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Jay Challa - Minority Enterprise Executive Council

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Small Business and the Government Bailout:What is Needed?MEAJanuary/February<strong>Minority</strong> <strong>Enterprise</strong> Advocate2009USA $3.95 CAN $5.25Still Moving Mountainsand Re-routing Rivers- <strong>Jay</strong> <strong>Challa</strong>, President, ACE Info Solutions1 <strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 2009


Diversity & Inclusion.It’s the foundation of who we are. At Bank of America, we remain committedto building new relationships and helpingdiverse businesses expand and thrive.Our supplier diversity program hassignificantly increased the amount ofquality products and services we obtainfrom diverse-, woman-, veteran- anddisabled person-owned businesses.We take great pride in our efforts as aleader in supply chain diversity and lookforward to the opportunities ahead.To learn more about our bank’s supplierdiversity program please visitbankofamerica.com/suppliers.©2008 Bank of America Corporation | AD-01-08-9020.SCM.M


The staff and management of MEA MagazineCongratulatesThe First African-American PresidentBarack H. Obama44th Presidentof the United States of AmericaGod Bless America


MEA<strong>Minority</strong> <strong>Enterprise</strong> AdvocateContentsStill MovingMountains andRe-routing Rivers<strong>Jay</strong> <strong>Challa</strong>, President, ACE Info SolutionsCover StoryStill Moving Mountains andRe-routing Rivers. 14Feature ArticleSmall Business and the Government Bailout:What is Needed?. 10In The NewsPowerful <strong>Minority</strong> CEO’s. 33Shumaker Report. 26The Day the Earth Will Beganto Move Again. 27Government NewsThe Federal Government’sSmall Business Program . 17MetrobizSBA’s Best Kept Secret:The 504 Loan Program . 22Small DisadvantageBusiness Certification. 24EducationDare We Hope? the Obama Administration’sPlans For America’s Students . 31Automotive2008 Vehicles Caught-UP in the Madnessof a Recession. 352009 Mercedes-Benz CLK550 Cabriolet. 36DepartmentsPublisher Message . 7Calendar of Events . 382008 OSDBU Listing . 40<strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 20095


<strong>Minority</strong> <strong>Enterprise</strong>Advocate MagazinePublisherDebra WilliamsCopy EditorLisa PafeContributing WritersLurita DoanFernando GalavizGary ShumakerCharles PayneAl PorterValencia MohammedSBA District OfficeOn Wheels MediaDesign & ProductionAdrienne ButlerPolaris PressPresidentSunny Ezeji<strong>Minority</strong> <strong>Enterprise</strong> Advocate Magazineis published bi-monthly by<strong>Minority</strong> <strong>Enterprise</strong> <strong>Executive</strong> <strong>Council</strong>P.O. Box 5199Woodbridge, Virginia 22194Tel. (703) 730-4091Fax (703) 730-4092E-mail: vpwilliams@comcast.netWebsite: www.meecouncil.comSunny Ezeji,PresidentPublisher’s MessageThis is a new beginning for America, a wonderful time to bealive. President-elect Obama will bring the country and theworld back together. It will be a difficult responsibility, buteveryone has to help him bring America back to the standardthat the world used to know. The United States of Americais going to regain the respect and powerhouse status wehave lost over the past 8 years of an administration of greedand unbelievable abuse.As an African American, I am very proud to see, in mylifetime, the first Black president in office with his beautifulfamily. This should send a strong message to minorities as awhole that the dream is possible for everyone to achieve.The big question is how we are going to rebuild the small business community.I have a lot of faith in the new administration. The business community that haspractically been destroyed will rise again and find stability to continue supportingtheir families and creating much needed jobs. Everyone who feels lost, find thestrength to know that everything will be all right. We have to think this way in orderto survive what has happened to us. America and the world have changed forever.We have to adjust to the inevitable, accept it and move on.Homelessness, joblessness and fear for the future of our children are things wehave to tackle with calm and strategy. Can you imagine what will happen to ourcountry if we don’t understand that we have to work as a team to deal with theseissues? Do not expect Barack Obama to save us. We have to help him.God bless the soldiers in Iraq and Afghanistan. I will be so happy when they areable come home to their families. When they finally return, we as a country needto receive them with honor and respect. They will need our assistance in theirtransition from such a horrible and senseless assignment.Sunny Ezeji, President of MEA Magazine, and I are veryhappy to be able to continue bringing the minority businesscommunity to the forefront and provide you with vitalbusiness information. Thanks to all of our contributors andwriters for making things happen. We have been away since2006, and now we are back to stay.Debra WilliamsPublisherDebra Williams,PublisherMBPNDebra Williams, PresidentSunny Ezeji, PresidentAll rights reserved © copyright<strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 20097


Feature ArticleSmall Businessand theGovernment Bailout:What is Needed?By Lurita DoanLurita Doan, former Adminsitrator, U.S. GeneralServices Administration, also a small/minoritybusiness ownerThe Federal government is giving out money, lots of money,to big companies and institutions. But the only result thesmall business community can expect is to foot the bill forthe huge government stimulus. What a pity.Whether we agreed with the rescue plans or not, ourCongress has committed over a trillion rescue dollars thatwill, ultimately, have to be paid with the hard-earned cash ofAmerican taxpayers. And, given thatAmerican small businesses pay most ofpayroll taxes and corporate taxes., thebailout means that small businessesstand to be hit with a double whammyfrom the U.S. government. Smallbusinesses face increased taxes atthe corporate level and, because somany small businesses are S-typecorporations and their business revenueflows to their personal taxes, they nowface the potential for increased taxesat the personal level too. Thus, it isall too clear that Congress will sticksmall businesses with the bill for newspending and bailouts.The Federal government has providedbailout assistance to banks, investmentfirms, insurance companies, motor vehicle manufacturers,home builders, mortgage companies, but has thus far failedto address the need to help small businesses.According to the Small Business Administration (SBA), thereare approximately 25.8 million businesses in the United States,and 99 percent of all employers are small businesses. Smallbusinesses do most of the hiring, creating most jobs in localcommunities throughout the United States. Small businessesare the source of most of the innovation in this country. But,small businesses are at a real disadvantage in the currentclimate. They can’t afford to hire high-flying, deal making,lobbyists. They can’t afford air time on television or radio to“First, Congressneeds to understandthat if our country isgoing to turn aroundthe current financialcrisis, handoutsare not enough.”advertise their needs or concerns. With big business clamoringabout hard times, it’s hard for small businesses to be heardover the din, much less find a seat at the table of opportunity.Let’s hope that the many different business associationsgeared towards small businesses will get into the fightand start working with members of Congress to find abetter balance. Most members of Congress support smallbusiness when they are running for reelection.Yet, these same members ofCongress are strangely silent regardingsmall business assistance the rest ofthe time. This inaction is disappointinggiven that it would not be too difficultto help small businesses through somecreative legislation, none of it requiringyet another multi-billion dollar subsidyor bailout such as large companiesare demanding. Moreover, the helpthat small businesses need is withinthe power of Congress. So, what aresome of the changes that Congress canimplement to help small businesses?First, Congress needs to understand thatif our country is going to turn around thecurrent financial crisis, handouts are notenough. New sources of revenue must also be generated,and the economy must be able to grow organically. To achievethis goal, Congress should make it attractive for entrepreneursto start and grow their businesses.Second, Congress needs to expand the tax incentives for smallbusiness, not tax them into oblivion. Congress should be doingeverything within its power to encourage small businesses toinvest in themselves. Immediately, Congress should increasethe capitalization credit for small businesses to $250,000.From this increased capitalization credit alone, Congress wouldsee an immediate stimulus for the economy, since smallbusinesses would be buying items from other businesses10 <strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 2009


and hiring personnel to operate thesecapital assets. Furthermore, by investingin their enterprises, business ownerscreate more stable and more solventbusinesses. Increased solvency in abusiness is more attractive to financialinstitutions and more likely to garneradditional investments that allow thebusiness to expand.Third, Congress should address the factthat access to capital has always beenone of the primary challenges facingsmall business owners. Congress shouldincrease the threshold of the SBA-backedLow Documentation (Low Doc) loansfrom $100,000 to $250,000 to encouragemore small businesses to take advantageof the capitalization tax credit. This wouldalso serve to free up more funding forlending at banking institutions. TheFederal government, working with banksand SBA, should aim to lower the capon the interest rate charge above prime.In addition, the SBA should raise theeligibility threshold for Low Doc loans to$10 million in annual revenue.Fourth, Congress should pass legislationwhich will incentivize businesses toinvest in their employees’ health careplans. This investment has the addedbenefit of increasing an employer’sability to retain valuable, trainedemployees. One possibility wouldbe to provide a 125% tax credit tobusinesses for premiums paid by thesmall businesses on behalf of theiremployees. Employers would thus beincentivized to provide comprehensivehealth care for their employeesbecause, in addition to improving thequality of life for their employees andtheir employees’ families, the businessowner would also realize a direct,tangible and substantial benefit.Fifth, Congress should authorize theSBA to work with bonding companiesto provide increased access toconstruction bonds. By raisingthe threshold to $30 million, smallbusinesses in construction would havethe ability to compete on larger local,state and Federal building projects asthe prime contractor. Unless Congressmakes these necessary fixes to allowsmall businesses to better compete onbuilding and construction projects, muchof the small business community willbe frozen out of the upcoming nationalefforts to stimulate the economy bybuilding infrastructure. Instead, theseconstruction projects will be the soledomain of large businesses.None of these initiatives wouldrequire taxpayer bailouts or funding,but rather the elimination of barriersand boundaries to growth that nowhinder growth in the small businesscommunity. Congress needs toimplement these fixes right now.In addition, President-elect Obamashould take three immediate actionsthat would also boost small businessgrowth in the Federal arena.First, the <strong>Executive</strong> Branch andLegislative Branches must empowerthe Director of the SBA Office ofSmall and Disadvantaged BusinessUtilization (OSBDU). At the presenttime, the OSDBU has a diminishedrole in the procurement process. AllFederal procurements are supposed toreviewed, by the OSDBU first, to make adecision whether or not the work couldbe performed by small business beforegoing to a full and open procurement.Unfortunately, this review and selectionprocess is rarely done.Most procurement entities bypass theOSBU, thereby denying hundreds ofsmall businesses millions of dollarsof procurement opportunity. Agencyleaders need to support OSDBU andparticipate in the procurement process.Both the procurement manager and theOSDBU should have this requirementas part of their performance plan andas one of the metrics for job success.Second, all Federal government primecontractors should be required tohonor subcontracting agreements withsmall businesses, as long as the smallbusiness was named as a team memberin the original RFP response. No new<strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 2009action from Congress is required. Thisis the law. However, this critical law isseldom enforced.Lastly, the Office of Management andBudget should hire a tough, disciplinedand knowledgeable head of the Officeof Procurement Policy who will restrictproliferation of Government-Wide AccessContracts (GWACS). GWACs foster theillusion of competition, but, in reality,only drive up the cost for both large andsmall businesses who feel compelled tobid on every procurement opportunity.They then pass the increased cost forprocurement development right back tothe government. GWAC proliferationdoesn’t help the government, andit doesn’t help the small businesscommunity.The Federal government has fostered thebelief that bailouts of big businesses arethe solution to our nation’s financial woes.This myopic view reveals a fundamentallack of understanding of what it takes tocreate, cultivate, grow and succeed as abusiness. Few members of Congressknow from hard experience what it takesto create a business, and few understandthe burdens and the risks entrepreneursbear. Congress’ capricious approach toselecting certain enterprises to bailout,while leaving others to fail, shows bothan ignorance of and an abandonmentof the free market principles that havemade our country the most prosperousnation on the earth.More funding for government bailoutsis not always the answer, but regulatoryrelief and speedy action are. Incentivizingsmall businesses to expand is far betterfor our nation’s economy than drivingsmall businesses into extinction withdraconian tax burdens. Governmentregulators should resist the creation ofartificial, bureaucratic requirements andbarriers that produce excessive burdenson small businesses. The Federalgovernment should enforce the lawsalready on the books that support smallbusiness. Then, small businesses wouldalready have the means within their ownhands to grow the economy, employ ournation’s citizens, achieve success, andplant the seeds for future prosperity.Kick-starting our nation’s economydoesn’t take more Federal funding, itjust takes more wisdom.11


