SBA Updates Size and Status Integrity Regulations

A final rule issued by the Small Business Administration amends SBA’s small business size and status integrity regulations. The rule implements provisions of the Small Business Jobs Act of 2010 (PL 111-240) establishing a presumption of loss equal to the value of the contract or other instrument when a concern willfully seeks and receives an award by misrepresentation. Also, the rule implements statutory provisions providing that the submission of an offer or application for an award intended for small business concerns will be deemed a size or status certification or representation in certain circumstances, and an authorized official must execute a size or status certification or representation for a contract or other instrument. In other changes, concerns that fail to update, at least annually, their size or status in the Online Representations and Certifications Application database (or a successor such as the System for Award Management database) will no longer be identified in the database as small or some other socioeconomic status, until the representation is updated. Finally, the rule clarifies when size is determined for purposes of the 8(a) Business Development, HUBZone, and Small Disadvantaged Business programs. Accordingly, the rule: adds new sections at SBA 121.109, SBA 124.521, SBA 124.1015, SBA 124.1016, SBA 125.30, and SBA 127.701 ; revises SBA 121.108, SBA 121.1009, SBA 125.29, SBA 126.900, and SBA 127.700 ; and amends SBA 121.404 and SBA 121.411. SBA received numerous comments on the proposed version of the rule ( ¶70,425.439). The final rule goes into effect August 27, 2013. For the text of the rule and a discussion of the comments received, see ¶70,425.499.