2. Federal Contracting Programs Regulatory Update
John Dicus
Lead Business Opportunity Specialist
Seattle District / Spokane Branch Office
October 16th, 2019
* All information is current as of the date above; changes made after such date are not reflected in this presentation

3. The Federal Rule Making Process
Before the Proposed Rule
Agency begins rulemaking process based on many different causes
Agency develops the proposed rule
The Proposed Rule
Proposed rule is the official document that announces and explains the agency’s plan to address a problem or concern
Comments from general public allowed for specified period
Before the Final Rule
Public comments are reviewed and answered and amendments to rule may occur
Agency may re-open comment period
The Final Rule
Final Rules are posted to federal register and generally go in effect within 30 days of publication.
After the Final Rule
Final Rule is integrated into Code of Federal Regulations
And in the case of Federal Acquisition, the FAR will subsequently implement the change
Agency begin Rulemaking or regulation changes based based on a variety of different reasons:
Laws passed by congress,
More often, an agency surveys its area of legal responsibility, and then decides which issues or goals have priority for rulemaking. Some factors include:
New technologies or new data on existing issues;
Concerns arising from accidents or various problems affecting society;
Recommendations from Congressional committees or federal advisory committees;
Petitions from interest groups, corporations, and members of the public;
Lawsuits filed by interest groups, corporations, States, and members of the public;
Presidential directives;
Requests from other agencies;
Studies and recommendations of agency staff.

4. Where does all this occur?
The Office of the Federal Register
The Daily Journal of the United States Government
URL:

5. Major Recent SBA Rules Affecting Federal Acquisition:
Federal Register Number
Effective Date
Small Business Government Contracting and NDAA of 2013 Amendments
3245-AG58
06/30/2016
Small Business Mentor Protégé Programs
3245-AG24
08/24/2016
Credit for Lower Tier Small Business Subcontracting
3245-AG71
01/23/2017
Conforming Statutory Amendments and Technical Corrections to Small Business Government Contracting Regulations
3245-AH02
05/25/2018
Ownership and Control of Service Disabled Veteran-Owned Small Business Concerns
3245-AG85
10/01/2018
Small Business Size Standards: Adjustment of Monetary Based Size Standards for Inflation
3245-AH17
08/19/2019
Small Business HUBZone Program; Government Contracting Programs
3245-AG38
Proposed
Small Business Size Standards: Calculation of Annual Average Receipts
3245-AH16

6. Small Business Government Contracting and NDAA of 2013 Amendments
Changes all references of “Performance of Work Requirements” to “Limitations on Subcontracting.
Allows a Joint Venture (JV) to qualify as small for any contract as long as each partner to the JV qualifies individually as small under the size standard assigned to the contract
Created the “Similarly Situated Entity” Rule
Clarifies who may initiate a size protest or request a formal size determination
Major Implications
13 CFR 121, 13 CFR 124, 13 CFR 125, 13 CFR 126, 13 CFR 127
CFR(s) Amended
URL

7. Credit for Lower Tier Small Business Subcontracting
Allow an other than small prime contractor that has an individual subcontracting plan for a contract to receive credit towards its small business subcontracting goals for subcontract awards made to small business concerns at any tier.
This rule only applies to subcontracting plans, not to agency prime contract goaling requirements.
Major Implications
URL
13 CFR 121, 13 CFR 125
CFR(s) Amended

8. Conforming Statutory Amendments and Technical Corrections to Small Business Government Contracting Regulations
Updating SBA Regulations to conform to updated Simplified Acquisition Threshold
Increased Sole Source Threshold Amounts for SDVOSB and HUBZone Regulations
Major Implications
13 CFR 121,125, 126, 127
CFR(s) Amended
URL
SBA Updated our Regulation Language to reference the fixed dollar thresholds and instead reference the FAR definitions to Micro-Purchase and Simplified Acquisition Thresholds as these were recently increased from:
$150,000 to $250, 000 for Simplified Acquisition and from $3,500 to $10,000 for Micro-Purchasing Threshold
In addition, this rule incorporates the inflation adjustment for the Sole Source Thresholds for the SDVOSB and HUBZone Regulation. This change increased the threshold from $6.5 million to $7 Million for contracts assigned a manufacturing NAICS code. All other Contracts remained the same at $4 million

9. Ownership and Control of Service-Disabled Veteran-Owned Small Business Concerns
The NDAA 2017 placed the responsibility for issuing regulations relating to ownership and control for the Department of Veterans Affairs verification of Veteran-Owned (VO) and Service-Disabled Veteran-Owned (SDVO) Small Business Concerns (SBCs) with the SBA. Pursuant to NDAA 2017, SBA issues one definition of ownership and control for these concerns, which applies to the Department of Veterans Affairs in its verification and Vets First Contracting Program procurements, and all other government acquisitions which require self-certification.
Major Implications
13 CFR 125
CFR(s) Amended
URL

10. Small Business Size Standards: Adjustment of Monetary-Based Size Standards for Inflation
Increased monetary-based Size Standards for inflation
Major Implications
13 CFR 121
CFR(s) Amended
URL
SBA Increased Monetary Based Size Standards

11. Small Business HUBZone Program; Government Contracting Programs
SBA Proposes to amend its regulations for the Historically Underutilized Business Zone (HUBZone) Program to reduce the regulatory burdens imposed on HUBZone small business concerns and government agencies
SBA proposes to require HUBZone SBCs to recertify annually to SBA that they continue to meet all of the HUBZone eligibility requirements instead of requiring them to undergo a recertification by SBA every three years.
SBA proposes to add a new provision permitting a firm to submit a formal request for reconsideration when it receives a determination denying admission to the HUBZone program.
Under current rules, a HUBZone firm must be eligible at the time of offer and award of a HUBZone contract. SBA is proposing that firms will not have to represent or certify that they are eligible at the time of offer and award for every contract, which are the current program requirements.
SBA is proposing that an employee that resides in a HUBZone at the time of a HUBZone SBC's certification or recertification shall continue to count as a HUBZone employee as long as the individual remains an employee of the firm, even if the employee moves to a location that is not in a qualified HUBZone area or the area where the employee's residence is located is redesignated and no longer qualifies as a HUBZone.
Major Implications
13 CFR 126
CFR(s) Amended
URL
SBA Increased Monetary Based Size Standards

12. Small Business Size Standards: Calculation of Annual Average Receipts
SBA Proposes to change its regulations on the calculation of annual average receipts for all receipts-based SBA size standards and other agencies' proposed size standards for service-industry firms from a 3-year averaging period to a 5-year averaging period.
Major Implications
13 CFR 121
CFR(s) Amended
URL
SBA Increased Monetary Based Size Standards

13. Small Business Mentor Protégé Programs
Establishes a Government-wide mentor-protégé program for all small business concerns, consistent with SBA's mentor-protégé program for Participants in SBA's 8(a) Business Development (BD) program.
Major Implications
13 CFR, 13 CFR 121, 13 CFR 124, 13 CFR 125, 13 CFR 126, 13 CFR 127, 13 CFR 134
CFR(s) Amended
URL

14. Small Business Mentor Protégé Programs
Increases small business opportunities in the federal market
Mentor-protégé partners can compete for more contracts
Improves small business development
New potential for evaluation credit on subcontracts awarded to protégés
Period of 3 Years, and can be extended an additional 3 years if approved by SBA
Benefits of the Program

15. Small Business Mentor Protégé Programs
Can Provide Protégés:
Technical and management assistance
Financial assistance through loans and investments (own up to 40% of protégé)
Developmental assistance through subcontracts
Assistance in performing prime contracts through JV agreements
Trade education
Mentors

16. Small Business Mentor Protégé Programs
Must be for Profit
Can be Either a small or large business
Mentor must show it can fulfill its obligations under the MP agreement
Must possess good character and not on Excluded Parties List
Not required to demonstrate good financial condition
Maximum of 3 Protégés at any given time
Default is one, but SBA can approve where protégés are not competitors
Mentors

17. Small Business Mentor Protégé Programs
Must be a Small Business
Can (now) be a mentor and protégé at same time
Maximum of 2 Mentors at a time
Cannot be in same industry
Protégés

18. Small Business Mentor Protégé Programs
Protégé and Mentor may form JV to qualify as a small business for any Federal government contract or subcontract, provided that protégé qualifies as small for size standard assigned to contract.
JV will also qualify for contracts reserved/set-aside for other programs, provided that protégé also meets the particular program requirements (e.g., WOSB set aside).
Only opportunity for non-small business to share prime contract role on set-asides
Past Performance was previously based on JV’s past performance but now looks at the past performance of the individual JV Partners as well
Joint Ventures

19. Apply to the All Small Program
You must be approved by the SBA to participate in the All Small program. You’re required to use the certify.SBA.gov website to apply. You’ll need to have a profile at SAM.gov before you can use the certification website.
Before you apply:
Make sure both businesses are registered at SAM.gov
Have your NAICS code on hand
Both businesses must complete the SBA’s online All Small tutorial (save your completion certificates)
Prepare your business plan
Create and agree to a Mentor-Protégé Agreement
When you’re ready to apply, go to certify.SBA.gov and apply to join the All Small Mentor-Protégé program.

20. BETA.SAM.GOV
GSA is merging its current legacy sites into one system. This transition offers a more efficient way to access all federal award information.

21. Unique Entity ID Standard for Awards Management
Currently, the System for Award Management (SAM.gov) utilizes the Dun & Bradstreet (D&B) Data Universal Numbering System (DUNS) ® nine-digit number as the unique identifier for entities throughout the federal awarding lifecycle.
The U.S. government is moving to a new unique entity identifier for federal awards management, which will ultimately become the primary key to identify entities throughout the federal awarding lifecycle.
DUNS® will be phased out as the entity identifier for entity record within SAM.
Through December 2020, systems will be transitioning from the DUNS® to a SAM-generated Unique Entity ID (UEI)

22. QUESTIONS John Dicus JOHN.DICUS@SBA.GOV O: 509-353-2513M:
October 10th, 2018