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How to Write a Business Plan, Step by Step

Rosalie Murphy

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

1. Write an executive summary

2. describe your company, 3. state your business goals, 4. describe your products and services, 5. do your market research, 6. outline your marketing and sales plan, 7. perform a business financial analysis, 8. make financial projections, 9. add additional information to an appendix, business plan tips and resources.

A business plan is a document that outlines your business’s financial goals and explains how you’ll achieve them. A strong, detailed plan will provide a road map for the business’s next three to five years, and you can share it with potential investors, lenders or other important partners.

Bizee

Here’s a step-by-step guide to writing your business plan.

» Need help writing? Learn about the best business plan software .

This is the first page of your business plan. Think of it as your elevator pitch. It should include a mission statement, a brief description of the products or services offered, and a broad summary of your financial growth plans.

Though the executive summary is the first thing your investors will read, it can be easier to write it last. That way, you can highlight information you’ve identified while writing other sections that go into more detail.

» MORE: How to write an executive summary in 6 steps

Next up is your company description, which should contain information like:

Your business’s registered name.

Address of your business location .

Names of key people in the business. Make sure to highlight unique skills or technical expertise among members of your team.

Your company description should also define your business structure — such as a sole proprietorship, partnership or corporation — and include the percent ownership that each owner has and the extent of each owner’s involvement in the company.

Lastly, it should cover the history of your company and the nature of your business now. This prepares the reader to learn about your goals in the next section.

» MORE: How to write a company overview for a business plan

small business plan reporting

The third part of a business plan is an objective statement. This section spells out exactly what you’d like to accomplish, both in the near term and over the long term.

If you’re looking for a business loan or outside investment, you can use this section to explain why you have a clear need for the funds, how the financing will help your business grow, and how you plan to achieve your growth targets. The key is to provide a clear explanation of the opportunity presented and how the loan or investment will grow your company.

For example, if your business is launching a second product line, you might explain how the loan will help your company launch the new product and how much you think sales will increase over the next three years as a result.

In this section, go into detail about the products or services you offer or plan to offer.

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

Your sales strategy.

Your distribution strategy.

You can also discuss current or pending trademarks and patents associated with your product or service.

Lenders and investors will want to know what sets your product apart from your competition. In your market analysis section , explain who your competitors are. Discuss what they do well, and point out what you can do better. If you’re serving a different or underserved market, explain that.

Here, you can address how you plan to persuade customers to buy your products or services, or how you will develop customer loyalty that will lead to repeat business.

» MORE: R e a d our complete guide to small business marketing

If you’re a startup, you may not have much information on your business financials yet. However, if you’re an existing business, you’ll want to include income or profit-and-loss statements, a balance sheet that lists your assets and debts, and a cash flow statement that shows how cash comes into and goes out of the company.

You may also include metrics such as:

Net profit margin: the percentage of revenue you keep as net income.

Current ratio: the measurement of your liquidity and ability to repay debts.

Accounts receivable turnover ratio: a measurement of how frequently you collect on receivables per year.

This is a great place to include charts and graphs that make it easy for those reading your plan to understand the financial health of your business.

» NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

This is a critical part of your business plan if you’re seeking financing or investors. It outlines how your business will generate enough profit to repay the loan or how you will earn a decent return for investors.

Here, you’ll provide your business’s monthly or quarterly sales, expenses and profit estimates over at least a three-year period — with the future numbers assuming you’ve obtained a new loan.

Accuracy is key, so carefully analyze your past financial statements before giving projections. Your goals may be aggressive, but they should also be realistic.

List any supporting information or additional materials that you couldn’t fit in elsewhere, such as resumes of key employees, licenses, equipment leases, permits, patents, receipts, bank statements, contracts and personal and business credit history. If the appendix is long, you may want to consider adding a table of contents at the beginning of this section.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Here are some tips to help your business plan stand out:

Avoid over-optimism: If you’re applying for a business loan at a local bank, the loan officer likely knows your market pretty well. Providing unreasonable sales estimates can hurt your chances of loan approval.

Proofread: Spelling, punctuation and grammatical errors can jump off the page and turn off lenders and prospective investors, taking their mind off your business and putting it on the mistakes you made. If writing and editing aren't your strong suit, you may want to hire a professional business plan writer, copy editor or proofreader.

Use free resources: SCORE is a nonprofit association that offers a large network of volunteer business mentors and experts who can help you write or edit your business plan. You can search for a mentor or find a local SCORE chapter for more guidance.

The U.S. Small Business Administration’s Small Business Development Centers , which provide free business consulting and help with business plan development, can also be a resource.

On a similar note...

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Free Small Business Plan Templates and Examples

By Kate Eby | April 27, 2022

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We’ve compiled the most useful collection of free small business plan templates for entrepreneurs, project managers, development teams, investors, and other stakeholders, as well as a list of useful tips for filling out a small business template.

Included on this page, you’ll find a simple small business template and a one-page small business plan template . You can also download a fill-in-the-blank small business plan template , and a sample small business plan template to get started.

Small Business Plan Template

Small Business Plan Template

Download Small Business Plan Template Microsoft Word | Adobe PDF | Google Docs  

Use this small business plan template to identify trends and demographics in the company overview. Highlight how your product or service uniquely benefits consumers in the offerings section, and note your proposed timeline, milestones, and the key performance metrics (KPIs) you will use to measure your success. This template has all the components of a standard business plan, from the executive summary through financing details.

Small Business Plan Sample Template

Small Business Plan Sample Template

Download Small Business Plan Sample Microsoft Word | Adobe PDF | Google Docs  

Use this small business plan sample template to draft the subsections and headings of the contents of your plan. This template provides editable sample text that shows you how to organize and create a ready-to-be-implemented business plan. This sample template helps remove the guesswork of what to include in a small business plan.

Simple Small Business Plan Template

Simple Small Business Plan Template

Download Simple Small Business Plan Template Microsoft Word | Adobe PDF

Use this streamlined, customizable, simple small business plan template to chart revenue, expenses, and net profit or loss forecasts with sample graphics. Order your small business plan with numbered subsections and list them in a table of contents. Supplement the plan with additional information in the appendix for a complete business plan that you can present to investors.

Small Business Plan Chart Template

Small Business Plan Chart Template Powerpoint

Download Small Business Plan Chart Template Microsoft PowerPoint | Google Slides

Use this small business plan chart template to plan and track month-by-month and annual business planning. The flexible color-coded bar chart simplifies tracking and allows you to customize the plan to meet your needs. Add tasks, track owner status, and adjust the timeline to chart your progress with this dynamic, visually rich small business planning tool.

Small Business Plan Outline Template

Small Business Plan Outline Template

Download Small Business Plan Outline Template Microsoft Word | Adobe PDF | Google Docs

Use this small business plan outline template to jumpstart a plan for your small business. This template includes the nine essential elements of a traditional business plan, plus a title page, a table of contents, and an appendix to ensure that your document is complete, comprehensive, and in order. Easily simplify or expand the outline to meet your company’s needs.

Printable Small Business Plan Template

Printable Small Business Plan Template

Download Printable Small Business Plan Template  Microsoft Word | Adobe PDF | Google Docs

This print-friendly small business plan template is ideal for presentations to investors and stakeholders. The customizable template includes all the standard, critical business plan elements, and serves as a guide for writing a complete and comprehensive plan. Easily edit and add content to this printable template, so you can focus on executing the small business plan.

Small Business Startup Plan Template

Small Business Startup Plan Template

Download Small Business Startup Plan Template Microsoft Word | Adobe PDF | Google Docs  

Use this small business startup plan template to draft your mission statement and list your keys to business success, in order to persuade investors and inform stakeholders. Customize your startup plan with fillable tables for sales revenue, gross profit margin, and cost of sales projections to secure your business's pricing structure.

Fill-in-the-Blank Small Business Plan Template

Fill-in-the-Blank Small Business Plan Template

Download Fill-in-the-Blank Small Business Plan Template  Microsoft Word | Adobe PDF

This small business plan template simplifies the process to help you create a comprehensive, organized business plan. Simply enter original content for the executive summary, company overview, and other sections to customize the plan. This fill-in-the-blank small business plan template helps you to maintain organization and removes the guesswork in order to ensure success.

One Page Small Business Plan Template

One Page Small Business Plan Template

Download One Page Small Business Plan Template  Microsoft Excel | Microsoft Word | Adobe PDF

This one page small business plan template is ideal for quick, simple presentations. Use this template to summarize your business overview, market analysis, marketing, and sales plan, key objectives and success metrics, and milestones timeline. Complete the fillable sections to educate investors and inform stakeholders.

One Page Small Business Plan Example

One Page Small Business Plan Example

Download One Page Business Plan Example Microsoft Excel | Microsoft Word | Adobe PDF

This one page small business plan example prompts you to list your vision, mission, product or service, team member names, roles, and relevant experience to promote your small business. Use the market analysis, marketing, sales plan sections to detail how you aim to sell your product or service. This small business plan features fillable tables for key objectives and success metrics. Plus, you’ll find space for your financial cost structure and revenue sources to show how your business will remain profitable.

What Is a Small Business Plan Template?

A small business plan template is a roadmap for defining your business objectives and detailing the operational, financial, and marketing resources required for success. Use a small business plan template to strategize growth, forecast financial needs, and promote investment. 

A small business plan template organizes and outlines the content needed to achieve goals for growth and profit, including marketing and sales tactics. As opposed to starting from scratch, using a template makes it easy to organize the information and customize the plan to meet your needs. 

A small business plan template includes standard business plan sections, as well as the following sections: 

  • Executive Summary: Summarize the key points in your small business plan in two pages or less to hold your reader's attention and promote buy-in. Write this section last to capitalize on your understanding of the small business plan.
  • Company Overview: Describe the nature of your small business, the industry landscape and trends, demographics, and economic and governmental influences. List your location, product or service, and goals to show what makes your small business unique.
  • Problem and Solution: Identify and explain the problem your product or service will solve and its costs. Propose and describe your solution and its benefits. Conclude this section with a summary of the problem and solution.
  • Target Market: Identify your small business's target market by researching your product and service to determine the most likely demographic. Explain your target market's motivations for buying your product or service.
  • Competition: Note the other competitor product or service offerings, pricing, and company revenues to understand how to outperform your competitors. Detail your small business's competitive advantages, based on research.
  • Product or Service Offerings: Describe your product or service, how it benefits your target market, and what makes it unique. Highlight how your product or service will outsell competitors.
  • Marketing: Detail your marketing plan with objectives and strategy, including goals, costs, and an action plan. A successful marketing plan reduces costs and boosts your product or service sales.
  • Timeline and Metrics: Break down your small business plan into smaller activities. Describe these activities (and the performance metrics you intend to use to track them) and list a completion date for each.
  • Financial Forecasts: Explain how your organization uses past performance and market research to inform your business's economic forecasts. Estimate growth and profits based on your informed assumptions.
  • Financing: List your funding sources and how you intend to use the funds to keep your company on track as it grows. Smart financing at the planning stage prepares your organization for unexpected challenges and helps to mitigate risk.

A small business plan template enables you to complete your business plan quickly and comprehensively, so you can achieve your goals and turn your product or service idea into a profitable reality.

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The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. 

When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time.  Try Smartsheet for free, today.

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How to Write a Business Report: A Step By Step Guide with Examples

small business plan reporting

Table of contents

With so much experience under your belt, you already know a lot about business reporting.

So, we don’t want to waste your time pointing out the obvious because we know what you need.

Secrets. Tricks. Best practices.

The answer to how to write a mind-blowing business report that you don’t need to spend hours and days writing.

A business report that will immediately allow you to identify your strengths and weaknesses.

A report that’ll help you learn more about your business and do more accurate forecasting and planning for the future.

We believe we have just that right here.

With this comprehensive guide, you’ll create effective sales, analytical, and informative business reports (and business dashboards ) that will help you improve your strategies, achieve your goals, and grow your business.

So, let’s dive in.

What Is a Business Report?

Importance of creating business reports, types of business reports, what should be included in a business report, how to write a business report: an 11-step guide.

  • Business Report Examples

profitwell-dashboard-template-databox-cta

Although there’s a variety of business reports that differ in many aspects, in short, a business report definition would be the following:

A business report is an informative document that contains important data such as facts, analyses, research findings, and statistics about a business with the goal to make this information accessible to people within a company.

Their main purpose is to facilitate the decision-making process related to the future of the business, as well as to maintain effective communication between people who create the reports and those they report to.

A good business report is concise and well-organized, looks professional, and displays the relevant data you can act on. The point is to reflect upon what you’ve achieved so far (typically, over the past month, quarter or year) and to use the data to create a new strategy or adjust the current one to reach even more business goals.

Business reports should be objective and based on the data. When stating the facts, people rely on numbers rather than giving descriptions. For instance, instead of saying “our conversion rate skyrocketed”, you would display the exact percentages that back up that claim.

Business reporting matters for several reasons, among which the most important ones are:

Recognizing Opportunities to Grow

Detecting issues and solving them quickly, evaluating a potential partner, having a paper trail, keeping things transparent for the stakeholders, setting new company goals.

In fact, over half of the companies that contributed to Databox’s state of business reporting research confirmed that regular monitoring and reporting brought them significant concrete benefits.

If you never look back at what you’ve achieved, you can’t figure out what you’ve done well and what you can leverage in the future for even better results.

When you analyze a specific aspect of your business over a specific time period and present the data you gathered in a report, you can detect an opportunity to grow more easily because you have all the information in one place and organized neatly.

Is it time to introduce new products or services? Is there a way to enhance your marketing strategy? Prepare a report. Can you optimize your finances? Write a financial business report . Whatever decision you need to make, it’s easier when you base it on a report.

Reports are essential for crisis management because they can introduce a sense of calmness into your team. Putting everything on paper makes it easier to encompass all the relevant information and when you know all the facts, you can make a more accurate and effective decision about what to do next.

Writing business reports regularly will also help you identify potential issues or risks and act timely to prevent damage and stop it from escalating. That’s why monthly reporting is better than doing it only once a year.

Having an insight into your finances , operations and other business aspects more regularly allows you to have better control over them and mitigate potential risks more effectively.

Different types of business reports may be accessible to the general public. And if they’re not, specific situations may require a company to send them over to the person requesting them. That may happen if you’re considering a partnership with another company. Before making the final decision, you should learn about their financial health as every partnership poses a certain risk for your finances and/or reputation. Will this decision be profitable?

Having an insight into a company’s business report helps you establish vital business relationships. And it goes the other way around – any potential partner can request that you pull a business report for them to see, so writing business reports can help you prove you’re a suitable business partner.

In business, and especially in large companies, it’s easy to misplace information when it’s communicated verbally. Having a written report about any aspect of your business doesn’t only prevent you from losing important data, but it also helps you keep records so you can return to them at any given moment and use them in the future.

That’s why it’s always good to have a paper trail of anything important you want to share with colleagues, managers, clients, or investors. Nowadays, of course, it doesn’t have to literally be a paper trail, since we keep the data in electronic form.

