Category Archives: Statutes and Regulations

Game Changers for Government Contractors: Understanding the Small Business Rule of Two

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Thanks to Michael LeJeune for hosting me on his podcast, Game Changers for Government Contractors. It’s always great talking to Michael and this is a very pertinent topic for a lot of contractors. The Rule of Two is undergoing some changes in proposed rules and federal contractors need to be aware of those changes. In this episode, I discuss what the Rule of Two is, how it impacts small business set-asides, and the recent changes affecting task orders under multiple award contracts (MACs). We also discuss valuable insights on the differences between the SBA’s Rule of Two and the VA’s version, key exceptions, and how small businesses can respond if they see non-compliant procurements. If you’re a small business looking to leverage the Rule of Two to win more contracts, this episode is packed with actionable strategies and expert advice to help you navigate these changes effectively.

To listen on your favorite podcast platform, click below:

🎙️FA: https://federal-access.com/ep-352-understanding-the-small-business-rule-of-two/

🎙️Apple Podcasts: https://apple.co/3y4sNdA

🎙️Spotify: https://spoti.fi/3SPTZoB

📺To watch, click here: https://youtu.be/xDeoiIEpBeI

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How Extraordinary! Revised SBA Rule Gives Clear Guidance on Extraordinary Circumstances

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Many of the SBA’s small business programs have restrictions on what are commonly referred to as “extraordinary circumstances” or “extraordinary actions.” It’s a topic that we have discussed many times before, including this blog post discussing a case at SBA’s Office of Hearings and Appeals, reviewing extraordinary circumstances in the context of control and operating agreements. SBA often discusses extraordinary circumstances in the context of joint venture control, where the managing venturer must control decisions except for those considered to be extraordinary. But there is a different meaning in the context of an entity seeking certification under an SBA socioeconomic program, where the qualifying individual must have control over all actions and circumstances except for those determined to be extraordinary. This post will focus on the latter situation. And, as any knowledgeable small business federal government contractor can attest to, knowing what actions are and are not extraordinary, is very important to maintain eligibility for the SBA’s programs.

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News Flash: SBA Releases Final HUBZone Rule Update, Other Small Business Changes

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SBA has released the final rule for the HUBZone Program Updates and Clarifications, and Clarifications to Other Small Business Programs on December 17, 2024. As we have discussed, this rule made a lot of changes to the HUBZone program. But it also updated a lot of other small business rules. Below are the details on some of these significant changes. This rule will be effective on January 16, 2025.

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SBA Issues Final Rule to Streamline WOSB Program Rules

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In June, we reported on a Notice of Proposed Rulemaking that applied to the SBA’s Woman-Owned Small Business/Economically Disadvantaged Woman-Owned Small Business (WOSB) regulations. These proposed rules were intended to take the WOSB regulations and make them more consistent with the other types of set-aside programs offered by the SBA. Now, following the required period for comments from the general public, the SBA has published its Final Rule which will be effective January 3, 2025. Read ahead to find out more!

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Proposed Increases to Micro-Purchase, Simplified Acquisition, and Other Thresholds

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Every five years, the government is required by 41 U.S.C. § 1908 to adjust the statutory acquisition thresholds for inflation, such as the Micro-Purchase Threshold, Simplified Acquisition Threshold, and others. It just so happens that the last such adjustment occurred back in 2020. As such, the government is once again looking to increase these thresholds in light of the inflation that has occurred over the past five years. In this post, we will look at the proposed increases.

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Update: SBA Proposed Rule Would Require “Rule of Two” Application to Multiple Award Contract Task and Delivery Orders (Part I)

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SBA’s recently proposed rule seeks to officially broaden the reach of its “Rule of Two”–a government contracting requirement fundamental to supporting our nation’s small business infrastructure, policies, and goals. I emphasize “officially” because, even though this is technically a proposed change to SBA’s rules, it is really more of a “regulatory implementation” of judicial law than anything (don’t worry, we will go into more detail on this point later). Specially, SBA’s proposed rule would require the Rule of Two’s application to task orders and delivery orders under most standard multiple award contracts (MAC). This Part I blog will briefly explain what the Rule of Two is and detail SBA’s proposed update to it. But keep your eyes out for the soon-to-follow Part II blog on this topic. There, we will dig in a bit deeper to the Rule of Two, the policies driving it, and the potential implications for SBA’s proposed Rule of Two update.

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Dialing Down: SAM Registration Not Constantly Required

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As we’ve written about on the blog, protests have been decided because the offeror was not registered in SAM for the entirety of the proposal review process period. For instance, in this post, we discussed a GAO decision where GAO held that the FAR requires offerors to maintain SAM registration throughout the evaluation period, meaning from proposal submission to award of the contract. A COFC case came to the same conclusion. Well, the federal government didn’t like the result and has published an interim rule to remedy it.

In a recent interim rule effective November 12, 2024, the FAR is being updated to clarify that “the offeror must be registered at time of offer submission and at time of contract award, but would not be required to be registered at every moment in between those two points.”

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