With the stroke of a pen, Congress may have just paved the way for some soon-to-be large businesses to remain small for longer.
Both the House of Representatives and the Senate have passed a bill that would amend the Small Business Act to change the period of measurement used to determine the size of a business from three years to five. The bill awaits the president’s signature to become law.
A new bill introduced in the House of Representatives would require the SBA to count contracts performed overseas when calculating the government’s achievement of its small business goals.
The bill would codify a policy that the SBA already says it is in the process of adopting–and one that will likely lead to a perceived drop in the government’s small business goaling achievement in Fiscal Year 2016.
Many small contractors (and the SBA) were surprised when the Court of Federal Claims held last year that the non-manufacturer rule applies any time the government buys manufactured products–regardless of the NAICS code assigned to the procurement.
Now the U.S. House of Representatives is proposing to fix the confusion caused by the Court’s decision. The House version of the 2016 National Defense Authorization Act would amend the Small Business Act to specify that the non-manufacturer rule applies only to contracts for supplies.