SBA Adds to Compliance Rules for Limitations on Subcontracting

Recently, the SBA released a final rule that clarifies some of the mysteries surrounding the limitation on subcontracting rules. The new rule, which goes into effect on December 30, 2019, provides clearer guidelines for contractors, while also creating some new requirements and definitions as discussed below.

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SBA Finalizes Rule Allowing Set-Asides Under Small Business MACs

The SBA has published a final rule that would allow for quite the change to small business set-aside multiple award contracts (MACs) and orders issued under them. This final rule amends the SBA’s regulations to authorize task and delivery orders issued under a small business set-aside MAC, to be set-aside for HUBZone businesses, 8(a) businesses, SDVOSBs, or WOSBs.

While agencies had set aside orders under MACs before, SBA has now clarified its regulations to allow socioeconomic set-asides of orders under small business set-aside MACs.

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OHA Denies Protest: Veteran Didn’t Need to List Disability on Social Media

The SBA Office of Hearings and Appeals denied an SDVOSB-status protest recently where the protester’s main argument amounted to an allegation that the owner of a competitor failed to identify on social media that he had a service-related disability.

OHA called the allegation “completely without merit.”

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SBA Proposes to Eliminate Some 8(a) Joint Venture Agreement Approval Requirements

Recently, the SBA proposed big changes for its small business regulations, including some aspects of the 8(a) Program.

This post is Part 4 in our coverage of these proposed SBA changes and will cover the SBA’s potential changes to the joint venture agreement approval process for 8(a) contracts (here are part 1, part 2, and part 3 of our coverage).

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SBA Inspector General Identifies “Challenges” with Multiple SBA Programs

The SBA Office of the Inspector General has taken it upon itself to look at the SBA’s programs and activities in order to determine what risks the SBA may face in the 2020 Fiscal Year. It appears that the OIG did not like what it found.

The examination found multiple risks and problems associated with SBA programs, including the 8(a) program, the WOSB program, and SBA’s small business contract goaling methods.

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GAO Disagrees with SBA: Consolidation Analysis Not Required for BPAs

No, the government isn’t trying to figure out how it can bundle home and auto coverage to save on its insurance premiums. Instead, “consolidation” in the federal government contract context refers to the action of collecting requirements being performed under discrete small business set-aside contracts into a single procurement.

Before an agency may consolidate contracts, it must consider the impacts the proposed consolidation will have on small business participation. Recently, however, GAO was asked to determine whether consolidation analyses are required for Blanket Purchase Order (“BPA”) procurements, and its decision did not adopt the SBA’s position.

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Runway Extension Act: Return of the SBA

Congress and the SBA continue to disagree about the timing for the implementation of the Runway Extension Act (conveniently allowing my Star Wars references to continue).

SBA recently provided testimony before the U.S. Senate Committee on Small Business & Entrepreneurship. Senator Marco Rubio called the hearing to address, among other things, why the “SBA has refused to follow the Runway Extension Act.” (We have wondered the same thing.)

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