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.Continue reading
Earlier this month, GAO produced an over 50-page report, presenting a discussion on options for increasing business opportunities for “mid-sized” businesses. It can be tough to go from being a small business to competing with all large businesses, so GAO took a look at these small-ish large businesses.
We know SmallGovCon readers are busy, so we’ll provide the CliffNotes version.Continue reading
Make sure to check your NAICS code size standards based on receipts, because SBA is increasing them across the board on August 19 to give small businesses more time to grow. On July 18, the SBA announced it will increase monetary-based industry size standards (meaning receipts-based and assets-based size standards).
This change is a result of adjustments for inflation that the SBA makes every five years. These rules will go into effect August 19, 2019.Continue reading
On Monday, June 24, SBA will issue its long-awaited proposed rule implementing the Small Business Runway Extension Act. We intend to explore the proposed rule and the accompanying commentary more fully over the next few days (as we have been doing over the past few months), but we wanted to provide a quick update to our readers on the main changes in the proposed rule.
The key takeaway is that, once the rule is in place, SBA size standards will be based on a 5-year average. SBA “proposes to change its regulations on the calculation of annual average receipts for all receipts-based SBA size standards and other agencies’ proposed size standards for service-industry firms from a 3-year averaging period to a 5-year averaging period.”Continue reading
Shortly after passage of the Runway Extension Act confusion struck the government contracting world when the SBA openly stated that it would not implement the Runway Extension Act. Recently, the House Committee on Small Business passed H.R. 2345, “Clarifying the Small Business Runway Extension Act” which, in no uncertain terms, tells SBA it has to implement the Runway Extension Act before the end of 2019.Continue reading
In late 2018, Congress passed the Small Business Runway Extension Act, which had a single purpose: change the three-year average annual receipts calculation period (for determining small business eligibility) to a five-year calculation period.
Small businesses, for the most part, have been watching with bated breath for the SBA to comply with the Runway Extension Act. But as we’ve previously written, the SBA has thus far refused to do so (albeit under shifting rationale).
Now, the SBA has cemented its position against applying the Runway Extension Act—according to the SBA, “[b]usinesses must continue to report their annual receipts based on a 3-year average until the SBA amends its regulations.”
I’m not convinced the SBA has it right.Continue reading
The Small Business Runway Extension Act continues to be a hot topic of conversation among small businesses. For good reason: it revised the receipts calculation period for revenue-based size standards from three years to five.
In late 2018, the SBA opined that the Runway Extension Act wasn’t applicable because the SBA had not yet updated its regulations. Following industry pushback, the SBA’s position seems to have evolved. During a panel discussion at this year’s National 8(a) Conference, the SBA said that the Runway Extension Act applies to every agency that might adopt its own size standards . . . just not the SBA itself.
This new justification is a bit of a head-scratcher. And I still don’t think the SBA has it right.
Let’s work through the SBA’s position together.Continue reading