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D2DInc Applies for a Small Business Grant

One of our founding principles has been to not only help companies win and manage government contracts, but also to train organizations on how to function in the GovCon world so they "outgrow" our services. A couple of years ago, James Froman, D2DInc Director, came up with the idea of creating the No Veterans Left Behind program, an institute to train service-disabled veterans for careers in federal acquisition, recruitment, and administrative services. We have been trying to come up with creative ideas to fund this and make it a reality. Recently we found that Chase has a program called Mission: Small Business to provide $250,000 grants to up to 12 small businesses.

Help us bring our vision into reality. If we get this grant, we can establish this program and give back to the veterans that have faithfully served our country. To vote, visit the Chase website. When it asks you to search for the business name - enter "D2DInc" then click the Vote button. We need at least 250 votes to be considered for the grant.

Thank you in advance!!

All of us at D2DInc

Should Your Company be a C Corp?

When we decided to create D2DInc in 2001, one of the questions we were asked was what type of businses structure did we want to create. We discussed the pros and cons of each type and decided to be a C Corp, espcially since there are two owners. Over the years we've heard from people (especially accountants) that we should have structured our company differently. The Small Business Administration (SBA) just posted a guest blog by Barbara Weltman called "5 Reasons to Be a C Corporation." These reasons mirror why we decided on a C Corpt and think that this blog post is a worthwhile read. The 5 reasons she states and goes into detail on are:

Use crowdfunding to raise equity capital
Maximize medical deductions
Foreign investors
Using multiple classes of stock
Minimizing employment taxes

If you are a new business, you may want to consider creating a C Corp, espcially if you're thinking about government contracting as a future line of business. If you aren't a C Corp, but think you can benefit from changing your structure, you should contact a competent and experienced attorney and accountant to guide you through the process.

Read the entire blog post by clicking here.

JVs as a Teaming Strategy

Joint Ventures – a Great Way to Team on Federal Government Contracts

Most people are familiar with the concept of Joint Ventures (JVs); however there are many companies that could successfully use a joint venture, but aren’t aware of the particulars and benefits. This article provides a high level overview of JVs. You can contact us if you have any questions or need additional information.

JVs consist of two or more parties who team to create a new entity for the purpose of executing a particular business undertaking, such as pursuing a federal government contract. This enables them to pool their resources (staff, management, finances) and jointly present their past performance as a team.

Small and newer contractors should consider JVs because it will allow the pursuit of larger contracts (revenue and/or people) or gives the “prime” – the JV – stronger past performance because both parties’ experience counts as the prime’s, as opposed to a situation when only a subcontractor has the experience (skills/people/capabilities) or past performance. This can give the Team a stronger position for evaluation.

JVs can be extremely beneficial for 8(a) certified firms that have the skills necessary to perform on a contract, but not enough past performance or experience supporting a specific agency. New rules relating to 8(a) JVs took effect on February 11, 2011 revising the regulations pertaining to the 8(a) Business Development Program. One of the biggest changes is that the JV may be awarded up to 3 contracts over a 2-year period without a finding of general affiliation. Previously the rules stated that the JV could only bid on 3 contracts -- a definite improvement. If you are considering creating an 8(a) JV, you should contact the SBA before starting the paperwork and before the proposal is submitted. The SBA has specific guidelines and forms that must be used in order for a JV Agreement (JVA) to be approved. If their format is not used, your JVA will probably be rejected, and as a result, the agency cannot award the contract to the JV. For more information on the regulations pertaining to awarding an 8(a) contract to a JV, reference 13 C.F.R. § 124.513(a)(1).

Creating a JV is not necessarily complicated, but there are SBA regulations that govern small business JVs and even more specific regulations for creating 8(a) certified JVs. When creating a JV, you need to seek the advice/counsel of someone familiar with JVAs for government contracts and knows the corresponding regulations. JVAs have nuances that are different from general business law, so make sure that your legal counsel or contracts administration professional is not only familiar with JVAs, but is up-to-date on recent legislation affecting JVs.