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Cover StoryStill Moving Mountainsand Re-routing RiversBy Gary Shumaker<strong>Jay</strong> <strong>Challa</strong><strong>Jay</strong> <strong>Challa</strong> alreadyknew he couldmove mountainsand change thecourse of mightyrivers. As ane nv i r o n m e n t a lengineer for whatis now Earth Tech,he had designedsolid wastem a n a g e m e n tprojects likethe one in York,Pennsylvania thatinvolved complexe n g i n e e r i n gfeatures. . He hadliterally engineeredthe moving of mountains of trash. In the process, of coursehe had re-routed flowing waterways to preserve existingecosystems and protect fragile habitats of their aquatic life.But that wasn’t enough for <strong>Challa</strong>. He had already realizedthat protecting the environment required merging ofengineering skills with information technology skills.As an undergraduate, he had attended Jawaharlal NehruTechnological University in Hyderabad, India. Along the way,he had picked up a masters degree from the New JerseyInstitute of Technology. In 2000, together with his collegeclassmate from undergraduate days, Nar Koppula, hedecided to put his skills to work by forming an IT companythat would support other scientists and engineers whoworked to protect our ecology. Than company was Ace InfoSolutions, Inc., acronymized as AceInfo.When he looked at who his customer base for his newcompany would be, he realized that the need was broader.The biggest used of environmental engineering IT was thefederal government, but the federal government boughtinformation technology for a wide variety of applications.His mission statement became:“Ace Info Solutions is an Information Technology ConsultingFirm serving commercial and public sector clients. Weprovide turnkey project implementations and systemintegrations in eSolutions, web technologies, ERP and clientserver applications.”He’s serving pretty much the entire federal government,with five prime contracts with the U.S. EnvironmentalProtection Agency. His client list include the mostsignificant agencies of the United States Government,including the U.S. Environmental Protection Agency, theU.S. Department of Agriculture, the U.S. Department ofCommerce, the U.S. Department of Homeland Security,U.S. Department of Defense, the U.S. Departmentof Justice, U.S. Department of Interior, and the U.S.Department of Veterans Affairs. Other clients includeSpotsylvania County, Virginia, and the MetropolitanWashington Airports Authority. Ninety-five percent of<strong>Challa</strong>’s revenue is from prime contracts.<strong>Challa</strong> wanted to start a company that would providean exceptional place to work and would make a positivecontribution to his adopted country, the United States.Today, with 150 willing employees helping him, he’s livingthat dream by giving his employees a better place to work,and making his adopted country and the world a safer andhealthier place to live.Part of his leadership formula is treatment of employees.He provides competitive salaries based on nationaland regional salary surveys, but he also promises jobcandidates that they will have high job security as a resultof AceInfo’s growing contract base, that the work theywill do will be important to the country, and that theywill be positioned to make significant contributions bothprofessionally and personally. He emphasizes promotingfrom within, and aggressive professional developmentplanning to assure employees that they will be readywhen promotion time comes.<strong>Challa</strong> takes good care of his employees in other ways;100% company-paid health care costs leads an impressivearray of fringe benefits; medical, dental and vision insurance,all at no cost to the employee. In addition, he offers paidtime off (sick and vacation leave); life, accidental deathand dismemberment and short- and long-term disabilityinsurance; flexible spending accounts; a 401(k) retirementsavings plan and other benefits.14 <strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 2009


He values training and education,and every employee is expected toget at least 40 hours of job-relatedtraining every year. He providesfinancial assistance for professionalcertification testing such as theMicrosoft Certified Professional, andProject Management Professionalprograms. He encourages employeesto complete degrees and pursueadvanced degrees, and provides abase of $2,000 per year in tuitionreimbursement, but he frequentlyauthorizes increases to that number.As a result, <strong>Challa</strong> has an exceptionallylow professional employee turnover rate;less than 8% on an annualized basis.The most significant recognition of<strong>Challa</strong>’s personal contributions andleadership to his company was beingnamed the Government Contractorof the Year (under $25 million) in lastyear’s 5th Annual Greater WashingtonGovernment Contractor Awards. In2008, his company was also namedby the Virginia Chamber of Commerceas a Virginia Vanguard Company inrecognition of its position as the fastestgrowing company in technologysector in the state, and number six ingrowth regardless of sector, for which<strong>Challa</strong> and the firm were featuredin the May, 2008 issue of VirginiaBusiness magazine. The company wasrecognized as Fast 50y Contractorsby Washington Technology magazinetwo years in a row. For achieving this,<strong>Challa</strong> and his company were featuredin Washington Technology magazine.He watches to ensure that his companydelivers on its promises by getting thefeedback directly from clients throughin person meetings. Further, 100%of his program managers are certifiedby the Project Management Institute(PMI). <strong>Challa</strong> spent about $8,000 perprogram manager to train and obtainthese certifications.His is one of the very few smallbusinesses that are both ISO-9001:2000registered and CMMI Level III (softwaredevelopment) certified. In addition, in2008, he personally led the preparationthat resulted in government approval ofhis company’s proprietary Earned ValueManagement System to ensure thatapplication development programs delivertheir predicted value to the country.<strong>Challa</strong> contributes to his countrythrough contract awards that impactthe health and safety of our citizens;significant new awards in 2008 includeassisting the Transportation SecurityAgency in security processing ofairport baggage screeners nationwide,and work with the Department ofAgriculture to ensure the safety of theinternational food supply.<strong>Challa</strong>’s corporate headquarters is inReston, Virginia; in 2006, the firm hadpersonnel and offices in ten otherlocations around the national capitalarea and other areas of the UnitedStates including; Kansas City, Missouri;Atlanta, Georgia; Baltimore, Marylandand New Orleans, Louisiana.<strong>Challa</strong> is active in his community aswell, participating regularly in suchtrade organizations as the IndustryAdvisory <strong>Council</strong>, the Armed ForcesCommunications-Electronics Association,and the Government InformationTechnology <strong>Executive</strong> <strong>Council</strong>. He alsoparticipates in regional activities suchas the East Tennessee EnvironmentalBusiness Association and the EasternTennessee Economic <strong>Council</strong>.Hurricane Katrina was a truedemonstration of <strong>Challa</strong>’s commitmentto community. He continued to payits employees at the company’s NewOrleans area in spite of the fact thatthey had no place to go to work, andin some cases, in spite of the fact thatthey no longer had a bank available fordirect deposit. He relocated personnelfrom the New Orleans area to theGreater Washington, D.C. area on atemporary basis to enable them to workand continue a semblance of normallife while the restoration of their homesand their city was in progress. Hisemployees who remained in the NewOrleans area and those who returnedwere instrumental in enabling his majorclient in that area, the U.S. Departmentof Agriculture’s National Finance Center,to return to normal operations.In the Greater Washington, D.C. region,AceInfo is an active supporter ofKomen for the Cure, the world’s largestnetwork of breast cancer, and RestonCelebrates 40 Years!, an organizationthat has come together to fostercommunity pride and understandingof the unique 40-year history of ourhometown, Reston, Virginia.His company is a member of both theReston and Herndon Chambers ofCommerce.<strong>Challa</strong>’s revenue has grownsignificantly—to to , to $18.0 millionfrom $25,000 in 2002.In part, <strong>Challa</strong> has achieved this successas a result of its partners. He has forgedlong-term business partnerships andpersonal relationships with large andmedium sized companies, such as CGIFederal, SRA International, ScienceApplications International Corporation,Nortel Government Services, CatapultTechnologies, and Viatech.AceInfo is certified by U.S. SmallBusiness Administration as a smalldisadvantaged and 8(a) company.The firm consistently receives externalrecognition for the quality of its work.<strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 200915


1 MINORITY ENTERPRISE ADVOCATE • January / February 2009MEA<strong>Minority</strong> <strong>Enterprise</strong> Advocate❒ Please Bill Me❒ Credit Card Paymentsiness MagazineEntrepreneursMEA<strong>Minority</strong> <strong>Enterprise</strong> Advocatetion Street to MEA __________________________________________________________Magazine<strong>Minority</strong> <strong>Enterprise</strong> Advocat eCity ___________________________________________________________A publication of the <strong>Minority</strong> Business & Professionals Network, Inc..95 State ______________________ Zip ____________ Country _____________9.90 E-mail address ___________________________________________________4.85 Credit Card ❒ MasterCard ❒ Visa ❒ American ExpresstPage 13Please allow 4-6 we s for e delive k ry f o your fi rs issue. tYes, Send me a subscription to MEA Magazine_____________________________________ MINORITY ENTERPRISE ADVOCATE • MAY/JUNE 2004 13__________________________________________________________________________<strong>Minority</strong> <strong>Enterprise</strong> Advocat e_____________________________________Zip ____________ A publication Country of the _____________ <strong>Minority</strong> Business & Professionals Network, Inc.o 1 year (6 issues) $24.95o 2 years (12 issues) $49.90❒ American Expresso 3 years (18 issues) $74.85_____________________________________❒ Visa__________________________________________________________________________MEA Magazine, 6911 Richmond Highway, Suite 302, Alexandria, VA 22306age. All other fo eign r subscri tions p add $32 US per year for po a s t g e .we s for e delive k ry f your o fi rs issue. tity Business & Professionals Network, Inc.o Please Bill Meo Credit Card PaymentINORITY ENTERPRISE ADVOCATE • MAY/JUNE 2004 13rm to: MEA (703) Name______________________________________________________________768-7034d Highway, Suite 302, Alexandria, VA 22306MEA<strong>Minority</strong> <strong>Enterprise</strong> Advocate❒ Please Bill Me❒ Credit Card PaymentA National Business Magazinefor <strong>Minority</strong> EntrepreneursYes. Send me a subscription Street to MEA __________________________________________________________MagazineCanadian o rd e s add r $16 US per issue for postage. All other fo reign subscri tions p add $32 US per year for po s a t g e .Please allow 4-6 we s e for delive k ry f o your fi rs issue. tName __________________________________________________________Company _______________________________________________________Number ________________________________________________________MEA Magazine, 6911 Richmond Highway, Suite 302, Alexandria, VA 22306Expiration Date __________________________________________________Canadian o rd e s add r $16 US per issue for postage. All other fo eign r subscri tions p add $32 US per year for po s a t g e .MEA❒ 1 year (6 issues) $24.95❒ 2 years (12 issues) $49.90❒ 3 years (18 issues) $74.85Fax Subscription Form to: MEA (703) 768-7034Company__________________________________________________________Street______________________________________________________________AY/JUNE 2004 13Name __________________________________________________________Company _______________________________________________________City ___________________________________________________________❒ 1 year (6 issues) $24.95 State ______________________ Zip ____________ Country _____________❒ 2 years (12 issues) $49.90E-mail address ___________________________________________________❒ 3 years (18 issues) $74.85Credit Card ❒ MasterCard ❒ Visa ❒ American ExpressA National Number ________________________________________________________Business Magazine for <strong>Minority</strong> EntrepreneursExpiration Date __________________________________________________MEAFax Subscription Form to: MEA (703) 768-7034Small Business and the Government Bailout:What is Needed?January/February 2009MEA USA $3.95 CAN $5.25<strong>Minority</strong> <strong>Enterprise</strong> AdvocateStill Moving Mountainsand Re-routing Rivers- <strong>Jay</strong> <strong>Challa</strong>, President, ACE Info SolutionsCity_______________________________________________________________State_______________Zip__________________Country___________________E-mail address_______________________________________________________Credit Card o MasterCard o Visa o Discover o American ExpressCard Number_ ______________________________________________________Expiration Date______________________________________________________The U.S. Department of Commerce<strong>Minority</strong> Business DevelopmentAgency gave the firm its NationalDirector’s Award for Excellencein Innovation and EntrepreneurialLeadership. Further, 3 staff membersreceived outstanding performanceawards and the department gave specialrecognition for providing IT-securityrelated services. The U.S. Departmentof Agriculture named AceInfo asits Small Disadvantaged BusinessContractor of the Year and also namedthe <strong>Challa</strong>’s Project Manager for specialrecognition for excellent customerrelationships. The U.S. Departmentof Interior recognized <strong>Challa</strong>’s staff forcontributions that increased web siteusage by over 50%.The <strong>Minority</strong> Business and ProfessionalsNetwork recognized <strong>Challa</strong> on its list ofFifty Influential Minorities in Business.DiversityBusiness.com named AceInfoas both one of the top 8(a) companiesin the country, and one of the top 100small businesses and one of the top100 diversity businesses in Virginia.<strong>Challa</strong>’s commitment to his countrydoesn’t stop at the local level. He hasmade his company active regionallyand nationally in both public serviceand technical forums. He participatesactively in such industry organizationsas the Industry Advisory <strong>Council</strong>,the Armed Forces Communications-Electronics Association, and theGovernment Information Technology<strong>Executive</strong> <strong>Council</strong> (GITEC). Ofparticular note; last year he combinedhis commitment to community and hislove of sport by sponsoring part of theGEITEC Golf Tournament in Orlando.<strong>Jay</strong> <strong>Challa</strong> started out moving mountainsand changing the course of rivers. He’sstill doing it, but today he uses bettertechnology!Canadian orders add $16 US per issue for postage. All other foreign subscriptions add$32 US per year for postage. Please all 4-6 weeks for delivery of your first issue.MEA<strong>Minority</strong> <strong>Enterprise</strong> AdvocateA publication of the <strong>Minority</strong> <strong>Enterprise</strong> <strong>Executive</strong> <strong>Council</strong>.Fax Subscription Form to MEA (703) 730-4092MEA Magazine, P.O. Box 5199, Woodbridge, VA 22194


