The Small Business administration (SBA) has announced a final rule that creates adjustments of different SBA policies. The rule has extensive effects on small-scale business agreements consisting of the treatment of a small-scale business offeror’s experience, abilities, previous performance whereas SBA featured different changes to the Mentor-Protege program.

Mentor Protégé Program

A small-scale business can join the more experienced business in the mentor protégé program to go after the acquisition chances as a joint venture. The mentor protégé programs are created to inspire more established businesses to give guidance to small-scale businesses to boost their capabilities in executing the federal procurement contracts.

The benefits of 8(a) joint ventures are as follows: 

• The 8(a) protégé may make a joint venture with an SBA-approved mentor. 
• The 8(a) joint venture may go after any federal contract procurement, including consolidated or bundled procurements. 
• For large acquirements, there are no performance-of-work prerequisites. 
• Mentors may buy up to a 40 percent equity interest in a protégé.”

 Before issuing the SBA’s new policies, FAR15.305(a)(2)(iii) declared that an organization should review the previous performance of prime contractors. This use of the “should” word makes it cautious for the organization to consider or not consider the previous performance of the subcontractor.

However, there are various cases where organizations provide a petition that prohibits discussion of subcontractor experience. These restraints stop small-scale business providers from using prime subcontractors or teaming displays to set up essential experience and previous performance.

Concerns and Challenges

The latest changes made by SBA give the small-scale business contractor a new device to set up needed experience and previous performance. These new SBA rules state that:

When the proposal of a small-scale business key contractor consists of a proposed group of small business subcontractors and particularly recognized first-tier subcontractors in the offer, the chief of the organization should think about the past performance, ability, and experience of each first-tier subcontractor. It is part of the group, if the ability, past performance, and experience of the small-scale business prime do not individually display ability and past performance mandatory for the award.

Therefore, the organization should think about the experience, ability, and past performance of the key contractor where:

• The key contractor presents a group of small business subcontractors who are recognized in the proposal.
• The key contractor is a small-scale business.
• S/he does not individually display ability and past performance mandatory for awards.

Notably, the new regulation does not restrict the utilization of experience of a subcontractor to small-scale business. In addition, there is no sign that a large-scale business will comparably be able to depend on subcontractor experience.

Small business contractors must consider these amends while evaluating petitions. Be aware that bid protests demanding the petitions must be filed before the deadline of proposals.

Moreover, the government contracting group has already used this new policy to save revisions to a petition to need the reflection of small business subcontractor experience and grant for teaming arrangements. 

Finally, the government contracting group is accessible to help you with queries on these new rules and any other government contracting issues.