SBA SBA Government Contracting & Procurement 2 — Questions and Answers
Question 1: What does SDVOSB stand for in the context of federal contracting?
- Small Disadvantaged Vendor Operating Small Business
- Service-Disabled Veteran-Owned Small Business (Correct answer)
- State-Designated Veteran Opportunity Small Business
- Sole Domestic Vendor Operating Small Business
Correct answer: Service-Disabled Veteran-Owned Small Business
SDVOSB stands for Service-Disabled Veteran-Owned Small Business, a program that provides contracting preferences for veteran entrepreneurs with service-connected disabilities.
Question 2: What percentage of HUBZone-certified firm employees must reside in a HUBZone area?
- 25%
- 35% (Correct answer)
- 50%
- 75%
Correct answer: 35%
At least 35% of a HUBZone-certified firm's employees must reside in a HUBZone area to maintain eligibility.
Question 3: What is a subcontracting plan required for in federal contracting?
- All federal contracts over $1 million
- Large prime contractors to commit to subcontracting opportunities to small businesses (Correct answer)
- Small businesses seeking 8(a) certification
- All HUBZone contracts
Correct answer: Large prime contractors to commit to subcontracting opportunities to small businesses
Large prime contractors on contracts exceeding certain thresholds are required to submit subcontracting plans committing to award a portion of work to small businesses.
Question 4: What is the role of the Procurement Center Representative (PCR) in SBA government contracting?
- Approve all federal contracts
- Advocate for small business set-asides at federal agencies (Correct answer)
- Process SBA loan applications
- Certify HUBZone businesses
Correct answer: Advocate for small business set-asides at federal agencies
SBA Procurement Center Representatives (PCRs) are assigned to federal agencies and advocate for maximizing small business contracting opportunities.
Question 5: Under the SBA's mentor-protégé program, what is the primary benefit to the protégé firm?
- Guaranteed contract awards
- Business development assistance and joint venture eligibility (Correct answer)
- Automatic 8(a) certification
- Reduced SBA loan interest rates
Correct answer: Business development assistance and joint venture eligibility
Protégé firms in the SBA mentor-protégé program receive business development assistance and can form joint ventures with their mentor to compete for contracts.
Question 6: What is the 'Rule of Two' in federal small business contracting?
- Two bids are required for all contracts
- Contracting officers must set aside a contract if two or more small businesses can compete (Correct answer)
- Two certifications are required for 8(a) status
- Two SBA offices must approve each set-aside
Correct answer: Contracting officers must set aside a contract if two or more small businesses can compete
The Rule of Two requires contracting officers to set aside a procurement for small businesses if there is a reasonable expectation that at least two small businesses will submit competitive offers.
SBA SBA Government Contracting & Procurement 2
What does SDVOSB stand for in the context of federal contracting?