March 7, 2024

A Note from the Program Manager

Greetings!

As we step into the vibrant month of March, I am thrilled to share some exciting updates and initiatives from the Apex Accelerator Program. This month holds special significance as we celebrate Women's History Month, recognizing the invaluable contributions of women entrepreneurs and leaders in shaping our diverse and dynamic business landscape.

I am delighted to introduce our newest addition to the Arizona Apex Accelerator team, Kevin Herrmann. With a wealth of experience in helping small businesses build their presence online, Kevin brings a fresh perspective and unwavering passion for supporting small businesses. His expertise will undoubtedly enhance our ability to provide you with the best resources, guidance, and opportunities for growth. Please join me in extending a warm welcome to Kevin!

I am thrilled to announce the launch of our new website domain. You can now find us at https://arizonaapex.org/. Our general email inbox is now azapex.admin@domail.maricopa.edu.

As we navigate the evolving landscape of government contracting, the Apex Accelerator Program remains dedicated to supporting your business journey. Your success is our priority, and we look forward to achieving new milestones together.

Thank you for being an integral part of our community.

Best regards,

Lori Haozous

Program Manager

March is Women's History Month. We celebrate the achievements and contributions of Women-owned businesses throughout history.

Attention!

Our Offices are closed from March 11-15, 2024.

Client Highlights

Top Onyx, LLC Wins Subcontracting Opportunity After Hensel Phelps Event

Top Onyx, LLC won a subcontract opportunity for flooring for the Expansion & Modernization Project at the San Luis I Land Port of Entry. The prime contractor is Hensel Phelps.

Top Onyx, LLC attended the Arizona APEX Accelerator event Doing Business with Hensel Phelps on October 11, 2023. At the event, small businesses presented their capabilities to Hensel Phelps representatives.

“Arizona APEX has proven to be an indispensable ally in our pursuit of government contracts, offering invaluable expertise and support that have been pivotal in our success. Their guidance has been instrumental in our success, offering invaluable assistance in navigating the complexities of government contracting, ultimately leading to our triumphs," DeWayne Lewis, CEO & President of Top Onyx, LLC said.

We want to hear about your successes!

Please send your success stories to Amanda at amanda.howard@domail.maricopa.edu!

Welcome Our Newest Team Member!

Kevin Herrmann brings a unique blend of skills and experiences to the world of government contracting. He spent several years in web hosting and website management, where he worked with small business owners in a variety of industries to strengthen their online presence while sharpening his abilities for research, attention to detail, and dedication to client services.

His background includes graduating from Arizona State University and personal pursuits in the arts and writing. He approaches challenges with a creative mindset and a strong foundation in effective communication, leveraging his past technology and troubleshooting experience to support small business owners venturing into the world of government contracts.

Small Business News

Middleman Business Model Violates Federal Regulation

-Chris Bridgewater, Arizona APEX Procurement Specialist

Suppose you are operating in government contracting and plan to be the go-between, or middleman, or intermediary between the federal government and the company (subcontractor) doing the work. In that case, you might be setting yourself up to violate federal regulations.

Federal Acquisition Regulation (FAR) Clause 52.215-23 Limitations on Pass-Through Charges[1]

Example: The government wants to hire landscapers to maintain the area around a government building. Company X (Prime Contractor), with no license, insurance, or experience in landscaping, hires a licensed and professional landscaping company (Subcontractor) to perform the work. Company X does not perform any onsite labor, or project management, or assist with ensuring all standards are met. They do not perform these functions because they do not have the skills or abilities to do so. The total work effort of the project completed by the subcontractor is 100%.

In a $100,000 one-year contract, the landscaping company (subcontractor) will perform 100% of the labor and to comply with the FAR (which limits the pass-through charges to 70%) the landscaping company would receive $68,000. Netting the prime contractor $32,000.

To summarize this clause, this FAR clause states there must be no excess pass-through charges and there must be substantial value added at each transaction. It also limits the subcontracted efforts and values to 70% of the total contract effort.

In this example, Company X (Prime) would most likely be in violation of this federal regulation. This regulation also allows the government to recoup some or all charges they deem excess.

