Boon for no-longer-smalls

67% of value of GWAC set-asides goes to not-smalls

      A large proportion of small business set-aside contracts on multiple-award vehicles are going to firms that are no longer small, according to new data released by the Small Business Administration.

      In fiscal 2018, “it is estimated that 49.4% of small business set-aside orders off of government-wide acquisition contracts (GWACs) were awarded to firms that no longer qualified as small under the NAICS code size standard at the time of the order (261 out of 528 orders),” the SBA said in a Nov. 8 Federal Register notice as part of its proposed rule (see separate story on proposed rule).

      Those orders comprised 67% of the dollars set-aside for small business off of GWACs ($119.6 million to unqualified firms of the $178.6 million in small business set-aside orders), SBA said, citing the Federal Procurement Data System as a source for the estimates.

      The SBA also provided similar data for set-asides in which there are exceptions to the size standard, such as for Value-Added Resellers, with a finding that 39.5% of the value of small business set-asides on GWACs goes to not-small firms.

      “SBA believes that a contracting vehicle that intends to award to small businesses but instead permits as much as 49.4% of its orders and between 39.5% and 67% of its dollars to be awarded to firms that do not qualify as small is the appropriate area to address,” the notice states.

      In addition, 10% of the small business set-aside orders off unrestricted Multiple-Award Contracts (MACs) were estimated to have been awarded to firms that were no longer small. Similarly, 7.1% of small business set-aside orders off the Federal Supply Schedule were awarded to firms that no longer qualified as small (510 out of 7,266 orders).

      In terms of dollar value, 12.1% of the dollars awarded in small business set-asides off the Federal Supply Schedule went to firms that were no longer small. That was $130 million to unqualified firms out of $1.07 billion.

More Information:
Federal Register notice: https://bit.ly/2NY15rc

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