Friday, May 6, 2016

Has the Small Business Admin rooked your company?

Charles S. Clark, Government Executive Magazine, May 5, 2016, says the SBA recently celebrated record-breaking contract awards to businesses eligible for set-asides (contracts where they would have an advantage in bidding).

But--the American Small Business League, a long-time critic, has launched an injunction to force the SBA to measure its success differently than it does.

It calls SBA policies "illegal" and say they have defrauded small businesses and small businesses owned my women, minorities, and disabled vets (the special condition groups).

It's really easy to get in the weeds on this, so I will try to boil it down. Small businesses are supposed to get 23% or more of the total value of all prime contract awards each fiscal year.

Note that word "all."

Within that 23%, the goal is 5% for women-owned, 5% for minority-owned, and 3% for disabled vets.

But--according to this lawsuit-- the SBA has created a category called "small business eligible dollars," which is a significant lower budget number to divvy up.

A ton of types of contracts and agencies are excluded. I can't list them all here.

So, if you are bidding on small business contracts, keep an eye on this suit. Conceivably it could force some change.

By way of disclosure, I was once a certified small business contractor. I never got even one contract--but I have to say it was crazy difficult and I sort of slacked off trying.

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