On May 11, 2020 the U.S. Small Business Administration (SBA) published a Final Rule in the Federal Register. Although the focus of the Final Rule is primarily on the WOSB/EDWOSB certification process/requirements (which we will discuss later in this post), there were a few major changes which also directly affect and in our opinion, have a significant impact on 8(a) eligibility requirements for individual-owned companies.
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SBA FINAL RULE: CHANGES TO ECONOMIC DISADVANTAGE REQUIREMENT FOR 8(A) ELIGIBILITY (INDIVIDUAL-OWNED COMPANIES) AND NEW REQUIREMENTS FOR WOSB/EDWOSB CERTIFICATION
8(A) CERTIFICATION: WILL OUTSIDE EMPLOYMENT AND OWNERSHIP IN OTHER COMPANIES IMPACT YOUR APPLICATION?
8(a) Certification: Should You Be Concerned If You Derive More than 70 Percent Of Your Revenue From a Single Source?
We often hear about companies in year 5 (or later) of their 9-year 8(a) BD program term voluntarily withdraw from the program and/or express unhappiness with the program because they haven't yet received an 8(a) contract. More often than not, this situation is a result of a misconception on the firm's part that once in the 8(a) program, Federal contracts will just miraculously fall into their lap. The reality is that getting an 8(a) sole-source contract requires a lot of time and effort on the part of the 8(a) firm. This blog post will provide a general overview of the various paths to an 8(a) sole-source award.
Recent GAO Decision Reminds Us That 8(a) Sole-Source Contracts Are Difficult to Protest (And Prevail on)