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TRIAD Small Business Briefing

TRIAD Small Business Briefing. Annual Spring Meeting Sheraton Hotel Arlington, VA Dean Koppel, Assistant Director Office of Policy and Research, U.S. SBA. FAR Small Business Program “Parity ”. Proposed Rule Socioeconomic Program Parity

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TRIAD Small Business Briefing

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  1. TRIAD Small Business Briefing Annual Spring Meeting Sheraton Hotel Arlington, VA Dean Koppel, Assistant Director Office of Policy and Research, U.S. SBA

  2. FAR Small Business Program “Parity” • Proposed Rule • Socioeconomic Program Parity • Federal Register: March 10, 2008 (Volume 73, Number47) Pages 12699-12701 • Comments due on or before May 9, 2008

  3. FAR Small Business Program “Parity” • What the FAR Rule does: • It adds discretion to the decision making process for set-asides . • It brings the FAR into alignment with SBA's 2005 Regulations • Requires Market Research to identify capable HubZone, 8(a), Service Disabled Vet and small businesses • Gives KO's discretion in selecting appropriate program where Market Research identifies capable HZ, 8(a) and SDVets

  4. FAR Small Business “Parity” • Requires KO to consider a set-aside for HZ, 8(a) or SDVet small businesses before doing a small business set-aside • Requires the KO to set-aside for HZ if set-aside decision comes down to HZ or Small Business set-aside, IAW statute. • One Tool an Agency can use to help meet its Small Business Goals • What the FAR Rule does not do: • It does not relieve the contracting officer from conducting a set-aside where the "rule of two" is met.

  5. FAR Small Business “Parity” • It does not prevent the contracting officer form conducting "sole source" procurements IAW FAR • Changes will enhance participation for small businesses eligible to participate in each of the set-aside programs. • Gives agencies the discretion to select a program that will enable them to better meet their federally mandated small business goals

  6. SBA Size Recertification Rule • In 2003 SBA issued a proposed rule to require re-certification on an annual basis, BUT requested comments on requiring re-certification on an order-by-order basis or every five-years • Proposed rule appeared to apply to all multiple award contracts (MACs, GWACs, MAS), not just long-term contracts • SBA received several hundreds of comments • SBA had extensive consultations with DoD, GSA, and OFPP

  7. SBA Size Recertificaion Rule • Published: November 15, 2006 (71 Fed. Reg. 66434) • Effective Date: June 30, 2007 – Delay Necessary to: • Enable FAR provisions and clauses to be drafted and inserted into solicitations and contracts • Mod FPDS to allow size status to be changed on a going-forward basis (without altering past data) • Rule is retroactive for ALL contracts where there is an acquisition, merger or novation • Short term contract will be modified to collect data at contract option

  8. SBA Size Recertification Rule • Rule applies to contracts with durations greater than five (5) years to collect size changes for growth • Re-certification required prior to the beginning of 6th year, and prior to the exercise of EACH option thereafter - agencies use size standard in effect at time of option • No requirement to terminate contracts, or prohibition on exercising options where size status changes • No requirement to change terms and conditions of contract, i.e., limitations on subcontracting, subcontracting plan, etc. • Applies to existing contracts and solicitations

  9. SBA Size Recertification Rule • Re-certification required in case of novation, acquisition or merger - APPLIES TO ALL CONTRACTS • Currently, re-certification is required for novation and change-of-name agreements • Acquisition/merger not defined – will rely on affiliation rules • NAICS code/size standard for CONTRACT required for all orders & solicitations for orders Contracting officers have discretion to request size certifications in connection with solicitations for orders • No requirement to re-certify for subcontracting purposes

  10. SBA Women-Owned Small Business Proposed Rule Federal Register, December 28, 2007 (follow-up proposed rule from June 06, not final rule) • Rand Study; SBA selected methodology; found WOSB under-represented in four areas; proposing set-asides for economically disadvantaged WOSBs in those areas. (www.rand.org/pubs/technical_reports/TR442) • Applies up to $3 million ($5 million for manufacturing) • Before making a Economically Disadvantaged WOSB-Set-Aside, contracting agency must also determine there is evidence of discrimination in that industry area.

  11. SBA Women-Owned Small Business Proposed Rule NAICS 9281 - National Security and International Affairs NAICS 3328 - Coating, Engraving, Heat Treating, & Allied Activities NAICS 3371 - Household and Institutional Furniture & Kitchen Cabinet Manufacturing NAICS 4412 - Other Motor Vehicle Dealers To comply with Dept. of Justice , SBA proposed that the contracting agency make a determination that the set-aside is related to sex discrimination in the industry area. Comments closed March 31, 2008

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