Writing business reports helps you keep things transparent for the stakeholders, which is the foundation of efficient communication between these two sides.

You typically need to report to different people – sometimes they’re your managers, sometimes they’re a client. But your company’s stakeholders will also require an insight into the performance of your business, and relying on reports will help you maintain favorable business relationships. A business report shows you clearly how your company is performing and there isn’t room for manipulation.

Once you set business goals and the KPIs that help you track your progress towards them, you should remember they’re not set in stone. From time to time, you’ll need to revisit your goals and critical metrics and determine whether they’re still relevant.

When you write a business report and go through it with your team members or managers, you have a chance to do just that and determine if you’re efficient in reaching your goals. Sometimes, new insights will come up while writing these reports and help you identify new objectives that may have emerged.

Depending on your goals and needs, you’ll be writing different types of business reports. Here are five basic types of business reports .

Informational Report

Analytical report, research report, explanatory report, progress report.

Informational reports provide you with strictly objective data without getting into the details, such as explaining why something happened or what the result may be – just pure facts.

An example of this type of business report is a statement where you describe a department within your company: the report contains the list of people working in this department, what their titles are, and what they’re responsible for.

Another example related to a company’s website could look like this Google Analytics website traffic engagement report . As we explained above, this report shows objective data without getting too much into the details, so in this case, just the most important website engagement metrics such as average session duration, bounce rate, sessions, sessions by channel, and so on. Overall, you can use this report to monitor your website traffic, see which keywords are most successful, or how many returning users you have, but without further, in-depth analysis.

Google Analytics Website Engagement Dashboard Template

Analytical reports help you understand the data you’ve collected and plan for the future based on these insights. You can’t make business decisions based on facts only, so analytical reports are crucial for the decision-making process.

This type of business report is commonly used for sales forecasting. For instance, if you write a report where you identify a drop or an increase in sales, you’ll want to find out why it happened. This HubSpot’s sales analytics report is a good example of what metrics should be included in such a report, like average revenue per new client or average time to close the deal. You can find more web analytics dashboard examples here.

HubSpot CRM – Sales Analytics Overview

From these business reports, you can find out if you will reach your goals by implementing your current strategy or if you need to make adjustments.

Research is critical when you’re about to introduce a change to your business. Whether it’s a new strategy or a new partner, you need an extensive report to have an overview of all important details. These reports usually analyze new target markets and competition, and contain a lot of statistical data.

While not the same, here is an example of an ecommerce dashboard that could help track each part of a campaign in detail, no matter whether you are launching a new product, testing a new strategy, and similar. Similar to a research report, it contains key data on your audience (target market), shows your top-selling products, conversion rate and more. If you are an online store owner who is using paid ads, you can rely on this report to monitor key online sales stats in line with Facebook Ads and Google Analytics. See more ecommerce dashboards here.

Shopify + Facebook Ads + Google Analytics (Online Sales overview) Dashboard Template

As you might guess from its name, you write the explanatory report when it’s necessary for you to explain a specific situation or a project you’ve done to your team members. It’s important to write this report in a way that everyone will be able to understand.

Explanatory reports include elements like research results, reasons and goals of the research, facts, methodology, and more. While not exactly an explanatory report, this example of a HubSpot marketing drilldown report is the closest thing to it, as it helps marketers drill into an individual landing page performance, and identify how good their best landing pages are at converting, or which ones have the best performance.

HubSpot Marketing Landing Page Drilldown

A progress report is actually an update for your manager or client – it informs them about where you stand at the moment and how things are going. It’s like a checkpoint on your way towards your goal.

These reports may be the least demanding to write since you don’t need to do comprehensive research before submitting them. You just need to sum up your progress up to the point when the report was requested. This business report may include your current results, the strategy you’re implementing, the obstacles you’ve come across, etc. If this is a marketing progress report you can use marketing report templates to provide a more comprehensive overview.

In many companies, progress reports are done on a weekly or even daily basis. Here is an example of a daily sales report from Databox. HubSpot users can rely on this sales rep drilldown business report to see how individual each sales rep is performing and measure performance against goals. Browse through all our KPI dashboards here.

HubSpot CRM (Sales Rep Drilldown) dashboard template

What does a great business report look like? If you’re not sure what sections your report should have, you’ll learn what to include in the following lines.

Business Report Formatting

Different types of reports require different lengths and structures, so your business report format may depend on what elements your report needs to have. For example, progress reports are typically pretty simple, while analytical or explanatory reports are a different story.

However, most reports will start with a title and a table of contents, so the person reading the report knows what to expect. Then, add a summary and move on to the introduction. After you’ve written the body and the conclusion, don’t forget to include suggestions based on your findings that will help your team create an actionable plan as you move forward.

After that, list the references you used while creating the report, and attach any additional documents or images that can help the person reading the report understand it better.

This outline may vary depending on what kind of report you’re writing. Short business reports may not need a table of contents, and informative reports won’t contain any analyses. Also, less formal reports don’t need to follow a strict structure in every situation.

Business Report Contents

When it comes to the contents of your report, keep in mind the person who’s going to read it and try to balance between including all the relevant information, but not overwhelming the reader with too many details.

  • The introduction to the report should state the reason why you’re writing it, and what its main goal is. Also, mention what methodology and reporting software you’ve used, if applicable.
  • The body of the report is where you’ll expose all your key findings, explain your methodology, share the important data and statistics, and present your results and conclusion.
  • The conclusion , similarly to the summary you’ll add at the beginning of the report, briefly singles out the most important points and findings of the report.

If you decide to include more sections like recommendations, this is where you’ll suggest the next steps your team or the company may want to take to improve the results or take advantage of them if they’re favorable.

PRO TIP: Are You Tracking the Right Metrics for Your SaaS Company?

As a SaaS business leader, there’s no shortage of metrics you could be monitoring, but the real question is, which metrics should you be paying most attention to? To monitor the health of your SaaS business, you want to identify any obstacles to growth and determine which elements of your growth strategy require improvements. To do that, you can track the following key metrics in a convenient dashboard with data from Profitwell:

  • Recurring Revenue. See the portion of your company’s revenue that is expected to grow month-over-month.
  • MRR overview. View the different contributions to and losses from MRR from different kinds of customer engagements.
  • Customer overview . View the total number of clients your company has at any given point in time and the gains and losses from different customer transactions.
  • Growth Overview . Summarize all of the different kinds of customer transactions and their impact on revenue growth.
  • Churn overview. Measure the number and percentage of customers or subscribers you lost during a given time period.

If you want to track these in ProfitWell, you can do it easily by building a plug-and-play dashboard that takes your customer data from ProfitWell and automatically visualizes the right metrics to allow you to monitor your SaaS revenue performance at a glance.

profitwell-dashboard-template-preview

You can easily set it up in just a few clicks – no coding required.

To set up the dashboard, follow these 3 simple steps:

Step 1: Get the template 

Step 2: Connect your Profitwell account with Databox. 

Step 3: Watch your dashboard populate in seconds.

Note : Other than text, make sure you include images, graphs, charts, and tables. These elements will make your report more readable and illustrate your points.

Whether you’re writing a specific type of business report for the first time or you simply want to improve the quality of your reports, make sure you follow this comprehensive guide to writing an effective business report.

  • Do Your Research
  • Create an Outline
  • Determine Formatting Guidelines
  • Think of an Engaging Title
  • Write the Introduction
  • Divide the Body of the Report into Sections
  • Choose Illustrations
  • Conclude Effectively
  • Gather Additional Documentation
  • Add a Summary
  • Proofread Your Work

Step 1: Do Your Research

A well-planned report is a job half done. That means you need to do research before you start writing: you need to know who you’re writing for and how much they know about the topic of your report. You need to explore the best business dashboard software and templates you can use for your report.

Also, if you believe you will need additional resources and documents to add in the appendix, you should do it during this phase of report writing.

Step 2: Create an Outline

Once you’ve gathered the resources, it’s time to plan the report. Before you start writing, create an outline that will help you stick to the right structure. A business report is complex writing in which you can get lost very easily if you don’t have a clear plan.

Moreover, the report shouldn’t be complicated to read, so sticking to a plan will allow you to keep it concise and clear, without straying from the topic.

Step 3: Determine Formatting Guidelines

Most companies have their in-house formatting that every official document has to follow. If you’re not sure if such rules exist in your company, it’s time you checked with your managers.

If there arent’ any guidelines regarding formatting, make sure you set your own rules to make the report look professional. Choose a simple and readable format and make sure it supports all the symbols you may need to use in the report. Set up proper headings, spacing, and all the other elements you may need in Word or Google Docs.

Pro tip: Google Docs may be easier to share with people who are supposed to read your business report.

Step 4: Think of an Engaging Title

Even if you’re writing a formal business report, the title should be clear and engaging. Reports are typically considered dull as they’re a part of official business documentation, but there’s no reason why you can’t make them interesting to read. Your title should suit the report topic and be in different font size so the reader can recognize it’s a title. Underneath the title, you should add the name of the author of the report.

Step 5: Write the Introduction

A good introductory paragraph for a business report should explain to the reader why you’ve written the report. Use the introduction to provide a bit of background on the report’s topic and mention the past results if there’s been a significant improvement since your last report.

Step 6: Divide the Body of the Report into Sections

As this will be the most comprehensive part of your report, make sure you separate the data into logical sections. Your report is supposed to tell a story about your business, and these sections (such as methodology, hypothesis, survey, findings, and more) will help the data look well-organized and easy to read.

Step 7: Choose Illustrations

Of course, each of these sections should be followed with charts, graphs, tables, or other illustrations that help you make a point. Survey results are typically best displayed in pie charts and graphs, and these enable the reader to visualize the data better. From the formatting point of view, breaking the long text sections with illustrations makes the report more readable.

Pro tip: Using centralized dashboard solutions like Databox can bring your reporting game to the next level. Sign up for a forever-free trial now to see how you can use Databox to track and visualize performance easier than ever before .

Step 8: Conclude Effectively

Finish your report with a to-the-point conclusion that will highlight all the main data from the report. Make sure it’s not too long, as it’s supposed to be a summary of the body of the report. In case you don’t want to add a specific section for recommendations, this is where you can include them, along with your assessments.

Step 9: Gather Additional Documentation

If you’ve determined what additional documents, images, surveys, or other attachments you may need for your report, now is the time to collect them. Request access to those you may not be able to get on time, so you have everything you need by the deadline. Copy the documents you can use in the original form, and scan the documents you need in electronic format.

Step 10: Add a Summary

The summary is usually at the top of the report, but it’s actually something you should write after your report is completed. Only then will you know exactly what your most relevant information and findings are, so you can include them in this brief paragraph that summarizes your report’s main points.

The summary should tell the reader about the objective of the report, the methodology used, and even mention some of the key findings and conclusions.

Step 11: Proofread Your Work

It may seem like common sense, but this final step of the process is often overlooked. Proofreading your work is how you make sure your report will look professional because errors can ruin the overall impression the reader will form about your work, no matter how great the report is.

Look for any spelling or grammatical mistakes you can fix, and if you’re not sure about specific expressions or terminology, use Google to double-check it. Make sure your writing is to-the-point and clear, especially if you’re writing for people who may not know the industry so well. Also, double-check the facts and numbers you’ve included in the report before you send it out or start your reporting meeting.

Business Report Examples (with Ready-to-Use Templates)

Here, we’re sharing a few business reporting examples that you can copy, along with ready-to-use and free-to-download templates. If you don’t know where to start and what to include in different types of business reports, these business report examples are a great way to get started or at least get some inspiration to create yours.

Activity Report Example

Annual report example, project status report example, financial report example, sales report example, marketing report example.

Note : Each of the business report templates shared below can be customized to fit your individual needs with our DIY Dashboard Designer . No coding or design skills are necessary.

For reporting on sales activity, HubSpot users can rely this streamlined sales activity report that includes key sales metrics, such as calls, meetings, or emails logged by owner. This way, you can easily track the number of calls, meetings, and emails for each sales rep and identify potential leaks in your sales funnel. Check all our sales team activity dashboards here. Or if you are looking for dashboards that track general sales performance, browse through all Databox sales dashboards here.

Activity Report Example

If you’re preparing for annual reporting, you will benefit from choosing this HubSpot annual performance report . It contains all the relevant metrics, such as email and landing page performance, new contacts, top blog posts by page views, and more. See all our performance dashboard templates here.

Annual Report Example

Project status reports can be very similar to progress reports. If you’re in need of one of those, here’s an example of a Project overview dashboard from Harvest that shows that can help you create simple, but well-organized report based on metrics that matter: hours tracked, billable hours, billable amount split by team members., and more. Check out more project management dashboard templates we offer here.

Project Status Report Example

Are you creating a financial report? You will find this QuickBooks + HubSpot integration a great choice for a financial performance dashboard that makes creating a report simple. This dashboard focuses on the essential financial report

ting metrics and answers all your revenue-related questions. See all Databox financial dashboards here.

Financial Report Example

If you’re tracking your sales team’s monthly performance, this sales report template will help you prepare an outstanding report. Check out all the vital productivity KPIs, track your progress towards your goals, and understand well how your current sales pipeline is performing. See all sales performance dashboards we have available here.

Sales Report Example

Marketing reports can be easily prepared by using this monthly marketing report template . With HubSpot’s reporting, you can determine where your website traffic is coming from, how your landing pages and specific blog posts are performing, and how successful your email campaigns are. Browse all Databox marketing dashboards or marketing report examples here.

Marketing Report Example

Create a Professional Business Report in No Time with Databox

Does creating a business report still sound like a daunting task? It doesn’t have to be with Databox.

In times when we’re all trying to save our time and energy for things that matter rather than scattering valuable resources on tedious, repetitive tasks, it’s critical to optimize your business process. And we want to help you do just that.

Using a business reporting dashboard enables you to track data from all the different tools you’re using – but in one place. With Databox, you can monitor and report on performance in a single dashboard that is optimized for all your favorite devices and you can create streamlined and beautiful dashboards even if you are not that tech-savvy. (no coding or design skills are required).

Automating business reporting has never been easier. And with Databox, you can do exactly that in just a few clicks. Sign up now and get your first 3 business dashboards for free.

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550+ Business Plan Examples to Launch Your Business

550+ Free Sample Business Plans

Need help writing your business plan? Explore over 550 industry-specific business plan examples for inspiration. Go even further with LivePlan , which harnesses AI-assisted writing features and SBA-approved plan examples to get you funded.

Find your business plan example

Accounting, Insurance & Compliance

Accounting, Insurance & Compliance Business Plans

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Children & Pets

Children & Pets Business Plans

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Cleaning, Repairs & Maintenance Business Plans

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Clothing & Fashion Brand Business Plans

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  • View All 26

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Construction, Architecture & Engineering Business Plans

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  • View All 46

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Education Business Plans

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Business plan template: There's an easier way to get your business plan done.

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Entertainment & Recreation Business Plans

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Farm & Agriculture Business Plans

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Finish your plan faster with step-by-step guidance, financial wizards, and a proven format.

