Final rule on sole sourcing

Also updates SDVOSB surviving spouse rules

      The Small Business Administration published a direct final rule that makes several significant changes to its contracting rules.

      It will go into effect on Feb. 7 unless a substantial number of adverse comments are submitted by Dec. 8. Congress ordered the changes in recent national defense authorization laws.

      Here is what is in the direct final rule:

• Justification and approvals: Currently, all agencies must provide a written justification and approval for 8(a) sole-source awards over $22 million. That would rise to $100 million for Defense Dept. contracts only.
• Inflation adjustments: The rule implements in the FAR an inflationary increase to $25 million--previously $22 million--for requiring written justifications and approvals for 8(a) sole-source awards for all other agencies;
• Sole-sourcing: The rule adjusts for inflation the thresholds for 8(a), HUBZone and WOSB sole-source manufacturing contract awards to $7 million. There are also several technical changes;
• Surviving spouse: The rule reflects 3-year and 10-year time periods for the surviving spouse of a service-disabled veteran small business owner to remain eligible for SDVOSB set-asides.

More information:
Final rule: https://bit.ly/3HkSolL

(URLs in Set-Aside Alert have been shortened by the bit.ly URL shortener)

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