Assisting Government Contractors With SBA Eligibility and Compliance

Learn More About Government Contracts and Awards

As the world’s largest customer, the U.S. Government is a rich source of opportunity for small businesses. The Small Business Administration (SBA) works with federal agencies to award at least 23% of prime government contract dollars to small businesses.

Businesses who qualify as small businesses can register to become government contractors and bid on contracts that are set-aside for small businesses. A “set-aside for small business” is an acquisition that is only open to small business concerns. A small business set-aside may be open to all small businesses, or may be set-aside for small businesses certified to participate in the following programs:

• 8(a) Business Development Program: A business assistance program for small disadvantaged businesses. This program assists firms owned and controlled at least 51% by socially and economically disadvantaged individuals.
• HUBZone Program: An assistance program for businesses that are 51% unconditionally and directly owned and controlled by US citizens, with a principal office in a HUBZone, and at least 35% of employees residing in a HUBZone.
• Service Disabled Veteran Owned Small Business (SDVOSB) Program: Assists businesses that are 51% unconditionally and directly owned and controlled by a service-disabled veteran.
• Women Owned Small Business (WOSB) Program: Businesses that are 51% owned, operated and managed daily by a woman may participate in this program.

What is the SBA’s role in government contracting?

The SBA establishes the size standards (relative to industry) that determine a company’s qualification as a “small business”. A “small business” size is defined either in terms of the average number of employees over the past 12 months, or average annual receipts over the past three years. While the business may be organized in any legal form, it must also be

• Organized for profit
• Has a place of business in the US
• Operates primarily within the U.S. or makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor
• Is independently owned and operated
• Is not dominant in its field on a national basis

Through these programs the SBA helps contracting agencies meet their specific goals for small businesses, including statutory goals for each program. The SBA also monitors for compliance with these and all SBA program contracts.

Enforcement: The SBA or the SBA’s Office of Inspector General (OIG) enforces SBA compliance to certifications and regulations. By gathering information from a routine audit, a statistical performance analysis or a whistleblower, the OIG determine that a company is in violation of SBA regulations. A suspension or debarment could result. A suspension is usually immediate, and remains in effect until a determination of debarment is made. A debarment prevents the business from participating in any government contract bids or business for a period of time, often years.

Facing a suspension or debarment could be devastating to your business. Whay Law firm’s expert lawyers and trusted advisors will assist you in determining your eligibility and compliance with SBA programs.