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.
Continue readingCategory Archives: 8(a) Program
Posts dealing with the 8(a) business development program, including 8(a) admissions and eligiblity, requests for reconsideration, ongoing eligibility and compliance, and related matters.
Initial Challenge to 8(a) Presumption of Social Disadvantage for Certain Minority Groups Succeeds: What This Means for Now
On July 19, 2023, the federal district court of the Eastern District of Tennessee issued a decision regarding a case involving the rebuttable presumption of social disadvantage in place under the 8(a) Business Development Program. Ultima Servs. Corp. v. U.S. Dep’t of Agric., 220CV00041DCLCCRW, 2023 WL 4633481, at *1 (E.D. Tenn. July 19, 2023). This decision found that this presumption is unconstitutional as it violates the right to equal protection. This, understandably, has caused a great deal of confusion and concern for current and potential 8(a) Program participants. In this post, we will not be providing our opinion on the correctness of the court’s decision (or analyze it from a policy perspective), as we will leave that to attorneys who specialize in constitutional law. Instead, we will go over the decision, what it means, and what it could affect down the road.
Continue readingSize Standards Applicable to SBA’s Socioeconomic Programs
If you are an avid SmallGovCon reader and a small business government contractor, you are probably no stranger to at least the basics of SBA’s size standards and its size and affiliation regulations (if not, check out some of our other blogs on the subject and keep an eye out for our upcoming new, second edition of the “SBA Small Business Size and Affiliation Rules” handbook). Additionally, most of our readers and most small business government contractors seem to understand at least the basics of SBA’s contract-based size requirements (i.e. that a small business–regardless of socioeconomic designation(s)–must be small under the size standard assigned to any set-aside contract it wants to bid). But did you know, if you are pursuing or participating in one of SBA’s other small business socioeconomic programs (8(a) Program, HUBZone, WOSB, SDVOSB, etc.), there may actually be some additional size requirements you must meet in order to be generally eligible for such small business socioeconomic statuses?
Continue reading8(a) Program and EDWOSB: Are they Economically Disadvantaged Twins or Siblings?
Two of the Small Business Administration’s programs require the applicant to demonstrate that they are economically disadvantaged: the 8(a) Business Development Program (8(a) Program) and the Economically Disadvantaged Woman-Owned Small Business Program (EDWOSB). The 8(a) Program requires applicants to be owned and controlled by both socially and economically disadvantaged individuals per 13 C.F.R. § 124.101. Applicants of the EDWOSB program must be owned and controlled by one or more economically disadvantaged women per 13 C.F.R. § 127.200(a)(2). But what exactly does it mean to be “economically disadvantaged,” and do both programs have the same requirements? Below I discuss the economically disadvantaged requirement contained in both programs. Read on to find out whether they are the same, and more.
Continue readingPay 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.
Continue readingSBA Proposed Rule Relaxes Change of 8(a) Program Ownership, Allows Limited Populated Joint Ventures
The SBA has issued new proposed rules relating to the 8(a) Program. The rules clarify some aspects of ownership and control requirements for the 8(a) Program, including making change of ownership a little easier and cleaning up some 8(a) set-aside processes. The rule would also allow for populated joint ventures between similarly situated joint venture members.
Continue readingOHA Remands Size Determination Because Area Office Failed to Provide Due Process to Protested Concern
SBA’s Office of Hearing and Appeals (OHA) recently said that the SBA Area Office should have informed the protested concern of the issues its adverse size determination focused on before ruling against the concern’s size eligibility on that basis. In addition to its lesson on due process, OHA also took this opportunity to distinguish totality of the circumstances affiliation (the basis on which the Area Office found affiliation here) from ostensible subcontractor affiliation (the basis for affiliation alleged in the size protest). OHA vacated and remanded the Area Office’s decision.
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