SBIR Program: Agencies Have Broad Discretion Over Phase III Awards, GAO Confirms

A federal agency has broad discretion to make a sole source award under Phase III of the Small Business Innovation Research program.

In a recent bid protest decision, the GAO confirmed that an agency may make a Phase III award when the contract “derives from, extends, or completes efforts made under prior funding agreements under the SBIR program.” What’s more, an agency has “relatively limited requirements to justify a phase III award,” and considerable discretion when it comes to determining whether a new contract fits this definition.

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SmallGovCon Week in Review: Dec. 7 – Dec. 11, 2020

Hope your holiday season is going well. I’m enjoying the start of college basketball–finally getting to watch the hometown Jayhawks, who ended last season at number 1 in the polls!

This week saw some key updates, including timing for STARS III awards and other small business GWACs, a report on mismanagement related to the AbilityOne program, and a new DOD directive to improve acquisition reform.

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Congress Says Small Businesses Without Past Performance Can Submit Joint Venture Experience Instead

Per the 2021 NDAA that was recently approved by Congress, small business offerors without their own past performance experience can now submit experience earned as part of a joint venture–and the procuring agency must consider it. This change will significantly benefit newer companies that do not yet have the individual experience to successfully compete for government contracts (that is, assuming the President signs the NDAA). It will also add an incentive for start-up companies to take advantage of SBA’s joint venture opportunities.

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Congress Lengthens Employee-Based Size Standard Period

If you’re a regular SmallGovCon reader (and we hope you are!), you probably are familiar with the Small Business Runway Extension Act. Under the Runway Extension Act, Congress lengthened the period used to determine small business status under receipts-based size standards, from three to five years. Congress’s laudable goal was to allow businesses to “stay small” longer, but the Runway Extension Act can backfire when a business has been shrinking instead of growing.

Now, Congress has done it again. In the Conference Report to the 2021 NDAA, Congress has extended the period used to measure employee-based size standards, from 12 to 24 months–and whether this is good news may depend on if a business has been growing or shrinking.

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Congress to Extend 8(a) Terms by One Year

There is a substantial change for 8(a) Program Participants in the NDAA that was recently approved by Congress. The House and Senate have agreed to extend the term of 8(a) Participants from 9 years to 10 years for any company that was admitted to 8(a) Program by September 9 of this year. This will be a major benefit to 8(a) companies, assuming the President signs the NDAA.

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