Program Plan
Small Business Administration - Small Business Recovery Act Surety Bonds Recovery Plan
Updated 05/15/2009
Objectives
Program Purpose
The SBA guarantees (up to 90 percent) surety bonds for small businesses, allowing them to compete for contract dollars, including construction projects supported by Recovery Act funds. Through the Recovery Act, the SBA has temporarily raised the Surety Bond limit for small business contracts from $2 million to $5 million dollars. Under certain circumstances (with certification from a Federal contracting officer), that limit can be raised to $10 million.
Public Benefits
Increasing the contract ceiling for a bond guarantee ensures that more small businesses can bid on and receive contracts. This new program increases small contractors’ access to bonding and contract awards, as well as surety company participation. In turn, this leads to stronger job creation while stimulating the economy.
Measures
The measures have been revised to enrich the performance metrics for Recovery targets. In some instances, targets will not be available until additional baseline data has been collected.
| Measure | Target/Actual |
|---|
| 2009 | 2010 | 2011 | 2012 |
|---|
[-]
Dollar value of bid bonds issued over $2 million | 42/0 | 72/0 | - | - |
Measure Information
| Frequency : Monthly | | Direction : Increasing | | Type : Output | | Explanation : Dollar value of bid bonds approved, which enable firms to compete. A bid bond guarantees that a bidder will enter into a contract, if awarded, and furnish the required payment and performance bonds. The dollar value of a bid bond is the estimated contract amount for which the bond is issued. | | Unit : Dollars (millions) |
|
[-]
Dollar value of final bonds issued over $2 million | 12/0 | 21/0 | - | - |
Measure Information
| Frequency : Monthly | | Direction : Increasing | | Type : Output | | Explanation : Dollar value of final bonds approved, which enable firms to compete. Payment and performance bonds are called final bonds. A payment bond guarantees payment from the contractor to persons who furnish labor, materials, or supplies that are used in the performance of the contract. A performance bond guarantees that the contractor will perform the contract according to its terms. The dollar value of a final bond is the contract amount for which the bond is issued. | | Unit : Dollars (millions) |
|
[-]
Number of jobs created or retained | 80/0 | 140/0 | - | - |
Measure Information
| Frequency : Monthly | | Direction : Increasing | | Type : Outcome | | Explanation : Number of jobs created or retained for surety bonds approved above the original $2 million contract amount. This indicator also measures one of the Recovery Act objectives, which is job creation/retention. | | Unit : Number |
|
Schedule and Milestones
Milestones
| Milestone |
Completion Date |
Planning Phase includes
• Defining and implement IT requirements for $5 million surety bond guaranty
• Defining and implement IT requirements for $10 million surety bond guaranty
• Conducting Risk Planning
• Defining plan for termination of Recovery act provisions
|
06/30/2009 |
Execution Phase includes
• Issuing information notices and press release for $5 million and $10 million bond guarantee and implementation plan
• Implementing automated budget processes
• Publishing Surety Bond report and submitting to Congress
|
08/17/2009 |
Evaluation Phase includes
• Monitoring Program Performance and spending of appropriated funds |
09/30/2010 |
Projects and Activities
The SBA will perform outreach and education to small business contractors through press releases and marketing materials. The SBA will also implement an automated budget process and publish surety bond reports to Congress.
Activities
• Information Notice for implementation of $5 million maximum contract ceiling
• Press Release for implementation of $5 million maximum contract ceiling
• Promulgation of regulations necessary for higher $10 million contract ceiling
• Systems Changes
• Press Release for implementation of $10 million maximum contract ceiling
Associated funding for this program is $15M.
Review Process
The SBA developed an agency-wide framework to ensure timely and effective implementation of Recovery Act projects to support America’s small businesses. The SBA Recovery Act Steering Committee, comprised of senior SBA leadership, meets every week to review, evaluate and assess the status and results of each SBA-related Recovery Act project.
The Surety Bond program is managed by a team. Project teams, which meet several times each week, and supporting offices are held accountable for on-time completion of project milestones and deliverables. Project teams also meet regularly with the Performance Management Office to track metrics and milestones, which are reported weekly to the Steering Committee.
The Steering Committee reviews reports to identify:
• Progress made toward each project milestone
• Factors that have the potential to slow implementation or decrease effectiveness
• Effectiveness of each project measured against expected outcomes
• Success of any implemented adjustments made to strategies, services and project
• Effectiveness of risk mitigation strategies
Cost and Performance Plan
To report progress on the implementation of this project, SBA will regularly update the Project Plan to report on the status of milestone attainment. SBA will generate Program Performance Reports that will contain metrics showing outcomes, usage, borrower and lender characteristics, and risk parameters.
In addition, SBA will generate a Program Performance Overview Report, which will contain detailed financial and performance information pertaining to all SBA Recovery Act programs, with cross-year outcome and performance comparisons. This report will be used to measure progress against agency-wide performance targets.
Information contained in the Program Performance Overview Report and each Program Performance Report will be updated periodically and published on SBA’s Recovery web site: http://www.sba.gov/recovery/agencyplans.
Energy Efficiency Spending Plans
Program Plan Award Types
No Data Available