Size Does Matter . . . for Women-Owned Businesses Seeking Federal Contracts

Posted on July 25, 2020 in Planning & Advisors

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Do you have (or want) to do business with the federal government? Are you thinking of merging your company with another? If so, check out the new U.S. Small Business Administration (SBA) rules on small business size that went into effect on June 30th.Â

As reported in, to ensure that a certain percentage of federal contracts go to “smallâ€? businesses, the federal government has (not surprisingly) a veritable thicket of rules and regulations on what constitutes “small.â€? Unfortunately, the answer depends on the federal program — it’s not the same or straightforward answer every time.Â

And now the rules have changed, so that companies that have long-term prime federal contracts (not subcontracts) in place will need to recertify their “smallnessâ€? within 4 months of the end of the fith year of their contract. Obviouly, a merger with another company could move your business from small to “too large to qualify for this contract.â€?Â

Subcontractors beware: the rule doesn’t yet apply to you, but it could, soon. The SBA has indicated it may issue a separate rule imposing recertification requirements for subcontractors. Visit the Federal Register’s website for the recertification regulation

If you’re at all interested in doing business with government entites, don’t go it alone. It’s a potentially lucrative, but paperwork-heavy area. Seek assistance from certification providers like the National Women’s Business Owner Council, and organizations like the SBA so that you’re sure you do it right!

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