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View all sample business plans

Example business plan format

Before you start exploring our library of business plan examples, it's worth taking the time to understand the traditional business plan format . You'll find that the plans in this library and most investor-approved business plans will include the following sections:

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally only one to two pages. You should also plan to write this section last after you've written your full business plan.

Your executive summary should include a summary of the problem you are solving, a description of your product or service, an overview of your target market, a brief description of your team, a summary of your financials, and your funding requirements (if you are raising money).

Products & services

The products & services chapter of your business plan is where the real meat of your plan lives. It includes information about the problem that you're solving, your solution, and any traction that proves that it truly meets the need you identified.

This is your chance to explain why you're in business and that people care about what you offer. It needs to go beyond a simple product or service description and get to the heart of why your business works and benefits your customers.

Market analysis

Conducting a market analysis ensures that you fully understand the market that you're entering and who you'll be selling to. This section is where you will showcase all of the information about your potential customers. You'll cover your target market as well as information about the growth of your market and your industry. Focus on outlining why the market you're entering is viable and creating a realistic persona for your ideal customer base.

Competition

Part of defining your opportunity is determining what your competitive advantage may be. To do this effectively you need to get to know your competitors just as well as your target customers. Every business will have competition, if you don't then you're either in a very young industry or there's a good reason no one is pursuing this specific venture.

To succeed, you want to be sure you know who your competitors are, how they operate, necessary financial benchmarks, and how you're business will be positioned. Start by identifying who your competitors are or will be during your market research. Then leverage competitive analysis tools like the competitive matrix and positioning map to solidify where your business stands in relation to the competition.

Marketing & sales

The marketing and sales plan section of your business plan details how you plan to reach your target market segments. You'll address how you plan on selling to those target markets, what your pricing plan is, and what types of activities and partnerships you need to make your business a success.

The operations section covers the day-to-day workflows for your business to deliver your product or service. What's included here fully depends on the type of business. Typically you can expect to add details on your business location, sourcing and fulfillment, use of technology, and any partnerships or agreements that are in place.

Milestones & metrics

The milestones section is where you lay out strategic milestones to reach your business goals.

A good milestone clearly lays out the parameters of the task at hand and sets expectations for its execution. You'll want to include a description of the task, a proposed due date, who is responsible, and eventually a budget that's attached. You don't need extensive project planning in this section, just key milestones that you want to hit and when you plan to hit them.

You should also discuss key metrics, which are the numbers you will track to determine your success. Some common data points worth tracking include conversion rates, customer acquisition costs, profit, etc.

Company & team

Use this section to describe your current team and who you need to hire. If you intend to pursue funding, you'll need to highlight the relevant experience of your team members. Basically, this is where you prove that this is the right team to successfully start and grow the business. You will also need to provide a quick overview of your legal structure and history if you're already up and running.

Financial projections

Your financial plan should include a sales and revenue forecast, profit and loss statement, cash flow statement, and a balance sheet. You may not have established financials of any kind at this stage. Not to worry, rather than getting all of the details ironed out, focus on making projections and strategic forecasts for your business. You can always update your financial statements as you begin operations and start bringing in actual accounting data.

Now, if you intend to pitch to investors or submit a loan application, you'll also need a "use of funds" report in this section. This outlines how you intend to leverage any funding for your business and how much you're looking to acquire. Like the rest of your financials, this can always be updated later on.

The appendix isn't a required element of your business plan. However, it is a useful place to add any charts, tables, definitions, legal notes, or other critical information that supports your plan. These are often lengthier or out-of-place information that simply didn't work naturally into the structure of your plan. You'll notice that in these business plan examples, the appendix mainly includes extended financial statements.

Types of business plans explained

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. To get the most out of your plan, it's best to find a format that suits your needs. Here are a few common business plan types worth considering.

Traditional business plan

The tried-and-true traditional business plan is a formal document meant to be used for external purposes. Typically this is the type of plan you'll need when applying for funding or pitching to investors. It can also be used when training or hiring employees, working with vendors, or in any other situation where the full details of your business must be understood by another individual.

Business model canvas

The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

The structure ditches a linear format in favor of a cell-based template. It encourages you to build connections between every element of your business. It's faster to write out and update, and much easier for you, your team, and anyone else to visualize your business operations.

One-page business plan

The true middle ground between the business model canvas and a traditional business plan is the one-page business plan . This format is a simplified version of the traditional plan that focuses on the core aspects of your business.

By starting with a one-page plan , you give yourself a minimal document to build from. You'll typically stick with bullet points and single sentences making it much easier to elaborate or expand sections into a longer-form business plan.

Growth planning

Growth planning is more than a specific type of business plan. It's a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, forecast, review, and refine based on your performance.

It holds all of the benefits of the single-page plan, including the potential to complete it in as little as 27 minutes . However, it's even easier to convert into a more detailed plan thanks to how heavily it's tied to your financials. The overall goal of growth planning isn't to just produce documents that you use once and shelve. Instead, the growth planning process helps you build a healthier company that thrives in times of growth and remain stable through times of crisis.

It's faster, keeps your plan concise, and ensures that your plan is always up-to-date.

Download a free sample business plan template

Ready to start writing your own plan but aren't sure where to start? Download our free business plan template that's been updated for 2024.

This simple, modern, investor-approved business plan template is designed to make planning easy. It's a proven format that has helped over 1 million businesses write business plans for bank loans, funding pitches, business expansion, and even business sales. It includes additional instructions for how to write each section and is formatted to be SBA-lender approved. All you need to do is fill in the blanks.

How to use an example business plan to help you write your own

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How do you know what elements need to be included in your business plan, especially if you've never written one before? Looking at examples can help you visualize what a full, traditional plan looks like, so you know what you're aiming for before you get started. Here's how to get the most out of a sample business plan.

Choose a business plan example from a similar type of company

You don't need to find an example business plan that's an exact fit for your business. Your business location, target market, and even your particular product or service may not match up exactly with the plans in our gallery. But, you don't need an exact match for it to be helpful. Instead, look for a plan that's related to the type of business you're starting.

For example, if you want to start a vegetarian restaurant, a plan for a steakhouse can be a great match. While the specifics of your actual startup will differ, the elements you'd want to include in your restaurant's business plan are likely to be very similar.

Use a business plan example as a guide

Every startup and small business is unique, so you'll want to avoid copying an example business plan word for word. It just won't be as helpful, since each business is unique. You want your plan to be a useful tool for starting a business —and getting funding if you need it.

One of the key benefits of writing a business plan is simply going through the process. When you sit down to write, you'll naturally think through important pieces, like your startup costs, your target market , and any market analysis or research you'll need to do to be successful.

You'll also look at where you stand among your competition (and everyone has competition), and lay out your goals and the milestones you'll need to meet. Looking at an example business plan's financials section can be helpful because you can see what should be included, but take them with a grain of salt. Don't assume that financial projections for a sample company will fit your own small business.

If you're looking for more resources to help you get started, our business planning guide is a good place to start. You can also download our free business plan template , or get started right away with LivePlan .

Think of business planning as a process, instead of a document

Think about business planning as something you do often , rather than a document you create once and never look at again. If you take the time to write a plan that really fits your own company, it will be a better, more useful tool to grow your business. It should also make it easier to share your vision and strategy so everyone on your team is on the same page.

Adjust your plan regularly to use it as a business management tool

Keep in mind that businesses that use their plan as a management tool to help run their business grow 30 percent faster than those businesses that don't. For that to be true for your company, you'll think of a part of your business planning process as tracking your actual results against your financial forecast on a regular basis.

If things are going well, your plan will help you think about how you can re-invest in your business. If you find that you're not meeting goals, you might need to adjust your budgets or your sales forecast. Either way, tracking your progress compared to your plan can help you adjust quickly when you identify challenges and opportunities—it's one of the most powerful things you can do to grow your business.

Prepare to pitch your business

If you're planning to pitch your business to investors or seek out any funding, you'll need a pitch deck to accompany your business plan. A pitch deck is designed to inform people about your business. You want your pitch deck to be short and easy to follow, so it's best to keep your presentation under 20 slides.

Your pitch deck and pitch presentation are likely some of the first things that an investor will see to learn more about your company. So, you need to be informative and pique their interest. Luckily, just like you can leverage an example business plan template to write your plan, we also have a gallery of over 50 pitch decks for you to reference.

With this gallery, you have the option to view specific industry pitches or get inspired by real-world pitch deck examples. Or for a modern pitch solution that helps you create a business plan and pitch deck side-by-side, you may want to check out LivePlan . It will help you build everything needed for outside investment and to better manage your business.

Get LivePlan in your classroom

Are you an educator looking for real-world business plan examples for your students? With LivePlan, you give your students access to industry-best business plans and help them set goals and track metrics with spreadsheet-free financial forecasts. All of this within a single tool that includes additional instructional resources that work seamlessly alongside your current classroom setup.

With LivePlan, it's not just a classroom project. It's your students planning for their futures. Click here to learn more about business planning for students .

Ready to get started?

Now that you know how to use an example business plan to help you write a plan for your business, it's time to find the right one.

Use the search bar below to get started and find the right match for your business idea.

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FAC Number: 2024-02 Effective Date: 01/22/2024

Part 19 - Small Business Programs

Part 19 - Small Business Programs

19.000 scope of part., 19.001 definitions., subpart 19.1 - size standards, 19.101 [reserved], 19.102 small business size standards and north american industry classification system codes., 19.103 appealing the contracting officer's north american industry classification system code and size standard determination., subpart 19.2 - policies, 19.201 general policy., 19.202 specific policies., 19.202-1 encouraging small business participation in acquisitions., 19.202-2 locating small business sources., 19.202-3 equal low bids., 19.202-4 solicitation., 19.202-5 data collection and reporting requirements., 19.202-6 determination of fair market price., 19.203 relationship among small business programs., subpart 19.3 - determination of small business size and status for small business programs, 19.301 representations and rerepresentations., 19.301-1 representation by the offeror., 19.301-2 rerepresentation by a contractor that represented itself as a small business concern., 19.301-3 rerepresentation by a contractor that represented itself as other than a small business concern., 19.302 protesting a small business representation or rerepresentation., 19.303 [reserved]., 19.304 small disadvantaged business status., 19.305 reviews of sdb status., 19.306 protesting a firm’s status as a hubzone small business concern., 19.307 protesting a firm’s status as a service-disabled veteran-owned small business concern., 19.308 protesting a firm’s status as an economically disadvantaged women-owned small business concern or women-owned small business concern eligible under the women-owned small business program., 19.309 solicitation provisions and contract clauses., subpart 19.4 - cooperation with the small business administration, 19.401 general., 19.402 small business administration procurement center representatives., 19.403 [reserved]., subpart 19.5 - small business total set-asides, partial set-asides, and reserves, 19.501 general., 19.502 setting aside acquisitions., 19.502-1 requirements for setting aside acquisitions., 19.502-2 total small business set-asides., 19.502-3 partial set-asides of contracts other than multiple-award contracts., 19.502-4 partial set-asides of multiple-award contracts., 19.502-5 insufficient reasons for not setting aside an acquisition., 19.502-6 setting aside a class of acquisitions for small business., 19.502-7 inclusion of federal prison industries, inc., 19.502-8 rejecting small business administration recommendations., 19.502-9 withdrawing or modifying small business set-asides., 19.502-10 automatic dissolution of a small business set-aside., 19.502-11 solicitation notice regarding administration of change orders for construction., 19.503 reserves., 19.504 orders under multiple-award contracts., 19.505 limitations on subcontracting and nonmanufacturer rule., 19.506 documentation requirements., 19.507 solicitation provisions and contract clauses., subpart 19.6 - certificates of competency and determinations of responsibility, 19.601 general., 19.602 procedures., 19.602-1 referral., 19.602-2 issuing or denying a certificate of competency (coc)., 19.602-3 resolving differences between the agency and the small business administration., 19.602-4 awarding the contract., subpart 19.7 - the small business subcontracting program, 19.701 definitions., 19.702 statutory requirements., 19.703 eligibility requirements for participating in the program., 19.704 subcontracting plan requirements., 19.705 responsibilities of the contracting officer under the subcontracting assistance program., 19.705-1 general., 19.705-2 determining the need for a subcontracting plan., 19.705-3 preparing the solicitation., 19.705-4 reviewing the subcontracting plan., 19.705-5 awards involving subcontracting plans., 19.705-6 postaward responsibilities of the contracting officer., 19.705-7 compliance with the subcontracting plan., 19.706 responsibilities of the cognizant administrative contracting officer., 19.707 the small business administration’s role in carrying out the program., 19.708 contract clauses., subpart 19.8 - contracting with the small business administration (the 8(a) program), 19.800 general., 19.801 [reserved], 19.802 determining eligibility for the 8(a) program., 19.803 selecting acquisitions for the 8(a) program., 19.804 evaluation, offering, and acceptance., 19.804-1 agency evaluation., 19.804-2 agency offering., 19.804-3 sba acceptance., 19.804-4 repetitive acquisitions., 19.804-5 basic ordering agreements and blanket purchase agreements., 19.804-6 indefinite delivery contracts., 19.805 competitive 8(a)., 19.805-1 general., 19.805-2 procedures., 19.806 pricing the 8(a) contract., 19.807 estimating fair market price., 19.808 contract negotiation., 19.808-1 sole source., 19.808-2 competitive., 19.809 preaward considerations., 19.809-1 preaward survey., 19.809-2 limitations on subcontracting and nonmanufacturer rule., 19.810 sba appeals., 19.811 preparing the contracts., 19.811-1 sole source., 19.811-2 competitive., 19.811-3 contract clauses., 19.812 contract administration., 19.813 protesting an 8(a) participant's eligibility or size status., 19.814 requesting a formal size determination (8(a) sole source requirements)., 19.815 release and notification requirements for non-8(a) procurement., 19.816 exiting the 8(a) program., subpart 19.9 - [reserved], subpart 19.10 - [reserved], subpart 19.11 - [reserved], subpart 19.12 - [reserved], subpart 19.13 - historically underutilized business zone (hubzone) program, 19.1301 general., 19.1302 [reserved]., 19.1303 status as a hubzone small business concern., 19.1304 exclusions., 19.1305 hubzone set-aside procedures., 19.1306 hubzone sole-source awards., 19.1307 price evaluation preference for hubzone small business concerns., 19.1308 [reserved]., 19.1309 contract clauses., subpart 19.14 - service-disabled veteran-owned small business procurement program, 19.1401 general., 19.1402 applicability., 19.1403 status as a service-disabled veteran-owned small business concern., 19.1404 exclusions., 19.1405 service-disabled veteran-owned small business set-aside procedures., 19.1406 sole source awards to service-disabled veteran-owned small business concerns., 19.1407 [reserved], 19.1408 contract clauses., subpart 19.15 - women-owned small business program., 19.1500 general., 19.1501 [reserved], 19.1502 applicability., 19.1503 status., 19.1504 exclusions., 19.1505 set-aside procedures., 19.1506 women-owned small business program sole-source awards., 19.1507 [reserved], 19.1508 contract clauses..

