The “Once 8(a), Always 8(a)–or HUBZone, SDVOSB, or WOSB” Rule, Where Are We Now?

For better or for worse, these federal procurement “times they are a-changin’.” One obvious source of recent change is the shiny new FAR 2.0, a.k.a. the Revolutionary FAR Overhaul (RFO). With the government’s widespread implementation of the RFO and its many procurement rule and procedure updates, we at SmallGovCon have tried to cover as much as possible. But we’re talking about an essential rewrite of the decades-longstanding procurement playbook here. So unsurprisingly, there’s still a lot to go. One recent change well-worth some deeper discussion is the RFO’s updated “Once 8(a), Always 8(a)” Rule–which I’ve aptly deemed the “Once 8(a), Always 8(a)–or HUBZone, SDVOSB, or WOSB” Rule. As the SBA’s “Once 8(a), Always 8(a)” Rule remains unchanged, this RFO update has the potential for significant impacts on small business federal contracting, as well as some implementation conflicts–or confusion at the least.

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FAR Updates: Size Protests for Orders, Rules for 8(a) Follow-On Contracts

The FAR Council has released updates that will impact a couple aspects of small business contracting. One is that contractors can now file size and socioeconomic status protests for certain types of orders, under strict timelines. Second is that agencies must notify SBA when they seek to remove certain contracts from the 8(a) Program. While these rules were present in some form in SBA rules, they are now firmly ensconced in the Federal Acquisition Regulation as well. Below, I discuss the highlights of these rules as well as any differences from the SBA rules.

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GAO: Work Must Remain Set Aside for 8(a) Participants Because Not a “New Requirement”

In a recent decision, Eminent IT, LLC, B-418570 (June 23, 2020), GAO held that the Department of State improperly removed a requirement from the SBA’s 8(a) program where the solicitation did not create a “new requirement.”  

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Section 809 Panel Recommends Changing “Once 8(a), Always 8(a)” Rule

Under the so-called “once 8(a), always 8(a)” rule set forth in the FAR and SBA regulations, when a procurement has been accepted by the SBA for inclusion in the 8(a) Program, any follow-on contract generally must remain in the 8(a) Program, unless the SBA agrees to release it for non-8(a) competition.

Now, the Section 809 Panel has proposed a modest, but potentially important change to the “once 8(a), always 8(a)” rule–a change that would allow for acquisitions to be removed from the 8(a) Program without the SBA’s explicit consent.

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