Category Archives: Statutes and Regulations

SBA Issues Proposed Rule Implementing Small Business Runway Extension Act

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On Monday, June 24, SBA will issue its long-awaited proposed rule implementing the Small Business Runway Extension Act. We intend to explore the proposed rule and the accompanying commentary more fully over the next few days (as we have been doing over the past few months), but we wanted to provide a quick update to our readers on the main changes in the proposed rule.

The key takeaway is that, once the rule is in place, SBA size standards will be based on a 5-year average. SBA “proposes to change its regulations on the calculation of annual average receipts for all receipts-based SBA size standards and other agencies’ proposed size standards for service-industry firms from a 3-year averaging period to a 5-year averaging period.”

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GSA Announces Plans to Consolidate MAS Contracts and Asks for Industry Feedback

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The General Services Administration is conducting market research for its planned consolidation of the Multiple Award Schedule (MAS) Program. Earlier this month, GSA publicly announced the new single solicitation format, including streamlined terms and conditions, and its intention to collect feedback from government contractors in the industry.

According to GSA, the consolidation is part of its two-year modernization process for the program that began in November of 2018. The consolidated MAS solicitation is scheduled for release later this year. And if you have concerns or suggestions for GSA on this significant consolidation, there is still time for your input.

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Senate Highlights Decline in Number of Small Businesses Getting Federal Contracts

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Recently, a member of the Senate Committee on Small Business & Entrepreneurship called for increased small business participation in federal contracts during a hearing on the SBA’s contracting programs. Senator Ben Cardin based his concern on a recent report showing that the number of small businesses with federal contracts was at a 10-year low.

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Runway Extension Act: Return of the SBA

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Congress and the SBA continue to disagree about the timing for the implementation of the Runway Extension Act (conveniently allowing my Star Wars references to continue).

SBA recently provided testimony before the U.S. Senate Committee on Small Business & Entrepreneurship. Senator Marco Rubio called the hearing to address, among other things, why the “SBA has refused to follow the Runway Extension Act.” (We have wondered the same thing.)

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DoD Proposes Updating DFARS With 15-Day “Prompt Payment” Rules

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The Department of Defense awarded contracts to an average 30,806 small businesses each year in fiscal year 2016, 2017, and 2018. A proposed rule to update the DFARS may lead to these same businesses receiving payments from the government, or prime contractors, within 15 days of invoicing.

The proposed rule is found at 84 FR 25225. It was published on May 31, 2019 and comments close on July 30, 2019 if you’d like to put in your two cents.

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VA Agrees that Rule of Two Has Priority Over AbilityOne Procurement List

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Statute A tells you to solve Problem X one way. Statute B tells you to solve Problem X a completely different way. How do you reconcile these two conflicting mandates? The Federal Circuit encountered this exact problem in 2018, and in response to its holding, the VA has now issued a class deviation to reflect its decision, confirming that the Rule of Two has priority over the AbilityOne Procurement List.

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SBA Denies 8(a) Status Based on Applicant’s Ability to Successfully Overcome Gender-Based Discrimination in Her Field

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OHA recently affirmed the 8(a) status denial of a 100% woman-owned small business performing in the historically male-dominated renewable energy field. The applicant—who SBA called an “advocate” and “mentor” to women in the industry—detailed specific instances of gender-based-discrimination that plagued her education, employment, and career.

But SBA was unmoved, instead focusing its analysis on the applicant’s triumph over these obstacles—apparently an indication that she was not socially disadvantaged in the first place. Unfortunately, this perplexing holding does fall in line with many past SBA denials of women-owned companies for 8(a) status.

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