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What Do the Small Business Administration’s New Rules Mean for Government Contractors?. a briefing by SBA District Director Bridget Bean. FY 2011: A year of sweeping change for Federal contracting. Small Business Jobs Act Women-Owned Small Business Federal Contracting Program
a briefing by
SBA District Director Bridget Bean
Includes reforms recommended by President’s Task Force on Federal Contracting Opportunities for Small Businesses
Launched: February 4, 2011
45 NAICS Codes =
Women-owned businesses “under-represented”
Competition may be restricted to certified EDWOSBs
38 NAICS Codes =
Women-owned businesses “substantially under-represented”
Competition may be restricted to ALL certified WOSBs
II. Award < $3 million ($5 million for manufacturing)
III. “Reasonable expectation” of two or more WOSBs or EDWOSBs bidding
IV. “Fair and reasonable” price
WOSB Program: Set-asides
WOSB Certification: Who is eligible?
Ownership: Must be at least 51% directly and unconditionally owned by a woman or women.
Citizenship: Majority owner or owners must be U.S. citizens
Management: Woman must hold highest officer position, make long-term decisions, manage day to day operation.
An Economically-Disadvantaged Woman-Owned Small Business (EDWOSB) is a WOSB which is owned by a woman or women whose:
Personal Net Worth < $750,000
Average Annual Income < $350,000
Total Assets < $6,000,000 (including primary residence and business)
Effective as of March 14, 2011.
First comprehensive revisions in more than 10 years.
Includes technical and substantive changes (only covering highlights today)
A concern may leave the program by:
Must generally remain small. SBA may graduate a participant prior to the expiration of its program term if firm does not remain small, as adjusted, for three successive program years.
SBA will determine primary industry, using Size Regulations - Part 121 (13 CFR 121.107), considering the following factors:
SBA will examine:
Married Business Owners
Includes, but is not limited to, the following:
The withdrawal limits are in the aggregate:
SBA will look at totality of the circumstances to determine what is considered a withdrawal
For Military Service
If the disadvantaged individual owner(s) of the 8(a) firm are called to active military status, SBA will no longer terminate the firm.
Firm may elect to:
A participating firm may have a bona fide places of business in more than one location. SBA determines if firm can establish a bona fide place of business in a particular geographic location
In order to be eligible to submit an offer for a 8(a) procurement limited to a specific geographic area, the participant must receive a determination from SBA prior to submitting its offer.
Change from no more than 3 awards over a 2 year period to no more than 3 contracts over a 2 year period without a finding of general affiliation
Same two entities may form additional JVs and each may be awarded 3 contracts over 2 years
Unpopulated (or populated only with administrative personnel) - an employee of 8(a) firm managing the JV must be project manager
Populated - performance of the contract is controlled by the 8(a) firm managing the JV
Consequences if Mentor does not provide agreed-to assistance:
Size standards increased (effective 11/5/2010):
- NAICS Sector 44-45, Retail Trade (47 industries)
- Sector 72, Accommodation and Food Services (5 industries)
- Sector 81, Other Services (18 industries)
Final rules in draft stage:
- Sector 48-49, Transportation and Warehousing
- Sector 54, Professional, Technical, and Scientific Services
Proposed rules expected within next week:
- Sector 51, Information
- Sector 56, Administrative, Support, Waste Management, &
Contract CAPLines– loan program that provides working capital to cover period between contract award and payment
(was $2 million)
your local SBA resources
and events go to: