Georgia Tech Procurement Assistance Center

5 things you should know: SBA’s recent 8(a) program updates

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SBA has been hard at work this past year updating its 8(a) Business Development Program rules and policies.  And we have been doing our best to keep you posted.  Many of our blog posts focused on SBA’s monumental November 2020 “rule overhaul,” which implemented several 8(a) rule changes.  But given the sheer magnitude of information in that final rule, it is pretty easy to lose track of which updates might affect you, as a potential 8(a) applicant or current 8(a) participant.  There were also some pretty important changes to the 8(a) Program just prior to and subsequent to SBA’s November 2020 final rule.

Suffice it to say, there is a lot to process!  So, we thought a quick summary blog on some of the most significant changes to the 8(a) Program of late might help you in that endeavor.  Without further ado, here are five things you should know about SBA’s recent 8(a) Program updates.

As an initial matter, please keep in mind that this blog does not provide an exhaustive list of the rule changes in SBA’s November 2020 final rule that may affect 8(a) Program admission or participation.  It is merely a simplified discussion of some of the big picture changes that have already received a lot of attention in the government contracting community.

Continue reading at:  SmallGovCon

Five things you should know about responding to size protests

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There are many things to know about responding to size protests.  One could probably fill a book with the information.  But if you need to know just the basics, here are five things you should know about size protests that can help you be prepared if your company is facing a size protest.

1. The response time is short.

Normally, your company only gets three business days to respond.  So, be sure to work quickly to put together as much information as possible in that short amount of time to respond to the size protest allegations and any additional questions from SBA, while also completing the Form 355.  It’s also a good idea to have these records (such as tax returns or employee count documents) handy so that you can respond quickly.

2. But you can ask for an extension.

The SBA Area Office will often grant an extension and allow you to submit your response electronically.  Indeed, the SBA’s rules state that SBA may grant an extension.  It used to be that the SBA Area Office would require a paper copy of the response, but many Area Offices will accept submission by electronic means.  Regardless, be sure to reach out to the Area office as soon as possible to request a specific extension and to confirm that electronic submission is allowed.  While not required, the Area Office will often grant these short extension requests.

Continue reading at:  SmallGovCon

Five things to know about an 8(a) bona fide place of business

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Eligibility to bid for construction contracts in the 8(a) program can be a maze to navigate for small businesses.  The lifeblood for these companies is identifying and becoming eligible to bid for these prized solicitations.  As a new 8(a) entity, or one looking to branch out, you may be wondering how to establish a bona fide place of business.

In order to qualify for construction contracts in the 8(a) program, offerors are required to have a bona fide place of business (or BFPOB) within the established geographic area.  This post will walk you through when and how to request a determination from the SBA, and when to expect a decision.

Before we get to the five things, one important resource for the 8(a) Program to review when questions arise is the SBA standard operating procedure.  But, if you don’t have time to read all 300 pages and the corresponding regulations, we will walk you through the process.

Continue reading at:  SmallGovCon

Paycheck protection program audits are upon us

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In our last post on this topic, we touched on how the acceptance, use, and forgiveness of Paycheck Protection Program (“PPP”) loans can be viewed in the context of a Defense Contract Audit Agency (“DCAA”) audit.  This post focuses on audits and investigations involving PPP loans.  Close scrutiny of PPP loans is not a prediction; it is a reality.  The Small Business Administration (“SBA”) has announced it will audit all PPP loans in excess of two million dollars following a lender’s submission of a borrower’s loan forgiveness application, and it reserves the right to “spot check” any PPP loan of a lesser amount at its discretion.  The Department of Justice has already charged multiple individuals with PPP fraud.  And this is just the beginning of what many think will be a tidal wave of enforcement activity involving PPP loans.

Continue reading at:  Government Contracts Navigator

CRS Reports: Mentor-Protégé programs and small business size standards

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The Congressional Research Service has updated two reports that may be of interest to government contractors.  The first report provides an overview of federal government Mentor-Protégé programs.  The second report provides an overview of small business size standards and how the government calculates business size.  While these reports are typically created to inform members of Congress as they engage in the legislative and policy-making process, they contain a lot of helpful and useful information that may be of interest to GTPAC clients.

If you plan to use the SBA’s template joint venture agreement, read this first

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If you’re setting up your first joint venture under the SBA’s rules, you may be tempted to download the SBA’s template joint venture agreement and use it as-is.