(a) This part implements the acquisition -related sections of the Small Business Act ( 15 U.S.C. 631 , et seq. ), applicable sections of the Armed Services Procurement Act ( 10 U.S.C. 3063–3064 and 3203 ), 41 U.S.C. 3104 , and Executive Order 12138, May 18, 1979. It covers—

(1) The determination that a concern is eligible for participation in the programs identified in this part;

(2) The respective roles of executive agencies and the Small Business Administration (SBA) in implementing the programs;

(3) Setting acquisitions aside, in total or in part, for exclusive competitive participation by small business, 8(a) participants, HUBZone small business concerns , service-disabled veteran-owned small business concerns , and economically disadvantaged women-owned small business (EDWOSB) concerns and women-owned small business (WOSB) concerns eligible under the WOSB Program;

(4) The certificate of competency program;

(5) The subcontracting assistance program;

(6) The "8(a)" business development program (hereafter referred to as 8(a) program), under which agencies contract with the SBA for goods or services to be furnished under a subcontract by a small disadvantaged business concern ;

(7) The use of a price evaluation preference for HUBZone small business concerns ;

(8) The use of veteran-owned small business concerns ;

(9) Sole source awards to HUBZone small business concerns , service-disabled veteran-owned small business concerns , and EDWOSB concerns and WOSB concerns eligible under the WOSB Program; and

(10) The use of reserves.

(1) Unless otherwise specified in this part (see Subpart 19.6 - Certificates of Competency and Determinations of Responsibility and Subpart 19.7 - The Small Business Subcontracting Program )—

(i) Contracting officers shall apply this part in the United States and its outlying areas ; and

(ii) Contracting officers may apply this part outside the United States and its outlying areas .

(2) Offerors that participate in any procurement under this part are required to meet the definition of “small business concern ” at 2.101 and the definition of “ concern ” at 19.001 .

As used in this part-

Concern means any business entity organized for profit (even if its ownership is in the hands of a nonprofit entity) with a place of business located in the United States or its outlying areas and that makes a significant contribution to the U.S. economy through payment of taxes and/or use of American products , material and/or labor, etc. " Concern " includes but is not limited to an individual, partnership, corporation, joint venture, association, or cooperative. For more information, see 13 CFR 121.105 .

Fair market price means a price based on reasonable costs under normal competitive conditions and not on lowest possible cost (see 19.202-6 ).

Industry means all concerns primarily engaged in similar lines of activity, as listed and described in the North American Industry Classification System (NAICS) manual.

Similarly situated entity means a first-tier subcontractor, including an independent contractor, that—

(1) Has the same small business program status as that which qualified the prime contractor for the award ( e.g. , for a small business set-aside contract, any small business concern , without regard to socioeconomic status); and

(2) Is considered small for the size standard under the NAICS code the prime contractor assigned to the subcontract.

(a) Locating size standards and North American Industry Classification System codes.

(1) SBA establishes small business size standards on an industry -by- industry basis. Small business size standards and corresponding North American Industry Classification System (NAICS) codes are provided at 13 CFR 121.201 . They are also available at https://www.sba.gov/​document/​support--table-size-standards .

(2) NAICS codes are updated by the Office of Management and Budget through its Economic Classification Policy Committee every five years. New NAICS codes are not available for use in Federal contracting until SBA publishes corresponding size standards. NAICS codes are available from the U.S. Census Bureau at https://www.census.gov/naics/ .

(3) SBA determines the size status of a concern , including its affiliates , as of the date the concern represents that it is small to the contracting officer as part of its initial offer , which includes price.

(4) When an agency uses a solicitation for a multiple-award contract that does not require offers for the contract to include price, SBA determines size as of the date of initial offer for the multiple-award contract , whether or not the offer includes price or the price is evaluated. (See 13 CFR 121.404(a)(1)(iv) ).

(b) Determining the appropriate NAICS codes for the solicitation .

(1) Unless required to do otherwise by paragraph (b)(2)(ii)(B) of this section, contracting officers shall assign one NAICS code and corresponding size standard to all solicitations , contracts, and task and delivery orders . The contracting officer shall determine the appropriate NAICS code by classifying the product or service being acquired in the one industry that best describes the principal purpose of the supply or service being acquired. Primary consideration is given to the industry descriptions in the U.S. NAICS Manual, the product or service descriptions in the solicitation , the relative value and importance of the components of the requirement making up the end item being procured, and the function of the goods or services being purchased. A procurement is usually classified according to the component that accounts for the greatest percentage of contract value.

(i) For solicitations issued on or before October 1, 2025, that will result in multiple-award contracts , the contracting officer shall assign a NAICS code in accordance with paragraph (b)(1) of this section.

(ii) For solicitations issued after October 1, 2025, that will result in multiple-award contracts , the contracting officer shall –

(A) Assign a single NAICS code (and corresponding size standard) that best describes the principal purpose of both the acquisition and each subsequent order; or

(B) Divide the acquisition into distinct portions or categories ( e.g. , line item numbers , Special Item Numbers, sectors, functional areas, or equivalent) and assign each portion or category a single NAICS code and size standard that best describes the principal purpose of the supplies or services to be acquired under that distinct portion or category.

(i) When placing orders under multiple-award contracts with a single NAICS code, the contracting officer shall assign the order the same NAICS code and corresponding size standard designated in the contract.

(ii) When placing orders under multiple-award contracts with more than one NAICS code, the contracting officer shall assign the order the NAICS code and corresponding size standard designated in the contract for the distinct portion or category against which the order is placed. If an order covers multiple portions or categories, select the NAICS code and corresponding size standard designated in the contract for the distinct portion or category that best represents the principal purpose of the order.

(4) The contracting officer 's designation is final unless appealed in accordance with the procedures in 19.103 .

(c) Application of small business size standards to solicitations .

(1) The contracting officer shall apply the size standard in effect on the date the solicitation is issued.

(2) The contracting officer may amend the solicitation and use the new size standard if SBA amends the size standard and it becomes effective before the due date for receipt of initial offers .

(a) The contracting officer ’s determination is final unless appealed as follows:

(1) An appeal of a contracting officer ’s NAICS code designation and the applicable size standard shall be served and filed within 10 calendar days after the issuance of the initial solicitation or any amendment affecting the NAICS code or size standard. However, SBA may file a NAICS code appeal at any time before offers are due.

(2) Appeals of a contracting officer 's NAICS code designation or applicable size standard may be filed with SBA’s Office of Hearings and Appeals (OHA) by—

(i) Any person adversely affected by a NAICS code designation or applicable size standard. However, with respect to a particular sole source 8(a) contract, only the SBA Associate Administrator for Business Development may appeal a NAICS code designation; or

(ii) The Associate or Assistant Director for the SBA program involved, through SBA’s Office of General Counsel.

(3) Contracting officers shall advise the public, by amendment to the solicitation , of the existence of a NAICS code appeal (see 5.102 (a)(1)). Such notices shall include the procedures and the deadline for interested parties to file and serve arguments concerning the appeal.

(4) SBA’s OHA will dismiss summarily an untimely NAICS code appeal.

(5) NAICS code appeals are filed in accordance with 13 CFR 121.1103 .

(6) Upon receipt of a NAICS code appeal, OHA will notify the contracting officer by a notice and order of the date OHA received the appeal, the docket number, and the Administrative Judge assigned to the case. The contracting officer 's response to the appeal, if any, shall include argument and evidence (see 13 CFR part 134 ), and shall be received by OHA within 15 calendar days from the date of the docketing notice and order, unless otherwise specified by the Administrative Judge. Upon receipt of OHA’s docketing notice and order, the contracting officer shall withhold award, unless withholding award is not in the best interests of the Government, and immediately send to OHA an electronic link to or a paper copy of both the original solicitation and all amendments relating to the NAICS code appeal. The contracting officer shall inform OHA of any amendments, actions, or developments concerning the procurement in question.

(7) After close of record, OHA will issue a decision and inform the contracting officer . If OHA’s decision is received by the contracting officer before the date the offers are due, the decision shall be final and the solicitation shall be amended to reflect the decision, if appropriate. OHA’s decision received after the due date of the initial offers shall not apply to the pending solicitation but shall apply to future solicitations of the same products or services.

(b) SBA’s regulations concerning appeals of NAICS code designations are located at 13 CFR 121.1102 to 121.1103 and 13 CFR part 134 .

(a) It is the policy of the Government to provide maximum practicable opportunities in its acquisitions to small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns . Such concerns must also have the maximum practicable opportunity to participate as subcontractors in the contracts awarded by any executive agency , consistent with efficient contract performance. The Small Business Administration (SBA) counsels and assists small business concerns and assists contracting personnel to ensure that a fair proportion of contracts for supplies and services is placed with small business.

(b) Heads of contracting activities are responsible for effectively implementing the small business programs within their activities, including achieving program goals. They are to ensure that contracting and technical personnel maintain knowledge of small business program requirements and take all reasonable action to increase participation in their activities’ contracting processes by these businesses.

(c) The Small Business Act requires each agency with contracting authority to establish an Office of Small and Disadvantaged Business Utilization (see section 15(k) of the Small Business Act). For the Department of Defense, in accordance with section 904 of Public Law 109-163 ( 10 U.S.C. 144 note), the Office of Small and Disadvantaged Business Utilization has been redesignated as the Office of Small Business Programs. Management of the office is the responsibility of an officer or employee of the agency who, in carrying out the purposes of the Act—

(1) Is known as the Director of the Office of Small and Disadvantaged Business Utilization , or for the Department of Defense, the Director of the Office of Small Business Programs;

(2) Is appointed by the agency head ;

(3) Is responsible to and reports directly to the agency head or the deputy to the agency head (except that for the Department of Defense, the Director of the Office of Small Business Programs reports to the Secretary or the Secretary’s designee);

(4) Is responsible for the agency carrying out the functions and duties in sections 8, 15, 31, 36, and 44 of the Small Business Act;

(5) Works with the SBA procurement center representative (PCR) (or, if a PCR is not assigned, see 19.402 (a)) to identify proposed solicitations that involve bundling and work with the agency acquisition officials and SBA to revise the acquisition strategies for such proposed solicitations to increase the probability of participation by small businesses;

(6) Assists small business concerns in obtaining payments under their contracts, late payment interest penalties, or information on contractual payment provisions;

(7) Has supervisory authority over agency personnel to the extent that their functions and duties relate to sections 8, 15, 31, 36, and 44 of the Small Business Act;

(8) Assigns a small business technical advisor to each contracting activity within the agency to which the SBA has assigned a representative (see 19.402)—

(i) Who is a full-time employee of the contracting activity , well qualified, technically trained, and familiar with the supplies or services contracted for by the activity; and

(ii) Whose principal duty is to assist the SBA's assigned representative in performing functions and duties relating to sections 8, 15, 31, 36, and 44 of the Small Business Act;

(9) Cooperates and consults on a regular basis with the SBA in carrying out the agency's functions and duties in sections 8, 15, 31, 36, and 44 of the Small Business Act;

(10) Makes recommendations in accordance with agency procedures as to whether a particular acquisition should be awarded under subpart 19.5 as a small business set-aside, under subpart 19.8 as a section 8(a) award, under subpart 19.13 as a HUBZone set-aside, under subpart 19.14 as a service-disabled veteran-owned small business set-aside, or under subpart 19.15 as a set-aside for economically disadvantaged women-owned small business (EDWOSB) concerns or women-owned small business (WOSB) concerns eligible under the WOSB Program;

(11) Conducts annual reviews to assess the—

(i) Extent to which small businesses are receiving a fair share of Federal procurements , including contract opportunities under the programs administered under the Small Business Act;

(ii) Adequacy of consolidated or bundled contract documentation and justifications; and

(iii) Actions taken to mitigate the effects of necessary and justified consolidation or bundling on small businesses.

(12) Provides a copy of the assessment made under paragraph (c)(11) of this section to the Agency Head and SBA Administrator;

(13) Provides to the chief acquisition officer and senior procurement executive advice and comments on acquisition strategies, market research , and justifications related to consolidation of contract requirements;

(14) When notified by a small business concern prior to the award of a contract that the small business concern believes that a solicitation , request for proposal, or request for quotation unduly restricts the ability of the small business concern to compete for the award–

(i) Submits the notification by the small business concern to the contracting officer and, if necessary, recommends ways in which the solicitation , request for proposal, or request for quotation may be altered to increase the opportunity for competition; and

(ii) Informs the advocate for competition of such agency (as established under 41 U.S.C 1705 or 10 U.S.C. 3249 ) of such notification;

(15) Ensures agency purchases using the Governmentwide purchase card that are greater than the micro-purchase threshold and less than the simplified acquisition threshold were made in compliance with the Small Business Act and were properly recorded in accordance with subpart  4.6 in the Federal Procurement Data System;

(16) Assists small business contractors and subcontractors in finding resources for education and training on compliance with contracting regulations;

(17) Reviews all subcontracting plans required by 19.702 (a) to ensure the plan provides maximum practicable opportunity for small business concerns to participate in the performance of the contract; and

(18) Performs other duties listed at 15 U.S.C. 644(k) .

(d) Small business specialists shall be appointed and act in accordance with agency regulations.

(1) The contracting activity shall coordinate with the small business specialist as early in the acquisition planning process as practicable, but no later than 30 days before the issuance of a solicitation , or prior to placing an order without a solicitation when the acquisition meets the dollar thresholds set forth at 7.107-4 (a)(1). See also 7.104 (d).

(2) The small business specialist shall notify the agency's Director of the Office of Small and Disadvantaged Business Utilization , and for the Department of Defense, the Director of the Office of Small Business Programs, when the criteria relating to substantial bundling at 7.107-4 (a)(1) are met.

(3) The small business specialist shall coordinate with the contracting activity and the SBA PCR on all determinations and findings required by 7.107 for consolidation or bundling of contract requirements.

In order to further the policy in 19.201 (a), contracting officers shall comply with the specific policies listed in this section and shall consider recommendations of the agency Director of the Office of Small and Disadvantaged Business Utilization , or for the Department of Defense, the Director of the Office of Small Business Programs, or the Director’s designee, as to whether a particular acquisition should be awarded under subpart 19.5 , 19.8 , 19.13 , 19.14 , or 19.15 . Agencies shall establish procedures including dollar thresholds for review of acquisitions by the Director or the Director's designee for the purpose of making these recommendations. The contracting officer shall document the contract file whenever the Director's recommendations are not accepted, in accordance with 19.506 .

Small business concerns shall be afforded an equitable opportunity to compete for all contracts that they can perform to the extent consistent with the Government’s interest. When applicable, the contracting officer shall take the following actions:

(a) Divide proposed acquisitions of supplies and services (except construction ) into reasonably small lots (not less than economic production runs) to permit offers on quantities less than the total requirement.

