COVID-19 & SBA 8(a) Program Suspensions: FAQs

If you are a government contractor participating in the Small Business Administration’s 8(a) Business Development Program, there is a good chance you received an email this week about COVID-19 and the SBA’s 8(a) suspension authority. What is this authority and, more importantly, how would suspension impact your 8(a) status?

In this post, we aim to provide some answers to frequently asked questions about these suspensions.

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DOD: Sole-Source Contracts up to $100 Million Don’t Need Justification

Effective March 17, DOD contracting officers won’t have to issue a justification or obtain approval for award of a sole-source contract under the Small Business Administration’s 8(a) program for awards up to $100 million, up from the prior $22 million limit. This Department of Defense class deviation implements the higher dollar amount that Congress set in the 2020 National Defense Authorization Act.

This change will likely matter most for 8(a) concerns owned by an Indian Tribe, Alaska Native Corporation (ANC) or Native Hawaiian Organization (NHO), as other 8(a) firms are limited to a smaller dollar amount for sole source awards unless only one 8(a) firm can perform the work.

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SBA Area Office Double Counted Revenue in Denial of 8(a) Application, Says OHA

SBA sometimes makes mistakes in the 8(a) application process, but the appeals process may be able to remedy those miscues. Recently, an applicant appealed the SBA’s denial of her 8(a) status based on net worth. She argued that the SBA Area Office had double counted the value of her rental property, which automatically disqualified her from being found economically disadvantaged.

SBA’s Office of Hearings and Appeals (OHA) agreed and remanded the denial decision.

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The Basics: Socioeconomic Sole Source Awards

Just last week during a Govology webinar on Women-Owned Small Businesses, one of the attendees asked an insightful question about the different standards for giving sole source awards to participants in various government programs. She wanted to know the difference between how contracting officers go about offering an 8(a) sole source award and a WOSB sole source award.

So, let’s take a look, shall we?

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SBA Finalizes Rule Allowing Set-Asides Under Small Business MACs

The SBA has published a final rule that would allow for quite the change to small business set-aside multiple award contracts (MACs) and orders issued under them. This final rule amends the SBA’s regulations to authorize task and delivery orders issued under a small business set-aside MAC, to be set-aside for HUBZone businesses, 8(a) businesses, SDVOSBs, or WOSBs.

While agencies had set aside orders under MACs before, SBA has now clarified its regulations to allow socioeconomic set-asides of orders under small business set-aside MACs.

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SBA Proposes Changes to 8(a) Contract Procurement Process

Last week, SBA proposed big changes for some of its small business regulations, particularly those in the 8(a) Program. This blog post is Part 2 in our coverage of the proposed amendments (see Part 1 here) and will cover SBA’s potential changes to the procurement process for 8(a) contracts.

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SBA’s Oversight of ANC-Owned 8(a) Firms Has Come a Long Way, But Still Has a Long Journey Ahead, GAO Says

In its report published last week, GAO both commends and criticizes SBA for its handling of tribally affiliated 8(a) business development firms—particularly Alaska Native Corporations (ANCs) and ANC-owned businesses participating in the 8(a) program.

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