Industry Group Wants Higher Net-Worth Limit A coalition of leading contractor groups is urging the Bush administration to increase the $750,000 net-worth limit for owners of small disadvantaged businesses. The trade associations made the recommendation to the Acquisition Advisory Panel, which is reviewing all procurement laws and regulations. The panel’s report is due in August. The associations also said calculation of an owner’s net worth should exclude retirement savings in an IRA or 401k account. “The cap on personal net worth is considerably understated today,” they said. “In today’s federal procurement marketplace, $750,000 is far too low, particularly when small business owners often must pledge their personal assets as collateral to purchase capital equipment and obtain credit to meaningfully compete for federal work.” They urged SBA to increase the limit and adjust it periodically for inflation. The groups did not suggest what the limit should be. They said “it would be appropriate” to raise the net worth standard for 8(a) business owners as well, but added, “We recognize that there may be other considerations to be taken into account and therefore do not include that program in this recommendation.” The associations also urged that SDBs be allowed to self-certify their status for subcontracts. After the 1995 Supreme Court decision in the Adarand case limiting affirmative action, SBA began requiring third-party certification . “The federal rules have been inappropriately expanded to apply to small disadvantaged businesses performing only as subcontractors on federal contracts when there are no federal ‘benefits’ that flow from that business relationship,” they said. The recommendations were endorsed by the Aerospace Industries Association, Contract Services Association of America, Government Electronics and Information Technology Association, National Defense Industrial Association and Professional Services Council.