Government NewsThe Federal Government’sSmall Business ProgramBy Fernando GalavizFernando V. Galaviz, member of the U.S. Hispanic Chamberof Commerce, is specifically preparing this document forthe Obama/Biden Transition Team. It provides a solutionto the three-decade failure of the Federal government’ssubcontracting requirements for small businesses and smalldisadvantaged firms. This document provides a solution thathas been developed through community focus groups over aperiod of the last four years. We present in this document abrief snapshot of the documentation available to the Federalgovernment regarding the failure of the subcontractingprograms as well as an executive summary of the practicalsolution that is considered by the community focus groups tobe a “win-win” solution for all stakeholders.The need for the Obama/Biden administration to prioritizeattention to the restructuring of the Federal subcontractingrequirements is that as part of the Obama economic recoverypackage, a significant effort is necessary to meet both the spiritand letter of Public Law 95-507. Currently, Public Law 95-507requires that contracts over $.5 million (and over $1 million forconstruction) that are won by large businesses, it is mandatorythat the large businesses provide a subcontracting plan for smallbusinesses and small disadvantaged firms.Public Law 95-507 must be modified so that there is a truebusiness, contractual relationship between small businesses,small disadvantaged businesses and large, prime contractorsin their subcontracting agreements. This would create a moreeffective program and would enhance opportunities for thesmall businesses and small disadvantaged businesses tocreate greater competition, which in turn would result in lowercosts to the Federal government and taxpayers. It would alsolower the costs to the Federal government subcontractingprogram which would be a great example of the Obama/Bidenadministration’s commitment to bring practical and effectivechange where all stakeholders will benefit.The subcontracting opportunities on Federal governmentcontracts are of vital importance to small businesses, smalldisadvantaged businesses, and minority and Hispanic firms.The Federal subcontracting program is particularly andcritically important to start up and developing firms as thesesubcontracts provide the initial base in which a developingcompany depends to establish their credentials.Major corporations will benefit by having clarity and consistencyin their responsibilities in fulfilling with integrity the spirit andthe letter of the Federal government subcontracting programs.Further, they will also benefit that this proposed solution providesthe elimination for them to incur added costs in developingsubcontracting plans. It also calls for major corporations toeliminate the development and provide ongoing performancereports and the costs associated in preparing for Federal audits.This proposed solution will simply create an effective businessarrangement between small businesses, small disadvantagedbusinesses and major corporations.It is clear by all elements of the Federal marketplace that previousdemocratic and republican administrations, major corporations,Congress and most importantly, the small business and smalldisadvantaged business communities collectively agree thatthe current small business program is not effective at all and inmany cases, there is a significant lack of integrity.It is quite clear that the restructuring of the subcontractingprogram will momentously improve the business practices inthe industry and will provide an indicative example to the nationof the Obama/Biden administration’s ability to take a practical,business-like approach to fix a broken program in a manner thatwill provide the most benefit to all stakeholders. In particular,the taxpayer will benefit by removing the burdens of costlyreporting and auditing requirements that have continuouslyprovided very little benefit and which have showed no purposedue to the failure of the program as a whole.Subcontracting Solution to Benefit All StakeholdersThe proposed solution is focused on the concept thatsubcontracting plans would be replaced by subcontractingagreements. The subcontracting agreements, which arenormal practice in the marketplace, will provide the formalunderstanding of all the business aspects (scope of work,dollar awards per organization, etc.) between the smallbusinesses and the small disabled businesses and themajor, prime corporations.The major, prime organizations are protected by thesubcontracting agreements in that they only become valid ifthe organization is awarded the Federal contract.The Federal government will benefit because the proposedsolution will require that all subcontractors for the life cycleof the proposed contract will be selected through thecompetitive process that is currently in place and that theparties agree to the subcontracting agreement as to all thespecific, business details for the life cycle of the contract.<strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 200917


In this manner, the Federal governmentwill save a considerable amount ofmoney by eliminating the personneland processes that are being usedgovernment-wide on an internationalbasis because all details will be containedwithin the subcontracting agreement.The subcontracting agreement willbecome valid upon contract awardand thus creates the legal relationshipbetween the parties.In today’s process subcontracting program,the parties document the arrangementin teaming agreements which are, forthe most part, very difficult for a smallbusiness to litigate successfully.The use of a subcontracting agreementprovides a dramatically better standing fora small business or small disadvantagedbusiness to litigate.Testimony of Fernando V. GalavizRegarding Small Business ProgramSolutionOn May 22, 2007, Fernando V. Galavizprovided the following testimony underthe title <strong>Minority</strong> Entrepreneurship:Assessing the Effectiveness of SBA’sPrograms for the <strong>Minority</strong> BusinessCommunity to the United StatesSenate Committee on Small Businessand Entrepreneurship“We recommend the elimination ofsubcontracting plans.Instead, with respect to prime contractawards over $2 million, the Federalgovernment should require in the Requestfor Proposals (RFPs) that large businessacquisition bidders do the following:1) Identify the subcontractor;2) Identify the subcontractor’sspecific scope work to be performed;3) Identify the specific dollaramount that will be awarded to thesubcontractor in the subcontractoragreement;4) Mandate that the prime andsubcontractor execute a subcontractoragreement prior to the proposalsubmission;5) Mandate that a copy of thefully executed subcontract agreementexecuted between the prime andthe subcontractor be included in thebidder’s proposal submission.The subcontracting agreementwould only be in effect if the bidderis awarded the prime contract. Sincethere is no privity of contract betweenthe government and the subcontractor,there would be no need for governmentintervention if the prime contractorbreaches the subcontract agreementbecause the subcontractor would havea means to enforce the subcontractagreement through the legal system.It is current practice for prime contractorsto enter into teaming agreementswhere the major corporation as a primecontractor indicates a percentage ofwork to be performed and a certaindollar amount that will be awarded.Subsequent to contract award, primecontractors enter into subcontractagreements with subcontractors, butin most instances subcontractorsare offered less work share and lessdollars in the subcontract agreementas what was indicated in the teamingagreement.For example, under the present system,the major prime contractor can beawarded a $200 million contract on thebasis that the prime contractor will besubcontracting 20% ($40 million) of theaward to minority, small and/or smalldisadvantaged businesses. However, inactuality, subsequent to contract award,the prime contractor may only awardthe small business subcontractors$8 million worth of business, leavingthe remaining $32 million dollars tobe awarded in the future. Currently,the Federal government is not fullyaware whether large businesses arecomplying with their subcontractingplans. Would you buy a home withoutlooking at the master bedroom orkitchen? It is no different with Federalgovernment contracting.It is for this reason that we believe ourrecommendation for subcontractingcompliance is viable and will benefitminority, small and disadvantagedbusiness subcontractors. This strategywill be market driven because in orderto be competitive, prime contractorswill need to select the best qualifiedsubcontractors. This strategy willalso afford the Federal governmentcontracting agency the opportunityto fully evaluate all vendors at all tierlevels performing on the contract.”Current/Standing Issues RegardingSmall Business SubcontractingCurrent SBA programs are ineffectiveand are making insignificant progressto increase small business Federalcontracting opportunities.Two of the largest contributing factorsare the result of contract bundling andsubcontracting regulations. With regardto these two contributing factors:– Large businesses are not beingheld accountable for providingopportunities to small businessesunder current contract bundlingrequirements– According to GAO and SBA InspectorGeneral, current subcontractingreporting standards are vulnerableto misrepresentation, unreliable andinconsistent– The SBA Inspector General foundlax oversight by the SBA commercialmarket representatives reporting onsmall business data– Unnecessary bundling displacesentrepreneurial contractors anddiscourages competition– Large businesses routinely imposeteaming agreements on small firmswhere they have no intention ofhonoring the terms– Mentor-protégé agreements fail toguarantee subcontracts to smallfirms– There is little enforcement againstlarge primes for fraudulent “bait andswitch” tactics and dilatory paymentpractices– The SBA has not complied withrequirements regarding thedissemination of best businesspractice guidelines to maximize smallbusiness contracting opportunities– Current regulations do not establishmetrics to measure the extent to whichcontract bundling is occurring, or theextent to which bundling impacts smallbusiness contracting opportunities– Federal government contractingofficers have not been consistent inenforcing the subcontracting plansof major corporations– Inconsistencies in the SmallBusiness Act and the FAR result inmisinterpretation and misuse18 <strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 2009


