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What's New About Small Business Size Standards
The government Website Regulations.gov posts documents concerning Federal regulations that are open for comment and published in the Federal Register, the government’s legal newspaper. Some of these pertain to government contracting. Members of the public can submit comments about these regulations.
Repeal of the Small Business Competitiveness Demonstration Program Effective Immediately The President of the United States signed the Small Business Jobs Act of 2010 (Jobs Act) on September 27, 2010. The Jobs Act amended the Business Opportunity Development Reform Act of 1988 (Public Law 100 656) by repealing the Small Business Competitiveness Demonstration Program. The amendment was effective September 27, 2010 and applies to the first full fiscal year after the date of enactment of the Jobs Act. The first fiscal year began October 1, 2010. For further information, please see Section 1335 of the Jobs Act.
SBA revises size standards for The United States Small Business Administration (SBA) has modified 47 small business size standards for industries in North American Industry Classification System (NAICS) Sector 44 45, Retail Trade, and retained the current standards for the remaining industries in the Sector. In a final rule, SBA increased 46 of the size standards and converted the measure of size for one industry (NAICS 441110, New Car Dealers) from annual receipts to number of employees. As part of its ongoing initiative to review all size standards, SBA evaluated every industry in NAICS Sector 44 45 to determine whether the existing size standards should be retained or revised. The final rule also modified SBA’s Small Business Size Regulations to clarify that an NAICS code that represents a Wholesale Trade (NAICS Sector 42) or Retail Trade (NAICS Sector 44 45) Industry shall not be used for the Federal government’s procurement of supplies. You can read/download the final rule at regulations.gov (RIN 3245 AF69) or from the SBA’s website in PDF format.
SBA revises size standards for The United States Small Business Administration (SBA) has increased small business size standards for five industries in North American Industry Classification System (NAICS) Sector 72, Accommodation and Food Services – namely NAICS 721110, Hotels and Motels, from $7.0 million to $30 million; NAICS 721120, Casino Hotels, from $7.0 million to $30 million; NAICS 722211, Limited Service Restaurants, from $7.0 million to $10 million; NAICS 722212, Cafeterias, from $7.0 million to $25.5 million; and NAICS 722310, Food Service Contractors, from $20.5 million to $35.5 million. As part of its ongoing initiative to review all size standards, SBA evaluated every industry in NAICS Sector 72 to determine whether the existing size standards should be retained or revised.
SBA revises size standards for The United States Small Business Administration (SBA) has increased the small business size standards for 18 industries in North American Industry Classification System (NAICS) Sector 81, Other Services, and retained the current standards for the remaining 30 industries in the Sector. As part of its ongoing initiative to review all size standards, SBA evaluated every industry in NAICS Sector 81 to determine whether the existing size standards should be retained or revised.
SBA proposes to amend its Protest and Appeal Regulations The U.S. Small Business Administration (SBA or Agency) has proposed to amend its regulations to clarify the effect, across all small business programs, of initial and appeal eligibility decisions on the procurement in question; increase the amount of time that SBA has to render formal size determinations; require that SBA’s Office of Hearings and Appeals (OHA) issue a size appeal decision within 60 calendar days of the close of the record, if possible; increase the amount of time that SBA has to file North American Industry Classification System (NAICS) code appeals; alter the NAICS code appeal procedures to comply with a Federal Court decision; clarify that contracting officers must reflect final agency eligibility decisions in federal procurement databases and goaling statistics; clarify how a contracting officer assigns an NAICS code and size standard to a multiple award procurement; and make other changes to size status protest and appeal rules. You can read/download the proposed rule at Regulations.gov (RIN 3245-AF65) or from the SBA's website in PDF format. You can read/download the corresponding October 21, 2009 proposed rule at regulations.gov (RIN 3245 AF69) or from the SBA’s website in PDF format.
SBA issues White Paper on its The U.S. Small Business Administration (SBA) has made available a White Paper putting forth and explaining how it establishes, reviews and modifies (when appropriate) small business size standards. The document, entitled "SBA Size Standards Methodology," is available on SBA's website so that interested parties can review and/or download it. SBA has applied "Size Standards Methodology" to its proposed and final rules issued since October 21, 2009. The Agency will apply “Size Standards Methodology” to future regulatory actions that relate to establishing, reviewing and modifying, size standards. The Agency welcomes comments on "Size Standards Methodology." SBA published a notice of its making "Size Standards Methodology" available on the website at www.regulations.gov. "Size Standards Methodology" is available electronically from the SBA's website in PDF format. If you would like to comment on "Size Standards Methodology," please visit www.regulations.gov to do so. To comment on the document, search SBA under the advanced search and search document 2009-0008.
SBA Issues Temporary Alternative size standards
The U.S. Small Business Administration (SBA) has temporarily amended the size eligibility criteria for loan assistance provided under its 7(a) Business Loan Program. SBA issued an interim final rule on May 5, 2009 that temporarily establishes the same alternative small business size standard that applies to SBA’s Certified Development Company (CDC) Program. The U.S. Congress passed and the President signed the American Recovery and Reinvestment Act of 2009 (Recovery Act). The purposes and goals of the Recovery Act are to promote economic recovery and to preserve and create jobs. SBA prepared this rule as an interim final rule, effective immediately, because it will help alleviate the pressing needs of many small businesses for financial assistance in the current economic environment.
SBA Further Increases
The U.S. Small Business Administration has issued a final rule that adjusts monetary-based small business size standards for inflation. The rule finalizes the Agency's December 6, 2005, interim final rule that also amended monetary-based small business size standards for inflation. However, this rule adds an additional 8.7 percent to the inflation-adjusted size standards of the December 2005 interim final rule. This additional 8.7 percent accounts for inflation that has occurred since then. This rule also adopts the interim final rule's two-step process for determining eligibility for SBA's Business Loan and Economic Injury Disaster Loan (EIDL) programs. Furthermore, the rule adopts the revised date that SBA uses to determine size status for purposes of EIDL applications for businesses located in declared disaster areas as a result of Hurricanes Katrina, Rita and Wilma.
Executive Order 12989, as amended by the Executive Order entitled "Amended Executive Order 12989, as Amended" of June 6, 2008, instructs Federal departments and agencies that enter into contracts to require, as a condition of each contract, that the contractor agree to use an electronic employment eligibility verification system designated by the Secretary of Homeland Security to verify the employment eligibility of all persons hired during the contract term by the contractor to perform employment duties within the United States, and all persons assigned by the contractor to perform work within the United States on the Federal contract.
All Small Business Size Standards
The U.S. Small Business Administration (SBA) held two public meetings to inform the public about one of the Agency's top priorities—a comprehensive review of all of its small business size standards. Of fundamental importance in assisting the nation's small businesses is appropriately defining which business entities qualify as small businesses. SBA is responsible to the public for ensuring that size-standard levels are sound and rational. Therefore, SBA is undertaking a two-year across-the-board examination of its size standards. This notice discusses SBA's reasons for and its approach to the comprehensive review and provides information about registering to attend a public meeting.
You can read/download the presenter's comments here: PDF
Final Rule
The U.S. Small Business Administration has amended its regulations to address the time at which size is determined for the purposes of long-term Federal contracts including Government-wide Acquisition Contracts, the General Services Administration (GSA) Multiple Award Schedule (MAS) contracts, and multi-agency contracts. SBA also amended its 8(a) Business Development regulations to address when a business concern may receive orders as an 8(a) program participant under GSA's MAS Program and other multiple award contracts. This final action is necessary to ensure that small business size status is accurately represented and reported over the life of these long-term Federal contracts. |

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