As we discussed last week, on August 19, 2026, SBA proposed what can only be described as a complete shift in the paradigm of the small business size standards. In the first part of our review of these changes, we looked at the actual planned size standards themselves and how massive of a jump they represent from the norm. In that post, we also mentioned that SBA is proposing to simplify and combine several NAICS codes, as well as move several NAICS codes from receipts-based to employee-based size standards. Today, we’re going to explore this latter observation.
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SBA Proposes Monumental Changes to Small Business Size Standards (Part 1)
Every few years, SBA updates its size standards for small businesses. In most years, these updates, while notable, are not groundshaking, and usually just account for inflation. That cannot be said of the most recent proposed changes. We do not use hyperbole here, but, sometimes, emphatic language must be used. SBA is proposing what can only be described as absolutely massive changes to its size standards for small business contracting. On August 19, 2026, SBA released its proposal for what can only be described as a new size standard paradigm. We explore these in greater detail here, and plan on one or more follow-up posts as there are multiple aspects of the system that would be changed if the proposal is finalized.
Continue readingAgency Discretion Recertified: GAO Affirms Agency Discretion to Request Size Recertification for Task Orders
When it comes to meeting the size standards, the normal rule for a set-aside contract is simple: If you’re small at the time you submitted your initial offer for the contract, you’re small for the life of the contract. So says 13 C.F.R. § 121.404–although this could be changing in the future based on a proposed SBA rule. Furthermore, this is the general rule with set-aside IDIQs as well: If you’re small at the time of initial offer for the IDIQ, you’re small for all orders under that IDIQ. (Not so with set-aside task orders under otherwise unrestricted IDIQs, there it very much is time of offer for the task order rather than the IDIQ for the date to determine size). However, there are a couple of exceptions. The biggest one is where the contracting officer explicitly requests size recertification for the given task order. In that case, an offeror must show it is still a small business as of when it submits its offer for that task order. One contractor recently protested when the contracting officer did just that. Here, we’ll explore that GAO decision.
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