– The GAO, SBA’s Office of InspectorGeneral and the SBA’s office of Advocacyhave found that agencies are countingawards made to large firms towardtheir small business procurement goalsresulting in agencies receiving smallbusiness credit for using firms that maynot be small for all of the contractor’sgoods and services– A decade after the milestone SupremeCourt decision regarding raceneutrality with regard to awardingFederal contracts, no effective stepshave been taken by agencies toprovide clear recourse for contractorswho are the victims of discriminationnor guidelines of enforcementThe following references pertain tothe governments documentationand recommendations on necessarychanges for the Federal ContractingSmall Business ProgramSBA Office of Inspector General (asnoted in Review of SBA’s SubcontractingAssistance Program):– Subcontracting mentor-protégéagreements should identify specificmaterial benefits and developmentgains to be received by smallbusinesses– Compliance review should be basedon background documentationshowing small business participationin subcontractsDepartment of Transportation Officeof General Counsel/DisadvantagedBusiness <strong>Enterprise</strong> (DBE) Regulations:– Large primes should be required toprovide as part of their proposalsevidence of the following:• Execution of subcontractors• Naming of subcontractors• Procedures to ensure promptpayment to subcontractors, and• Agreement not to substitute ordrop DBE subcontractors withoutagency consentDepartment of Energy Office of SmallBusiness & Disadvantaged BusinessUtilization:– DOE Mentor-Protégé Programauthorizes non-competitivesubcontracts to protégés– DOE policy to measure subcontractson total dollar basis for managementpurposes– Award of incentives for meeting smallbusiness subcontracting goalsNASA Office of Small BusinessPrograms:– Section L Standard Clause requiringlarge primes to identify specificsmall businesses by NAICS codeand category, hours to be performedby small business subs (as total andas a percentage of total effort) andspecific Performance Work Statementparagraphs which will involve smallbusiness subcontractors– Section L Standard Clauses re:Small business participation as partof mission suitability scoreSBA Office of Advocacy, TheGovernment’s Role in Aiding SmallBusiness Federal SubcontractingPrograms in the United States:– Establish prime contractorsubcontractordispute resolutionmechanisms to ensure compliancewith subcontracting obligations,especially prompt payment andnon-paymentTestimony of Fernando V. Galaviz beforethe U.S. Senate Committee on SmallBusiness & Entrepreneurship (May 22,2007):– Abolish Small Business SubcontractingPlans; instead require RFP termsrequiring large primes to allocatesmall business subcontractors actualwork as follows:• Identify small business subcontractorsand their specific scope of work• Identify specific dollar amount forsmall business subcontractors• Require an executed subcontract aspart of proposal submissionCongressional Small BusinessSubcontracting Reform ApproachesS. 2300, Small Business ContractingRevitalization Act of 2007 (Kerry-Snowe-Cardin-Stevens):– Requires large prime CEOcertifications that the prime willaward small business subcontractsto the extent described in the bidand authorizes criminal penalties– Authorizes a pilot program byrequiring large primes failing theirgoals to apply funds not awardedto small businesses towards futurementor-protégé assistance– Requires goals on total contractaward dollar basisH.R. 1873, Small Business Fairness inConracting Act (Braley-Altmire-Bean-Chabot-Cuellar-Ellsworth-Fortenberry-Graves-Heller-Johnson-Larsen-Michaud-Musgrave-Sestak-Shuster-Westmoreland-Bartlett-Buchanan-Clarke-Davis (D)-Grijalva-Conzalez-Jefferson-Jordon-Lipinski-Moore-Reyes-Schuler-Velazquez):– Amends electronic subcontractingreporting system to help trackwhether small businessesmentioned in subcontracting planswere actually awarded subcontracts– Bill requires subcontracting as apercentage of total dollar value ofaward, BUT also requires countingsubcontracts below first tierH.R. 1935, Subcontractor ProtectionAct & H.R. 1934, Prompt PaymentImprovement Act of 2007 (Wynn):– Monetary penalties for noncompliancewith Small BusinessSubcontracting Plans– Requires large primes to providewritten justifications when smallbusiness subcontractors identifiedin the plan are not providedsubcontracts or are substituted– Authorizes subcontracting plancompliance whistle blowing hotlines– Distribution of prompt paymentpolicies to subcontractorsPlease feel free to contact my assistantor me if you have any questions.Sincerely,Fernando Galaviz,President of THE CENTECH GROUPgalavizf@centechgroup.comCell Number: 703.626.5433Private office number: 703.812.5360Ebony Israel<strong>Executive</strong> Assistant to the Office of thePresidentIsraele@centechgroup.comDirect office number: 703.812.5379<strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 200919


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MetrobizSBA’s Best Kept Secret:The 504 Loan ProgramU.S. Small Business Administration (SBA)SBA’s 504 Loan Program is the only program that allows individualsmall business owners to purchase land, construct,purchase, and/or rehabilitate a building, and own it personally.For small businesses that are looking to move from leasedspace, it is a wonderful financing tool to purchase commercialreal estate. Why lease when you can buy?The 504 Loan Program is designed to provide fixed-ratefinancing to purchase long term and fixed assets, such aspurchasing land, improvements, including existing buildings,grading, street improvements, utilities, parking lots, machineryand equipment, and landscaping; construction of newfacilities; or modernizing, renovating or converting existingfacilities. Generally, the project assets being financed areused as collateral. Personal guaranties of the principal ownersare also required.The public policy goals are as follows:• Business district revitalization• Expansion of exports• Expansion of minority business development• Rural development• Increasing productivity and competitiveness• Restructuring because of Federally-mandated standardsor policies• Changes necessitated by Federal budget cutbacks• Expansion of small business concerns owned and controlledby veterans (especially service-disabled veterans)• Expansion of small business concerns owned and controlledby women.Built on a 50/40/10 relationship, a typical 504 project includes aloan secured with a senior lien from a private sector lender coveringup to 50 percent of the project cost, a loan secured witha junior lien from the Certified Development Company (CDC),backed by a 100 percent SBA-guaranteed debenture, coveringup to 40 percent of the cost, and an equity investment of atleast 10 percent from the small business being assisted. It canbe utilized for transactions involving gas stations, hotels, residentialcare facilities, and professional businesses. However,the 504 Loan Program cannot be used for working capital, inventory,consolidating or repaying debt, or refinancing.In order for a business to be eligible, it must operate for profit.Under the 504 Program, a business qualifies as small if it doesnot have a tangible net worth in excess of $7.5 million anddoes not have an average net income in excess of $2.5 millionafter taxes for the preceding two years. 504 loans cannot bemade to businesses that engage in speculation or investmentin rental real estate.Funding for a 504 loan is backed by 10-20 maturity debentureswhich are based on a current market rate for five-year and10-year U.S. Treasury issues. The maximum SBA debenture is$1.5 million for meeting the job creation criteria or for meetinga community development goal. Generally, a business mustcreate or retain one job for every $50,000 provided by the SBAexcept for “Small Manufacturers” which have a $100,000 jobcreation or retention goal. For manufacturers, the maximumSBA debenture is $4 million and $2 million when meeting apublic policy goal.As a small business owner, why should you consider theSBA 504 Program?• Low down payment. A small business is required to investjust 10 percent of the total project cost, which includesrenovations and soft costs. This allows the businessto preserve cash for working capital. (Ordinarily,banks require a 20 to 30 percent down payment on thepurchase price).22 <strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 2009


• Fixed rate on the SBA 504 portion.Small businesses don’t have toworry about the prime lending rategoing up and can calculate the exactamount of their mortgage paymentsfor 20 years.• Long term. 504 loans are for 10 or20 years. Because the CDC is in thesecond lien position, the lender doingthe 50 percent first lien loan is willingto lend at a longer term. Longerterms reduce monthly payments.• Low interest rate. Even with fees andclosing costs included in the rate, the504 Program offers a low fixed ratefor a subordinate mortgage loan. Theblended rate between the lender portionand the SBA’s 504 portion makesthe project very affordable, particularlyfor small businesses.SBA’s 504 Loan Program is administeredby CDCs. These certified developmentcompanies are non-profit corporationsset up to contribute to the economicdevelopment of their communities.CDCs work with the SBA and privatesector lenders to provide financing tosmall businesses.The following Certified DevelopmentCompanies located in the Washington,D.C. Metropolitan Area administer theSBA 504 Program:Business Finance Group, Inc3930 Pender Drive, Suite 300Fairfax, Virginia 22030(800) 352-0504(703) 352-9100 FaxContact: Sally Robertson,<strong>Executive</strong> Directorsrobertson@businessfinncegroup.orgArea Served: Commonwealth ofVirginia; District of Columbia andState of MarylandMid-Atlantic Business Finance Company1410 North Crain Highway, Suite 5BGlen Burnie, MD 21061(800) 730-0017(410) 863-7446Contact: W. Joseph Carton, Presidentjoe@mabfc.comArea Served: State of Maryland;District of Columbia;and Northern VirginiaChesapeake Business Finance Corp.1101 30th Street, N.W., Suite 500Washington, D.C. 20007(202) 342-2973(202) 342-0389 FaxContact: John Sower, Presidentjsower@chesapeake504.comArea Served: State of Maryland;District of Columbia;and Northern VirginiaPrince George’s Financial Services Corp.1100 Mercantile Lane, Suite 115ALargo, Maryland 20774(301) 883-6900(301) 883-6160 FaxContact: Shelly Gross-Wade<strong>Executive</strong> Directorsgross-wade@pgfsc.comArea Served: State of MarylandJames River Development Corp.1108 E. Main Street, Suite 702Richmond, Virginia 23219(804) 344-0002Contact: Fred MintonRappahannock Economic DevelopmentCorporation (REDICO)3304 Bourbon Street, 3RD FloorFredericksburg, Virginia 22408(540) 373-2897(540) 899-4808 FaxContact: Rob Burke,<strong>Executive</strong> Directorrburke@redco@504.orgArea Served: Commonwealth of VirginiaThere are approximately 270 CDCsnationwide. To locate a certified developmentcompany nearest you and tolearn more about the 504 Loan Program,visit www.sba.gov. In addition,each month the District of ColumbiaEnhanced Business Information Centerlocated in the Martin Luther King,Jr. Memorial Library in Washington,D.C. conducts a free workshop on theSBA 504 Loan Program “How to Findand Finance Commercial Property.”For more information and to registercall (202) 727-2241.<strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 200923


Small DisadvantagedBusiness CertificationU.S. Small Business Administration (SBA)When I was asked to provide general information onSmall Disadvantaged Business (SDB) Certification, myfirst thought was, which parts? I was then provided withadditional clarification asking me to explain the program’sbenefits, the process, and how it could be an intermediarystep to obtaining an 8(a) certification. However, it is nota step in obtaining the 8(a) certification. The 8(a) programis a separate business developmental program, and itsrequirements are more restrictive.First, a brief history. SDB certification is a Federal procurementprogram designed to overcome the effects of discriminationand to conform to the U.S. Supreme Court’s 1995 Adarandcourt decision. And yes, there are certain criteria that abusiness must meet when applying under this program.What are those criteria? The business must be ownedand controlled 51% by a socially and economicallydisadvantaged individual or individuals, i.e. (presumedto qualify) African Americans, Hispanic Americans,Asian Pacific Americans, Subcontinent Asian Americansand Native Americans. All others need to provide a“preponderance of the evidence” that they have beendisadvantaged. Individuals must also be citizens of theUnited States. All principals must have a net worth of lessthan $750,000 (excluding the equity of the business andprimary residence). They must also meet the applicablesize standards for small businesses in their industry.The SDB program benefits are the price evaluationadjustment and the evaluation factor. So what doesthat mean? Qualified SDBs receive a price evaluationadjustment of up to 10 percent on procurements wheremandated by regulation. Regulations mandate thisapproach in competitive acquisitions over the simplifiedacquisition threshold (usually $100,000) where theStandard Industry Code (SIC) for the prime contractis authorized by the U.S. Department of Commercebenchmarks. The evaluation factor is when qualified primecontractors can receive a credit when using SDBs assubcontractors. This incentive applies only to competitivenegotiated acquisitions over $500,000 or over $1,000,000when construction is involved. The evaluation factor doesnot apply to small business set asides, 8(a) acquisitions,or contracts performed entirely outside the U.S. SDBparticipation allows credit for subcontractors only in theSICs authorized by the U.S. Department of Commercebenchmarks and requires that all SDBs be certified bySBA. Once certified, companies remain on SBA’s list ofSDB-certified firms for three years.So, what steps must you take to acquire certification?First and foremost, read the information on our web site athttp://www.sba.gov/sdb or take the online training courseon SBA certifications at http://www.sba.gov/training/certprograms.html to better understand the programand its benefits. Also, read Title 13 Code of FederalRegulations (CFR) 124 Subpart B. The documentationrequested is different for corporations, limited liabilitycompanies, partnerships and sole proprietorships. If youare interested in applying, the forms are online at https://sba8a.symplicity.com/applicants/guide and can be sentelectronically or by mail.24 <strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 2009


