Of 34 WOSB and EDWOSB set-aside awards examined by the SBA Office of Inspector General, 15 of those awards were improper.
The SBA OIG’s conclusion comes in a new WOSB program report, and suggests that some Contracting Officers are unaware of the WOSB progran’s unique requirements, including the NAICS code limitations for WOSB and EDWOSB set-asides.
The SBA has acknowledged that Congress eliminated WOSB self-certification in the 2015 NDAA–but suggests that WOSB self-certification may continue until the SBA adopts a regulatory framework for a formal certification program.
In a proposed rule released today, the SBA adopts a pragmatic approach that nonetheless may be legally problematic given that Congress did not authorize a continuation of WOSB self-certification pending SBA regulatory action.
I am on my way home from Denver, where I have been since Tuesday for the Association of Procurement Assistance Centers Spring Conference. My talk today was the final presentation of the conference (I like to think that APTAC saves the best for last!) and focused on recent SBA proposals regarding the limitations on subcontracting, “universal” mentor-protege, and women-owned small businesses, among other topics.
It was great to see so many familiar faces and have the chance to talk to so many PTAC counselors. Thank you to Becky Peterson, Jason Porch, and the APTAC leadership for inviting me to speak, and thank you to all the PTAC-ers who stayed until the end of the conference to catch my presentation. As always, you were a fantastic audience.
If you are a small business, you may be surprised at the many ways that your local PTAC can help you–usually free of charge. Visit the APTAC website to get started.
The limitations on subcontracting would undergo sweeping changes under a recent SBA proposal.
On December 29, the SBA issued a proposed rule to enact the changes implemented by Congress in the National Defense Authorization Act of 2013–including a thorough re-write of the way that compliance with the subcontracting limits is calculated and enforced.
Last week, I joined Guy Timberlake of the American Small Business Coalition for another segment of the popular “GovConChat” podcast series.
Guy and I discussed the impact of the 2015 National Defense Authorization Act on small contractors, including provisions (or a lack thereof) involving SDVOSBs, WOSBs, and reverse auctions. Guy and I also chatted about a recent allegation of HUBZone fraud stemming from a contractor’s alleged use of a “virtual office” as its supposed HUBZone location.
It’s always a pleasure speaking to Guy, who brings a great perspective to the issues (as well as a memorable voice tailor-made for podcasts). Check out the full podcast by following this link, and be sure to check out the GovConChat archives for Guy’s conversations with other movers and shakers in federal procurement.
Just in time for the holidays, there is good news for WOSBs–sole source contracts are coming!
If you have followed SmallGovCon over the past week, you have seen a few posts about changes made to the 2015 National Defense Authorization Act since the bill was initially passed by the House in May. But one piece of the original House bill has remained intact: the final 2015 NDAA allows WOSBs and EDWOSBs to receive sole source contracts.
With little fanfare, Congress just passed legislation eliminating the ability of WOSBs to self-certify for purposes of WOSB set-aside contracts.
The 2015 National Defense Authorization Act rewrites the portion of the Small Business Act governing WOSB set-asides, deleting what I have called the “trust but verify” option: the ability for putative WOSBs to self-certify as such, then back up their self-certifications by submitting supporting documentation to the WOSB Document Repository. Instead, the 2015 NDAA would appear to require a formal certification in order for a small business to be awarded a WOSB set-aside contract.