Many small business clients of mine have been approached by or considered acquisition by a larger firm. Well, if this sort of sale or merger would turn a small business into a large business, the small business should pay close attention to a little-publicized change stemming from SBA’s Mentor-Protégé Consolidation rule that came out last fall. The new rule could result in a company losing out on an otherwise successful bid.
Continue reading…Congress Should Codify–and Expand–SBA’s Solution to the “Runway Extension” Small Business Size Calculation Problem
In January 2022, the rules regarding calculating small business size status for federal procurements will change dramatically. Companies operating under receipts-based size standards will be required to use their last five completed fiscal years–not three. And businesses operating under employee-based size standards will be made to use their last 24 months of payroll, instead of 12.
These changes will benefit growing businesses, allowing stay small longer by including older numbers in their averages. But the new size rules–what Congress has termed a small business “runway extension”–actually penalize some businesses, forcing them to stay large longer, and freezing these companies out of the very small business set-aside opportunities that could help reverse their declining fortunes. That can’t be what Congress intended!
Fortunately, the SBA has come up with a simple, elegant solution to the problem, and I think Congress should codify it before January.
Continue reading…SmallGovCon Week in Review: April 12-April 16
Lately, I’ve been enjoying attending my daughter’s soccer games on the weekend. It’s nice getting out into the fresh air. Hope you are able to enjoy some fresh air this weekend as well. But before you do, check out the latest updates in government contracting.
This week saw some important updates in the federal contracting world. These included new details about the GSA administrator, a potential increased emphasis on evaluation of past performance, and DOD’s innovation ecosystem.
Continue reading…Past Performance: Agency Can Consider Whether Prime & Subcontractor Have Worked Together Previously
An agency’s past performance evaluation may consider whether the prime contractor and a proposed subcontractor have worked together previously–even if the solicitation is silent about such consideration.
In a recent bid protest decision, the GAO held that there was nothing improper about an agency’s determination that the awardee’s prior working history with its subcontractor decreased performance risk.
Continue reading…5 Things to Know About an 8(a) Bona Fide Place of Business
Eligibility to bid for construction contracts in the 8(a) program can be a maze to navigate for small businesses. The lifeblood for these companies is identifying and becoming eligible to bid for these prized solicitations. As a new 8(a) entity, or one looking to branch out, you may be wondering how to establish a bona fide place of business.
In order to qualify for construction contracts in the 8(a) program, offerors are required to have a bona fide place of business (or BFPOB) within the established geographic area. This post will walk you through when and how to request a determination from the SBA, and when to expect a decision.
Continue reading…SBA Suggests Three Pages or Fewer for Social Disadvantage Narratives–But Really?
SBA guidance on Certify.SBA.Gov suggests that an 8(a) Program applicant’s social disadvantage narrative should be “three pages or less.” While we are definitely in the habit of recommending small business contractors to follow SBA’s guidance most of the time, we simply cannot climb aboard the “three-page” ship. In fact, we have significant concerns that submitting a one to three page narrative could potential “sink” your 8(a) application (at a minimum, requiring you to make extensive and time-consuming revisions later on).
Continue reading…Event: Three-Part Series on Joint Ventures & Prime/Subcontractor Teams
For small and large businesses alike, joint venturing and prime/subcontractor teaming on federal contracts can bring powerful benefits. But the rules governing teaming and JVs can be complex, and in focusing on compliance, sometimes best practices can get lost in the shuffle.
On April 20 through 22, please join me and Nicole Pottroff for a special, three-part course on joint ventures and prime/subcontractor teaming, hosted by Govology. We’ll cover the key compliance rules in plain English, dispel common myths, and discuss best practices to help your teaming documents go beyond bare-bones compliance. It’s easy to register: just click here.
We hope to see you starting on April 20!