SBA requires that, for 8(a) Program construction contract set-asides, the contractor must have a “a bona fide place of business in the applicable geographic area.” 13 C.F.R. § 124.501. In 2021, SBA suspended the enforcement of this requirement in light of the COVID-19 pandemic. On June 17, 2025, SBA announced that this moratorium is coming to an end. In this post, we’ll look at the rule and what the end of this moratorium means for 8(a) construction contractors.
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Back to Basics: Terminations
The word “termination” in nearly every context elicits concern. And in federal contracting, such concern may often be warranted. Some terminations are no big deal, resulting in a federal contract–or even just part of one–being ended a bit early for convenience of the government. But other terminations, based on alleged default or deemed “for cause,” can have significant negative impacts (especially on small and disadvantaged businesses). So, one thing remains consistent across the board for federal contract terminations: it is crucial to understand the type of termination you are issued, its legal implications, and your rights and options for resolution. This article provides a general overview of terminations. Future posts will dive in deeper to contractor termination rights and options and settlement proposals.
Continue readingFAR Council Removes Rule on Small Business Orders
A couple FAR notices have removed proposed SBA rules relating to orders on multiple award contracts. This withdrawal seems to have the affect of decreasing the overall application of the small business Rule of Two, as discussed here. However, it only impacts the application of the rule of two to orders under multiple award contracts that were not restricted to small businesses. So, it’s impact is relatively narrow.
Continue readingCOFC: Ostensible Subcontractor Rule for General Construction Still Looks at all Circumstances
As frequent SmallGovCon readers know, the Small Business Administration’s ostensible subcontractor rule can be tricky to navigate. The rule requires contractors not to rely too heavily on a subcontractor in the performance of a contract set aside under an SBA socioeconomic program, but what constitutes relying too heavily can be confusing for small business contractors. Without a clear measure of how reliant is too reliant, businesses have to worry that they may be denied an award or even worse, lose one in a post-award protest. In a recent decision, Daniels Building Company, Inc. v. United States, 24-1787, 175 Fed. Cl. 767 (2025), the Court of Federal Claims (COFC) provided potentially helpful insight into what SBA’s Office of Hearings and Appeals (OHA) and the Court of Federal Claims will consider when determining whether a prime contractor is “unusually reliant” on its subcontractor.
Continue readingSwitcheroo – FAR Change Allows Agency to Amend Solicitation to Broaden Eligibility for Procurement
This past November, we observed a change in the rules regarding SAM registration requirements for procurements. Prior to this rule change, both GAO and the Court of Federal Claims (COFC) had found that the FAR requires offerors to maintain SAM registration throughout the evaluation period for a procurement. With the rule change, FAR 52.204-7 (the regulation at issue) now only requires that an offeror be registered at the time of offer submission and at the time of contract award. A lapse in SAM registration in between those events, in other words, would not be fatal to an offeror’s proposal. Unfortunately for one company, this resulted in a COFC case that essentially reversed its victory at a prior COFC protest. Today, we’ll look at this second case and what happened.
Continue readingHelp Please: SBA Asking for Input on Mentor-Protege and Joint Venture Issues
SBA has indicated that it will be holding a tribal consultation meeting in June. Among the topics to be discussed will be the 8(a) Program and SBA Mentor-Protege Program and joint ventures. This request is interesting because it reveals a little bit about what the SBA is thinking with regards to the Mentor-Protégé Program and joint venture issues. While it is especially relevant for entity-owned 8(a) Program firms, it is also revealing for other small businesses.
Continue readingBreaking: EO Mandates “FAR 2.0” & Deep Dive Into Federal Procurement Efficiency
Yesterday, the new administration issued a new Executive Order (EO) officially requiring a reformation of the Federal Acquisition Regulations (FAR) and a thorough review of the federal procurement system in general. Along with related EOs, they direct the Office of Federal Public Procurement Policy (OFPP), the FAR Council, and the heads of and “senior acquisition and procurement officials” from our federal agencies to create the “FAR 2.0”–as it has aptly been deemed. And they have 180 days to do it.
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