Set-Aside Alert exclusive analysis:
While 8(a) set-asides slump, are riskier SDB awards soaring?
SBA IG warns of ineligible self-cert SDB awardee risk;
Also, FY2020 rule disallowed protests of disadvantaged
In federal contracting, 8(a) Business Development firms and self-certified Small Disadvantaged Businesses (SDBs) have an uneasy relationship.
Companies in both categories are counted as small and disadvantaged. The 8(a) firms are certified by the Small Business Administration and can be awarded set-asides. The SDBs are largely self-certified, which the SBA’s Inspector General views as inherently risky. Awards in both categories--along with competitive 8(a) awards and those to a few SBA-certified SDBs--comprise total SDB procurements.
In recent years, 8(a) set-aside awards have fallen while total awards to SDBs have soared.
In fiscal 2014, 8(a) set-asides made up half of all SDB awards, but by fiscal 2021 the 8(a) set-aside portion had been reduced to below 20%, according to Set-Aside Alert’s exclusive research.
While 8(a) set-aside awards have been languishing since a sharp drop in fiscal 2018, :...more....