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  • Question

    Can the Total Small Business Set Aside award be made to the newly formed large business? At time of proposal submission the business correctly certified as small business?


    Answer

    FAR 19.301-1 (a) states, "To be eligible for award as a small business, an offeror must represent in good faith that it is a small business at the time of its written representation. An offeror may represent that it is a small business concern in connection with a specific solicitation if it meets the definition of a small business concern applicable to the
    solicitation and has not been determined by the Small Business Administration (SBA) to be other than a small business."

    13 CFR 121.404 states, "SBA determines the size status of a concern, including its affiliates, as of the date the concern submits a written self-certification that it is small to the procuring activity as part of its initial offer (or other formal response to a solicitation), which includes price."  However, 13 CFR 121.404 (g)(2)(ii)(D), states, "If the merger, sale or acquisition occurs after offer but prior to award, the offeror must recertify its size to the contracting officer prior to award." 

    The statute and FAR are silent as to if the firm would still be eligible for award.  We recommend that you speak with your SBA Procurement Center Representative for more information.




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