Category Archives: Uncategorized

SBA Opposed Five-Year Small Business Size Period

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The Small Business Runway Extension Act, signed into law earlier this week, changes the small business size calculation under revenue-based NAICS codes from a three-year to five-year average.

The new law has sparked a great deal of discussion in the government contracting community, with some commentators pointing out that not all small businesses will benefit.  But how does the SBA–the agency tasked with implementing the new law–feel?

Well, according to commentary published earlier this year, the SBA thinks the five-year period is a bad idea.

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The Large Business Runway Extension Act: For Some Contractors, New Five-Year Size Period Will Backfire

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The House and Senate have passed the “Small Business Runway Extension Act of 2018,” which appears poised to become law in the coming days.  The bill would amend the SBA’s small business size rules to use a five-year average, instead of a three-year average, in calculations using receipts-based size standards.

The purpose of the bill is to help contractors avoid becoming “other than small” following a period of quick growth, but not all companies will benefit.  For companies with declining revenues, the bill may backfire, causing those companies to be stuck as large businesses longer.

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GAO: Agency Conducted Price Realism Analysis and Misled Protester

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Unless a solicitation for a fixed-price contract provides that the agency can conduct a price realism analysis, it can’t. Even so, agencies sometimes perform this analysis without alerting prospective offerors of the possibility.

If they do, however, the ground is fertile for a protest.

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HUBZone Joint Ventures: FAR Council Gets It Wrong

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The FAR Council’s proposed update to the limitations on subcontracting, and the DoD’s subsequent FAR deviation, have been met with widespread approval by small contractors.

But for HUBZone Program participants, the proposed rule and DoD deviation contain a glaring problem: a requirement that the HUBZone member of a joint venture take sole responsibility for meeting the applicable limitations on subcontracting.  This requirement, which doesn’t apply to joint venturers in other socioeconomic programs, is unfair to HUBZones, and at odds with SBA regulations.

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Supreme Court Could Limit Agency Power

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Monday, the U.S. Supreme Court decided to hear a case that could have far reaching implications in agency law—including for government contractors. The Court granted certiorari to a case that could greatly diminish the amount of deference given to agencies interpreting their own regulations. 

For contractors, a Supreme Court decision to curtail agency deference could lead to increased success rates in bid protests and other disputes.  

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Limitations on Subcontracting: DoD Issues Comprehensive FAR Deviation

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Earlier this week, the FAR Council issued a proposed rule to conform the FAR to the SBA’s regulation governing limitations on subcontracting.  But the DoD isn’t waiting around while the FAR Council finishes the process.

The DoD has issued a comprehensive FAR deviation, effective immediately.  The DoD’s FAR deviation will, effectively, temporarily conform the DoD’s use of the FAR to the SBA’s regulation while the FAR Council works on a final rule.

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SmallGovCon Week in Review: November 12-16, 2018

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Happy Friday, everyone! I don’t know about you but, as Thanksgiving inches closer, I can practically smell the turkey and stuffing. I hope you’re gearing up for a nice, holiday-shortened week.

Before the holiday, let’s take a look at the SmallGovCon Week In Review. In this week’s edition, we’ll discuss GSA intent to consolidate cybersecurity contract vehicles; a potential spending bonanza by the National Geospatial-Intelligence Agency; results from DoD’s first-ever audit (spoiler, it failed); and more.

Have a great weekend!

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