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For Example: Every year the federal government purchases approximately $400 billion in goods and services from the private sector, with a stated goal of awarding at least 23% to small business contractors. These set-asides, led by the SBA, are a fixture of the federal procurement process and include targeted sub-goals for women-owned small business (5%), small disadvantaged business (5%), service disabled veteran owned small business (3%), and HUBZone (3%) certified firms.

Qualifying as a small business contractors under SBA and Federal Acquisition Regulation (FAR) guidelines is critical not only to a business’ ability to compete for these contracts but to fend off size protests once a set-aside contract is awarded. Counsel for offerors must understand the interplay between the entity-size requirements and affiliations with other business entities, large and small.

Concerning entity size, the standard is procurement-specific – based upon the selected NAICS code for the procurement - and based on the SBC’s annual revenue or number of employees. Regarding affiliation, counsel for offerors must be keenly aware of regulations addressing issues like common ownership and management, joint venture agreements with other entities, subcontractor relationships, and financial and family connections between businesses.

B2B Consulting will provide critical insights for government contractors on qualifying and competing for set-aside contracts with the SBA. Our expert consultants will discuss entity size requirements and affiliations and how each factor into the qualification for and potential protest of set-aside procurements.

We will review these and other critical issues:

  • What steps can federal contractors take to preserve the advantages of a small business concerns qualification when pursuing set-aside awards?
  • What impact do guidelines like the “ostensible subcontractor rule” and “newly organized concern rule” have on affiliation determinations?
  • How can small business contractor’s best navigate the requirements of 13 C.F.R 121.104 and 13 C.F.R. 121.106 when complying with procurement-specific size standards?