Agencies, Businesses Should Verify PRO-Net Listings SBA is urging contracting officers to “diligently review” PRO-Net listings to be sure that a company qualifies as a small business before awarding a contract. Responding to complaints that many large businesses are listed on the small business database, SBA reminded contracting officers that information in the PRO-Net listings comes from the companies themselves. Although PRO-Net is the official database of small businesses, it is “a directory, not a certification,” said administrator Hector Barreto. The General Accounting Office reported last month that billions of dollars worth of contracts reported as going to small businesses actually went to large ones. GAO said the primary reason was loopholes in federal regulations that allow some businesses to be counted as small after they have outgrown size standards. (SAA, 5/16) A new notice posted on the PRO-Net home page declares, “The SBA does not make any representation as to the accuracy of any of the data included, other than certifications relating to 8(a) Business Development, HUBZone or Small Disadvantaged Business status.” In a memo to agency senior procurement executives, Fred Armendariz, associate deputy administrator for government contracting and business development, wrote, “SBA strongly recommends that contracting officers diligently review an offeror’s small business self-certification before awarding a contract.” Armendariz said the agency recently removed about 600 businesses from the database because they did not qualify as small. He declined to name the companies because they have a right to appeal the decision. However, SBA has posted a list of more than 150 companies that were found to be “other than small” as a result of a protest and a formal size determination. They are listed at www.sba.gov/size/sizedeterminations.html. The General Accounting Office found that more than one out of 10 companies that won contracts reported as going to small businesses received other contracts in which they were classified as large businesses in fiscal 2001. “The primary reason these contract actions were reported as small business awards is because federal regulations generally permit companies to be considered small over the life of a contract – even if the company grows into a large business, merges with another company, or is acquired by a large business,” David Cooper, GAO’s director of acquisition and sourcing management, told the House Small Business Committee May 7. Barreto said he believes there is “a perception problem” leading some people to think that big businesses are taking contracts away from small ones. He testified before the Senate Small Business Committee June 4. SBA has proposed a rule that would require contractors on GSA schedules to recertify their small business status annually. (SAA, 5/2) Under current regulations, if a company is small when it receives a GSA schedule contract, it may continue to claim small-business status through contract renewals lasting up to 20 years. The proposed rule is open for public comment until June 24. The Office of Management and Budget has told agencies that manage governmentwide acquisition contracts that they must require annual recertification. Companies are required to update their PRO-Net listings each year. SBA recently dumped 90,000 listings that had not been updated in more than 18 months.