Is the contractor still considered a small business for the purposes of this solicitation and eligible for award even though they are not currently a small business?
The contractor, if small as of the submittal of the initial offer, will be considered eligible for award. If you have questions, you may contact your Small Business Professional and/or the SBA.
FAR 19.301-1 Representation by the offeror.
(a) 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.
(b) The contracting officer shall accept an offeror’s representation in a specific bid or proposal that it is a small business unless (1) another offeror or interested party challenges the concern’s small business representation or (2) the contracting officer has a reason to question the representation. Challenges of and questions concerning a specific representation shall be referred to the SBA in accordance with 19.302
13 CFR 121.404 When is the size status of a business concern determined?
(a) 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.