Maine APEX Newsletter: December 2024

Helping businesses find, win and perform on government contracts • maineapex.com

December 2024 Newsletter

Free Upcoming Webinars

The Maine APEX team hosts free webinars for those interested in learning more about government contracting.

Department of Defense's Mentor-Protégé Program

12/04/24 • 10:00am

Click here to learn more

Unlock Federal Funding: A Guide to SBIR/STTR Programs for Small Business Innovation

12/09/24 • 10:00am

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Introduction to the Defense Production Act (DPA) Title III Program

12/12/24 • 11:00am

Click here to learn more

View all events

PM’s Corner

A monthly feature from the ME APEX Director

Local Government Contracts

Selling products or services to local towns, cities, and counties is a good way to get established with government contracting and gain the past performance experience you need to compete for larger contracts.

Maine has 23 cities, 430 towns, and 16 counties. Most of these have annual budgets and need to make purchasing decisions. You can often locate a specific municipal purchasing website simply by Googling [Name of City/town] purchasing or [Name of City] procurement. For example, the first result when searching for "Brunswick procurement" brought me to the “Bid Posting” page at brunswickme.gov. On this page you can see current opportunities, and equally as helpful, you can also search for “Closed/Awarded/Cancelled Bids”. This can be used to identify current contract holders (potential partners).

Some city/town websites will let you subscribe to receive notices by email. All this to say that government contracting isn’t all just multi-year million-dollar Federal contracts. There may be worthwhile opportunities in contracting right up the road from you.

What You Need to Know about the Corporate Transparency Act and Preparing for the Federal Database of Beneficial Ownership Information

Miranda Pelkey, Maine APEX Deputy Director and Counselor serving Penobscot, Piscataquis, Hancock, and Waldo Counties

Enacted in 2021, the Corporate Transparency Act aims to prevent illegal activity including tax fraud, money laundering, and financing for terrorism by capturing more ownership information for specific U.S. businesses operating in or accessing the country’s market. The Corporate Transparency Act requires certain business entities to file information on their “beneficial owners” with the Financial Crimes Enforcement Network (“FinCEN”) of the U.S. Department of Treasury in a Beneficial Ownership Information Report (BOIR).

The information provided in BOIRs will not be publicly available, but FinCEN is authorized to disclose the information:

to U.S. federal law enforcement agencies,
with court approval, to certain other enforcement agencies,
to non-U.S. law enforcement agencies, prosecutors or judges based upon a request of a U.S. federal law enforcement agency, and
with consent of the reporting company, to financial institutions and their regulators.

So what does all of this mean for your business? Is there any action you need to take and is YOUR business required to register a BOIR?

The answer is, maybe. Let’s look at which types of entities ARE required to register.

FinCEN requirements determine who must report:

A corporation, a limited liability company (LLC), or group otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe

with less than 20 employees AND
less than $5,000,000 in gross receipts or sales
NOTE: This DOES NOT include Sole Proprietorship companies

A foreign company and was registered to do business in any U.S. state or Indian tribe by such a filing.

After determining that your business is required to file a BOIR due to meeting the guidelines listed above, your next step is to identify its beneficial owners. A beneficial owner is any individual who, directly or indirectly:

Exercises substantial control over a reporting company; OR
Owns or controls at least 25 percent of the ownership interests of a reporting company.

Note: A reporting company can have multiple beneficial owners.

BOIR Reporting Deadlines are determined by the date in which your entity was created. If your entity was created or registered with the Secretary of State prior to 2024 then you MUST report by January 1, 2025. If your entity was created or registered with the Secretary of State IN 2024, you MUST report within 90 calendar days of notice of created or registration. Failure to comply can lead to criminal penalties of imprisonment for up to two years and/or a fine of up to $10,000, and a civil penalty of up to $591 per day. Therefore, it is critically important that you register within the allotted timeframe.

For more information and to learn how to file, visit fincen.gov/boi.