(b) Plan acquisitions such that, if practicable, more than one small business concern may perform the work, if the work exceeds the amount for which a surety may be guaranteed by SBA against loss under 15 U.S.C.694b .

(c) Ensure that delivery schedules are established on a realistic basis that will encourage small business participation to the extent consistent with the actual requirements of the Government.

(d) Encourage prime contractors to subcontract with small business concerns (see subpart  19.7 ).

(1) Provide a copy of the proposed acquisition package and other reasonably obtainable information related to the acquisition to the SBA PCR (or, if a PCR is not assigned, see 19.402 (a)) at least 30 days prior to the issuance of the solicitation if—

(i) The proposed acquisition is for supplies or services currently being provided by a small business and the proposed acquisition is of a quantity or estimated dollar value, the magnitude of which makes it unlikely that small businesses can compete for the prime contract;

(ii) The proposed acquisition is for construction and seeks to package or consolidate discrete construction projects and the magnitude of this consolidation makes it unlikely that small businesses can compete for the prime contract;

(iii) The proposed acquisition is for a consolidated or bundled requirement. (See 7.107-5 (a) for mandatory 30- day notice requirement to incumbent small business concerns .) The contracting officer shall provide all information relative to the justification for the consolidation or bundling , including the acquisition plan or strategy, and if the acquisition involves substantial bundling , the information identified in 7.107-4 . The contracting officer shall also provide the same information to the agency Office of Small and Disadvantaged Business Utilization : or

(iv) The acquisition will be reviewed at the PCR's discretion.

(2) For acquisitions described in paragraph (e)(1)(i) through (iii) of this section, provide a statement explaining why the—

(i) Proposed acquisition cannot be divided into reasonably small lots (not less than economic production runs) to permit offers on quantities less than the total requirement;

(ii) Delivery schedules cannot be established on a realistic basis that will encourage small business participation to the extent consistent with the actual requirements of the Government;

(iii) Proposed acquisition cannot be structured so as to make it likely that small businesses can compete for the prime contract;

(iv) Consolidated construction project cannot be acquired as separate discrete projects; or

(v) Consolidation or bundling is necessary and justified.

(3) Process the 30- day notification concurrently with other processing steps required prior to the issuance of the solicitation .

(4) If the contracting officer rejects the SBA PCR’s recommendation made in accordance with 19.402 (c)(2), document the basis for the rejection and notify the SBA PCR in accordance with 19.502-8.

The contracting officer shall , to the extent practicable, encourage maximum participation by small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns in acquisitions by taking the following actions:

(a) Before issuing solicitations , make every reasonable effort to find additional small business concerns (see 10.002 (b)(2)). This effort should include contacting the agency small business specialist and SBA PCR (or, if a PCR is not assigned, see 19.402 (a)).

(b) Publicize solicitations and contract awards through the Governmentwide point of entry (see subparts  5.2 and 5.3 ).

In the event of equal low bids (see 14.408-6 ), awards shall be made first to small business concerns which are also labor surplus area concerns , and second to small business concerns which are not also labor surplus area concerns .

The contracting officer shall encourage maximum response to solicitations by small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns by taking the following actions:

(a) Allow the maximum amount of time practicable for the submission of offers .

(b) Furnish specifications, plans, and drawings with solicitations , or furnish information as to where they may be obtained or examined.

(c) Provide to any small business concern , upon its request, a copy of solicitations with respect to any contract to be let, the name and telephone number of an agency contact to answer questions related to such prospective contract and adequate citations to each major Federal law or agency rule with which such business concern must comply in performing such contract other than laws or agency rules with which the small business must comply when doing business with other than the Government.

Agencies shall measure the extent of small business participation in their acquisition programs by taking the following actions:

(a) Require each prospective contractor to represent whether it is a small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, women-owned small business, EDWOSB concern , or WOSB concern eligible under the WOSB Program (see the provision at 52.219-1 , Small Business Program Representations).

(b) Accurately measure the extent of participation by small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns in Government acquisitions in terms of the total value of contracts placed during each fiscal year, and report data to the SBA at the end of each fiscal year (see subpart  4.6 ).

(c) When the contract includes the clause at 52.219-28 , Post Award Small Business Program Rerepresentation, and the conditions in the clause for rerepresenting are met—

(1) Require a contractor that represented itself as any of the small business concerns identified in 19.000 (a)(3) prior to award of the contract to rerepresent its size and socioeconomic status ( i.e. , 8(a), small disadvantaged business, HUBZone small business, service-disabled veteran-owned small business, EDWOSB, or WOSB status); and

(2) Permit a contractor that represented itself as other than a small business concern prior to award to rerepresent its size status.

(a) The fair market price shall be the price achieved in accordance with the reasonable price guidelines in 15.404-1 (b) for-

(1) Total and partial small business set-asides, and reserves (see subpart  19.5 );

(2) HUBZone set-asides (see subpart  19.13 );

(3) Contracts utilizing the price evaluation preference for HUBZone small business concerns (see subpart  19.13 );

(4) Service-disabled veteran-owned small business set-asides (see subpart 19.14 );

(5) Set-asides for EDWOSB concerns and WOSB concerns eligible under the WOSB Program (see subpart 19.15 ).

(b) For 8(a) contracts, both with respect to meeting the requirement at 19.806 (b) and in order to accurately estimate the current fair market price , contracting officers shall follow the procedures at 19.807 .

(a) There is no order of precedence among the 8(a) Program (subpart 19.8 ), HUBZone Program (subpart 19.13 ), Service-Disabled Veteran-Owned Small Business (SDVOSB) Procurement Program (subpart 19.14 ), or the Women-Owned Small Business (WOSB) Program (subpart 19.15 ).

(b) At or below the simplified acquisition threshold . For acquisitions of supplies or services that have an anticipated dollar value above the micro-purchase threshold, but at or below the simplified acquisition threshold , the requirement at 19.502-2 (a) to set aside acquisitions for small business concerns does not preclude the contracting officer from awarding a contract to a small business under the 8(a) Program, HUBZone Program, SDVOSB Program, or WOSB Program.

(c) Above the simplified acquisition threshold . For acquisitions of supplies or services that have an anticipated dollar value exceeding the simplified acquisition threshold definition at 2.101 , the contracting officer shall first consider an acquisition for the small business socioeconomic contracting programs ( i.e. , 8(a), HUBZone , SDVOSB, or WOSB programs) before considering a small business set-aside (see 19.502-2 (b)). However, if a requirement has been accepted by the SBA under the 8(a) Program, it must remain in the 8(a) Program unless the SBA agrees to its release in accordance with 13 CFR parts 124, 125, and 126.

(d) In determining which socioeconomic program to use for an acquisition , the contracting officer should consider, at a minimum-

(1) Results of market research that was done to determine if there are socioeconomic firms capable of satisfying the agency’s requirement; and

(2) Agency progress in fulfilling its small business goals.

(e) Small business set-asides have priority over acquisitions using full and open competition . See requirements for establishing a small business set-aside at subpart 19.5 .

(1) To be eligible for award as a small business concern identified in 19.000 (a)(3), an offeror is required to represent in good faith—

(A) That it meets the small business size standard corresponding to the North American Industry Classification System (NAICS) code identified in the solicitation ; or

(B) For a multiple-award contract where there is more than one NAICS code assigned, that it meets the small business size standard for each distinct portion or category ( e.g., line item numbers , Special Item Numbers (SINs), sectors, functional areas, or the equivalent) for which it submits an offer . If the small business concern submits an offer for the entire multiple-award contract , it must meet the size standard for each distinct portion or category ( e.g., line item number , SIN, sector, functional area, or equivalent); and

(ii) The Small Business Administration (SBA) has not issued a written determination stating otherwise pursuant to 13 CFR 121.1009 .

(i) A joint venture may qualify as a small business concern if the joint venture complies with the requirements of 13 CFR 121.103(h) and 13 CFR 125.8(a) and (b) and if—

(A) Each party to the joint venture qualifies as small under the size standard for the solicitation ; or

(B) The protégé is small under the size standard for the solicitation in a joint venture comprised of a mentor and protégé with an approved mentor-protégé agreement under an SBA mentor-protégé program.

(ii) A joint venture may qualify for an award under the socioeconomic programs as described in subparts 19.8 , 19.13 , 19.14 , and 19.15 .

(b) An offeror is required to represent its size and socioeconomic status in writing to the contracting officer at the time of initial offer , (whether or not the offer includes price or the price is evaluated), including offers for—

(1) Basic ordering agreements (see 16.703 ); and

(2) Blanket purchase agreements (BPAs) issued pursuant to part  13 .

(c) To be eligible for an award of an order under a basic ordering agreement or a BPA issued pursuant to part  13 as a small business concern identified in 19.000 (a)(3), the offeror must be a small business concern identified in 19.000 (a)(3) at the time of award of the order.

(d) To be eligible for an award under the HUBZone Program (see subpart  19.13 ), a HUBZone small business concern must be a HUBZone small business concern at the time of initial offer .

(e) Multiple-award contract representations:

(1) A business that represents as a small business concern at the time of its initial offer for the contract (whether or not the offer includes price or the price is evaluated (see 13 CFR 121.404(a)(1)(iv) ), is considered a small business concern for each order issued under the contract (but see 19.301-2 for rerepresentations).

(2) A business that represents as a small business concern at the time of its initial offer for a distinct portion or category as set forth in paragraph (a)(1)(ii) is considered a small business concern for each order issued under that distinct portion or category (but see 19.301-2 for rerepresentations).

(f) The contracting officer shall accept an offeror ’s representation in a specific bid or proposal that it is a small business unless (1) another offeror or interested party challenges the concern ’s small business representation or (2) the contracting officer has a reason to question the representation. Challenges of and questions concerning a specific representation shall be referred to the SBA in accordance with 19.302 .

(g) An offeror ’s representation that it is a small business is not binding on the SBA. If an offeror ’s small business status is challenged, the SBA will evaluate the status of the concern and make a determination, which will be binding on the contracting officer , as to whether the offeror is a small business. A concern cannot become eligible for a specific award by taking action to meet the definition of a small business concern after the SBA has determined that it is not a small business.

(h) If the SBA determines that the status of a concern as a small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, or women-owned small business has been misrepresented in order to obtain a set-aside contract, an 8(a) subcontract, a subcontract that is to be included as part or all of a goal contained in a subcontracting plan, or a prime or subcontract to be awarded as a result, or in furtherance of any other provision of Federal law that specifically references Section 8(d) of the Small Business Act for a definition of program eligibility, the SBA may take action as specified in Sections 16(a) or 16(d) of the Act. If the SBA declines to take action, the agency may initiate the process. The SBA’s regulations on penalties for misrepresentations and false statements are contained in 13 CFR 121.108 for small business, 13 CFR 124.501 for 8(a) small business, 13 CFR 128.600 for veteran or service-disabled veteran-owned small business, 13 CFR 126.900 for HUBZone small business, and 13 CFR 127.700 for economically disadvantaged women-owned small business concerns and women-owned small business (WOSB) concerns eligible under the WOSB Program.

(a) Definition . As used in this subsection-

Long-term contract means a contract of more than five years in duration, including options . However, the term does not include contracts that exceed five years in duration because the period of performance has been extended for a cumulative period not to exceed six months under the clause at 52.217-8 , Option to Extend Services, or other appropriate authority.

(b) A contractor that represented itself as any of the small business concerns identified in 19.000 (a)(3) before contract award is required to rerepresent its size and socioeconomic status—

(1) For the NAICS code(s) in the contract–

(i) Within 30 days after execution of a novation agreement or within 30 days after modification of the contract to include the clause at 52.219-28 , Post-Award Small Business Program Rerepresentation, if the novation agreement was executed prior to inclusion of this clause in the contract;

(ii) Within 30 days after a merger or acquisition (whether the contractor acquires or is acquired by another company) of the contractor that does not require novation or within 30 days after modification of the contract to include the clause at 52.219-28 , Post-Award Small Business Program Rerepresentation, if the merger or acquisition occurred prior to inclusion of this clause in the contract;

(iii) For long-term contracts–

(A) Within 60 to 120 days prior to the end of the fifth year of the contract; and

(B) Within 60 to 120 days prior to the date specified in the contract for exercising any option thereafter; or

(2) For the NAICS code assigned to an order under a multiple-award contract , if the contracting officer requires contractors to rerepresent their size and socioeconomic status for that order.

(c) A contractor is required to rerepresent its size status in accordance with the size standard in effect at the time of its rerepresentation that corresponds to the NAICS code that was initially assigned to the contract. For multiple-award contracts where there is more than one NAICS code assigned, the contractor is required to rerepresent its size status for each NAICS code assigned to the contract.

(1) Contract rerepresentation. After a contractor rerepresents for a contract that it no longer qualifies as a small business concern identified in 19.000 (a)(3) in accordance with 52.219-28 , the agency may no longer include the value of options exercised, modifications issued, orders issued, or purchases made under BPAs on that contract in its small business prime contracting goal achievements. When a contractor's rerepresentation for a contract qualifies it as a different small business concern identified in 19.000 (a)(3) than what it represented for award, the agency may include the value of options exercised, modifications issued, orders issued, or purchases made under BPAs on that contract in its small business prime contracting goal achievements, consistent with the rerepresentation. Agencies should issue a modification to the contract capturing the rerepresentation and report it to FPDS within 30 days after notification of the rerepresentation.

(2) Rerepresentation for a task or delivery order .

(i) When a contractor rerepresents for an order that it no longer qualifies as a small business concern identified in 19.000 (a)(3), the agency cannot include the value of the order in its small business prime contracting goal achievements. When a contractor's rerepresentation for an order qualifies it as a different small business concern identified in 19.000 (a)(3) than what it represented for contract award, the agency can include the value of the order in its small business prime contracting goal achievement, consistent with the rerepresentation.

(ii) A rerepresentation for an order does not change the size or socioeconomic status representation for the contract.

(e) A change in size status does not change the terms and conditions of the contract. However, the contracting officer may require a subcontracting plan for a contract containing 52.219-9 , Small Business Subcontracting Plan, if a prime contractor's size status changes from small to other than small as a result of a size rerepresentation (see 19.705-2 (b)(3)).

A contractor that represented itself as other than small before contract award may , but is not required to, rerepresent its size status when-

(a) The conditions in 19.301-2 (b) apply; and

(b) The contractor qualifies as a small business concern under the applicable size standard in effect at the time of its rerepresentation.

(1) The SBA regulations on small business size and size protests are found at 13 CFR part 121 .

(2) An offeror , the contracting officer , SBA, or another interested party may protest the small business representation of an offeror in a specific offer for a contract. However, for competitive 8(a) contracts, the filing of a protest is limited to an offeror , the contracting officer , or the SBA.

(b) Any time after offers are received by the contracting officer , or in the case of bids, opened, the contracting officer may question the small business representation of any offeror in a specific offer by filing a contracting officer 's protest (see paragraph (c) of this section).