Further Risks of This Business Model

Company X is also risking their reputation and their entire future as a government contractor. Since Company X has no experience or license or insurance in landscaping, they are risking all their assets on the performance of the subcontractor. If the company performing the work fails to meet the standards or damages property, Company X is most likely liable. If Company X does not send a representative to at least supervise the work being performed, the subcontractor may not perform to the contract standards. Once the contracting officer discovers the situation, they will take administrative and potentially punitive action against the holder (Company X) of the contract.

Summary

If you want a government contract, perform the work in which you are an expert. If you want to perform as an intermediary for government contracts, become experienced and knowledgeable in FAR, DFARS, CMMC, ITAR, DCAA, CAS, SF 1449, GA & OH cost allocation, SAM, FPDS, DLA DIBBS, and perhaps the GIP. Use this knowledge to be subcontracted by good companies with private sector experience in obtaining government contracts.

[1] https://www.acquisition.gov/far/52.215-23

Attention Arizona Procurement Portal Users!

A data cleanup of the Arizona Procurement Portal, specifically related to supplier profiles missing mandatory commodity code/s, has been completed. Inactive suppliers without a mandatory commodity code have been archived.

If your vendor profile is in an “Archived” status resulting from this data cleanup or if you have any questions or concerns, please log in and complete a change request to add your commodity code. Please reference the Quick Reference Guide for assistance.

Should you require additional help please contact the APP Help desk by calling (602) 542-7600 or emailing support at app@azdoa.gov. Please note phone hours are Mon-Fri 8:30 a.m. - 5 p.m.

Scam Alert

The picture above shows a screenshot of an email some of our clients have received. It usually comes with a PDF attached. The email above is a scam. The reply-to email address is different from the sent-from email address.

One common red flag in identifying email scams is when the reply-to email address differs from the sent-from address. Here's an explanation of why this inconsistency can be a sign of a scam:

Spoofing and Deception:

Scammers often use a technique called email spoofing, where they manipulate the "From" field to make it appear as if the email is coming from a legitimate source, such as a reputable company or organization.
The reply-to address, however, may be set to a different email account controlled by the scammer. This allows them to control the communication without revealing their true identity.

Phishing Attempts:

Scammers use phishing emails to trick individuals into providing sensitive information like passwords, credit card details, or personal information.
By having a different reply-to address, scammers can guide the victim to respond to a different email, making it harder for the victim to realize they are being deceived.

Avoiding Detection:

Scammers often use different email addresses to avoid detection and make it more challenging for email filters to catch their malicious activities.
They might change the reply-to address frequently to stay ahead of security measures.

Legitimate Organizations Maintain Consistency:

Legitimate organizations typically maintain consistency in their email communications. The "From" and reply-to addresses are usually the same or from a closely related domain.
In contrast, scammers often rely on inconsistencies to create confusion and increase the likelihood of success.

Check the Entire Email Address:

Always scrutinize the entire email address, not just the display name. Scammers may use clever tactics to create email addresses that resemble legitimate ones at first glance.

Verify with the Organization:

If you're ever in doubt about the legitimacy of an email, especially if it involves sensitive information or financial transactions, independently verify the communication by contacting the organization through official channels. Do not use the contact information provided in the suspicious email.

Look for Other Signs of Scams:

Evaluate other elements of the email, such as spelling and grammar errors, unexpected attachments or links, urgent requests for personal information, or a generic greeting instead of addressing you by name.

Being vigilant and using caution when encountering emails with mismatched reply-to and sent-from addresses can help you avoid falling victim to phishing scams and other fraudulent activities. If in doubt, it's always safer to verify the legitimacy of the email through trusted means before taking any action.

