SBA: Two new final rules

Both in effect March 16

      The Small Business Administration on Feb. 14 released two final rules affecting small business federal contractors. Both go into effect on March 16.

      One of the final rules establishes accelerated payments for small business contractors and subcontractors under a 2020 law, while the second is a set of broader changes to several small business programs, including the 8(a) Business Development Program.

Accelerated Payments

      This rule implements section 873 of the National Defense Authorization Act for Fiscal 2020. It requires civilian agencies to establish an accelerated payment date for small business prime contractors--aiming for 15 days after receipt of a proper invoice--if a specific payment date is not established in the contract.

      For prime contractors that subcontract with a small business, agencies must establish a specific payment date--also within the 15 days--if such a date is not already in the contract; as long as the prime does not charge fees or require additional work for the accelerated payment.

      For DOD, the final rule implements Section 815 of the 2021 NDAA. There is no language in the DOD version regarding a payment date in the contract.

Changes to SBA Regulations

      This final rule puts into effect revisions to a final rule of November 2019 that made changes to a broad array of SBA regulations. The revisions were proposed a year ago and now are being made final. The revisions address:

• Determining when a small business’ size status is determined for offers for multiple-award contracts;
• Creating new grounds for a socioeconomic status protest;
• Setting eligibility requirements for 8(a) Business Development participants under long-term contracts of more than 5 years; and.
• Setting the small business size standard for information technology value-added resellers under NAICS code 541519.

More information:
Final rule: https://bit.ly/3HY31fe
Final rule: https://bit.ly/3E34K1G

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