Proposed SBA Rules Would Allow Larger Companies to Compete for Small-business Contracts

1 min read

Photo: Andrew Brown

The Small Business Administration has introduced a number of proposed rule changes that would allow larger companies to participate for small-business set-asides.

The proposed rule changes, which affect companies in the professional, scientific and technical-services sectors, would open the field to more than 9,000 additional companies, according to a report in Federal Times.

The rule changes affects different types of companies in different ways. For example, Federal Times reports, the revenue ceiling for engineering firms would increase from $4.5 million to $19 million, while computer system design services would see their revenue standard increased to $25.5 million from $25 million.

SBA also announced changes to the 8(a) business program, which provides set-asides for small and disadvantaged companies.

While in many cases larger contractors work together with 8(a) businesses, SBA never mandated an exact amount the smaller company had to perform to remain compliant with the rules.

Under the new proposed rules, the 8(a) business would have to perform at least 40 percent of the work.

SBA has said the proposed rule changes were designed to reflect the reality of the industry and to cut back on the misuse of small-business contracts.

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