(1) Any contracting officer who receives a protest, whether timely or not, or who, as the contracting officer , wishes to protest the small business representation of an offeror , or rerepresentation of a contractor, shall promptly forward the protest to the SBA Government Contracting Area Director at the Government Contracting Area Office serving the area in which the headquarters of the offeror is located.

(2) The protest, or confirmation if the protest was initiated orally, shall be in writing and shall contain the basis for the protest with specific, detailed evidence to support the allegation that the offeror is not small. The SBA will dismiss any protest that does not contain specific grounds for the protest.

(3) The protest shall include a referral letter written by the contracting officer with information pertaining to the solicitation . The referral letter must include the following information to allow SBA to determine timeliness and standing:

(i) The protest and any accompanying materials.

(ii) A copy of the size self-certification.

(iii) Identification of the applicable size standard.

(iv) A copy or an electronic link to the solicitation and any amendments.

(v) The name, address, telephone number, email address, and fax number of the contracting officer .

(vi) Identification of the bid opening date or the date of notification provided to unsuccessful offerors .

(vii) The date the contracting officer received the protest.

(viii) A complete address and point of contact for the protested concern .

(d) In order to affect a specific solicitation , a protest must be timely. SBA’s regulations on timeliness are contained in 13 CFR121.1004. SBA’s regulations on timeliness related to protests of disadvantaged status are contained in 13 CFR124, Subpart B.

(1) To be timely, a protest by any concern or other interested party must be received by the contracting officer (see paragraphs (d)(1)(i) and (ii) of this section) by the close of business of the fifth business day after bid opening (in sealed bid acquisitions ) or receipt of the special notification from the contracting officer that identifies the apparently successful offeror (in negotiated acquisitions ) (see 15.503 (a)(2)).

(i) A protest may be made orally if it is confirmed in writing and received by the contracting officer within the 5- day period or by letter postmarked no later than 1 business day after the oral protest.

(ii) A protest may be made in writing if it is delivered to the contracting officer by hand, mail, facsimile, e-mail, express or overnight delivery service.

(2) Except as provided in paragraph (d)(4) of this section, a protest filed by the contracting officer or SBA is always considered timely whether filed before or after award.

(3) A protest under a Multiple Award Schedule will be timely if received by SBA at any time prior to the expiration of the contract period, including renewals.

(4) A protest filed before bid opening, or notification to offerors of the selection of the apparent successful offeror , will be dismissed as premature by SBA.

(e) Upon receipt of a protest from or forwarded by the Contracting Office , the SBA will-

(1) Notify the contracting officer and the protester of the date it was received, and that the size of the concern being challenged is under consideration by the SBA; and

(2) Furnish to the concern whose representation is being protested a copy of the protest and a blank SBA Form355, Application for Small Business Determination, by certified mail, return receipt requested.

(1) Within 15 business days after receipt of a protest or request for a formal size determination or within any extension of time granted by the contracting officer the SBA Area Office will determine the size status of the challenged concern . The SBA Area Office will notify the contracting officer , the protester, and the challenged concern of its decision by a verifiable means, which may include facsimile, electronic mail, or overnight delivery service.

(2) Award may be made to a protested concern after the SBA Area Office has determined that either the protested concern is an eligible small business or has dismissed all protests against it.

(3) If SBA’s Office of Hearings and Appeals (OHA) subsequently overturns the Area Office's determination of eligibility or dismissal, and contract award has not been made, the contracting officer may apply the OHA decision to the procurement in question.

(1) After receiving a protest involving an offeror being considered for award, the contracting officer shall not award the contract until the SBA has made a size determination or 15 business days have expired since SBA’s receipt of a protest, whichever occurs first; however, award shall not be withheld when the contracting officer determines in writing that an award must be made to protect the public interest.

(2) If SBA has not made a determination within 15 business days, or within any extension of time granted by the contracting officer , the contracting officer may award the contract after determining in writing that there is an immediate need to award the contract and that waiting until SBA makes its determination will be disadvantageous to the Government.

(3) SBA may , at its sole discretion, reopen a formal size determination to correct an error or mistake, if it is within the appeal period and no appeal has been filed with OHA or, a final decision has not been rendered by the SBA Area Office or OHA.

(4) If a protest is received that challenges the small business status of an offeror not being considered for award, the contracting officer is not required to suspend contract action. The contracting officer shall forward the protest to the SBA (see paragraph (c)(1) of this section) with a notation that the concern is not being considered for award, and shall notify the protester of this action.

(h) An appeal from an SBA size determination may be filed by any concern or other interested party whose protest of the small business representation of another concern has been denied by an SBA Government Contracting Area Director, any concern or other interested party that has been adversely affected by an SBA Government Contracting Area Director’s decision, or the SBA Associate Administrator for the SBA program involved. The appeal must be filed with the Office of Hearings and Appeals, Small Business Administration, Suite 5900, 409 3 rd Street, SW., Washington, DC 20416, within the time limits and in strict accordance with the procedures contained in Subpart C of 13 CFR 134 . It is within the discretion of the SBA Judge whether to accept an appeal from a size determination. If a post-award appeal is submitted to OHA within the time limits specified in Subpart C of 13 CFR 134 , the contracting officer shall consider suspending contract performance until an SBA Judge decides the appeal. SBA will inform the contracting officer of its ruling on the appeal. SBA’s decision, if received before award, will apply to the pending acquisition . If the contracting officer has made a written determination in accordance with (g)(1) or (2) of this section, the contract has been awarded, the SBA rulings is received after award, and OHA finds the protested concern to be ineligible for award, the contracting officer shall terminate the contract unless termination is not in the best interests of the Government, in keeping with the circumstances described in the written determination. However, the contracting officer shall not exercise any options or award further task or delivery orders .

(i) SBA will dismiss untimely protests. A protest that is not timely, even though received before award, shall be forwarded to the SBA Government Contracting Area Office (see paragraph (c)(1) of this section), with a notation on it that the protest is not timely. A protest received by a contracting officer after award of a contract shall be forwarded to the SBA Government Contracting Area Office with a notation that award has been made.

(j) When a concern is found to be other than small under a protest concerning a size status rerepresentation made in accordance with the clause at 52.219-28 , Post-Award Small Business Program Rerepresentation, a contracting officer may permit contract performance to continue, issue orders, or exercise option (s), because the contract remains a valid contract.

(a) The contracting officer may accept an offeror ’s representation that it is a small disadvantaged business concern (SDB) concern .

(b) The provision at 52.219-1 , Small Business Program Representations, or 52.212-3 (c)(4), Offeror Representations and Certifications- Commercial Products and Commercial Services , is used to collect SDB data.

(c) A representation of SDB status on a Federal prime contract will be deemed a misrepresentation of SDB status if the firm does not meet the requirements of 13 CFR 124.1001.

(d) Any person or entity that misrepresents a firm's status as an SDB concern in order to obtain a contracting opportunity in accordance with section 8(d) of the Small Business Act, ( 15 U.S.C. 637(d) ) will be subject to the penalties imposed by section 16(d) of the Small Business Act, ( 15 U.S.C. 645(d) ), as well as any other penalty authorized by law.

This section applies to reviews of a small business concern 's SDB status as a prime contractor or subcontractor.

(a) SBA may initiate the review of SDB status on any firm that has represented itself to be an SDB on a prime contract or subcontract to a Federal prime contract whenever it receives credible information calling into question the SDB status of the firm.

(b) Requests for an SBA review of SDB status may be forwarded to the Small Business Administration, Assistant Administrator for SDBCE, 409 Third Street, SW, Washington, DC 20416.

(c) An SBA review of a subcontractor's SDB status differs from a formal protest. Protests of a concern 's size as a prime contractor are processed under 19.302 . Protests of a concern 's size as a subcontractor are processed under 19.703 (b).

(a) Definition . As used in this section-

Interested party has the meaning given in 13 CFR 126.103 .

(1) For sole-source procurements , SBA or the contracting officer may protest the prospective contractor's certified HUBZone status; for all other procurements , SBA, the contracting officer , or any other interested party may protest the apparent successful offeror 's certified HUBZone status (see 13 CFR 126.800 ).

(2) The Director of SBA's Office of the HUBZone Program will determine whether the concern has certified HUBZone status. If SBA upholds the protest, SBA will remove the concern 's HUBZone status in the Dynamic Small Business Search (DSBS). SBA's protest regulations are found in subpart H “Protests” at 13 CFR 126.800 through 126.805 .

(c) Protests relating to small business size status are subject to the procedures of 19.302 . An interested party seeking to protest both the small business size and HUBZone status of an apparent successful offeror shall file two separate protests. Protests relating to small business size status for the acquisition and the HUBZone eligibility requirements will be processed concurrently by SBA.

(1) All protests must be in writing and must state all specific grounds for the protest ( i.e., why the protested concern did not meet the eligibility requirements at 13 CFR 126.200 at the time of the concern 's application to SBA for certification as a HUBZone small business concern or at the time SBA certified or last recertified the concern as a HUBZone small business concern ). Assertions that a protested concern is not a HUBZone small business concern , without setting forth specific facts or allegations, will not be considered by SBA (see 13 CFR 126.801(b) ).

(2) Protests filed against a HUBZone joint venture must state one or, if applicable, both of the following:

(i) Why the HUBZone small business party to the joint venture did not meet the eligibility requirements at 13 CFR 126.200 at the time of its application to SBA for certification or at the time SBA certified or last recertified the concern as a HUBZone small business concern .

(ii) Why the joint venture did not meet the requirements at 13 CFR 126.616 at the time of submission of its offer for a HUBZone contract .

(e) Submission of a protest.

(1) An interested party shall submit its written protest to the contracting officer -

(i) For sealed bids-

(A) By the close of business on the fifth business day after bid opening; or

(B) By the close of business on the fifth business day from the date of identification of the apparent successful offeror , if the price evaluation preference was not applied at the time of bid opening; or

(ii) For negotiated acquisitions , by the close of business on the fifth business day after notification by the contracting officer of the apparently successful offeror .

(2) Any protest received after the designated time limits is untimely, unless it is from the contracting officer or SBA.

(3) SBA will consider protests for HUBZone set-aside or sole-source service contracts or orders, if a HUBZone prime contractor is unduly reliant on a small entity subcontractor that is not a similarly-situated entity as defined in 13 CFR 125.1 , or if such subcontractor performs the primary and vital requirements of the contract. For allegations that the prime contractor is unduly reliant on an other-than-small subcontractor, see size protests at 19.302 , and 13 CFR 121.103(h)(2) , which treats the pair as joint venturers for size determination purposes (the “ostensible subcontractor rule”).

(f) The contracting officer shall forward all protests with a referral letter to the Director of SBA's Office of the HUBZone Program, by email to [email protected] . The referral letter shall include the following—

(1) The solicitation number;

(2) The contracting officer 's name and contact information;

(3) The type of HUBZone contract ( i.e., sole-source, set-aside, full and open competition with a HUBZone price evaluation preference, or reserve for HUBZone small business concerns under a multiple-award contract );

(4) For a procurement conducted using full and open competition with a HUBZone price evaluation preference, whether the protester's opportunity for award was affected by the preference;

(5) For a HUBZone set-aside, whether the protester submitted an offer ;

(6) Whether the protested concern was the apparent successful offeror ;

(7) Whether the procurement was conducted using sealed bid or negotiated procedures;

(8) The bid opening date, if applicable;

(9) The date the protester was notified of the apparent successful offeror ;

(10) The date the contracting officer received the protest;

(11) The date the protested concern submitted its initial offer or quote to the contracting officer ; and

(12) Whether a contract has been awarded, and if so, the date of award and contract number.

(g) SBA will notify the protester and the contracting officer of the date SBA received the protest.

(h) Before SBA decision.

(1) After receiving a protest involving the apparent successful offeror ’s status as a HUBZone small business concern , the contracting officer shall either-

(i) Withhold award of the contract until SBA determines the status of the protested concern ; or

(ii) Award the contract if—

(A) SBA does not issue its decision within 15 business days after receipt of the protest; and

(B) The contracting officer determines in writing that there is an immediate need to award the contract and that waiting for SBA's determination will be disadvantageous to the Government.

(2) SBA will determine the merits of the status protest within 15 business days after receipt of a protest, or within any extension of time granted by the contracting officer .

(i) After SBA decision. The SBA will notify the contracting officer , the protester, and the protested concern of the SBA determination. The determination is effective immediately and is final unless overturned on appeal by SBA’s Associate Administrator, Office of Government Contracting and Business Development (AA/GC&BD).

(1) If the contracting officer has withheld contract award and SBA has determined that the protested concern is an eligible HUBZone or dismissed all protests against the protested concern , the contracting officer may award the contract to the protested concern . If the AA/GC&BD subsequently overturns the initial determination or dismissal, the contracting officer may apply the AA/GC&BD decision to the procurement in question.

(2) If the contracting officer has withheld award and the HUBZone Program Director has determined that the protested concern is ineligible , and a timely AA/GC&BD appeal has not been filed, then the contracting officer shall not award the contract to the protested concern .

(3) If the contracting officer has made a written determination in accordance with (h)(1)(ii)(B) of this section, awarded the contract, and the Director of SBA's Office of the HUBZone Program's ruling sustaining the protest is received after award—

(i) The contracting officer shall either—

(A) Terminate the contract; or

(1) Make a written determination that termination is not in the best interests of the Government; and

(2) Not exercise any options or award further task or delivery orders under the contract.

(ii) SBA will remove the concern 's designation as a certified HUBZone small business concern in the Dynamic Small Business Search (DSBS). The concern is not permitted to submit an offer as a HUBZone small business concern until SBA issues a decision that the ineligibility is resolved; and

(iii) After SBA updates the concern 's designation as a HUBZone small business in DSBS, the contracting officer shall update the Federal Procurement Data System (FPDS) to reflect the final decision of the HUBZone Program Director if no appeal is filed.

(4) If the contracting officer has made a written determination in accordance with (h)(1)(ii)(B) of this section, awarded the contract, SBA has sustained the protest and determined that the concern is not a HUBZone small business, and a timely AA/GC&BD appeal has been filed, then the contracting officer shall consider whether performance can be suspended until an AA/GC&BD decision is rendered.

(5) If the AA/GC&BD affirms the decision of the HUBZone Program Director, finding the protested concern is ineligible , and contract award has occurred—

(2) Not exercise any options or award further task or delivery orders under the contract;

(ii) SBA will remove the concern 's designation as a certified HUBZone small business concern in DSBS. The concern is not permitted to submit an offer as a HUBZone small business concern until SBA issues a decision that the ineligibility is resolved or the AA/GC&BD finds the concern is eligible on appeal; and

(iii) After SBA updates the concern 's designation as a HUBZone small business in DSBS, the contracting officer shall update FPDS to reflect the AA/GC&BD decision.

(6) A concern found to be ineligible during a HUBZone status protest is precluded from applying for HUBZone certification for 90 calendar days from the date of the SBA final decision.

