Small Business Regulations and Programs

The July 19 Ultima ruling threw the 8(a) program into tumult after the U.S. District Court for the Eastern District of Tennessee found the program’s rebuttable presumption mechanism, used to find social disadvantage, in violation of the Fourteenth Amendment’s Equal Protection Clause.Continue Reading UPDATE: Next Step in SBA’s Implementation of Ultima Ruling to 8(a) Program

On April 27, the Small Business Administration (SBA) issued a final rule which, effective May 30, will make a number of changes to the SBA regulations impacting small businesses. The regulations, finalizing the proposed rule issued on September 9, 2022, provide new penalties for noncompliance with the limitations on subcontracting rule, updated joint venture (JV) and size requirements, and changes to the ostensible subcontractor rule. This post dissects the regulations and highlights a few noteworthy changes below.Continue Reading Final Rule Makes Host of Changes to SBA Regulations

I recently outlined the requirements that government contractors must observe when using Disadvantaged Business Enterprises (DBEs). A DBE is categorized as “for-profit businesses which are at least 51% owned and controlled by socially and economically disadvantaged individuals.” The Infrastructure Investment and Jobs Act (IIJA) emphasizes the use of DBEs when awarding contracts and requires that prime contractors commit a certain amount of the award to DBEs that perform a “commercially useful function.” While not explicitly defined, “there is a presumption that the DBE is not performing a ‘commercially useful function’ when it performs less than 30% of the contract’s total cost with its workforce,” I explained in the article.Continue Reading Compliance Considerations for Government Contractors Using Disadvantaged Business Enterprises

On December 19, 2022, the U.S. Small Business Administration (SBA) issued a proposed rule that would amend the SBA regulations to implement Section 870 of the National Defense Authorization Act (NDAA) of 2020. Section 870 makes noteworthy changes to the requirements a federal contractor must adhere to when attempting to obtain subcontracting credit for lower-tier subcontracts. Continue Reading SBA Proposed Rule Permits Prime Contractors to Receive Subcontracting Credit from Any Tier

I am looking forward to participating in a webinar titled, “Federal Government Contracts: New SBA Certification Program for Veteran-Owned Small Businesses” hosted by Strafford on February 28, 2023, from 1:00 pm-2:30 pm EST. Our panel will guide counsel on navigating the SBA certification program for VOSBs and SDVOSBs effective Jan. 1, 2023. We will review eligibility requirements, crucial certification procedures, and compliance obligations for entities and joint ventures. The panel will also offer certification best practices for receiving future set-aside or sole-source federal government contracts. Continue Reading [WEBINAR] Federal Government Contracts: New SBA Certification Program for Veteran-Owned Small Businesses

The Small Business Innovation Research (SBIR) program has an interesting construction. With seemingly no competition to bring size protests and the successful completion of a previous grant before a second grant, the unusual process can make participants forget that normal Small Business Administration (SBA) size regulations still apply. A recent SBA Office of Hearings and Appeals (OHA) decision reminds SBIR awardees to comply with all affiliation rules and ownership requirements or risk losing follow-on SBIR awards.Continue Reading Attention SBIR Applicants…Remember that Affiliation Rules Still Apply

On November 17, 2022, the U.S. Small Business Administration (SBA) published an interim final rule in the Federal Register to make certain inflationary adjustments for the alternative size standards under the Small Business Investment Company (SBIC) program. The interim final rule became effective on December 19, 2022, but the SBA will accept public comments until