This Spanish-American machinist was leary of dealing for a government procurement contract until SBA offered a helping hand. As a result, he won a contract for machined parts for the Air Force. Subsequent contracts rolled in and shop expansion was required. SBA again helped by a $250,000 expansion loan. Today, facing a continued brisk business, he offers training to fellow Spanish-American youths.

Office of Business Development There was a major shift in emphasis during 1969 in SBA's program to assist small firms in obtaining Government contracts.

In line with SBA's purpose to create a climate in which small business can share increasingly in Government contract work and at the same time provide minority enterprises with badly needed skills, SBA focused its resources on the development and expansion of manufacturing enterprises owned or operated by members of socially and economically disadvantaged groups.

Under the program, SBA assumes the role of prime contractor for procuring agencies such as the Army, Navy, Air Force, Defense Supply Agency, General Services Administration, and the Post Office Department. The contracts are for items that small firms can satisfactorily produce, such as tents, wooden pallets, repair or modification of electronic or other equipment, cable assemblies, wooden shipping boxes, military clothing, and bakery products.

There were 50 prime Government contracts valued at some $25 million awarded to SBA, which in turn broke them down into subcontracts and let them out to small firms owned or operated by minority or economically disadvantaged persons. SBA has the support of several large corporations in forming subsidiaries to be operated and later owned by members of minority groups. These

HOPE I

Officials of HOPE, a newly-formed minority operated manufacturing firm in Paterson, New Jersey pose with government representatives after a $710,000 subcontract was awarded by SBA for generator assemblies for use in military communications equipment.-Photo courtesy Paterson News.

SBA's Certificate of Competency (COC) program provides a means by which small firms can appeal for help when their low bids are rejected by Government procuring agencies on the grounds that their firm lacks either the capacity or credit to perform the contract.

After surveying the firm's financial resources and productive facilities, SBA may issue a COC which Government contracting officers must accept as conclusive.

During the year the Government realized a saving of $3.4 million from this program. The saving was based on 257 contract awards valued at about $31.1 million. Savings represent the difference between the contract price and the next higher bid price on each contract.

It was not always necessary to issue COCs to help the low-bidding small firm win a Government contract. SBA has records of 722 awards totaling $132 million that went to low-bidding small firms without a COC issuance. Nearly always, SBA's investigation prompted award of a contract without COC issuance.

Technology Utilization

Through the Technology Utilization program, SBA provides small manufacturers with new technology information.

In addition to conferences, seminars and workshops conducted for small companies, SBA has contacted more than 7,500 small manufacturing companies and provided personal assistance to 650 of these firms confronted with technical problems. Many of these small manufacturers have developed new techniques, new production systems and new products as a result of new technological information.

Management assistance to small firms continues to be a major concern of the SBA. During 1969: • More than 19,800 small business owners and managers attended 783 cosponsored management courses.

• More than 35,700 small business owners and managers attended 726 cosponsored management conferences.

• Nearly 10,900 small business owners and managers attended 328 cosponsored problem clinics.

• More than 11,700 prospective small business owners and managers attended 299 cosponsored prebusiness workshops.

• More than 3.5 million free SBA management leaflets were distributed.

• Nearly 283,500 SBA management booklets were sold by the Superintendent of Documents. • SBA management training films topped 3,400 showings to a combined audience of nearly 99,000 persons.

SCORE-ACE

SBA kicked off a new drive at mid-year to enlist the volunteer help of retired business executives in the Agency's Service Corps of Retired Executives (SCORE).

The new push involved recruiting more volunteers from the ranks of retired executives as well as active businessmen willing to help small businessmen avoid business pitfalls.

By the end of the year SCORE volunteers numbered 3,450 retired business executives-up from the 3,100 registered before the new effort.

In October, delegates from 137 SCORE chapters attended SBA's second annual National SCORE Conference in Silver Spring, Md.

Closely allied to the SCORE program is ACESBA's Active Corps of Executives. ACE volunteers were recruited from the ranks of active, successful businessmen who are willing to help with small business management training and counseling.

These volunteers come from major industry, trade associations, educational institutions and professional ranks and are used on an "as needed” basis to augment SBA's management assistance

program.

ACE was kicked off in mid-August and by the end of the year, 1,500 ACE volunteers had been recruited.