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SDB Price Preference Is Suspended

Most federal agencies cannot grant the 10% price evaluation adjustment for small disadvantaged businesses until Congress re-authorizes that preference and other Small Business Administration programs.

In a July 30 memo, Deputy SBA Administrator Melanie Sabelhaus informed agency procurement officers that the preference expired June 5 for all agencies except the Defense Department, NASA and the Coast Guard, which are covered by a different law.

The Defense Department has not used the price preference for several years because it has exceeded its 5% goal for contracting with SDBs. (SAA, 3/5)

The price evaluation preference only applies to selected industries, so it is not a big deal for most companies, said Henry Wilfong Jr., president of the National Association of SDBs in Silver Spring, MD.

Because of the expiration of SBA’s authorization, Wilfong said, the agency briefly stopped accepting applications for SDB certification this summer, but later determined that certifications were authorized under another law and could continue.

The Senate passed the SBA reauthorization bill in September 2003 but it has been held up in the House by a dispute over procurement provisions. The House Government Reform Committee released it for action in March, but it has never been brought up for a vote. (SAA, 3/19)

Congress has passed several extensions of SBA program authorizations, but the last one expired in June. When lawmakers return to work after Labor Day, they face a backlog of appropriations bills for the new fiscal year that begins Oct. 1, as well as legislation to reorganize U.S. intelligence agencies as recommended by the 9/11 Commission. The SBA bill is a lower priority, so it is unclear whether it will be acted upon before adjournment, expected around Oct. 1.


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