SBA Revises Small Business Set-Aside Regulations

December 4, 2013

SBA Revises Small Business Set-Aside Regulations

On October 2, 2013, the U.S. Small Business Administration (SBA) issued a final rule implementing sections of the Small Business Jobs Act of 2010 by amending the regulations governing small business set-asides on multiple award contracts (MACs), size certifications, and contract consolidation. Under the final rule, agencies must set-aside MACs that meet the general requirements for a set-aside and may partially set-aside a MAC when a total set-aside is inappropriate. The final rule also clarifies that for MACs, size status will be determined by the size of the offeror at the time of the initial offer, but that agencies have discretion to terminate or “off-ramp” a contractor with a small business set aside that becomes other than small through a merger or acquisition. Additionally, the final rule prohibits agencies from consolidating contracts into a single solicitation unless the senior procurement executive or chief acquisition officer has shown that the benefits of the consolidation substantially exceed the benefits of alternative approaches and has identified the negative impacts consolidation would have on small businesses. The rule is currently set to become effective on or before December 31, 2013. (78 Fed. Reg. 61114, 10/2/2013.)






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