But, as of the date of this post, the SBA’s template joint venture agreement is outdated–and it also has some other quirks and potential problems you should know about. If you’re planning to use the SBA’s joint venture template, read this first.

Outdated Provisions

If you’ve been following my posts on SmallGovCon (and I hope you have!), you’ll recall that I have recently written about substantive changes the SBA made to the joint venture regulations in November 2020. For mentor-protégé joint ventures attempting to comply with the regulations under 13 C.F.R. 125.8, I believe that two of these changes–to the mandatory JV requirements governing bank accounts and recordkeeping, respectively–are substantive changes sufficiently at odds with the “old,” pre-November regulations such that a joint venture agreement will be non-compliant unless it includes these updates. As of the date of this post, these changes are not included in the SBA’s template.

The November 2020 regulations also made some other changes, not only to the small business joint venture regulations under 13 C.F.R. 125.8, but the separate joint venture regulations for the for 8(a), SDVOSB/VOSB, HUBZone, and EDWOSB/WOSB programs.  For instance, the SBA’s new regulations eliminate the term “Project Manager” in favor of the more-inclusive “Responsible Manager.”  These other changes may not be significant enough to render a joint venture non-compliant if it doesn’t enact them–but why take any risks?

Continue reading at:  SmallGovCon

CRS reports: Small business contracting and a primer on SBA programs

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The Congressional Research Service recently updated a report on Small Business Contracting that provides a nice overview of how small businesses work and do business with the federal government.  They also recently updated a primer on SBA programs and funding.  Both reports provide excellent information that may be helpful to small businesses seeking to do business with the federal government or businesses that wish to take advantage of the programs provided by the SBA.

You can review the reports here:

An Overview of Small Business Contracting

Small Business Administration:  A Primer on Programs and Funding

 

 

New SBA head plans changes at the agency

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The new head of the Small Business Administration says she expects to make changes at the agency that she says will enable it to further help small companies devastated by the COVID-19 pandemic.

In an interview with The Associated Press on Friday, two days after she was sworn in, Isabella Casillas Guzman said her immediate focus is implementing the small business provisions in the $1.9 trillion coronavirus rescue package President Joseph Biden signed into law last week.

The country has lost 400,000 businesses since the start of the pandemic, Guzman said, warning that “many more are at risk.”

Guzman expects small business provisions in the rescue package to help, including $10 billion to support state lending to companies, and $100 million for a new program called Community Navigator aimed at giving education and advice to struggling business owners.  But, she said, more vaccinations against the coronavirus and the $1,400 stimulus payments millions of Americans are receiving will also ultimately aid business by helping the economy recover.

Read more at:  Federal News Network

ChallengeHER hosting webinar on joint ventures and the WOSB program on April 22nd

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ChallengeHER is a national initiative to boost government contracting opportunities for women-owned small businesses with a special focus on the Women-owned Small Business (WOSB) Federal Contracting Program.

In April 2013, WIPP, American Express, and the SBA launched ChallengeHER to deliver free workshops, mentoring, and direct access to government buyers.

Joint Ventures is an excellent opportunity for smaller businesses to combine resources for approaching federal contracts that would otherwise be out of their reach.  Join ChallengeHER as we discuss Joint Ventures from the various perspectives of the SBA requirements, inclusion in the WOSB program, and the legal dos and don’ts.  At the conclusion of this webinar, you will have a strong roadmap for developing Joint Ventures.

DATE:  April 22, 2021

TIME:  2:00 PM – 3:00 PM (Eastern Time)

Sign-up for the event at:  https://www.anymeeting.com/AccountManager/RegEv.aspx?PIID=E053DE8989473B

SBA answers questions on 8(a) program extension

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For those who didn’t see it, SBA recently put out guidance on how the 8(a) program term extension will work.  The guidance provides some nice examples of how the process will play out.

The guidance has some straightforward scenarios for how SBA will process the 8(a) term extension.  Remember, there is still time until March 15 to provide comments on SBA’s 8(a) term extension rule.  Here are some of the highlights.

Who is Eligible?

  • Firms that were in the 8(a) Program between March 13, 2020, and September 9, 2020, can get an extension.
  • Firms that terminated, early graduated, or voluntarily withdrew are not eligible.
  • Firms admitted on or after September 10, 2020, are ineligible.
  • Active 8(a) firms participating on January 13, 2021, will receive an automatic one-year program extension unless they decline in writing.

Continue reading at:  SmallGovCon

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