprises is also a 100% Women-Owned Small Business (WOSB), the agencies get credit in multiple areas.
The 8(a) STARS II GWAC program has a five-year base with one five-year option. It has a $10 billion program ceiling and facilitates sole-source, also known as directed award, task orders up to $4 million each.
DynaGrace Enterprises has been selected under Functional Area NAICS codes; (FA1) NAICS 541511 – Custom Computer Programming Services, (FA2) NAICS 541512 – Computer Systems Design Services, and (FA4) NAICS 541519 – Other Computer Related Services. DynaGrace Enterprises was selected based on cost and non-cost factors including the Contract Administration Plan (CAP), Marketing Action Plan (MAP), Past Performance, Price, and Responsibility.
Linda Rawson, President, and CEO of DynaGrace Enterprises said, “We have been anticipating this award for over two years. We have heard and read many success stories about companies that have prospered by using this GWAC effectively. DynaGrace Enterprises is ready to capitalize on this contracting vehicle and to leverage the streamlined procurement path to serve our federal customers better. We really appreciate the General Services Administration (GSA) for creating contract vehicles like the 8(a) STARS II GWAC to assure small business continues to lead innovation in meeting government technology challenges.”
DynaGrace Enterprises is an advanced IT services company delivering high-quality, high-value solutions to the Federal Government in the areas of Information Technology, System Integration, Cybersecurity and Writing services. DynaGrace Enterprises has the vision to provide pristine service while making the contracting process simple. The company was founded on the belief that in service to the Federal Government and Commercial clients, we have a critical obligation to the American people, to perform at the highest level for the good of the country.
Customers can learn more about DynaGrace Enterprises by visiting the company’s website at DynaGrace.com or by calling the company directly at 800-676-0058.
The official press release is here -> http://www.pr.com/press-release/720563
First, what in the world does “Ostensible” mean?
According to dictionary.com, is an adjective and has two meanings:
- Outwardly appearing as such; professed; pretended: an ostensible cheerfulness concealing sadness.
- Apparent, evident, or conspicuous: the ostensible truth of their theories.
Does anyone else find this humorous? Really? Cheerfulness concealing sadness? The Ostensible Subcontractor Rule is anything but cheerful.
An “Ostensible Subcontractor” is one that “performs primary and vital requirements of a contract,” or is a subcontractor that the prime contractor is “unusually reliant” upon. The Small Business Administration (SBA) regulations affiliate a prime contractor with all of its ostensible subcontractors for size determination purposes.
Affiliation is not a word anyone wants to hear in the government contracting arena. Especially after an award has been made.
Affiliation can disqualify companies for set-asides due to a partners combined size. The location and industries are not relevant. It is about power and control of the large subcontractor over the prime contractor. The “Ostensible Subcontractor” rule is often the most common type of affiliation found between a prime contractor and the subcontractors with which it teams.
The purpose of the rule is to prevent other than small firms from forming relationships with small businesses to evade the SBA’s size requirements.
The key for a Small Business to avoid falling victim to the ostensible subcontractor trap is to ensure that its proposal, proposal-related documentation, and teaming agreements do not indicate, on their face, that an ostensible subcontractor relationship exists.
Specifically, small businesses must be careful not to “oversell” the technical expertise, past experience, or work to be performed by their subcontractors in the proposal or proposal-related documentation.
While it may be necessary for a small business to emphasize the positive qualities of a large subcontractor to compete effectively for a contract award, the small business does not want to make it evident that they are solely relying on the large subcontractor to perform.
A small business must ensure that it proposes to perform a significant portion of the contract work or management with its own resources or to spread this work and management out amongst multiple subcontractors to ensure it is not “unusually reliant” on one subcontractor.
According to the article, Ostensible Subcontractor Affiliation: Beware These “Four Key Factors,” Says SBA OHA, the proposal in question had a small business prime contractor that perform 51.1% of the contract services, and the large business would perform the remaining 48.9%. Of a total workforce of 20 personnel, 10 employees would go to the prime contractor and 10 employees would work for the subcontractor.
A very typical scenario is to split the employees between two contractors to meet the subcontracting percentages.
The four factors from this article that can contribute to this affiliation are:
- The proposed subcontractor was the incumbent contractor, and not eligible to compete for the procurement.
- The prime contractor planned to hire the vast majority of its workforce from the subcontractor.
- The prime contractor’s proposed management previously served with the subcontractor on the incumbent
- The prime contractor lacked relevant experience and was obliged to rely on its more experienced subcontractor to manage the contract.
As a small business, you must be very careful to follow all the rules completely. The small business mentioned in this article tried to fight the size standard ruling and lost.
Named for Section 8(a) of the Small Business Act, this program was created to help small and disadvantaged businesses compete in the marketplace.
It also helps these companies gain access to federal and private procurement markets. The program is designed for socially and economically disadvantaged individuals. You can read more here in the article titled “What is 8(a)?” which is an excellent article describing the 8(a) program.
Why use the 8(a) program?
Contracts can be directly awarded to an 8(a) firm, under $4M for Services and $6.5M for Manufacturing, without much of the normal contracting process overheads:
- A qualified 8(a) firm is considered to be a lock-tight sole source justification which means Justification & Approval (J&A) is not required for contract award per FAR 6.204, FAR 6.302-5(b)(4), and 15 U.S.C. 637
- 8(a) contracts are one of the exceptions listed in FAR 5.202(a)(4), which waive the requirement to publish the synopses of contract actions for section 8(a) of the Small Business Act
- Can continue to use same 8(a) company for follow-on contracts per FAR 19.805-2(d).
- 8(a) contracts can be issued much quicker than other processes, even IDIQ type task orders
- Even over the $4M/$6.5M threshold, SBA may accept sole source if there is not a reasonable expectation that at least two eligible and responsible 8(a) firms will submit offers at a fair market price per FAR 19.805-1(b).
What are the advantages for using DynaGrace Enterprises as an 8(a)?
As a small business, we have low overhead structure and costs. With technical competence and competitive rates, we strive to provide the best service and support to our clients.
Is the contracting process really that easy?
8(a) Procurement Process
- The government customer has a requirement that could be awarded to an 8(a) firm. For sole source awards the amount will be under $4M for Services and $6.5M for Manufacturing.
- The government customer drafts a Performance Work Statement (PWS) and meets with the Small Business Office (SBO) or contracting agency.
- The Purchase Request (PR) is coordinated through the normal approval process, including base/agency small business office and contracting. On block 12, REMARK section of
the PR, the statement “Recommend sole source award to 8(a) firm, DynaGrace Consultants, Cage Code 4KM96” is added.
- Base/Agency contracting office sends an “offer letter” to the SBA, and SBA sends an “acceptance letter” to base/agency contracting office.
- Request For Proposal (RFP) is sent to DynaGrace Enterprises where they present an oral or written offer. The rates and cost are negotiated.
- The Base/Agency contracting office negotiates directly with DynaGrace Enterprises for the contractual terms.
- The order is issued to the SBA.
How long does the contracting process take?
Typically between 30 and 60 days.
For more information Contact Us.
We have excellent references available upon request.