Upcoming Workshops

SAVE THE DATE: Cybersecurity Requirements for Federal Contracting:

CMMC 2.0 Explained

Webinar

March 26, 2024

10:00-11:00 AM

Don’t miss this webinar to learn more about Project Spectrum (PS) – the comprehensive cybersecurity resource that provides state-of-the-art cybersecurity tools and training aimed toward improving the overall cyber hygiene of the Defense Industrial Base (DIB). In recognition of the financial constraints that small businesses face relative to achieving their desired level of cybersecurity compliance, Project Spectrum offers all products and services at no cost. A DoD-supported initiative through the Office of Small Business Programs, Project Spectrum is an invaluable resource to improve cybersecurity hygiene.

This is a list of topics we will cover:

Current Cyber Threat Landscape
Why Small Businesses Are Lucrative Targets
Government Guidance, Mandates, and Requirements (NIST, CMMC, DFARS, etc)
Project Spectrum’s Cyber Advisory Services
Project Spectrum’s Training Courses
Project Spectrum’s Proprietary Cybersecurity Tool Development
An Examination of what Happens when You Engage with Project Spectrum

REGISTRATION COMING SOON!

Resource Partner Events

US Forest Service VIPR I-BPA Virtual Vendor Engagement Meetings 2024

The US Forest Service will be hosting three vendor engagement sessions for those interested in the VIPR I-BPA Program.

Vendor engagement sessions for 2024 are scheduled at the below dates and times. Participation is voluntary. The virtual vendor engagement session will require pre-registration. A link to the meeting will be emailed to the email address provided in the registration form 2-3 days in advance of the meeting. Registration link: https://forms.office.com/g/6QPh9stNZ7

Tuesday, March 12th at 1700 MT

Overview of the GSA Public Buildings Service (PBS)

Date: March 20, 2024

Time: 10:00-11:00 am PST

Registration link

https://gsa.zoomgov.com/meeting/register/vJIsf-uhqDwuGhacbR5it931zBeA5uSflvM

Join this virtual webinar for an Overview of the GSA Public Buildings Service (PBS), Pacific Rim Region. In this virtual 1 hour session you can expect:

An introduction on how to do business with PBS in the Pacific Rim Region (California, Nevada, Arizona & Hawaii)
Learn about participating in PBS acquisitions
Learn about upcoming contract opportunities
Helpful tips on how to market your small business to PBS

This webinar will be held from 10:00 am - 11:00 am PST

New DAP event- Grainger Public Sector Virtual Business Opportunity Session

Purpose: Grainger is participating in a virtual business opportunity session. The event is scheduled for Tuesday, April 9, 2024, from 3:00 PM – 4:00 PM ET.

Discussion: Grainger, in collaboration with the Direct Access Program, will host a virtual business opportunity session. Grainger is seeking small businesses to prime and subcontract to clients for the following capabilities, socioeconomic classifications and NAICS codes as outlined below. Please review the details of the events webpage carefully, prior to registering.

Event Link: To learn more and to register for the virtual event, please visit Grainger Virtual Business Opportunity Session.

Event-related details

Applicable NAICS

423710 Hardware Merchant Wholesalers
423830 Industrial Machinery and Equipment Merchant Wholesalers
423840 Industrial Supplies Merchant Wholesalers

Capabilities:

Looking for opportunities to collaborate with small businesses aligning to the above NAICS codes as well as others interested in supporting mission of VA.
Seeking partners who have services, capabilities or solutions interested in meeting current and future VA goals.

About Grainger

W.W. Grainger, Inc. is a leading broad line distributor of maintenance, repair and operating (MRO) products primarily in North America, Japan and the United Kingdom. We achieve our purpose, We Keep The World Working,® by serving more than 4.5 million customers worldwide with products delivered through innovative technology and deep customer relationships. Grainger offers approximately 2 million maintenance, repair and operating (MRO) products and services, including technical support and inventory management.

If you have questions about the virtual event, please contact the Direct Access Program by e-mail at directaccess@va.gov or by phone at 202-461-4694.

Learn More & Register

Resource Partner Information

Keep in contact with our local SBA Office!

The Arizona District Office services the entire state of Arizona. We have offices in Phoenix, Show Low, and Tucson.

SBA services including funding programs, counseling, federal contracting certifications, and disaster recovery. We can also connect you to our partner organizations, lenders, and other community groups that help small businesses succeed.

ARIZONA District