The Small Business Administration’s $10 million grant program to mentor small business teaming efforts has produced nearly 300 teams over two years, but the future outlook is uncertain as funding is set to terminate on Sept. 30.

Several program members are touting the achievements to date and urging that the program be continued. There have been some promising results, but also apparent misfires.

At the same time, there is worry about what will happen to the teams once the funding ends.

“It is with a very heavy heart that we are looking forward to two more months of our present operation as we are just finally getting out of the starting gate only to let all of our clients know that our relationships, business development and mentoring is over,” Margaret Cook, project director for the National Center for American Indian Enterprise Development (NCAIED) teaming alliance, told Set-Aside Alert.

“Thank you for the opportunity to advocate for a program that I believe to be a way of getting jobs and opportunities for those that would normally not have the chance to succeed,” she added.

The SBA’s Small Business Teaming Pilot program was established under the Small Business Jobs Act of 2010.

In September 2011, the SBA awarded grants to 11 organizations to serve as mentors to foster small business teaming to win federal contracts. The theory is that by working together the small firms could become stronger and better equipped for larger contracts.

Each grantee got between $200,000 to $500,000, totaling $5 million for fiscal 2012. Additional funding was awarded for fiscal 2013.

Now the results are trickling in, while the dollars are running out.

“Congress provided funding for the pilot program for only two years. At this time, funding for FY 2014 has not been requested or provided,” Tiffani Clements, a spokeswoman for the SBA, told Set-Aside Alert in an email on July 17.

As of July 17, by the SBA’s initial count the pilot program has attracted 2,843 business participants; there have been 273 teams created and 18 contracts received, Clements said. However, those numbers have not been verified at this time and the SBA is working to obtain and verify the final data, she added.

“We will receive final reports after Sept. 30, 2013, after which we will be able to assess the effectiveness of the pilot program,” Clements wrote in the email.

Meanwhile, the SBA provided additional preliminary numbers to Set-Aside Alert showing how many teams were created and contracts won for each of the 11 grantees.

The numbers vary widely. Some numbers have been verified and some have not. Some grantees helped form many teams, while others just a small number. Some of the new teams won contracts, while many did not.

For example, the National Community Reinvestment Coalition helped businesses form 22 teams and the teams won six contracts. Those are verified numbers, the SBA said.

The National 8(a) Association facilitated the creation of 19 teams, with 11 contracts awarded, the SBA said. Those numbers are not yet verified.

Five of the grant winners reported a total of 50 teams created, but those 50 teams have reported no contracts to date, the SBA said. Those grantees included the Clearwater Economic Development Association, Long Island Forum for Technology, San Diego State University Research Foundation and Urban League of Rochester, NY.

Those grantees, along with the reinvestment coalition and the 8(a) association, did not respond to requests for comment.

Another grantee with zero contracts reported was NCAIED, where Cook headed the teaming efforts.

She said the organization was not able to count successful contracts because they were not receiving full information from the teams.

News Update - SBA to allow Small Business Teaming Program grantees an extension: SBA: “According to the terms and conditions of the current awards, awardees may request a one-time, no-cost extension if they have funds remaining under their award and have not yet met all their project objectives. This one-time extension may not be exercised merely for the purpose of using unobligated balances.”

Cook also said that two years is actually a short time to get a program up and running and successful, especially in government contracting, in which the procedures can take many many months.

“Because teaming alliances require time for capacity building, networking, monitoring, business development, certifications, etc. this project requires more time,” Cook said. “As a national program it is difficult to get any meaningful results in two years. It takes almost a year to get staffed and trained, leaving one year (for) joint ventures and partnerships. This is an impossible timeline even in the corporate world of big business.”

However, Clements, from the SBA, said that despite the difficulties, the pilot program will be judged primarily by the contracts eventually won by the teams.

“The ultimate goal of the pilot program is the award of federal government prime contracts,” Clements told Set-Aside Alert.

There is talk that one of the grantees, LSI Business Development Inc., may have developed one of the most successful models.

An LSI executive who declined to be quoted by name claimed the company has facilitated the formation of 172 teams that have won $409 million in contracts. However, the SBA has not yet verified LSI’s information.

LSI’s approach was to sign up companies on an online platform and to produce regular webinars, often with government officials, on specific federal opportunities. LSI’s pilot program project director, Allen Shipes, endorsed that approach: “This is a well-thought-out program and businesses love this.” He declined further comment.

Other grant recipients did not respond to requests for comment.

More information: http://www.sba.gov/teaming