(j) Appeals of HUBZone status determinations. The protested HUBZone small business concern , the protester, or the contracting officer may file appeals of protest determinations with SBA’s AA/GC&BD. The AA/GC&BD must receive the appeal no later than 5 business days after the date of receipt of the protest determination. SBA will dismiss any untimely appeal.

(k) The appeal must be in writing . The appeal must identify the protest determination being appealed and must set forth a full and specific statement as to why the decision is erroneous or what significant fact the HUBZone Program Director failed to consider.

(1) The party appealing the decision must provide notice of the appeal to-

(i) The contracting officer ; and

(ii) The protested HUBZone small business concern or the original protester, as appropriate.

(2) SBA will not consider additional information or changed circumstances that were not disclosed at the time of the HUBZone Program Director's determination or that are based on disagreement with the findings and conclusions contained in the determination.

(m) The AA/GC&BD will make its decision within 5 business days of the receipt of the appeal, if practicable, and will base its decision only on the information and documentation in the protest record as supplemented by the appeal. SBA will provide a copy of the decision to the contracting officer , the protester, and the protested HUBZone small business concern . The SBA decision, if received before award, will apply to the pending acquisition . The AA/GC&BD's decision is the final decision.

(a) [Reserved]

(1) For sole source acquisitions , the contracting officer or SBA may protest the apparently successful offeror ’s service-disabled veteran-owned small business status. For all other acquisitions , any interested party may protest the apparently successful offeror ’s service-disabled veteran-owned small business status.

(2) SBA’s protest regulations are found in subpart D "Protests" at 13 CFR 125.24 through 125.28.

(c) Protests relating to small business size status are subject to the procedures of 19.302 . An interested party seeking to protest both the small business size and service-disabled veteran-owned small business status of an apparent successful offeror shall file two separate protests.

(d) All protests must be in writing and must state all specific grounds for the protest.

(1) SBA will consider protests challenging the service-disabled veteran-owned status or the ownership and control of a concern if-

(i) For status protests, the protester presents evidence supporting the contention that the owner(s) cannot provide documentation from the Department of Veterans Affairs, Department of Defense determinations, or the U.S. National Archives and Records Administration to show that they meet the definition of "service-disabled veteran" or "service disabled veteran with a permanent and severe-disability" as set forth in 13 CFR 125.12; or

(ii) For ownership and control protests, the protester presents evidence that the concern is not 51 percent owned and controlled by one or more service-disabled veterans. In the case of a veteran with a permanent and severe disability, the protester presents evidence that the concern is not controlled by the veteran, spouse, or permanent caregiver of such veteran; or

(iii) For set-aside or sole-source service contract or order ostensible subcontractor protests, the protester presents credible evidence of the alleged undue reliance on a small entity subcontractor that is not a similarly-situated entity as defined in 13 CFR 125.1 , or credible evidence that the small non- similarly situated entity is performing the primary and vital requirements of the contract. For allegations that the prime contractor is unduly reliant on an other-than-small subcontractor, see size protests at 19.302 , and 13 CFR 121.103(h)(2) , which treats the pair as joint venturers for size determination purposes (the “ostensible subcontractor rule”).

(2) Assertions that a protested concern is not a service-disabled veteran-owned small business concern , without setting forth specific facts or allegations, will not be considered by SBA (see 13 CFR 125.25(b) ).

(e) Protest by an interested party.

(1) An offeror shall submit its protest to the contracting officer —

(i) To be received by close of business on the fifth business day after bid opening (in sealed bid acquisitions ); or

(ii) To be received by close of business on the fifth business day after notification by the contracting officer of the apparently successful offeror for negotiated acquisitions ).

(1) The contracting officer shall forward all protests to SBA. The protests are to be submitted to SBA’s Director, Office of Government Contracting , U.S. Small Business Administration, 409 Third Street, SW, Washington, DC 20416 or by fax to 202-205-6390, Attn: Service-Disabled Veteran Status Protest.

(2) The protest shall include a referral letter written by the contracting officer with information pertaining to the solicitation . The referral letter must include the following information to allow SBA to determine timeliness and standing:

(i) The solicitation number (or an electronic link to or a paper copy of the solicitation ).

(ii) The name, address, telephone number, fax number, and email address of the contracting officer .

(iii) Whether the contract was sole-source or set-aside.

(iv) Whether the protestor submitted an offer .

(v) Whether the protested concern was the apparent successful offeror .

(vi) When the protested concern submitted its offer .

(vii) Whether the acquisition was conducted using sealed bid or negotiated procedures.

(viii) The bid opening date, if applicable.

(ix) The date the contracting officer received the protest.

(x) The date the protestor received notification about the apparent successful offeror , if applicable.

(xi) Whether a contract has been awarded.

(1) After receiving a protest involving the apparent successful offeror 's status as a service-disabled veteran-owned small business concern , the contracting officer shall either-

(ii) Award the contract after receipt of the protest but before SBA issues its decision if the contracting officer determines in writing that an award must be made to protect the public interest.

(3) If SBA does not issue its determination within 15 business days, or within any extension of time that is granted, the contracting officer may award the contract after determining in writing that there is an immediate need to award the contract and that waiting until SBA makes its determination will be disadvantageous to the government. This determination shall be provided to the SBA's Director, Office of Government Contracting and a copy shall be included in the contract file.

(i) After SBA decision . SBA will notify the contracting officer , the protester, and the protested concern of its determination. The determination is effective immediately and is final unless overturned on appeal by SBA’s Office of Hearings and Appeals (OHA) pursuant to 13 CFR part 134 .

(1) If the contracting officer has withheld contract award and SBA has determined that the protested concern is an eligible SDVOSB or dismissed all protests against the protested concern , the contracting officer may award the contract to the protested concern . If OHA subsequently overturns the SBA Director for Government Contracting ’s determination or dismissal, the contracting officer may apply the OHA decision to the procurement in question.

(2) If the contracting officer has withheld contract award, SBA has sustained the protest and determined that the concern is not an SDVOSB, and no OHA appeal has been filed, then the contracting officer shall not award the contract to the protested concern .

(3) If the contracting officer has made a written determination in accordance with (h)(1)(ii) or (h)(3) of this section, the contract has been awarded, and SBA’s ruling sustaining the protest is received after award-

(i) The contracting officer shall terminate the contract, unless the contracting officer has made a written determination that termination is not in the best interests of the Government. However, the contracting officer shall not exercise any options or award further task or delivery orders ;

(ii) The contracting officer shall update the FPDS to reflect the final SBA decision; and

(iii) The concern must remove its designation in the System for Award Management (SAM) as a SDVOSB concern , and shall not submit an offer as a SDVOSB concern , until SBA issues a decision that the ineligibility is resolved.

(4) If the contracting officer has made a written determination in accordance with (h)(1)(ii) or (h)(3) of this section and awarded the contract to the protested firm, SBA has sustained the protest and determined that the concern is not a SDVOSB, and a timely OHA appeal has been filed, then the contracting officer shall consider whether performance can be suspended until an OHA decision is rendered.

(5) If OHA affirms the SBA Director for Government Contracting ’s determination finding the protested concern is ineligible -

(i) The contracting officer shall terminate the contract unless the contracting officer has made a written determination that it is not in the best interest of the Government. However, the contracting officer shall not exercise any options or award further task or delivery orders ;

(ii) The contracting officer shall update the FPDS to reflect OHA’s decision; and

(iii) The concern shall remove its designation in SAM as a SDVOSB concern , until SBA issues a decision that the ineligibility is resolved or OHA finds the concern is eligible on appeal.

(6) A concern found to be ineligible may not submit future offers as an SDVOSB concern until the concern demonstrates to SBA’s satisfaction that it has overcome the reason for the protest and SBA issues a decision to this effect.

(j) Appeals of SDVOSB status determinations . The protested SDVOSB small business concern , the protester, or the contracting officer may file appeals of protest determinations to OHA. OHA must receive the appeal no later than 10 business days after the date of receipt of the protest determination. SBA will dismiss an untimely appeal. See Subpart E "Rules of Practice for Appeals From Service-Disabled Veteran Owned Small Business Concerns Protests" at 13 CFR 134.501 through 134.515 for SBA’s appeals regulations.

(k) The appeal must be in writing . The appeal must identify the protest determination being appealed and must set forth a full and specific statement as to why the SDVOSB protest determination is alleged to be based on a clear error of fact or law, together with an argument supporting such allegation.

(l) The party appealing the decision must provide notice of the appeal to-

(1) The contracting officer ;

(2) Director, Office of Government Contracting , U.S. Small Business Administration, 409 Third Street, SW., Washington, DC 20416, facsimile 202-205-6390;

(3) The protested SDVOSB concern or the original protester, as appropriate; and

(4) Associate General Counsel for Procurement Law, U.S. Small Business Administration, 409 Third Street, SW., Washington, DC 20416, facsimile 202-205-6873, or e-mail at [email protected] .

(m) OHA will make its decision within 15 business days of the receipt of the appeal, if practicable. SBA will provide a copy of the decision to the contracting officer , the protester, and the protested SDVOSB small business concern . The OHA decision regarding the status of the concern is final and is binding on the parties.

(a) Definition. Interested party, as used in this section, has the meaning given in 13 CFR 127.102 .

(1) For sole source acquisitions , the contracting officer or SBA may protest the offeror ’s status as an economically disadvantaged women-owned small business (EDWOSB) concern or as a WOSB concern eligible under the WOSB Program. For all other acquisitions , an interested party (see 13 CFR 127.102 ) may protest the apparent successful offeror ’s EDWOSB or WOSB status.

(2) SBA’s protest regulations are found in subpart F "Protests" at 13 CFR 127.600 through 127.605.

(c) Protests relating to small business size status are subject to the procedures of 19.302 . An interested party seeking to protest both the small business size and WOSB or EDWOSB status of an apparent successful offeror shall file two separate protests.

(d) All protests shall be in writing and must state all specific grounds for the protest.

(1) SBA will consider protests challenging the status of a concern if-

(i) The protest presents evidence that the concern is not at least 51 percent owned and controlled by one or more women who are United States citizens;

(ii) The protest presents evidence that the concern is not at least 51 percent owned and controlled by one or more economically disadvantaged women who are United States citizens, when it is in connection with an EDWOSB contract; or

(iii) For WOSB or EDWOSB set-aside or sole-source service contracts or orders, the protest presents evidence that the prime contractor is unduly reliant on a small entity subcontractor that is not a similarly-situated entity as defined in 13 CFR 125.1 , or a protest alleging that such subcontractor is performing the primary and vital requirements of a set-aside or sole-source WOSB or EDWOSB contract. For allegations that the prime contractor is unduly reliant on an other-than-small subcontractor, see size protests at 19.302, and 13 CFR 121.103(h)(2) , which treats the pair as joint venturers for size determination purposes (the “ostensible subcontractor rule”).

(2) Assertions that a protested concern is not an EDWOSB or WOSB concern eligible under the WOSB Program, without setting forth specific facts or allegations, will not be considered by SBA (see 13 CFR 127.603(a) ).

(1) An offeror shall submit its protest to the contracting officer -

(i) To be received by the close of business by the fifth business day after bid opening (in sealed bid acquisitions ); or

(ii) To be received by the close of business by the fifth business day after notification by the contracting officer of the apparent successful offeror (in negotiated acquisitions ).

(2) Any protest received after the designated time limit is untimely, unless it is from the contracting officer or SBA.

(1) The contracting officer shall forward all protests to SBA. The protests are to be submitted to SBA's Director for Government Contracting by email at [email protected] .

(i) The solicitation number or electronic link to or a paper copy of the solicitation .

(ii) The name, address, telephone number, email address, and facsimile number of the contracting officer .

(iii) Whether the protestor submitted an offer .

(iv) Whether the protested concern was the apparent successful offeror .

(v) When the protested concern submitted its offer .

(vi) Whether the acquisition was conducted using sealed bid or negotiated procedures.

(vii) The bid opening date, if applicable.

(viii) The date the contracting officer received the protest.

(ix) The date the protestor received notification about the apparent successful offeror , if applicable.

(x) Whether a contract has been awarded.

(h) Before SBA decision .

(1) After receiving a protest involving the apparent successful offeror ’s status as an EDWOSB or WOSB concern eligible under the WOSB Program, the contracting officer shall either-

(2) SBA will determine the merits of the status protest within 15 business days after receipt of a protest, or within any extension of that time granted by the contracting officer .

(3) If SBA does not issue its determination within 15 business days, or within any extension of time granted, the contracting officer may award the contract after determining in writing that there is an immediate need to award the contract and that waiting until SBA makes its determination will be disadvantageous to the Government. This determination shall be provided to the SBA Director for Government Contracting and a copy shall be included in the contract file.

(1) If the contracting officer has withheld contract award and SBA has denied or dismissed the protest, the contracting officer may award the contract to the protested concern . If OHA subsequently overturns the SBA Director for Government Contracting ’s determination or dismissal, the contracting officer may apply the OHA decision to the procurement in question.

(2) If the contracting officer has withheld contract award, SBA has sustained the protest and determined that the concern is not eligible under the WOSB Program, and no OHA appeal has been filed, then the contracting officer shall not award the contract to the protested concern .

(3) If the contracting officer has made a written determination in accordance with (h)(1)(ii) or (h)(3) of this section, awarded the contract, and SBA’s ruling is received after award, and no OHA appeal has been filed, then-

(iii) SBA will remove the concern 's designation in the Dynamic Small Business Search (DSBS) as an EDWOSB or WOSB concern eligible under the WOSB Program. The concern shall not submit an offer as an EDWOSB concern or WOSB concern eligible under the WOSB Program, until SBA issues a decision that the ineligibility is resolved.

(4) If the contracting officer has made a written determination in accordance with (h)(1)(ii) or (h)(3) of this section, contract award has occurred, SBA has sustained the protest and determined that the concern is not eligible under the WOSB Program, and a timely OHA appeal has been filed, then the contracting officer shall consider whether performance can be suspended until an OHA decision is rendered.

(5) If OHA affirms the SBA Director for Government Contracting ’s determination finding the protested concern is ineligible , then-

(iii) SBA will remove the concern 's designation in DSBS as an EDWOSB or WOSB concern eligible under the WOSB Program. The concern shall not submit an offer as an EDWOSB concern or WOSB concern eligible under the WOSB Program, until SBA issues a decision that the ineligibility is resolved or OHA finds the concern is eligible on appeal.

(j) Appeals of EDWOSB or WOSB concerns eligible under the WOSB Program status determinations.

(1) The protested EDWOSB concern or WOSB concern eligible under the WOSB program, the protester, or the contracting officer may file an appeal of a WOSB or EDWOSB status protest determination with OHA.

(2) OHA must receive the appeal no later than 10 business days after the date of receipt of the protest determination. SBA will dismiss an untimely appeal.

(3) See subpart G "Rules of Practice for Appeals From Women-Owned Small Business Concerns (WOSB) and Economically Disadvantaged WOSB Concern (EDWOSB) Protests" at 13 CFR 134.701 through 134.715 for SBA’s appeals regulations.

