Upcoming SBA Rule Will Switch to 24-Month Calculation for Employee Size Standards

SBA has issued a final rule changing all employee size standards to a 24-month calculation. This rule is scheduled to be published in the Federal Register on June 6, 2022, and and will take effect 30 days from the date it is officially published. Let’s take a closer look.

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SBA Confirms that Size Status Relates Back to Time of Offer, Even After Sale of Small Business

Over the years, SBA size regulations have included the general rule that the size status of a business generally relates back the time of initial offer on a contract. Therefore, a small business generally stays small for the duration of a federal contract, with some exceptions. However, there was also language in the rule that required small businesses to recertify their size status after being acquired or going through similar transactions. The effect of this recertification requirement was always a little unclear. If you recertify as large, does that have any effect on your small business status for orders under contracts awarded when the business was small? Now, OHA has answered that concern.

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Five Things You Should Know: Responding to Size Protests

There are many things to know about responding to size protests. One could probably fill a book with the information-(actually I did, for those who want a real deep dive!). But if you need to know just the basics, here are five things you should know about size protests that can help you be prepared if your company is facing a size protest.

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No Protests of SBA Mentor-Protégé Agreements, Says OHA

The SBA’s mentor-protégé program offers powerful benefits. To help ensure that only legitimate small businesses take advantage of the program, the SBA asks applicants a series of questions about potential affiliation between the prospective mentor and protégé.

But once the SBA signs off on a mentor-protégé agreement, that’s that. As the SBA Office of Hearings and Appeals recently confirmed, competitors cannot use the size protest process to challenge whether an SBA mentor-protégé agreement should have been approved in the first place.

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No Ostensible Subcontractor Rule for Manufactured Product Procurements, SBA OHA Confirms

The SBA’s ostensible subcontractor rule can be a minefield for small prime contractors, who must be careful to avoid risk factors for affiliation with their large subcontractors.

But not every small prime need worry about ostensible subcontractor affiliation. As a recent SBA Office of Hearings and Appeals decision confirms, the ostensible subcontractor rule does not apply to procurements for manufactured products.

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Whose Jurisdiction is it Anyways? GAO Dismisses Size Challenge

GAO recently dismissed a protest to an awardee’s eligibility under the applicable size standard. The protester argued that the agency should have known that the awardee exceeded the nonmanufacturer rule’s 500-employee maximum. After extensive briefing from both parties and from the SBA itself, GAO found that the awardee’s proposal didn’t raise any issues and that it was really up to the SBA to decide the size issues anyway.

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YouTube Tuesday: Procedures & Pitfalls of Size Protests & Appeals Handbook Now Available

I’m proud to announce that the new GovCon Handbook, Procedures & Pitfalls of Size Protests & Appeals, is now available! This video highlights some of the main topics from the book.

You can order the book here. I’m also conducting a webinar on August 5 to explore some of the key insights. Be sure to check out the webinar or contact me if you have questions.