SBA OIG Report Shows Improvements in 8(a) and Woman-Owned Small Business Programs

The Small Business Administration Office of the Inspector General (OIG) recently released its report discussing the top management and performance challenges facing the SBA in 2024. The report highlights a number of issues currently plaguing the SBA and its various programs, including abuse of economic relief programs, disaster assistance programs, and loan programs, cyber security shortcomings within the agency, and oversight of grant management. The report also notes concerns with the HUBZone and small disadvantaged business programs. However, today I want to focus on the issues identified in two programs that we at Koprince McCall Pottroff work with day in and day out: the Woman-Owned Small Business Program and the 8(a) Business Development Program.

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UPDATE: SBA Reopens its Certify Site for all 8(a) Program Applicants

It’s the moment many have been waiting for–SBA has reopened its Certify portal to new applicants seeking admission into the 8(a) Business Development Program. SBA closed the portal to all new 8(a) Program applicants in early August 2023, following a decision from the Federal District Court of the Eastern District of Tennessee that took away applicant’s presumption of social disadvantage for certain designated groups. This resulted in all 8(a) participants being required to submit a social disadvantage narrative. To address this issue, SBA opened Certify bit by bit to current participants who had not previously submitted a social disadvantage narrative, prioritizing current 8(a) participants with pending awards followed by current 8(a) participants without pending awards. Now, SBA has opened Certify to new applicants that wish to apply for participation in the 8(a) Program who now must demonstrate their social disadvantage.

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COFC: Lapsed SAM Registration During Proposal Evaluations Makes Offeror Ineligible for Award

It’s a tale as old as time, and I’m not talking about “Beauty and the Beast.” I’m talking about an offeror who failed to comply with the registration requirements in FAR 52.204-7. What’s FAR 52.204-7? It’s the FAR provision that requires, among other things, all offerors to be registered in the System for Award Management, or SAM as it is better known. And, as we have seen many times before, there is no way around this rule. Often, failure to be registered in SAM limits an offeror’s eligibility before award is made, making the offeror ineligible for award. However, this time, it affected the award that had already been made, resulting in the court entering a preliminary injunction against the government continuing with its original award.

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DoD FAR Deviation Addresses 8(a) Social Disadvantage Changes

It’s no secret that the 8(a) federal government contracting world has been in a bit of an upheaval this summer. When the Eastern District of Tennessee published its decision for the Ultima Services Corporation case, small business federal contractors everywhere began scrambling to keep up to date on how various agencies would react. We here at SmallGovCon have been keeping up to date on the developments as they happen. This time, we have more information on how the Ultima Services Corporation case will affect procurements with the Department of Defense, thanks to a new class deviation effective August 24, 2023.

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SBA Clarifies Inconsistencies in 8(a) and Mentor-Protégé Ownership Rules

A lot has been happening in the 8(a) Business Development Program world over the past couple of weeks. SBA has been busy updating regulations applicable to the 8(a) Program to both bring SBA rules into alignment with the economic realities in a post-COVID world and to make 8(a) requirements more uniform across the board. Here, we focus on a change to ownership rules for non-disadvantaged owners of 8(a) Program participants that are also part of an SBA-approved Mentor-Protégé Agreement.

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$162B in Small Business Contracts: SBA Releases Small Business Scorecards for FY 2022

The SBA published its annual Government Wide Small Business Procurement Scorecard for fiscal year 2022, and it appears that nearly every type of small business set-aside by the SBA, with the continued exception for Woman-Owned Small Businesses and HUBZone businesses, either met or exceeded their goal. Overall, agencies exceeded their goals for the year, earning an overall score of “A” due to meeting the small business contracting goals with 104.05% of the total goal.

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Recent NAICS Code Appeal Demonstrates Contractor Strategy to Limit Competition

While every federal government contractor is likely familiar with bid protests, whether directly involved in one or not, it is far less likely that those same contractors are as familiar with NAICS code appeals. This is probably due to the infrequent nature of NAICS code appeals, with roughly 20 being filed each year. However, even if so few are filed annually, they tend to have a relatively high success rate, with appeals decided on the merits being decided in favor of the Appellant about 50% of the time. Below, I will take a look at a recent NAICS code appeal to help demonstrate what the Small Business Administration’s (SBA) Office of Hearings and Appeals (OHA) takes into account when reviewing NAICS code appeals, and why you, as a contractor, should review a solicitation’s classification to potentially give you a leg up.

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