YouTube Tuesday: Writing Your 8(a) Application’s Social Disadvantage Narrative- What the SBA is Looking For

One of the trickiest requirements for admission into the SBA’s 8(a) program is demonstrating social disadvantage. While some groups are presumed socially disadvantaged (as discussed here), social disadvantage can also be demonstrated based on other characteristics not specifically included in the SBA’s regulations. For those characteristics, applicants must submit a “social disadvantage narrative.”

In this video, I provide you the tricks of the trade you’ll need to write a successful narrative:

For assistance drafting your social disadvantage narrative, reach out to us here!

Regulatory Update: SBA Moves to Clean Up Small Disadvantaged Business Rules

Last month, the SBA moved to edit its regulations, taking a red pen to its current rules governing Small Disadvantaged Businesses (or SDBs), as described in the Federal Register.

This post will highlight what the new rule will mean for current SDBs—and how businesses can become eligible for SDB subcontractor status under the new rule. While the SDB program is still alive and kicking, the rules will be simplified to eliminate a lot of language that is simply no longer applicable.

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Newsflash: The Final Rule Implementing SBA Certification for WOSBs Is Here!

Update 5/14/2020: Since this post was originally published, SBA’s website has clarified when SBA Certification will be available and when Self-Certification will end. The post has been updated to reflect this information.

On Monday, the Small Business Administration will publish a Final Rule updating the certification methods for businesses applying for and participating in the Women-Owned Small Business program. The new Rule will also impose new thresholds for demonstrating economic disadvantage, impacting applicants not only for the WOSB program, but also the 8(a) Business Development program.

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DoD Proposes Aligning DFARS 8(a) Nonmanufacturer Rule with Existing SBA Regulations

The DoD recently issued proposed revisions to the DFARS 8(a) nonmanufacturer rule, found in 48 C.F.R. § 252.219-7010. The proposed revisions would update the admittedly “outdated text regarding the nonmanufacturer rule with updated text” that reflects SBA’s May 2016 final rule implementing the Fiscal Year 2013 National Defense Authorization Act.

While the changes are only for 8(a) concerns, the differences between the existing DFARS and proposed change are significant nonetheless.

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Losing Key Owners of SBA Set-Aside Businesses – Now Out in Contract Management Magazine

Clients who own businesses under one of SBA’s socioeconomic designations have often asked us, what happens after I’m gone? Meaning, if the key owner becomes incapacitated or dies, what happens to the set-aside designation for future contracts and ongoing contracts, and are there restrictions on transferring the ownership interest?

While we can’t answer all their questions, my recent article in the March 2019 issue of Contract Management Magazine (the monthly publication of the National Contract Management Association), outlines some of the key issues and answers from the government contracting perspective.

The magazine has nicely allowed us to reprint the article. Click here to read!

GAO Faults Contractor for General Manager’s Sickness

When an incumbent contractor’s general manager got sick and had to quit, the contractor promptly found a replacement, which the agency approved. But there was still one problem: the incumbent had already proposed to use the same general manager for the next contract.

According to GAO, the agency was right to eliminate the contractor from the competition, even though the agency knew that the contractor had a new general manager and had, in fact, approved the replacement.

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SBA Didn’t Properly Justify 8(a) Termination, Says Court

SBA’s regulations provide that an 8(a) program participant that no longer is owned or controlled by socially and economically disadvantaged person can be terminated from the 8(a) program. But the decision to terminate is not one to be made lightly: SBA must make sure that it not only has evidence in support of its termination decision, it must also explain how that evidence demonstrates its conclusions.

This requirement was at issue in a recent court decision that found an SBA 8(a) program termination decision to be based on “numerous erroneous assumptions” and “unsupported conclusions, not substantial evidence.”

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