Committee Receives SBA Regulation Update

Dean Koppel, assistant director of the Office of Policy and Research, U.S. Small Business Administration (SBA), spoke to the AFCEA Small Business Committee and guests in February. The Office of Policy and Research falls under the SBA’s Office of Government Contracting and is responsible for assisting in the development of legislative initiatives used to strengthen and enhance opportunities for small businesses in federal procurement. The office also develops and implements the SBA’s small business program procurement regulations, initiatives and policies. 

Koppel focused on two recent regulatory issues pertinent to small business. First, he discussed an SBA Size Recertification Regulation (Volume 71, Federal Register 66434). The new rule was published on November 15, 2006, with an effective date of June 30, 2007. This rule addressed at which point in the process size is determined for long-term federal contracts such as Government-Wide Acquisition Contracts, the General Services Administration Multiple Award Schedule contracts and multi-agency contracts. Long-term contracts are defined as having a duration of five years or longer (including options). Under this rule, contractors are required to recertify after five years and at the exercise of every option thereafter. One notable exception to this occurs in the case of acquisition, merger or novation. Under these circumstances, the contractor must notify the contracting officer within 30 days, Koppel said. Recertification must be complete within 30 days of the action becoming final. The rule applies to prime contracting situations only and is not applicable to subcontracting, he added.

Koppel then discussed a proposed rule change regarding women-owned small businesses (WOSB). On December 28, 2007, the SBA published a new set of proposed regulations that establish WOSB federal contract assistance procedures. The proposed regulations combine findings from a report conducted by The RAND Corporation with a requirement that agencies determine discrimination in that industry area before a WOSB set-aside program can be established. The proposed rule applies to awards of up to $3 million ($5 million for manufacturing). Four North American Industry Classification System (NAICS) codes were identified for inclusion under the proposed rule: NAICS 9281 (National Security and International Affairs); NAICS 3328 (Coating, Engraving, Heat Treating and Allied Activities); NAICS 3371 (Household and Institutional Furniture and Kitchen Cabinet Manufacturing); and NAICS 4412 (Other Motor Vehicle Dealers).

Additionally, Koppel suggested http://ecfr.gpoaccess.gov as a helpful resource in searching for current information on federal regulations. This address is for the Electronic Code of Federal Regulations (e-CFR), a currently updated version of the Code of Federal Regulations (CFR). While it is not an official legal edition of the CFR, the e-CFR is an editorial compilation of CFR material and Federal Register amendments produced by the National Archives and Records Administration's Office of the Federal Register (OFR) and the Government Printing Office, he said. The OFR updates the material in the e-CFR on a daily basis.