Rep. Graves opposes SBA reseller change

Rep. Sam Graves, R-MO, is urging the Small Business Administration to withdraw its proposed size standard change for classifying Information Technology Value Added Resellers as small businesses.

In a 12-page letter to the SBA, Graves, who chairs the House Small Business Committee, wrote that the size standard change is “arbitrary” and “irrational.” He said the small business committee also opposes the proposed change.

The SBA in September proposed to remove the current exception allowing the IT value-added resellers with 150 or fewer employees to be considered small businesses. The SBA proposed a $25.5 million revenue standard instead.

Graves wrote that he opposed the rule change because the SBA did not comply with new stipulations for size standard changes under the National Defense Authorization Act of Fiscal 2013.

Graves also suggested that $25.5 million was too low for the resellers. He offered an analysis indicating that a receipt-based standard equivalent to 150 employees ought to be “significantly higher” than $25.5 million.

Graves also charged that the SBA did not address “the underlying issues facing the IT industry and the misuse of the size standards.” Graves offered a historic and technical review of size standards in support of his argument. SBA officials were not immediately available.

More information: Graves’ letter http://goo.gl/7Mhcto

Looking for 8(a) federal contracts?

GAO says 40% of WOSBs may have been ineligible

Rep. Graves opposes SBA reseller change

“Corrective action” on SEWP V

Small biz ‘manipulated’

Column: Cost and Pricing Proposals - An Adequacy Primer

Washington Insider: