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Contract management

SBA Halts New Applications for 8(a) Program: What You Need to Know

The Small Business Administration (SBA) has put a temporary hold on accepting new applications for the 8(a) small business program. This move comes in the aftermath of a significant court decision that found parts of the program unconstitutional. (Washington Technology August 21, 2003)

The crux of the matter lies in the SBA’s utilization of the “rebuttable presumption” process, which allowed many companies to be certified as small, disadvantaged businesses without substantiating their social disadvantage. However, a recent court case, involving Ultima Services, a non-8(a) company, challenged this process. The court ruled in favor of Ultima Services, asserting that the use of rebuttable presumption violated their Fifth Amendment rights. Consequently, the SBA has been compelled to halt the acceptance of new 8(a) program applications. (ibid)

If your company was certified through the rebuttable presumption process, there are specific actions you must take to continue in the 8(a) program. The newly released guidance requires affected businesses to submit a “Social Disadvantaged Narrative.” This narrative should encompass the identities forming the basis of your social disadvantage, detailed accounts of discriminatory incidents related to education, employment, or business history, including dates, locations, parties involved, conduct details, and motivations behind the bias or discrimination. You should also elucidate how these incidents impacted your business progression. (ibid)

Existing applicants can proceed with their applications, though additional information might be needed. For those already within the 8(a) program, the narrative submission is not obligatory if previously completed. (ibid)

SBA is closely collaborating with the Justice Department to chart the course ahead in response to this court decision. Despite the temporary suspension of new applications, the agency is working on directives for agencies to continue awarding contracts to 8(a) firms. (ibid)

Remember, this situation is evolving. A hearing on August 31st could bring about changes, and SBA’s forthcoming guidance for contract awards to 8(a) firms remains eagerly anticipated. Furthermore, it’s important to note that the court’s ruling doesn’t affect 8(a) firms owned by Alaska Native Corporations or tribally-owned entities. They can continue business as usual. (ibid)

Stay tuned for updates as this story unfolds, and ensure you’re up to speed on the latest developments in the 8(a) program landscape. Should you have questions concerning the newly released guidance requirements, give us a call.

Prohibited telcom equipment may cost you

The General Services Administration’s (GSA) Office of the Inspector General (OIG) published a new report highlighting GSA’s failure to address prohibited telecom items on its Multiple Award Schedule (MAS) contracts. The report states that this puts customers at risk of unauthorized surveillance by foreign adversaries. In 2017 and 2018, Congress passed laws prohibiting the procurement of certain telecom and video surveillance services from specific entities, with FAS responsible for ensuring compliance. However, the OIG report reveals that FAS’s reliance on contractor self-certifications and the Prohibited Products Robomod process is inadequate in preventing the inclusion of prohibited items on MAS contract price lists. (MerriTalk July 11,2023)

The report also identifies FAS’s shortcomings in taking sufficient action against contractors violating Federal Acquisition Regulation (FAR) restrictions, as well as the lack of a process to notify customer agencies about purchases of prohibited telecom items. Furthermore, FAS initially failed to comply with FAR requirements by not including subsidiaries and affiliates of named entities in their efforts to identify prohibited items on MAS contracts. To address these issues, the OIG has made five recommendations to FAS Commissioner Sonny Hashmi, including strengthening controls and implementing more stringent consequences for non-compliant contractors. (ibid)

This report from the GSA’s OIG follows the release of the Federal Communications Commission’s (FCC) “Covered List,” which prohibits the sale of telecom network equipment and services from certain China-based providers due to national security concerns. The FCC’s ban aims to safeguard the nation’s communications networks and enhance the security and resilience of the domestic supply chain. These efforts reflect the commitment of both agencies to protect national security and mitigate risks associated with unauthorized telecommunications equipment and services. (ibid)

Questions about prohibited telcom items? give us a call.

Ch-ch-changes from GSA


In July 2023, the General Services Administration (GSA) Federal Acquisition Service (FAS) plans to issue Solicitation 47QSMD20R0001 – Refresh # 17 and a mass modification (mass mod) to all existing contracts. (buy.gsa.gov June 15, 2023)

Here are the upcoming changes associated with Solicitation 47QSMD20R0001 – Refresh # 17:

A: Changes to Overall MAS Solicitation:

  • GSA will implement various changes to SCP-FSS-001.
  • The requirements for Joint Venture entities will be clarified.
  • GSA will incorporate the GSA/SBA 8(a) Partnership Agreement on MAS.
  • Clause and provision updates will be incorporated as necessary through Federal Acquisition Circular (FAC) 2023-04 and GSAR Change 166.
  • Sustainability requirements will be clarified, referencing the GSA Green Procurement Compilation.
  • Highly Competitive Language will be removed. (ibid)

B: Changes to Specific Large Category, Subcategory or SIN:

Facilities (B):

  • SIN 561210FAC – Facilities Maintenance and Management will undergo revisions. (ibid)

Industrial Products (E):

  • SIN 332510C – Hardware Store, Home Improvement Center, Industrial or General Supply Store, or Industrial Maintenance Repair and Operations (MRO) Distributor – Catalog will be revised. (ibid)

Professional Services (H):

  • A new subgroup, Program Evaluation Services, will be added under SIN 541611 Management and Financial Consulting, Acquisition and Grants Management Support, and Business Program and Project Management Services. (ibid)

Transportation and Logistics Services (K):

  • The required Template for SINs 492110 & 492110SB Local Courier/Messenger Delivery Services will be revised.
  • The required Templates for SIN 485 – Ground Transportation and SIN 532111 – Automotive Equipment Rental and Leasing – Rental Supplemental Vehicle Program (RSVP) will be revised. (ibid)

Travel (L):

  • The required Template for SIN 531 Employee Relocation will be revised.
  • The required Template for SIN 531110 Long Term Lodging will be revised. (ibid)

Join GSA for the upcoming GSA FAS public webinar on Wednesday, June 28, to learn more about the changes to MAS Solicitation 47QSMD20R0001 and the mass mod. The webinar will be in a listen-only format, but you can ask questions via chat. (ibid)

Webinar Attendance Information: MAS Refresh 17 and Upcoming Mass Modification

Date: Wednesday, June 28, 2023

Time: 1 – 2 p.m. EST

You can join the webinar via the provided Zoom link. (ibid)

Questions about all of the changes taking place? Give us a call.