In The NewsThe Shumaker ReportBy Gary ShumakerOK, you didn’t win. Now what? It’s an old story. You dideverything right. You slaved over a great proposal. Yousubmitted with minutes to spare. You waited months. Itfinally happens.You get the letter or phone call telling you what a wonderfulproposal you had and how much they appreciate yourinterest, but that there were many good proposals, youweren’t selected, and they hope you’ll give them anotherchance to select you on future opportunities. What now?DebriefsThe first thing you need to do is request a debrief immediately.There is a clock on a debrief request, and they may turn youdown if you wait, so doing it the sameday you receive notification is a goodidea. In most cases, the governmenthas to give you a debrief, but often,even if it isn’t required, they will if youask. (Actually, you should ask for adebrief even when you win. Don’t youwant to know what you did right?) Theymay invite you in for the debrief (the firstchoice from your perspective, since it gives you face timewith them) or they may do it telephonically or occasionally inwriting.It’s important how you approach the debrief. This should bea learning experience for you. You want to come to betterunderstanding of how they evaluated your proposal. Thisis not a forum for you to argue that they evaluated yourproposal incorrectly and should have given you a higherscore. The people giving the debrief have no authorityto change the result of the proposal evaluation. Even ifafter you explain what you did, they totally agree with youthat your proposal was evaluated incorrectly and shouldhave been scored higher, THEY HAVE NO AUTHORITY TOCHANGE THE EVALUATION! There is no point to becomingcontentious; they can’t change the result. If you think theyfailed to follow the published evaluation criteria, it doesn’tmake any difference in the debrief. Even if, after you leave“This should be alearning experiencefor you.”Gary Shumaker, President,Gary E. Shumaker, Inc.the room, they scratch their heads and say to each other,“Wow! How did we blow the evaluation like that?”, theycan’t change it at this point.This is an opportunity to learn. If you think they missed animportant feature of your proposal, ask them how you couldhave made it more recognizable. Learn from them.If you become contentious and argumentative, they will almostalways reduce the quantity of information they give you to thebare minimum so they can be done with you quicker. Shouldyou take your lawyer along? If they spot a lawyer, again, they’llmost likely get defensive and give you a lot less information.If they think you really want to learn, they’ll often give you realhelp, sometimes even more than they should. Use the time toestablish a relationship with the potentialcustomer. And feel free to ask aboutupcoming opportunities. They know alot about your capabilities from readingyour proposal, and if it’s been a sessionthat flatters their egos, they’ll often pointyou to something that you’re even betterqualified to win.ProtestsThe next question is, “Should you protest?” You can protestbasically two things: either that the government botchedthe evaluation, or on small business awards, that the winnerdoesn’t meet the size standard. Size standard protests are thesubject for a future column. If you decide you need to protest,you DO need a lawyer. Much of the information involved in theprotest will be proprietary, and you can’t be granted access toit. Your lawyer, however, can be admitted to a protective orderwhich will allow him access. He can’t share the proprietaryinformation with you, but he can give you advice based on whathe’s seen. You’re operating blind if you don’t have somebody onyour side who can see all the evidence.Protests of the evaluation process are almost always a badidea. A major reason is that you basically have to allege thatthe agency you want for a customer is incompetent, at leastat running a solicitation. The protest will certainly run up a26 <strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 2009


lawyer bill, and may not prevail. If theprotest resolution authority decidesthat the protester has demonstratedthat the evaluation was flawed, itdoesn’t necessarily mean that you’vewon; he has a range of options. Hemay agree that the evaluation processwas faulty, but that the extent of thefault was trivial and wouldn’t havemade any difference in the outcome,and let the award stand. He mayfind that the process was flawed anddirect the source selection officialsto go back and re-evaluate, in whichcase, they may still find the samewinner. Or, when they re-evaluate,they may find a new winner, otherthan the protester. Or, he may findthe whole process so flawed that heforces a whole new solicitation and anew set of proposals which potentiallybenefits everyone equally. The oddsthat a successful protest will resultin overturning the original award andresult in an award for the protester areslim at best.Protesting to teach somebody alesson even if it doesn’t result in a winfor you is almost always a bad idea;why should you pay for somebodyelse’s training? The question comesup, then, in the debrief, can you findout if you were number two? Youshouldn’t be able to, because thesource selection authority’s directionwasn’t to rank order the proposals; itwas just to pick a winner. And, if theselection process was flawed in someway, even if you could identify numbertwo, it doesn’t mean that a differentselection process would find the samenumber two. They didn’t pick numbertwo, and if you squeeze an opinion outthat you were number two, it’s mostlikely just speculation.There is also the financial cost of aprotest. If you had won, and over thelife of the contract, had made a hundredthousand dollars in profit, it would havebeen a good thing. If you protest andwin, you get the same money, alongwith a lawyer bill for $100,000. Howfar ahead are you? But the strongestargument against protesting is that itde-focuses you, and often the rest of thecompany, from the thing you should befocusing on, which is moving forwardand making money for your business.You spend your time worrying aboutthe protest, rather than concentratingon using the lessons of the loss to winnew business.When you don’t win, it isn’t a great day,but you can get value out of it if youtreat it as a learning experience to helpyou win the next one.Gary E. Shumaker is the founder andsenior consultant for Gary E. Shumaker,Inc. a strategic business developmentpractice specializing in helping smallcompanies develop the intellectualinfrastructure to succeed in the Federalmarketplace. For more information,visit www.garyeshumaker.com.The Day The Earth WillBegin to Move AgainBy Charles PayneCharles Payne, CEO, Wall Street StrategiesI took the family to see the remake of the movie The Daythe Earth Stood Still, and it was the worst stinker I’ve everseen. More disturbing than it being a horrible movie is that itunderscores the push to move away from God. The premiseshifted from the original; in the remake the alien is comingto earth to save the planet from mankind. It is a paganpropaganda film where God or heaven are never mentionedand man deserves punishment despite the positive qualitiesof the species. We continue to be browbeaten by thismessage. We continue to be told by atheists and anarchistsand worshipers of Mother Earth that we are going to suffer ahorrible fate because we have used (or misused) the naturalresources of the planet. I think it is common sense to wantair as clean as possible, but I also think it is common senseto use the things around to create electricity, mobility andenhanced communication.This self loathing will come full circle to the point whereeveryone eventually hates the person in the mirror. Right nowpeople have a “Get out of Jail Free” card if they own a Prius or<strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 200927


ecycle or voted for a liberal Democrat.Right now cosmic justice is being metedout to those rich folks on Wall Streetwhose carbon footprint is larger thanregular folks. This is why the level ofpassion for the victims of Bernie Madoffhasn’t matched the intense hatred ofthe system or the man himself. MainStreet believes most of the victims arejust greedy rich people who thought theyhad the inside scoop and therefore aregetting theirs...finally. To be sure, thereare many rich folks who believe ordinarypeople on the verge of losing their homesor who have lost their homes deserve asmuch, too. How dare they buy a homewith no money down? How dare theywant to live the American dream and nothave to prove their income?The circle of comeuppance is gettingtighter and tighter and instead ofseven degrees between you and aperson who is getting his or her gutsripped out there is only one or two.Yes, you’re next. The thing is, whenthis bad luck or cosmic justice reachesyour home you may be so conditionedto hate yourself (after all it is likelyyou use some fossil fuel, still haveincandescent light bulbs, eat meat,drink from plastic bottles and engagedin thoughts of making more moneyat some point in your life) that youaccept it not just as fate per se but asoverdue justice. I think it’s despicablethat Hollywood continues to makemovies that make America’s militarylook completely inept (in the film themilitary has to rely on the Internet forpictures of large gaseous orbs aroundthe world). We all get the messagethat maybe we shouldn’t shoot firstand ask questions later; in fact, tryingto tow that political line has resultedin the loss of a lot of great militarypersonnel in Iraq and Afghanistan.We have a right to fight back and weshould. I think we should first fight backagainst those who continue to belittlereligion while promoting scientists asthe only people with opinions worthnoting. Secondly, we should fight backagainst the notion that other peopledeserve to suffer. The overwhelmingmajority of millionaires in America areself-made and helped a lot of otherpeople along the way toward theirown success. People who boughthomes with no money down weren’ttrying to game the system; theywanted desperately to be part of thesystem. One of the best ways to stopapplauding the misfortunes of others isto get back to basics and that meansget back to believing in God. I readwhere anti-Semitism is on the rise inthe aftermath of the Madoff scam, andto me it’s just a convenient excuse forthose that have a natural inclination tofeel that way in the first place.I guess there is a natural inclination topoint to others for our own failures,but soon we are going to be down topointing to that person in the mirror.People should take responsibility, butwe must not feel so down on ourselvesthat we accept any fate as the way theuniverse works. We can and shouldfight back, and our first weapon ofchoice should be faith. Secondly, stopfeeling guilty and don’t let hypocritesbully you into feeling down on yourself.At some point, we’ll drive solar carsand live in a world where wind provideselectricity to the masses. It will be greatwhen it happens. Until then, you’re notevil for loading the family up in the SUVand visiting Grandma for the weekend.More importantly, it’s time to stophating people who wear leather beltsor don’t drive hybrid cars, and it’s timeto stop applauding the misfortunes ofothers because they’re rich or poor.It has been reported that more WallStreet traders are going to Trinity Churchduring the day. That is the best newswe could hope for and might be thekey to our salvation in 2009. We makemistakes and we pay a price but we onlystay down when we feel sorry ourselves.Consider all the wild gyrations that oncesaw triple digit moves for the Dow asthe norm. Now it feels like the stockmarket is standing still. One has tobelieve it’s the proverbial calm beforethe storm. The remake of The Day theEarth Stood Still is unremarkable inevery way (Will Smith and Katy Batesprovide the only credible acting), but themessage shouldn’t be lost. There area lot of folks with a vested interest inwatching America melt down in self pityand self hate, so be cautious not to rootfor the downfall of others.America is going to be challengedin 2009 in ways it hasn’t been ingenerations. Our leadership in theworld has been chipped away, butmake no mistake America is the strawthat stirs the global economic drink.There will be a lot of money sloshingaround in the New Year, and people aregoing to be angry and jealous. Mistakesare bound to be made and it’s goingto be easier than ever to disintegrateinto a cesspool of finger pointing. Bigbusiness will have chances to take abite of the apple but they need lowertaxes and less animosity from the nextWhite House. If the middle class is togrow, it has to come from opportunitiescreated by business which will in turnneed breaks to survive the globalchallenges and domestic economicreality. I think the new President is upto the task, but he is going to have toignore ideologies that have seducedhis curiosities in the past.I hope he sets the example and goesto church as regularly as he playsbasketball and that he stands up tothose on the left and right who wouldtake misfortune and use it as a weaponto bludgeon the faith of a nation.By Charles PayneCEO, Wall Street Strategies28 <strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 2009


