SmallGovCon Week in Review: July 15-19, 2024

Happy Friday! July sure is flying by! We’ve been very busy here at SmallGovCon with all that is happening in the federal government contracting world. We have included an extensive list of informative articles for this week in review.

At the top of our week in review articles, SmallGovCon contributor Nicole Pottroff was quoted in a touching Washington Post story that we have included this week, concerning the SBA’s 8(a) Program social disadvantage narrative requirements. Enjoy your weekend!

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He Never Saw Himself as Disadvantaged. Then the Government had Him Write an Essay. -Julian Mark (Washington Post)

I am incredible honored by the shout-out I received in this recent, powerful Washington Post article, by the talented Julian Mark. Mark also wrote the prior article including my statements about the 8(a) Program litigation and changes that took place last summer, which you can read about here. This second article covers the incredible story of 8(a) Program graduate, Curtis Joachim, and my work with him in drafting a successful social disadvantage narrative to remain in the program for his final year—a requirement (now) for all applicants and participants imposed by Federal District Court and implemented by SBA. I am so fortunate I had the opportunity to work with Curtis and so grateful for his strength and grace in sharing his inspiring story.

SBA Certify Portal Applications to be Paused

If you have ever looked into socio-economic certifications through the SBA or “set-asides” as some call them, you undoubtedly have run into SBA’s certify portal. It certainly is a big part of the small business federal contracting landscape, with likely massive numbers of site visitors a day. However, it will soon be updated, causing a pause on new applications very soon.

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Back to Basics: 8(a) Program Economic Disadvantage

When it comes to SBA’s many small business socioeconomic certification programs, the 8(a) Business Development Program is often considered SBA’s “golden child”–as its potential benefits are nearly endless. But it certainly wouldn’t be a “golden child” at all if just anyone could get into it. The 8(a) Program has some of the most extensive and strict requirements out there. In this post, we’ll dig into the basic components of one of those requirements: economic disadvantage. But don’t fret, this post is worth a read for our experienced 8(a)-ers and those just learning about the program. For the former, the information below can serve as a refresher on the basics of economic disadvantage–but also, a source for SBA’s most recent economic disadvantage thresholds (as of 2024, as these are updated periodically for inflation). For the latter, we suggest reviewing these basics of economic disadvantage along with our other Back to Basics blogs on the 8(a) Program (this one discussing the program, generally, and this one discussing all the rules for eligibility).

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A Bridge (Not) Too Far: Prohibition on Dividing up Contracts to get Under 8(a) Sole Source Dollar Limit Doesn’t Apply to Bridge Contracts

Under 13 C.F.R. § 124.506, if an 8(a) contract price would exceed a certain threshold ($7 million for manufacturing contracts, $4.5 million for others), in most cases, the agency must compete the set-aside.  13 C.F.R. § 124.506(a)(5) is a provision meant to close up what otherwise would be a loophole in the rules. It states that “[a] proposed 8(a) requirement with an estimated value exceeding the applicable competitive threshold amount may not be divided into several separate procurement actions for lesser amounts in order to use 8(a) sole source procedures to award to a single contractor.” But this rule does not apply in all circumstances. In particular, it does not apply to bridge contracts.

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SBA’s 2023 Update: Demonstrating 8(a) Social Disadvantage

SBA recently issued new guidance on how to demonstrate social disadvantage–one of the elements an individual must meet to be eligible for SBA’s illustrious 8(a) Business Development Program. The guidance implements a streamlined social disadvantage narrative format–limiting the number of social disadvantage instances to two and asking only for direct answers to six questions for each instance. The “new” format really just hones in on the elements SBA has always asked for 8(a) social disadvantage narratives to demonstrate, substantively, not changing a thing. Nevertheless, SBA has been quite firm in requiring this new, short and sweet, structured format–so let’s dig into it a bit.

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SBA OIG Report Shows Improvements in 8(a) and Woman-Owned Small Business Programs

The Small Business Administration Office of the Inspector General (OIG) recently released its report discussing the top management and performance challenges facing the SBA in 2024. The report highlights a number of issues currently plaguing the SBA and its various programs, including abuse of economic relief programs, disaster assistance programs, and loan programs, cyber security shortcomings within the agency, and oversight of grant management. The report also notes concerns with the HUBZone and small disadvantaged business programs. However, today I want to focus on the issues identified in two programs that we at Koprince McCall Pottroff work with day in and day out: the Woman-Owned Small Business Program and the 8(a) Business Development Program.

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