The SBA’s regulations state it will examine monetary-based size standards (e.g., receipts, net income, assets) at least once every five years and determine if adjustments are needed to those standards at such time. 13 C.F.R. § 121.102. But what about employee-based size standards? In fact, the same rule applies for reviewing and adjusting those standards as a result of the Small Business Jobs Act of 2010. On April 26, 2022, the SBA published its proposed rule to change the size standards for a number of employee-based size standards for manufacturing and other industries. Let’s look at these changes.
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SBA Issues Final Rule Increasing Some Size Standards
SBA has issued final rules updating some of its size standards. Below are highlights from the recent size changes. Be sure to review the particular NAICS code on any upcoming solicitations to see if one of these increased size standards applies.
Continue readingDepartment of Defense Proposes Rule to Reauthorize and Improve the Mentor-Protégé Program
The Department of Defense (DoD) has proposed to revise the Defense Federal Acquisition Regulations (DFARS) to reauthorize and improve the DoD Mentor-Protégé Program (MPP). The primary purpose of the proposed rule (Proposed Rule) is to reauthorize the DoD MPP, provide incentives to large DoD contractors to serve as mentors to small businesses, and extend opportunities for small businesses to participate in the MPP. In addition, the proposed rule removes restrictions on the eligibility of small businesses by aligning the size of the small business with the size standard associated with its primary NAICS code.
The Proposed Rule is here.
Continue readingWhat’s on SBA’s Regulatory Plate for 2022? A Hint: Increased Size Standards
SBA publishes its semiannual Regulatory Agenda to provide an update on the various rules it has in the pipeline and an estimate for when they will be published or become final. While SBA doesn’t have to meet these timeframes, it’s always good to check in on what SBA has been working on when the final rules will come out. This agenda includes an update on increased size standards, along with some other important rules. Read on for the highlights and be sure to comment on any rules that you have an opinion on.
Continue readingSBA Proposes Rule to Use 24-Month Period to Calculate Number of Employees
The SBA has released a proposed rule to use a 24-month period to calculate a company’s number of employees for eligibility purposes in all of SBA’s programs. This change will affect any business seeking to qualify as small under an employee-based NAICS code, such as those applicable to manufactured products.
Continue readingCOFC Confirms SBA Interpretation of Runway Extension Act
The Court of Federal Claims recently reviewed the Small Business Runway Extension Act, particularly SBA’s contention that it was not bound by the 5-year lookback period that Congress enacted for size receipt calculations. Now, SBA has issued its own rule that it will use the 5-year lookback period, at least after a two-year transition period, as discussed in our earlier posts. But there were still some cases working their way through the courts that examined how Congress implemented the Runway Extension Act and whether it applied to SBA or not. To make a long story short, the court agreed with SBA.
Continue readingSolicitation Omits NAICS Code and Size Standard–But Agency Still Rejects Large Business’s Bid
An offeror’s bid was rejected because the offeror wasn’t a small business–even though the solicitation didn’t contain a NAICS code or corresponding size standard.
It sounds like a successful bid protest waiting to happen, but GAO didn’t see it that way. Instead, GAO dismissed the protest because the offeror should have protested the defective solicitation terms before it submitted its bid, instead of waiting to see how the competition played out.
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