New rule, scorecard enhance contracting opportunities

A key change is a regulation that requires small businesses to recertify their size statuses on long-term contracts when a contract option is exercised, when a small business is purchased by or merges with another business, or at the end of the first five years of a federal contract.

The regulation, developed in coordination with the Office of Management and Budget’s Office of Federal Procurement Policy, “will go a long way toward ensuring that contract awards get in the hands of small-business owners, (that) federal agencies get the proper credit toward their small-business contracting goals and small-business contract awards are fairly and accurately reported,” said SBA Administrator Steven C. Preston, in a news release.

Paul Denett, OFPP administrator, added that accurate size data is important, but small businesses must be given fair opportunity to grow as they perform federal contracts.

“This rule is intended to strike the right balance between fostering growth and accurate data gathering,” he said.

Historically, size has been determined at the time of the initial offer on the contract, and that size is retained for the life of the contract. Federal agencies are using long-term contracts more, and with the exercise of contract options, they can sometimes extend to 20 years. The new regulation does not require termination of contracts when size status changes, and it does not require changes to contract terms or conditions.

Keeping score

Preston and Denett issued a memorandum in late September requiring agencies to review their procurement data and identify any necessary changes to help resolve apparent discrepancies in the Federal Procurement Data System.

Their agencies also have created the Small Business Procurement Scorecard, which is used to track and monitor the status of 24 federal agencies’ small-business contracting efforts.

SBA’s Preston said the scorecard is aimed at increasing transparency and accountability in small-business contract procurement. Additionally, the scorecards “highlight successes that can be shared between agencies and result in additional ways to engage the small-business contracting community,” he said.

SBA will hire additional procurement personnel to identify government contracting opportunities for small businesses. Those employees also will work with the administration’s integrated acquisition environment initiative to cover federal buying activities more effectively.

“These actions … underscore the fact that the SBA is committed to creating an environment where small businesses can enter the federal marketplace as equal competitors,” Preston said. “This environment is created when agencies reduce contract bundling, consider small businesses as part of their overall procurement strategy and ensure that all agency reporting is accurate and reliable.”