Skip to content Skip to left sidebar Skip to right sidebar Skip to footer

Small Disadvantaged Business

The Rule of Two to Transform Small Businesses

The SBA proposed a rule on October 25, 2024, aiming to transform small business contracting by requiring agencies to apply the “Rule of Two” to task and delivery orders under multiple-award contracts (MACs). The Rule of Two ensures contracts go to small businesses when at least two qualified small firms can meet price, quality, and delivery standards. This rule will apply to orders exceeding the micro-purchase threshold, with exemptions for orders placed under the General Services Administration’s Federal Supply Schedule or in cases where there are supply chain risks or national security concerns. (HSToday.US November 7, 2024)

Driven by concerns over declining small business participation, the SBA estimates this rule could increase small business contracts by $6.1 billion annually. It supports the Biden administration’s goal of 15% federal contract spending with small disadvantaged businesses (SDBs) by 2025. In fiscal 2023, 28.4% of federal contract dollars went to small businesses, yet new entrants to federal contracting have dropped nearly 60% since 2010. (ibid)

The SBA proposal requires agencies to document their decision when they choose not to set aside a contract under the Rule of Two. Agencies must conduct market research, justify their rationale, and coordinate with small business specialists. For orders under MACs with fewer than two small business contract holders, agencies must explain their decision, with exceptions for contracts under the Federal Supply Schedule and other specific exemptions. (ibid)

This proposal builds on a January 2024 memorandum from the Office of Federal Procurement Policy, which directed agencies to document such decisions. The SBA aims to address inconsistencies in applying the Rule of Two, which arose from differing interpretations by the Court of Federal Claims and the GAO regarding its use in MACs.aiming to improve compliance and Public comments are open until December 24, 2024, with the SBA encouraging input from stakeholders. If adopted, the rule promises to level the playing field, boost small business participation, and diversify the federal supply chain. (ibid)

Questions concerning the Rule of Two? Give us a call.

SBA Certifications Upgrade: What You Need to Know

The Small Business Administration (SBA) will upgrade the process for applying for and managing federal contracting certifications. Here’s what you need to know:

The SBA’s certification upgrade begins August 1, 2024. During the upgrade, the SBA will not accept initial certification applications. The upgraded system should be available for new certifications in early September. (certify.sba.gov)

What Does This Mean for My Firm?

  • Most certified firms will not be impacted by the application pause.
  • New or prospective applicants should wait to apply after the upgrade.
  • The SBA will process applications submitted before August 1, 2024, in the order received.
  • Firms needing to renew should receive guidance from their certification program.
  • Firms facing a critical contracting deadline can contact certifications@sba.gov and provide the proposal number, agency, and bid due date. (ibid)

Which Certifications Are Impacted by the Upgrade?

  • Women-Owned Small Business (WOSB)
  • Economically Disadvantaged Women-Owned Small Business (EDWOSB)
  • 8(a) Business Development Program
  • Veteran Small Business Certification (VOSB)
  • Service-Disabled Veteran-Owned Small Business (SDVOSB)
  • Historically Underutilized Business Zones (HUBZone) Program (ibid)

The SBA will provide more resources and guidance in the coming days.

Have questions or need additional guidance, give us a call.

Empowering Entrepreneurs: Unveiling the Force Behind Women’s History Month 2024

In March, we honor women’s achievements, resilience, and innovation during Women’s History Month. Women-owned small businesses (WOSBs) play a crucial role, in driving economic growth and diversity. GSA proudly empowers women business leaders, exceeding WOSB goals for the past 16 years. With over 12 million WOSBs in the US, they’re a potent force, creating jobs and shaping our economy. (GSABLOG Office of Small Business Utilization March 19, 2024)

The Associate Administrator for GSA’s Office of Small and Disadvantaged Business Utilization (OSDBU), is committed to supporting women entrepreneurs. GSA ensures WOSBs have access to government contracting opportunities. The Multiple Award Schedule (MAS) program is a premier vehicle for government sales, empowering small businesses to thrive. With just a small investment in time, WOSBs can position themselves for success. (ibid)

Federal government agencies favor buying from MAS Schedule contract holders because they are procuring approved products and services. In addition, GSA has performed the groundwork and negotiated the best price. (ibid)

For WOSBs ready to secure GSA schedules contracts, here’s how to start:

  1. Register on SAM.gov. The primary database for contractors doing business with the federal government. For more in-depth information see the SAM.gov factsheet. (ibid)
  2. Connect with your local OSDBU small business specialist. These specialists are a great resource for training, education to assist you to successfully navigate the federal marketplace. (ibid)
  3. Utilize the Forecast of Contracting Opportunities Tool. this tool can assist you in locating contracting opportunities and building business plans. (The GSA Forecast Tool Factsheet explains how to use the tool and its features.) (ibid)
  4. Benefit from GSA OSDBU support and training opportunities. GSA.gov has an Events and Training page, in addition to videos and information on doing business with GSA. (ibid)

GSA is proud of its track record, having awarded over $651 million in prime contracts and $3.7 billion in subcontracts to WOSBs in FY23. In FY24, they’ve already awarded over $187 million. Women’s History Month 2024 is a tribute to the boundless potential of today’s women-owned small businesses, driving innovation and inspiring future generations. GSA continues to support them as a vital force for economic growth and progress in our nation. (ibid)

Want to know more about how your WOSB can get a GSA Schedule? Give us a call.