EducationAl Porter, President,Porter Education & CommunicationsDARE WE HOPE?The Obama Administration’sPlans for America’s StudentsBy Al PorterHope! Here it is again. A new administration promises anew day and a different direction. After more than 20 yearsof drinking this particular brand of Kool-Aid, it just doesn’t godown as smoothly as before. Teachers and industry leaders areunderstandably pessimistic and suspicious about the futureprospects of true change in the field of education.As a profession, we have been reprogrammed, reformed,restructured and reconstituted, only to reemerge, arguablyworse off than when we started.But here it is again. Hope! With the historic election of BarackObama, most of us can’t help but believe that change, atlong last, has come.President Barack Obama has laid out an impressive listof initiatives, which if implemented, will finally redefineeducation in America.Among his first priorities is to make The No Child Left BehindAct more effective. Passed in 2001, the law has been criticizedfor its “Teach To The Test” approach. Add to this criticismdrastic funding shortages, misdirected implementation, andlow parental participation, and the efforts of the law weresignificantly undercut.Another major area of focus for the new administration toaddress is the recruitment and retention of qualified teachers forAmerica’s classrooms. Additionally, Obama hopes to providerelief for students seeking to attend college by providing a taxcredit to defray the costs of a higher education.The Obama Education Agenda includes:Early Childhood1. Zero to Five—The President’s early childhood initiativeplaces more focus on early care and educationfor infants in order to prepare them for enteringkindergarten. The overall goal of the program is to movethe country towards universal preschool. Through thedevelopment of Early Learning Challenge Grants, theObama administration hopes to provide critical supportto parents and their children.2. Expansion of Head Start and Early Head Start—Theseprograms already exist. The President’s plan is toincrease funding by approximately four times in aneffort to vastly improve program quality.3. Child Care—The President recognizes the need toprovide high quality, affordable child care and reducethe financial burden on working families.K-12 Education1. Reform NCLB, 2001—The President seeks to provideincreased funding, improve the assessment system tomonitor student progress, further assess college andworkforce readiness, and reconsider the law’s stricttesting requirements.2. Support What Works and Close What Doesn’t—TheObama administration plans to double the funding forthe Federal Charter School Program and increase fundingfor states with a track record of appropriately measuringthe success of charter schools. The plan seeks to workwith struggling charters to improve academic programsand provide more support to states that help the mostsuccessful schools to expand their programs andservices.3. Make Math and Science Education a National Priority—Theplan includes recruiting math and science professionalsinto the teaching profession to augment staffing levelsin these core subject areas. The administration wants toensure that all students have access to a high qualityscience and math curriculum.4. Drop-Out Prevention—Obama seeks to address the issuesof students dropping out of school by providing funding forschool systems to invest in intervention strategies to includemore parent involvement, teaching teams, mentoring,intensive math and reading instruction, personal academicplanning, and extended learning time.5. Expand After School Opportunities—The plan doublesthe funding for 21 st Century Learning Centers which couldserve up to one million additional children nationally.<strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 200931


6. Support College Outreach Programs—Obama seeks to help more poorstudents prepare for college byfocusing on programs such as UpwardBound, GEAR Up and TRIO.7. Support College Credit Initiatives—The “Make College a Reality”initiative seeks to increase thenumber of students taking AdvancedPlacement (AP) courses by 50%by 2016. Additionally, the Obamaadministration supports grants forstudents to attend a local communitycollege if their school system doesnot offer AP or college prep classes.8.Support for English LanguageLearners—Obama will continue tosupport bilingual education and holdschools accountable for ensuringthat limited English proficientstudents can complete school.9. Teacher Recruitment—This initiativeincludes the creation of TeacherService Scholarships that will covera four year undergraduate programor help pay for a two year teachertraining program at the graduatelevel. It will also recruit mid-careerprofessional into the field.10. Teacher Preparation— The planincludes creation of a voluntarynational performance assessment,requires that all schools of education atthe university level be accredited, anddevelops a teacher Residency Programto provide highly qualified teachers inthe neediest communities.11. Teacher Retention—Obamafavors the expansion of mentoringprograms for new teachers andincentives to provide more planningtime and opportunities to collaboratewith colleagues for the sharing ofbest practices.12. Reward Teachers— Initiativesinclude increasing teacher pay,encouraging school districts todesign programs that rewardaccomplished teachers, appointingmentor teachers, and rewardingteachers who work in underservedrural and inner city areas.Higher Education:1. Creation of the AmericanOpportunity Tax Credit—Obamaplans to create a new AmericanOpportunity Tax Credit. It willbe fully refundable and ensurethat the first $4,000 of a collegeeducation is completely free formost Americans. It will cover thecost of two-thirds of the cost of apublic college and make communitycollege tuition completely free formost. In exchange, recipients willbe required to complete 100 hoursof community service.2. Simplify the Application Process forFinancial Aid—The administration willstreamline the process by eliminatingcurrent financial aid applications andallowing families to check a box ontheir tax forms, thus authorizingthe use of their tax records andeliminating redundancy.By any stretch, the Obama administration’sgoals are ambitious. We pray that hopedoes not turn into despair yet again.Given the dismal economic condition ofthe nation today, I have to wonder wherethe funding will come from for thesegreatly needed initiatives.The truth about 2008 is that WallStreet lost more than one-third of itsvalue, joblessness is increasing eachmonth, corporate failures are rampantdue to hard to obtain capital, andthe economic stimulus package hasnot born fruit. With promises of yetanother bailout to the tune of a dizzying$800 billion, manufacturing down, retailsales down, the continued financing oftwo wars, and the erosion of consumerconfidence, most Americans are wary.Added to this situation, housing valuescontinue to decline. School systemsare financed, in large measure, bylocal property taxes. The fact that taxrevenue is also down due to the highforeclosure rates around the countryprovides a glimpse into the near future.School systems are already bracingfor teacher layoffs for the upcoming2009-2010 school year.This picture does not inspire unyieldingconfidence for the short term prospectsfor public education. Although most ofus are clamoring for change that we canbelieve in, the truth may be that real reformand change in a field so desperate for anew direction and, as a result, our abilityto appropriately prepare our children tocompete in a global environment, maywell be placed on the back burner onceagain. Dare we hope? I say yes!Al Porter is President/CEO of PorterEducation & Communications a Marylandbased education services firm.32 <strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 2009


In The NewsPowerful <strong>Minority</strong> CEO’sAmerica’s Best and BrightestThe HonorableH. R. CrawfordChairmanMetropolitanWashingtonAirport AuthorityMr. H.R. Crawfordis a highly accomplishedbusiness leader, philanthropist,affordable housing expert, developer,certified property manager, former,3-terms, elected official, political advisor,civic leader, long-time District of Columbiaresident, and world traveler.Mr. Crawford is the founder and presidentof Crawford/Edgewood Managers, Inc.,and Hazel, LLC. Both successful firmsspecialize in developing and managingaffordable housing in Washington, D.C.Mr. Crawford currently, serves asChairman, Washington Airport Authority.He is the leader of the 13-member,Metropolitan Washington Airport AuthorityBoard of Directors, which operates a twoairportsystem, Reagan National Airportand Dulles International Airport.From 1980-1992 Mr. Crawford was electedas <strong>Council</strong> member from Ward 7 for threeconsecutive terms. He was a presidentialappointed Assistant Secretary for theU.S. Department of Housing and UrbanDevelopment (HUD). At HUD he correctedall code violations and modernized rentcollection procedures. He worked closelywith regional and local offices of HUD tostabilize the property and restore credibilitysuch that $3.2 million in federal savings wasachieved and bankruptcy issues resolved.Mr. Crawford possesses a demonstratedability to persevere and thrive under pressurewhile simultaneously considering the wellbeing of fellow human beings. He is wellknown as an outstanding communicatorand champion of marginalized people.Fernando V.GalavizPresident & CEOTHE CENTECHGROUP, Inc.THE CENTECHGROUP, Inc., anHispanic-ownedtechnology systems and solutionsprovider serving federal governmentcivilian and military agencies for over20 years with annual revenue of $155million dollars is overseen by its Founder,President and Chief <strong>Executive</strong> Officer,Fernando V. Galaviz. He also currentlyserves as chair of the board for TheNational Association of Small BusinessFederal Contractors, Inc. (NASBFC) anonprofit trade association and serveson the Board of Directors for Versar,Inc., an AMEX listed company.He has served in the federal governmentas chief of industry trade and marketdevelopment for the U.S. Departmentof Commerce <strong>Minority</strong> BusinessDevelopment Agency, and chief of directcontracting and financial assistanceprograms under the Office of the Secretary,U.S. Department of Transportation. Priorto establishing THE CENTECH GROUP,Inc., he was executive vice president of agovernment contracting firm and founderand president of a manufacturing firm.Mr. Galaviz has been an advocate of smallbusiness since the 1960s. In the 1980sMr. Galaviz is co-founded the NationalFederation of 8(a) Companies and theU.S. Asian Pacific Chamber of Commerceand was Chairman of the Board forCommunity Investment OpportunityGroup, a community-based organizationfounded to encourage self-investment byminorities in community projects.Hubin JiangPresident & CEOEcompex, Inc.Mr. Hubin Jiang hasbeen President andCEO of Ecompex,Inc., an informationand knowledgemanagement company, since 1995.With a firm foundation and great interestin the areas of artificial intelligence,knowledge management, and contentanalysis, Mr. Jiang departed in theearly 90’s from his Ph.D. candidacy anddevoted himself to applied technologydevelopment. Mr. Jiang is a pioneerdeveloper in document imaging andmanagement systems as well as appliedartificial intelligence systems. For over 20years, he has set up proven track recordsof marked achievements and successin the area of information technologydevelopment and implementation.Mr. Jiang was the co-inventor of asatellite remote sensing imagery systemcalled the “Maryland Image Visualizationand Analysis System (MIVAS)” and wasthe leader for research and developmentof CorpCast, an expert system withinnovative self-learning capabilities. Hehas developed a neural network modelfor simulation of human visual perceptionand a machine- learning model for naturalhandwriting recognition.Mr. Jiang is one of the trail blazers ininnovative technology development inthe fields of document understanding,expert systems, content management,and document imaging. He holds overfive patents and patents pending inthe above-mentioned areas. Mr. Jiangis also an expert in software life cycledevelopment and programming. Hedeveloped Ecompex’s first imaging andscanning system, VersaScan®, whichhas been sold to numerous Fortune 500companies and Government Agencies.


