5-Year Receipts Calculation Period Effective January 6, 2020

At SmallGovCon, we’ve closely followed the SBA’s implementation of the Small Business Runway Extension Act. After much confusion caused by the delayed implementation of the Act, there’s finally a light at the end of the tunnel: the 5-year receipts calculation period will become effective January 6, 2020.

Importantly, the SBA’s final rule implements relief for businesses that will be adversely affected by the change to a 5-year receipts calculation period.

Let’s take a look.

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SBA Proposes to Remove the “Three” from the “Three-In-Two” Rule for Joint Ventures

The SBA recently proposed a rule that would amend the infamous three-in-two (AKA 3-in-2) rule for joint ventures. SBA’s current regulations provide that a joint venture can be awarded no more than three contracts over a two-year period.

While SBA plans to keep the two-year lifespan for joint venture awards, it plans to get rid of the three contract maximum.

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SBA Proposes to Change When Companies Need to Recertify Size and Status for Orders

SBA recently proposed changes to a number of its small business rules, as we’ve written about in earlier posts. The same proposed rule includes a small but significant change to when a business has to recertify its size and status for orders under multiple award contracts.

Based on the number of times we’ve written about size and status protests for orders under multiple award contracts (see the related content at the bottom of this post for a sampling), this is an area in need of clarity.

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Federal Government Contractors Can Use Electronic Signatures for Claim Certifications, ASBCA Says

Despite technological advance, some (perhaps even you) still cling to the notion that a signature, written by a human hand, is the only official kind. In other words, if a person doesn’t personally affix his “John Hancock” in cursive script or some other creative form, then the document really isn’t signed.

If this thought sounds familiar, we’re here to liberate you. You are no longer bound like a medieval prisoner to your tube filled with ink. You can use an electronic signature in your contract work with the U.S. Government, including certifications connected to claims submitted under the Contract Disputes Act.

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GAO: Trade Agreements Act Inapplicable to Small Business Set-Asides

It’s no secret that federal government contracting has the reputation of being a seemingly endless morass of regulations. In fact, the confusion frequently associated with federal contracting was on full display in a recent GAO protest that implicated the SBA’s nonmanufacturer rule, the Buy American Act, and the Trade Agreements Act. In a procurement that invited bids from both large and small businesses, a large business contractor argued that the application of certain small business contracting regulations would unfairly advantage the small business participants.

GAO disagreed, and dismissed the protest because any advantage was the result of the regulations operating as intended. Sometimes it pays to be a small business.

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New HUBZone Rules Kick In December 26

SBA proposed a major revamp of how it will interpret and enforce the HUBZone program’s rules back in October of 2019. We wrote about the major changes in a couple of posts (here and here) as well as some of the common misconceptions that SBA cleared up as part of the proposed rule.

Well, the wait is over. SBA will release the final rule November 26 and the new rules will become effective on December 26, 2019.

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