SBA Recertification Changes Will Affect Small Business IDIQs
10/29/2024
As a small business it’s critical to keep an eye on legislative changes that may affect the classification of your business with the federal government. Small changes in wording can make the difference between success and failure when anticipating your pipeline and future revenue. The Small Business Administration (SBA) has proposed several changes to its government contracting programs, including the Historically Underutilized Business Zone (HUBZone) program. If ratified, these changes will have a large impact on the small business classification system.
One notable proposed change is to the recertification rules for contractors on multiple award indefinite delivery, indefinite quantity (IDIQ) contracts. Currently, contractors remain eligible for set-aside orders under an IDIQ contract even after a disqualifying recertification, where the contractor no longer qualifies for the socioeconomic category the contract was set aside for. The proposed rule would make these contractors ineligible for new set-aside orders or contract options after a disqualifying recertification.
This change could have significant implications for government contractors involved in mergers and acquisitions, as they may lose eligibility for set-aside work under existing IDIQ contracts.
The proposed rule also includes other notable changes, such as:
- Codifying a list of “extraordinary circumstances” where minority shareholders can have certain decision-making authority without triggering affiliation rules. This aligns with current interpretations by the SBA’s Office of Hearings and Appeals.
- Expanding eligibility for the 8(a) business development program, including by increasing the allowed ownership percentages for non-disadvantaged individuals.
- Allowing 8(a) and women-owned small business (WOSB) owners to grant rights of first refusal to non-qualifying individuals, consistent with the veteran-owned small business (VOSB) program.
- Harmonizing the ownership requirements across the 8(a), WOSB, and VOSB certification programs.
If you own or work with a small business with a federal set-aside, you can utilize the market intelligence platform EZGovOpps to both identify new solicitations and forecast RFPs that will have your set-aside. In addition you can identify opportunities without a set-aside so you can contact the contracting officer and suggest modifying it to your set-aside so the agency can better reach its goals. Get full access with a 5-day trial today.