Ileana QuintasPresident & CEOIQ Solutions, Inc.Ileana Quintasis the presidentand CEO of IQSolutions, Inc. IQSolutions provideseffective healtheducation programming to improvequality of life and well-being for allpeople. The company’s strategic andbusiness planning, corporate marketing,and conduct of special projects drawon her technical skills, experience, andknowledge.Ms. Quintas is a certified health educatorand established health communicationsand special populations expert, shehas worked in the health and humanservices arena for more than 20 years.IQ Solutions is dedicated to bridgingthe quality-of-life gap so everyone canenjoy healthy, happy lives. They providepeople with the knowledge to makeinformed decisions about their wellbeing.IQ Solutions has revolutionizedapproaches to understand, prevent andtreat illnesses that plague Americanstoday and improve health servicesinfrastructure for our Nation’s most atriskpopulations.Ms. Quintas has a proven trackrecord. Her integrity, strategic vision,and commitment to her dream haveenabled her to grow her companysuccessfully from 1 employee in 1993to approximately 300 employees, 50active contracts, and approximately$45 million in revenues.John V. MeyersFounder, President,and CEONative AmericanIndustrialDistributors, Inc.As the founder andPresident/CEO ofNative American Industrial Distributors,Inc. (NAID), John V. Meyers providesto NAID a unique combination ofleadership, management skills, energy,and experience. Mr. Meyers holds aBachelor of Arts from Wofford Collegeand also a Master of Science degreein National Security Strategy from theNational War College in Washington,D.C. Furthermore, his distinguishedmilitary and Federal public servicecareers span over 30 years.Mr. Meyers is a member of the Cahuilla(ka-WEE-ah) Indian Tribe, a FederallyRecognized Tribe, located on the SantaRosa Indian Reservation in SouthernCalifornia. In 1966, citizen Meyers wasdrafted into the U.S. Army. Rising fromPrivate to Colonel, he served withdistinction during two combat tours inVietnam and a tour in Desert Storm,and is one of the country’s most highlydecorated American Indians.Meyers completed a combined Activeand Reserve Military career spanningsome 31 years of service havingcommanded at every level; fromBattery, to Battalion, to Brigade. He hasalso served in a variety of responsiblestaff positions at the highest levels ofthe Army, including Assistant Directorfor Legislative Liaison, U.S. SpecialOperations Command; and AssistantDirector for the Plans, Programs & PolicyDirectorate, Office of the AssistantSecretary of the Army, Research,Development & Acquisition.After Mr. Meyers’ retirement frommilitary service in June 1997, he wasmeritoriously appointed by the ChiefArmy Reserve, as the Army ReserveAmbassador to the State of Maryland.In February 2007 he was appointedArmy Reserve Ambassador Emeritus.He continues to serve today, holdingthe equivalent rank of Major General. InJune 2004, Mr. Meyers was inductedinto the Field Artillery Officer CandidateSchool Hall of Fame.KarlaGonzalez-UnderwoodPresident & CEODBTS, Inc.DBTS is certifiedas an 8(a),minority-owned,and woman-owned company by theSBA, State of Maryland, Women’sBusiness <strong>Enterprise</strong> National <strong>Council</strong>,Washington DC City Government,Commonwealth of Virginia, and severalindependent agencies.Karla Gonzalez-Underwood, Owner,President and Chief <strong>Executive</strong>Officer of DBTS Inc., was born in ElSalvador in 1974. She holds a B.ADegree in International Studies fromGeorge Mason University and a MBAfrom Marymount University, with aconcentration in Finance.In a race to success Mrs. Gonzalez-Underwood, gained an enviableexpertise in the world of informationtechnology and honed estimableentrepreneurial instincts, which weresoon to find notable application in hercareer with the Washington, DC ITfirm DBTS (DBTS: the initials of thephrase Delivering Business TechnologySolutions), which designs informationsystems tailored to the business modelif each of broad variety of client firmsand getting these systems, along withthe personnel who will operate them,up and running.Since its founding in April 2000, DBTShas experienced rapid growth. As VicePresident from 2003 through January2006, Mrs. Gonzalez-Underwoodeffectively operated the company andspearheaded business developmentefforts. Since 2006 Mrs. Gonzalez-Underwood has led DBTS’ growth toits current size by being a companyof firsts, taking risks in technology,innovative products and services, anda reputation for exceptional customerservice. Word quickly spreads whena good thing is discovered, andDBTS benefits from loyal clients andenthusiastic employees.34 <strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 2009


Automotive2008 Vehicles Caught-Up in theMadness of a RecessionBy Valencia MohammedIt was a rough year for the U.S. automotive industry, oneof the few bastions left in North America where Americansstill work on assembly lines. With most of the auto worldcontrolled by foreign manufacturers, the American markethas finally been brought to its knees. Not only do foreignmanufacturers build vehicles in foreign countries, theyproduce well-built foreign cars on American soil with cheaperlabor. American manufacturers also buy many auto partsfrom foreign companies.Unable to compete with foreign markets, the Big Three --Chrysler, Ford and General Motors -- cried out for Federalassistance to the tune of $25 billion to shore up their hurtingcompanies. In conjunction, another $25 billion is availableto retool their factories and build “greener” and more fuelefficientvehicles.While witnessing one of the most heated debates of thiscentury, millions of Americans face losing their jobs. Somelawmakers on Capitol Hill believe taxpayers should not beforced to bailout a few failing companies that might havemismanaged funds and made wrong decisions. Others, likePresident-Elect Barack Obama, support the bailout only if it hasclearly defined parameters for its use and close monitoring.Now the American public is faced with serious questions.Do we support the bailout of the American automotivemanufacturers? Do we require American manufacturers torevamp, restructure the industry, and hire new employeesfor less? Or do we let a key American industry die? It is inour hands.Caught in the middle are dozens of American and foreignmadevehicles, some of which are the best produced in years.Many will go unnoticed. Many consumers will miss out ongreat deals. We are providing a glance at these vehicles incase the economy gets better, more Americans find work,and we are able to purchase the cars of our dreams.<strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 200935


Automotive2009 Mercedes-BenzCLK550 CabrioletBy On Wheels MediaSmooth tooling around town, top down/music up, the peepson the sidewalk never dream this unassuming little droptopis harboring the automotive equivalent of a tsunami underits hood. A true wolf in sheep’s clothing, the cast aluminum382-horsepower V8 engine in the 2009 Mercedes-BenzCLK550 harbors some 20 more horsepower than the CLKAMG model recently superceded by the CLK63 AMG. Theengine delivers 391 foot-pounds of peak torque between2,800 and 4,800 rpm, with 293 foot-pounds available at just1,000 rpm.When we weren’t marveling at the CLK Cabriolet’s outstandingperformance capabilities, the mesmerizingbeauty and generous wealth of amenities found in itspassenger compartmentenraptured us. Delightfullyflowing lines accentuatedby graceful arcsmimic the exterior stylingof the car, while thecontrols are logically laidout, their functions readilydiscernable. The centerstack’s main focal point isthe monitor that displaysthe various functions ofthe remarkably easy touse COMAND system,which integrates the audiosystem, navigationsystem and telephoneinto a single unit that canbe operated via controlson the steering wheel. Naturally, the dual zone climatecontrol system is automatic and features both a sun sensorand charcoal filtration.One of our favorite moves was lowering the roof by remoteusing the SmartKey as we approached the vehicle.It was as if the Benz was saying. “Welcome back! Hey, it’sreally nice today, where are we going next?” Plus the lookon bystanders’ faces when the top retracted and nobodywas in the car was priceless. By the way, while nearlyeveryone else has gone to a folding steel lid, the CLK’sis an insulated triple layer soft one. Inside the Mercedeswith the top raised though, you’d be amazed to learn youwere in a convertible. The top is nicely lined, and the extrainsulation makes it nicely quiet at speed.To say the 2009 Mercedes-Benz CLK550 Cabriolet is multidimensionalis to truly engage in understatement. Here’sa car nice enough to get respect from parking attendantsand toll collectors, but simultaneously subdued so as notto stand out in a garish fashion. The CLK550 offers a broadarray of luxury amenities, with a level of comfort and convenienceequipment to rival any other luxury model. Yet,it also offers the dynamic performance and handling of asports car. The CLK 550 is the car to buy if you want tohave the best of as many different worlds as you can getin one automobile.The Numbers2009 Mercedes-Benz CLK CabrioletBase Price $64,900Engine: 5.5-liter DOHC 32-valve V8Horsepower: 382 @ 6,000 rpmTorque: 391 foot-pounds @ 4,500 rpmTransmission: Seven-speed automatic with manual shift modeDrivetrain: Front engine / rear driveFuel Economy: 15 city / 21 highwayOn Wheels Media is the winner of the U.S. Department ofCommerce’s <strong>Minority</strong> <strong>Enterprise</strong> Agency 2007 National MediaCornerstone of the Year. Visit www.onwheelsinc.com36 <strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 2009


Join the Winning Team!MEA Magazine is looking for writers, editors,business development and sales account executives.Call(703) 730-4091orfax your resumé to(703) 730-4092FREETEETH WHITENINGArlington Dental SolutionsDr. Tamara C. Garrett3801 Fairfax Drive, Suite 50Arlington, VA 22205703-524-7031Whitening • Porcelain Veneers • Invisalign • Crowns & Bridges •Oral Cancer Screening • Fillings • Soft Tissue Management<strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 200937


Calendar of Events 2009U.S. Department of Defense2009 Mentor Protégé Conference –March 2-5, 2009San Francisco, CaliforniaCall (800) 540-8857U.S. Hispanic Chamber of Commerce19th Annual Legislative Conference –March 9-11, 2009Call (202) 842-1212The National Center for AmericanIndian <strong>Enterprise</strong> Development23rd Annual Reservation EconomicSummit & American Indian BusinessTrade Fair - March 9-12, 2009Las Vegas, NevadaCall (888) 712-8922<strong>Minority</strong> <strong>Enterprise</strong> <strong>Executive</strong> <strong>Council</strong>50 Most Powerful <strong>Minority</strong> CEO’s &Corporate <strong>Executive</strong>s Awards Gala –March 20, 2009Washington, DCCall (703) 730-4091International Franchise Expo 2009 –March 20-22, 2009Washington Convention CenterWashington, DCCall (201) 266-1130Women Business <strong>Enterprise</strong>National <strong>Council</strong>Salute to Women’s Business<strong>Enterprise</strong> – March 26, 2009National Harbor, MarylandCall (202) 872-5515U.S. General Services Administration5th Annual Opening Doors for SmallBusiness Conference 2009 –April 6 –8, 2009Los Angeles, CaliforniaCall (213) 894-3210U.S. General Services AdministrationGSA Schedules Contract Training –April 15, 2009Free WorkshopAtlanta, GeorgiaCall (404) 331-5103OSDBU Conference19th Annual OSDBU ProcurementConference 2009 – April 22, 2009Dulles Expo and Conference Center,Chantilly, VirginiaCall (202) 501-10211105 Government Information Group10th Annual KnowledgeManagement Conference &Exhibition – April 28-29, 2009Ronald Reagan Building, Washington, DCCall (800) 746-0099DiversityBusiness.com9th Annual National MulticulturalBusiness Conference –April 29-May 1, 2009Orlando, FloridaVirginia <strong>Minority</strong> SupplierDevelopment <strong>Council</strong>Virginia Business Opportunity Fair –May 4-5, 2009Greater Richmond Convention CenterCall (804) 320-2100U.S. General Services AdministrationHow to Obtain a GSA SchedulesContract – May 6, 2009Free WorkshopSan Francisco, CaliforniaCall (415) 522-2700The Conference Board, Inc.The Corporate Diversity and InclusionConference – May 13-14, 2009Theme: “Driving Value Across Borders”Chicago, IllinoisCall (212) 339-0345U.S. American Pan Asian Chamberof CommerceCelebrAsian Business OpportunityConference 2009 – May 20-22, 2009Brooklyn, New YorkCall (800) 696-7818Airport <strong>Minority</strong> Advisory <strong>Council</strong>25th Annual 2009 Airport BusinessDiversity Conference –June 6-9, 2009Baltimore, MarylandCall (703) 414-2622Women’s Business <strong>Enterprise</strong>National <strong>Council</strong>10th Annual Women In BusinessNational Conference and BusinessFair – June 9-11, 2009San Francisco, CaliforniaCall (202) 872-5515U.S. Department of State17th Annual Small Business Fair –June 17, 2009Call (301) 206-2940National Association of WomenBusiness Owners2009 Women’s Business Conference –June 24-26, 2009Chicago, Illinois(800) 556-29265th Annual National Veteran SmallBusiness Conference and Expo –July 20-23, 2009Call (703) 695-3220National Urban LeagueNational Urban League AnnualConference 2009 –July 29- August 1, 2009Theme: “The Path to Power”Chicago, IllinoisCall (212) 558-5300The Corporate <strong>Council</strong> on Africa7th Biennial U.S. – Africa BusinessSummit – September 29, 2009Washington, DCCall (202) 835-1115National <strong>Minority</strong> SuppliersDevelopment <strong>Council</strong>NMSDC Annual Conference andBusiness Opportunity Fair –October 25-28, 2009New Orleans, LouisianaCall (212) 944-243038 <strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 2009


WANTED!Nominations50 Most Powerful <strong>Minority</strong> CEO’s& Corporate <strong>Executive</strong>sVIP Reception & Awards Gala 2009Theme: “Celebrating Outstanding Leadership and Success”Black-tie EventThe 2009 search is on for the50 Most Powerful <strong>Minority</strong> CEO’s & Corporate <strong>Executive</strong>s.The event is scheduled for March 2009 in a majorWashington, D.C. hotel.This event is honoring executives, minority and women-owned businesses that are in theforefront of American leadership across the country.We are looking for candidates who share a commitment to their community, business growth,professional excellence and people who are shaping our economic future.Email your bio, press clippings, and photos to Debra Williams at vpwilliams@comcast.net.For Further Information Regarding Nominations call (703) 730-4091.