Facility Clearance (FCL)

Morgan Rocheleau, Maine APEX Procurement Counselor Serving Cumberland and York Counties

One of the hottest topics in government contracting outside of cyber security is “FOCI” (Foreign Ownership, Control, & Influence). FOCI comes under the microscope when companies are looking to gain access to or the creation of classified information, as this is when a company will need to be granted Facility Clearance, or FCL. To receive a FCL is a process that takes time and much effort to be awarded. Understanding the process will be very beneficial.

All FCLs are granted from the Department of Counterintelligence and Security Agency (DCSA) as they follow the National Industrial Security Program (NISP). One of the most important pieces to understand about this process is that FCL is not something you can simply apply for as a company because it plans to work in the government sector. FCL is something that a company needs to be sponsored for by Government Contracting Activity (GCA) or another cleared defense contracting company. Meaning, a company can receive an FCL as a prime contractor from a government agency or department, or as a subcontractor from a large defense prime contractor as long as the scope of work indicates that access to the classified information is necessary. Once the sponsoring facility files for the sponsorship, the timeline begins for your company. There are many deadlines to meet during the process and extensions are not something that are generally granted. Therefore, being prepared is very important and I strongly recommend reviewing the DSCA’s website about Facility Clearance to prepare for this process prior to engaging with a contract that will require a FCL. Having a strong understanding of these requirements prior to the facility sponsorship is integral in a successful FCL sponsorship. This is when Maine APEX can be of assistance, we can help you understand the forms and supporting business documentation that will be needed during the application process. To learn more about FCL or FOCI, please reach out to your APEX counselor.

SBA Launches New Certification Portal: Key Updates and Benefits for Small Businesses

Marissa Henkel, Maine APEX Procurement Counselor Serving Kennebec, Somerset, Lincoln, Sagadahoc, and Knox Counties

The Small Business Administration (SBA) has launched a new and improved certification portal aimed at making the application process smoother and more accessible for small businesses. MySBA Certifications (https://certifications.sba.gov) is “your one-stop destination for SBA’s small business certifications.” This upgraded system is designed to help business owners easily apply for socio-economic certifications like 8(a), Women-Owned Small Business (WOSB), Veteran-Owned Small Business (VOSB), and HUBZone, which can increase federal contracting opportunities.

Key Updates

The SBA's new certification portal includes several important updates designed to make the certification process easier and more transparent for small businesses:

Simplified Navigation: The portal features a more user-friendly layout, guiding applicants through each stage, from submitting documents to checking the progress of their application.
Streamlined Document Management: The new system allows business owners to easily upload and organize all required supporting materials securely, ensuring a smooth application process.
Apply for Multiple Certifications Simultaneously: One of the major advantages of the updated portal is that eligible small businesses can now apply for multiple certifications, like WOSB, VOSB, and HUBZone, at the same time. This consolidated process saves time and effort, making it more efficient to manage different applications under one system.

Benefits for Small Businesses

This revamped portal offers several advantages:

Time and Effort Savings: With streamlined design and improved integrated document management, small business owners can save time and reduce frustration.
Transparency: Users can track their application status in real-time, receiving updates on whether documentation has been received, is under review, or if additional information is needed. This reduces uncertainty and keeps applicants informed every step of the way.
Faster Turnaround Times: The improved system is designed to process applications more quickly, meaning businesses can obtain certifications faster. This benefit allows companies to engage in government contracting opportunities sooner.
Increased Participation: By making the certification process more accessible, the portal encourages more small businesses to seek federal contracts, creating more opportunities for growth.

Note on Technical Difficulties

As with any new system, there may be some technical glitches as the SBA works to perfect the portal. Users experiencing issues are encouraged to be patient and reach out for support if needed.

By staying updated and leveraging these new features, small businesses can better position themselves to compete and thrive in the government marketplace. If you are interested in obtaining an SBA socio-economic certification, or learning more about these opportunities, reach out to your Maine APEX Accelerator for assistance!