Congress Approves Parity, Annual Recertification Congress has passed legislation establishing parity in small business set-aside programs. The provision of the Small Business Jobs Act, H.R. 5297, would overturn court rulings giving HUBZone companies first priority in set-asides. The Obama administration backed the parity amendment, saying agencies need flexibility to achieve their procurement goals in all socioeconomic categories. Both the House and Senate approved the bill, and President Obama is expected to sign it. He has called it a key plank in the economic recovery, as it provides tax breaks and expanded loan guarantees for small firms. The bill includes a number of other changes in small business procurement rules: It would require firms to recertify their small business status annually. Recertification is currently required only every five years on long-term contracts, or when a business changes hands. It would permit set-asides for task and delivery orders on multiple award contracts and would allow agencies to reserve one or more awards on a multiple award contract for small firms. Multiple award task order contracts are consuming a growing share of federal procurement dollars. It would establish new controls on unjustified contract bundling and on bait-and-switch subcontracting. It would repeal the competitiveness demonstration program. Under that program, small business set-asides are not permitted in certain industries that are traditionally dominated by small firms, such as architect/engineering services and some construction categories. The U.S. Court of Federal Claims has ruled that HUBZone companies are first in line for set-asides because the HUBZone law says a contract “shall” be set aside for a HUBZone firm under the rule of two, while laws creating the 8(a) and service-disabled veterans programs say contracts “may” be set aside. Section 1347 of the Jobs Act would change “shall” to “may.” The Senate passed a similar provision last year, but it was dropped in a conference committee with the House. This time no conference is necessary because both houses passed identical bills.