Directors ofSmall And DisadvantagedBusiness Utilization Offices2008Agriculture DepartmentJames E. HouseDirector, OSDB14 TH & Independence Ave, SWAG STOP 9501, Room 1085-SouthWashington, DC 20250-9501Telephone: (202) 720-7117Fax: (202) 720-3001JamesE.House@usda.govAir Force DepartmentRon PoussardActing Director, OSDBU1060 Air Force Pentagon,Room 5E271Washington, DC 20330-1000Telephone: (703) 696-1103Fax: (703) 696-1170www.selltoairforce.orgRonald.Poussard@pentagon.af.milArmy DepartmentTracey L. PinsonDirector, OSDBU106 Army PentagonRoom 2A712Washington, DC 20310-0106Telephone: (703) 697-2868Fax: (703) 693-3898www.sellingtoarmy.infopinsotl@hqda.army.milDefense DepartmentAnthony MartocciaActing Director, OSDBU201 12 th Street, SouthSuite 406Arlington, VA 22202Telephone: (703) 604-0024Fax: (703) 604-0025Education DepartmentKristi WilsonDirector, OSDBU550 12 th Street SWRoom 7049Washington, DC 20202Telephone: (202) 245-6300Fax: (202) 245-6304Kristi.Wilson@ed.govEnergy DepartmentTheresa Alvillar-SpeakeDirector, OSDBU1000 Independence Ave. SWRoom 5B-148Washington, DC 20585Telephone: (202) 586-8383Fax: (202) 586-3075www.smallbusiness.doe.govTheresa.Speake@hq.doe.govCommerce DepartmentLaJuene DesmukesDirector, OSDBU14 th & Constitution Ave, NWRoom H-6411Washington, DC 20230Telephone: (202) 482-1472Fax: (202) 482-0501www.commerce.gov/osdbuLdesmukes@doc.govHousing and Urban DevelopmentValerie HayesDirector, OSDBU451 7 th Street, Room 3130Washington, DC 20410-1000Telephone: (202) 708-1428Fax: (202) 401-6930www.hud.gov/smallbusinessInterior DepartmentMark OliverDirector, OSDBU1849 C Street, NW,Mail Stop 2252 MIBWashington, DC 20240Telephone: (202) 208-3493Fax: (202) 208-7444Mark_oliver@ios.doi.govJustice DepartmentDavid SuttonDirector, OSDBU1331 Pennsylvania Ave, NW #1010Washington, DC 20530Telephone: (202) 616-0521Fax: (202) 616-1717David.Sutton@usdoj.govHealth and Human ServicesDebbie RidgelyDirector, OSDBU200 Independence Ave, SWRoom 517-DWashington, DC. 20201Telephone: (202) 690-7300Fax: (202) 260-4872www.hhs.gov/usdbuDebbie.Ridgely@hhs.govNavy DepartmentTimothy ForemanDirector, OSDBU720 Kennon Street, SE, Room 207Washington Navy YardWashington, DC 20374-5015Telephone: (202) 685-6490Fax: (202) 685-6865Timothy.Foreman@navy.milState DepartmentGregory MayberryDirector, OSDBURoom L500 (SA-6)Washington, DC 20522-0602Telephone: (703) 875-6822Fax: (703) 875-6825Mayberrygn@state.gov40 <strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 2009


Transportation DepartmentDenise Rodriguez LopezDirector, OSDBU400 7 th Street, SW Room 9414Washington, DC 20590Telephone: (202) 366-1930Fax: (202) 366-7228Denise.Rodriguez-Lopez@dot.govLabor DepartmentJose LiraDirector, OSDBU200 Constitution Ave, NW. #C-2318Washington, DC 20210Telephone: (202) 693-6460Fax: (202) 693-6485www.dol.gov/dol.business.htmlLira-Jose@dol.govVeterans AffairsScott DennistonDirector, OSDBU801 I Street, NW, Mail Stop 00SBWashington, DC 20420Telephone: (202) 565-8124Fax: (202) 565-8156Scott.Denniston@va.govDefense Logistics AgencyThomas D. RayDirector, OSDBU8725 John J. Kingman RdDB Room 1127Ft. Belvoir, VA 22060Telephone: (703) 767-1652Fax: (703) 767-1670Thomas.Ray@dla.milAgency for InternationalDevelopmentMauricio VeraDirector, OSDBU1300 Pennsylvania Ave. NWRoom 7.8E RRBWashington, DC 20523-7800Telephone: (202) 712-1500Fax: (202) 216-3056Treasury DepartmentTeresa LewisDirector, OSDBU1500 Pennsylvania Ave. NWAttn: 655 15 th Street, Room 6097Washington, DC 20220Telephone: (202) 622-2826Fax: (202) 622-4963teresa.lewis@do.treas.govEnvironmental Protection AgencyJeanette L. BrownDirector, OSDBU1200 Pennsylvania Ave. NW, MC1230TWashington, DC 20460Telephone: (202) 566-2075Fax: (202) 566-0266Brown.JeanetteL@epa.gov<strong>Executive</strong> Office of the PresidentAlthea KireilisContract Specialist/Small Business725 17 th Street, NW,Room 504Washington, DC. 20460Telephone: (202) 395-7669Fax: (202) 395-3982akireilis@oa.eop.govTransportation SecurityAdministrationAnthony BellActing DirectorTSA HQ-West Bldg; 4 th FloorTSA-25601 South 12 th StreetArlington, VA. 22202Telephone: (571) 227-2070Fax: (571) 227-2911Anthony.Bell@dhs.govHomeland Security DepartmentKevin BoshearsDirector, OSDBU7 th & D Street, SW, Room 3514Washington, DC 20528Telephone: (202) 447-5555Fax: (202) 777-8467Kevin.Boshears@dhs.govNuclear Regulatory CommissionCorenthis KelleyDirector, OSDBUNuclear Regulatory CommissionMail Stop T-2F18Washington, DC 20555Telephone: (301) 415-7380Fax: (301) 415-5953CBK@nrc.govU.S Postal ServiceJanice Williams HopkinsManager, Supplier DiversityDepartment of U.S. Postal Service475 L’Enfant Plaza SW., Rm. 4430Washington, DC 20260-6204Telephone: (202) 268-4633Fax: (202) 268-4012www.usps.gov/business<strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 2009National Science FoundationDr. Donald SenichDirector, OSDBU4201 Wilson Boulevard, Room 527Arlington, VA 22230Telephone: (703) 292-7082Fax: (703) 292-9055www.nsf.govdsenich@nsf.govDefense Information SystemsAgencySharon JonesDirector, OSDBU701 S. Courthouse Rd, D04Room 1108BTelephone: (703) 607-6436Fax: (703) 607-4173JonesS@ncr.disa.milGeneral Service AdministrationMichael RigasAssociate Administrator, OSDBU18 th F Street, NW RM. 6029Washington, DC 20405Telephone : (202) 501-0864Fax: (202) 501-1021Cell: (202) 208-5938Felipe.Mendoza@gsa.govSurface Transportation BroadDon HirstDirector, OSDBU1201 Constitution Avenue, NWWashington, DC 20423Telephone: (202) 565-1700Fax: (202) 927-5158HirstD@stb.dot.govNASAGlenn DelgadoAssistant Administrator, OSDBU300 E Street, SW, Room 9K70, Code KWashington, DC 20546Telephone: (202) 358-2088Fax: (202) 358-3261www.osdbu.nasa.govGlenn.A.Delgado@nasa.govU.S Information AgencyGeorgia HubertDirector, OSDBU301 4 th Street, SW.,Rm. M-27, 20547Washington, DC 20457Telephone: (202) 205-9662Fax: (202) 401-241041


Indian Health ServicesNelia Holder12300 Twinbrook Parkway,Suite 450ARockville, MD 20852Telephone: (301) 442-1480Fax: (301) 480-0682nholder@his.govOffice of Federal Procurement PolicyMichael GerichDeputy Associate AdministratorNew <strong>Executive</strong> Office Building725 17 th Street, NW., Rm. 9013Washington, DC 20503Telephone: (202) 395-6811Fax: (202) 395-5105mgerich@omb.eop.gov<strong>Minority</strong> Business DevelopmentAgencyRonald LangstonNational Director14 th & Constitution Ave, NW.Rm 5055Washington, DC 20230Telephone: (202) 482-5061Fax: (202) 501-4698rlangston@mbda.govSmithsonian InstituteEra MarshallDirector, OEEMA600 Maryland Avenue, Suite 2091Washington, DC 20560Telephone: (202) 633-6430Fax: (202) 633-6427Rudy D. WatleySupplier Diversity Programs Managerwatleyr@si.eduFederal Trade CommissionEric VottChief ProcurementCommission6 th & Pennsylvania Ave, NWRm. H-700Washington, DC 20580Telephone: (202) 326-2259Fax: (202) 326-2050Procurement Tech Assistance CenterJames D. ReganDirector, OSDBUGeorge Mason University4031 University DriveSuite 200Fairfax, VA 22030Telephone: (703) 277-7700Fax: (703) 352-8195Jregan@gmu.eduwww.gmu.edu/gmu/PTAPSocial Security AdministrationWayne McDonaldDirector7111 Security Blvd.Baltimore, MD 21244Telephone: (410) 965-7467Fax: (410) 597-1548wayne.mcdonald@ssa.govCorporation for National andCommunity ServiceRitchie VinsonDirectorOffice of Procurement Services1201 New York Avneue,NWRoom 8409Washington, D.C. 20525Telephone: (202) 606-6988Fax: (202) 606-3488Federal Deposit InsuranceCorporationBob EleanChief, <strong>Minority</strong> & Women Outreach3501 Fairfax DriveRoom E2014Arlington, VA 22226Telephone: (703) 562-6070Fax: (703) 562-6069Belean@fdic.govExport-Import Bank of the U.S.Mark PitraManager, Contracts and Acquisitions811 Vermont Avenue, NWRoom 1023Washington, DC 20571Telephone: (202) 565-3338Fax: (202) 565-3528AdvertiseinMEAMagazineVA Center for Veterans <strong>Enterprise</strong>Gail L. WegnerDeputy DirectorCVE, 810 Vermont Avenue, NWMail Stop 00VEWashington, DC 20420Telephone: (202) 303-3260Fax: (202) 254-023842 <strong>Minority</strong> En t e r p r i s e Adv o c at e • January / February 2009


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