Let’s suppose that you, a small business, were previously awarded a long-term contract set aside for small businesses. But over the past few years, business has been good and you’ve outgrown the size standard assigned to the contract. Can you still be awarded a task order under the contract? Yes–if the contracting officer doesn’t require you to recertify your size in connection with the task order request, and no contract-specific terms–like mandatory off-ramps–say otherwise.
This important principle recently played out in DNT Solutions, LLC et al., SBA No. SIZ-5962 (2018).
An agency isn’t required to cancel a small business set-aside solicitation if the agency learns that one of the small businesses upon whom the set-aside decision rested is no longer small.
In a recent bid protest decision, the GAO confirmed that an agency need not redo its “rule of two” determination when a potential small business competitor outgrows its size standard–even if it could effectively convert a particular solicitation into a “rule of one.”
The Supreme Court’s landmark ruling in Kingdomware Technologies, Inc. v. United States does not require SDVOSBs to recertify their eligibility in connection with individual GSA Schedule task orders.
In a recent decision, the SBA Office of Hearings and Appeals held that Kingdomware doesn’t affect the SBA’s SDVOSB eligibility regulation for multiple-award contracts, which specifies that if a company qualifies as an SDVOSB at the time of the initial offer for a multiple-award contract, it ordinarily qualifies as an SDVOSB for all orders issued under the contract.
According to the GAO, a business qualifies as small for purposes of a task order competition under a Governmentwide Acquisition Contract so long as the business was small for purposes of the underlying GWAC, and the Contracting Officer does not request size recertification in connection with the task order. And even if recertification is required for the task order, the operative date to determine small business status is the date of the task order offer–not the date the task order is awarded.
In a recent bid protest decision, the GAO and SBA both weighed in on the question of small business size status for task order competitions, providing some helpful clarity on this often-confusing topic.