SBA: NAICS Code Must Match the Work Sought, not the Offeror’s Work

We here at SmallGovCon like to spend our free time pondering the intricacies around how and why certain NAICS codes are assigned to the myriad of contracting opportunities posted every day. But we realize others may not have the same appetite for the intricacies of Federal Contracting as us. Luckily, the SBA’s Office of Hearings and Appeals (OHA) recently issued a great roadmap for understanding NAICS code assignments in a NAICS code appeal decision, which serves as a great refresher for how NAICS codes are applied to a procurement.

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SBA Provides Answers on Vets Certification Program Roll-Out in Q&A Session

On December 6, 2022, the SBA held a virtual Q&A session to discuss the roll-out of the Service-Disabled Veteran Owned Small Business (SDVOSB) and Veteran Owned Small Business (VOSB) certification program. They will be assuming responsibility as of January 2023 and the SBA will begin accepting applications for certification on January 9, 2023. Through the Q&A session, the SBA provided some tips for contractors, an explanation of the processes that are controlling the SBA’s SDVOSB and VOSB certification program, and even gave attendees a preview of the software that will be used. Of course, SmallGovCon was there to get all the details so that we can break them down for you.

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Proposed FAR Regulation Turns up the Heat on Federal Contractor Greenhouse Gas Emission Reporting

In an effort to comply with Executive Orders issued by the President, and to lower greenhouse gas effects, the Department of Defense, NASA, and GSA have recently issued a proposed rule that would change the FAR to create further requirements for contractors to report and disclose greenhouse gas emissions, as well as create emission targets. This proposed rule will add various requirements to the FAR that create additional reporting for contractors based on their size. Contractors should review these potential changes carefully, provide comments, and begin preparing for compliance with the new requirements. Below is our summary of the key changes.

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SBA’s 7(a) and 504 Loans Proposed Rule: Affiliation Based on “Control” Soon to be a Thing of the Past

One of the things the Small Business Administration may be best known for is its small business loan programs, such as the section 7(a) and 504 Loan Programs. These programs have been a staple of the small business landscape for quite some time. Unsurprisingly though, there are multiple rules associated with them. Among these myriad rules and requirements, is the determination as to whether a loan applicant is a small business. One of the things that can affect whether a business is small is affiliation with other businesses push that company over the size limit. In a new proposed rule, it appears the SBA plans to dramatically scale back the ways that a business may be seen as affiliated, by practically getting rid of affiliation through “control”–only for for loan purposes, not procurement purposes. As this presents quite a shift in operations, all of us here at SmallGovCon wanted to make sure we have provided you, our readers, a breakdown of these proposed changes to a cornerstone of the SBA.

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Pay it Forward, or Pay the Price, Says SBA in Proposed Rules for 8(a) Tribal Entities

In a recent notice for Tribal consultation and request for comments, as well as a published proposed rule, the SBA seems to be signaling an increase in oversight of Native or Tribally-owned entities who are 8(a) Participants. SBA has an apparent goal of enforcing more stringent repercussions for not fully adhering to some stipulations that exclusively pertain to Native or Tribally-Owned participants in the 8(a) Business Development Program. While not final yet, the SBA has placed these potential consequences, the reasoning behind them, and the proposed rule out in the public for discussion. As these actions may present some rather drastic changes for some 8(a) Participants, I have done a quick breakdown of them here.

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Back to Basics: Limitations on Subcontracting

One of the common questions small business contractors ask themselves when planning performance of a contract is “how much of this work are we allowed to subcontract?” Trying to answer this question inevitably leads contractors to one of the most commonly used and frequently misunderstood rules in federal contracting, the Limitations on Subcontracting. In this post, we will break down some of the basics of this rule, and hopefully clear up any basic misunderstandings regarding it.

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SDVOSB Owner Avoids Brewing Up Trouble with a Second Job

In a recent SBA decision, SBA’s judges had the opportunity to review three different simultaneous challenges to whether a service-disabled veteran controlled a SDVOSB. Because there were three different challenges reviewed at once, SBA took a deep dive into the SDVOSB certification standards around the requirement of control of a SDVOSB. With such a deep dive, SBA provided some explanations of SDVOSB control concepts that could be helpful to contactors looking to certify or re-certify as an SDVOSB. In these cases, a SDVSOB owner had a second job, and job experience in a different field, but SBA found the owner had the necessary control over the SDVOSB to remain certified.

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