(k) The appeal must be in writing . The appeal must identify the protest determination being appealed and must set forth a full and specific statement as to why the EDWOSB concern or WOSB concern eligible under the WOSB program protest determination is alleged to be based on a clear error of fact or law, together with an argument supporting such allegation.

(2) Director, Office of Government Contracting , U.S. Small Business Administration, by email at [email protected] ;

(3) The protested EDWOSB concern or WOSB concern eligible under the WOSB program, or the original protester, as appropriate; and

(4) SBA’s Office of General Counsel, Associate General Counsel for Procurement Law, U.S. Small Business Administration, 409 Third Street, SW., Washington, DC 20416, or e-mail at [email protected] .

(m) OHA will make its decision within 15 business days of the receipt of the appeal, if practicable. SBA will provide a copy of the decision to the contracting officer , the protester, and the protested EDWOSB concern or WOSB concern eligible under the WOSB program. The OHA decision is the final agency decision and is binding on the parties.

(1) Insert the provision at 52.219-1 , Small Business Program Representations, in solicitations exceeding the micro-purchase threshold when the contract is for supplies to be delivered or services to be performed in the United States or its outlying areas , or when the contracting officer has applied this part in accordance with 19.000 (b)(1)(ii).

(2) Use the provision with its Alternate I in solicitations issued by DoD, NASA, or the Coast Guard.

(3) Use the provision with its Alternate II in solicitations that will result in a multiple-award contract with more than one NAICS code assigned. This is authorized for solicitations issued after October 1, 2025 (see 19.102 (b)).

(b) When contracting by sealed bidding, insert the provision at 52.219-2 , Equal Low Bids, in solicitations when the contract is for supplies to be delivered or services to be performed in the United States or its outlying areas , or when the contracting officer has applied this part in accordance with 19.000 (b)(1)(ii).

(1) Insert the clause at 52.219-28 , Post-Award Small Business Program Rerepresentation, in solicitations and contracts exceeding the micro-purchase threshold when the contract is for supplies to be delivered or services to be performed in the United States or its outlying areas , or when the contracting officer has applied this part in accordance with 19.000 (b)(1)(ii).

(2) Use the clause with its Alternate I in solicitations and the resulting multiple-award contracts with more than one NAICS code. This is authorized for solicitations issued after October 1, 2025 (see 19.102 (b)).

(a) The Small Business Act is the authority under which the Small Business Administration (SBA) and agencies consult and cooperate with each other in formulating policies to ensure that small business interests will be recognized and protected.

(b) The Director of the Office of Small and Disadvantaged Business Utilization serves as the agency focal point for interfacing with SBA. The Director of the Office of Small Business Programs is the agency focal point for the Department of Defense.

(1) The SBA may assign one or more procurement center representatives (PCRs) to any contracting activity or contract administration office to carry out SBA policies and programs. Assigned SBA PCRs are required to comply with the contracting agency's directives governing the conduct of contracting personnel and the release of contract information. The SBA must obtain for its PCRs security clearances required by the contracting agency.

(2) If an SBA PCR is not assigned to the procuring activity or contract administration office , contact the SBA Office of Government Contracting Area Office serving the area in which the procuring activity is located for assistance in carrying out SBA policies and programs. See https://www.sba.gov/federal-contracting/counseling-help/procurement-center-representative-directory for the location of the SBA office servicing the activity.

(b) Upon their request and subject to applicable acquisition and security regulations, contracting officers shall give SBA PCRs (or, if a PCR is not assigned, see paragraph (a) of this section) access to all reasonably obtainable contract information that is directly pertinent to their official duties.

(c) The duties assigned by SBA to its PCR are set forth at 13 CFR 125.2 (b) and include but are not limited to the following:

(1) Reviewing proposed acquisitions to recommend–

(i) The set-aside or sole-source award to a small business of selected acquisitions ;

(ii) New qualified small business sources, including veteran-owned small, service-disabled veteran-owned small, HUBZone small, small disadvantaged, economically disadvantaged women-owned small, and women-owned small eligible under the Women-Owned Small Business Program; 

(iii) Breakout of discrete components , items, and requirements for competitive acquisitions ; and

(iv) Ways to improve competition.

(2) Reviewing proposed acquisition packages provided in accordance with 19.202-1 (e). If the SBA procurement center representative (or, if a procurement center representative is not assigned, see paragraph (a) of this section) believes that the acquisition , as proposed, makes it unlikely that small businesses can compete for the prime contract, the representative shall recommend any alternate contracting method that the representative reasonably believes will increase small business prime contracting opportunities. The recommendation shall be made to the contracting officer within 15 days after receipt of the package.

(3) Recommending concerns for inclusion on a list of concerns to be solicited in a specific acquisition .

(4) Appealing to the chief of the contracting office any contracting officer ’s determination not to solicit a concern recommended by the SBA for a particular acquisition , when not doing so results in no small business being solicited.

(5) Conducting periodic reviews of the contracting activity to which assigned to ascertain whether it is complying with the small business policies in this regulation.

(6) Sponsoring and participating in conferences and training designed to increase small business participation in the contracting activities of the office.

(7) Appealing a contracting officer 's rejection of PCR's recommendation. Such appeal must be in writing and shall be filed and processed in accordance with the appeal procedures set out in 19.502-8 .

(1) The purpose of small business set-asides is to award certain acquisitions exclusively to small business concerns . A "set-aside for small business" is the limiting of an acquisition exclusively for participation by small business concerns . A small business set-aside may be open to any of the small business concerns identified at 19.000 (a)(3). A small business set-aside of a single acquisition or a class of acquisitions may be total or partial.

(2) The purpose of small business reserves is to award one or more multiple-award contracts to any of the small business concerns identified at 19.000 (a)(3), under a full and open competition . A small business reserve shall not be used when the acquisition can be set aside, in total or in part.

(b) The contracting officer makes the determination to make a small business set-aside, in total or in part, or a reserve. The Small Business Administration (SBA) procurement center representative (PCR) (or, if a PCR is not assigned, see 19.402 (a)) may make a recommendation to the contracting officer .

(c) The contracting officer shall review acquisitions to determine if they can be set aside, in total or in part, or reserved for small business, giving consideration to the recommendations of agency personnel in the Office of Small and Disadvantaged Business Utilization , or for the Department of Defense, in the Office of Small Business Programs. Agencies may establish threshold levels for this review depending upon their needs.

(d) At the request of an SBA PCR (or, if a PCR is not assigned, see 19.402 (a)), the contracting officer shall make available for review at the contracting office (to the extent of the SBA representative's security clearance) any proposed acquisition in excess of the micro-purchase threshold .

(e) All solicitations involving set-asides, in total or in part, or reserves shall specify the NAICS code(s) and corresponding size standard(s) (see 19.102 ).

(f) Except as authorized by law, a contract may not be awarded as a result of a small business set-aside if the cost to the awarding agency exceeds the fair market price .

(g) For the applicability of the limitations on subcontracting and the nonmanufacturer rule, see 19.505 .

(a) The contracting officer shall set aside an individual acquisition or class of acquisitions for competition among small businesses when-

(1) It is determined to be in the interest of maintaining or mobilizing the Nation’s full productive capacity, war or national defense programs; or

(2) Assuring that a fair proportion of Government contracts in each industry is placed with small business concerns ; and the circumstances described in 19.502-2 or 19.502-3 (a) exist.

(b) The requirement in paragraph (a) of this section does not apply to purchases at or below the micro-purchase threshold , or purchases from required sources under part  8 (e.g., Committee for Purchase From People Who are Blind or Severely Disabled).

(a) Before setting aside an acquisition under this paragraph, refer to 19.203 (b). Each acquisition of supplies or services that has an anticipated dollar value above the micro-purchase threshold, but not over the simplified acquisition threshold , shall be set aside for small business unless the contracting officer determines there is not a reasonable expectation of obtaining offers from two or more responsible small business concerns that are competitive in terms of fair market prices , quality, and delivery. If the contracting officer receives only one acceptable offer from a responsible small business concern in response to a set-aside, the contracting officer should make an award to that firm. If the contracting officer receives no acceptable offers from responsible small business concerns , the set-aside shall be withdrawn and the requirement, if still valid, shall be resolicited on an unrestricted basis. The small business set-aside does not preclude the award of a contract as described in 19.203 .

(b) Before setting aside an acquisition under this paragraph, refer to 19.203 (c). The contracting officer shall set aside any acquisition over the simplified acquisition threshold for small business participation when there is a reasonable expectation that-

(1) Offers will be obtained from at least two responsible small business concerns ; and

(2) Award will be made at fair market prices . Total small business set-asides shall not be made unless such a reasonable expectation exists (see 19.502-3 for partial set-asides). Although past acquisition history and market research of an item or similar items are always important, these are not the only factors to be considered in determining whether a reasonable expectation exists. In making research and development small business set-asides, there must also be a reasonable expectation of obtaining from small businesses the best scientific and technological sources consistent with the demands of the proposed acquisition for the best mix of cost, performances, and schedules.

(a) The contracting officer shall set aside a portion or portions of an acquisition , except for construction , for exclusive small business participation when—

(1) Market research indicates that a total set-aside is not appropriate (see 19.502-2 );

(2) The requirement can be divided into distinct portions;

(3) The acquisition is not subject to simplified acquisition procedures ;

(4) Two or more responsible small business concerns are reasonably expected to submit offers on the set-aside portion or portions of the acquisition that are competitive in terms of fair market prices , quality, and delivery;

(5) The specific program eligibility requirements identified in this part apply; and

(6) The solicitation will result in a contract other than a multiple-award contract (see 2.101 for definition of multiple-award contract ).

(b) When the contracting officer determines that a requirement is to be partially set aside, the solicitation shall identify which portion or portions are set aside and not set aside.

(c) The contracting officer shall specify in the solicitation how offers shall be submitted with regard to the set-aside and non-set-aside portions.

(d) Offers received from concerns that do not qualify as small business concerns shall be considered nonresponsive and shall be rejected on the set-aside portion of partial set-asides. However, before rejecting an offer otherwise eligible for award because of questions concerning the size representation, an SBA determination must be obtained (see subpart  19.3 ).

(a) In accordance with section 1331 of the Small Business Jobs Act of 2010 ( 15 U.S.C. 644 (r)(1)), contracting officers may , at their discretion, set aside a portion or portions of a multiple-award contract , except for construction , for any of the small business concerns identified at 19.000 (a)(3) when—

(4) Two or more responsible small business concerns are reasonably expected to submit an offer on the set-aside portion or portions of the acquisition that are competitive in terms of fair market prices , quality, and delivery; and

(5) The specific program eligibility requirements identified in this part apply.

None of the following is, in itself, sufficient cause for not setting aside an acquisition :

(a) A large percentage of previous contracts for the required item(s) has been placed with small business concerns .

(b) The item is on an established planning list under the Industrial Readiness Planning Program. However, a total small business set-aside shall not be made when the list contains a large business Planned Emergency Producer of the item(s) who has conveyed a desire to supply some or all of the required items.

(c) The item is on a Qualified Products List . However, a total small business set-aside shall not be made if the list contains the products of large businesses unless none of the large businesses desire to participate in the acquisition .

(d) A period of less than 30 days is available for receipt of offers .

(e) The acquisition is classified.

(f) Small business concerns are already receiving a fair proportion of the agency’s contracts for supplies and services.

(g) A class small business set-aside of the item or service has been made by another contracting activity .

(h) A "brand name or equal" product description will be used in the solicitation .

(a) A class of acquisitions of selected products or services, or a portion of the acquisitions , may be set aside for exclusive participation by small business concerns if individual acquisitions in the class will meet the criteria in 19.502-1 , 19.502-2 , or 19.502-3 (a). The determination to make a class small business set-aside shall not depend on the existence of a current acquisition if future acquisitions can be clearly foreseen.

(b) The determination to set aside a class of acquisitions for small business may be either unilateral or joint.

(c) Each class small business set-aside determination shall be in writing and must -

(1) Specifically identify the product(s) and service(s) it covers;

(2) Provide that the set-aside does not apply to any acquisition automatically set aside under 19.502-2 (a).

(3) Provide that the set-aside applies only to the (named) contracting office (s) making the determination; and

(4) Provide that the set-aside does not apply to any individual acquisition if the requirement is not severable into two or more economic production runs or reasonable lots, in the case of a partial class set-aside.

(d) The contracting officer shall review each individual acquisition arising under a class small business set-aside to identify any changes in the magnitude of requirements, specifications, delivery requirements, or competitive market conditions that have occurred since the initial approval of the class set-aside. If there are any changes of such a material nature as to result in probable payment of more than a fair market price by the Government or in a change in the capability of small business concerns to satisfy the requirements, the contracting officer may withdraw or modify (see 19.502-9 (a)) the unilateral or joint set-aside by giving written notice to the SBA PCR (or, if a PCR is not assigned, see 19.402 (a)) stating the reasons.

When using competitive procedures in accordance with 8.602 (a)(4), agencies shall include Federal Prison Industries , Inc. (FPI), in the solicitation process and consider a timely offer from FPI.

(a) If the contracting officer rejects a recommendation of the SBA, written notice shall be furnished to the appropriate SBA representative within 5 working days of the contracting officer 's receipt of the recommendation.

(b) The SBA PCR (or, if a PCR is not assigned, see 19.402 (a)) may appeal the contracting officer 's rejection to the head of the contracting activity within 2 working days after receiving the notice (except see 19.1305 (d), 19.1405 (d), and 19.1505 (i)). The head of the contracting activity   shall render a decision in writing , and provide it to the SBA representative within 7 working days. Pending issuance of a decision to the SBA representative, the contracting officer shall suspend action on the acquisition .

(c) If the head of the contracting activity agrees that the contracting officer ’s rejection was appropriate-

(1) Within 2 working days, the SBA procurement center representative (or, if a procurement center representative is not assigned, see 19.402 (a)) may request the contracting officer to suspend action on the acquisition until the SBA Administrator appeals to the agency head (see paragraph (f) of this section); and

(2) The SBA must be allowed 15 working days after making such a written request, within which the Administrator of SBA–

(i) May appeal to the Secretary of the Department concerned; and

(ii) Must notify the contracting officer whether the further appeal has, in fact, been taken. If notification is not received by the contracting officer within the 15- day period, it is deemed that the SBA request to suspend the contract action has been withdrawn and that an appeal to the Secretary was not taken.

(d) When the contracting officer has been notified within the 15- day period that the SBA has appealed to the agency head , the head of the contracting activity (or designee) shall forward justification for its decision to the agency head . The contracting officer shall suspend contract action until notification is received that the SBA appeal has been settled.

(e) The agency head shall reply to the SBA within 30 working days after receiving the appeal. The decision of the agency head shall be final.

(f) A request to suspend action on an acquisition need not be honored if the contracting officer determines that proceeding to contract award and performance is in the public interest. The contracting officer shall include in the contract file a statement of the facts justifying the determination, and shall promptly notify the SBA representative of the determination and provide a copy of the justification.

(a) If, before award of a contract involving a total or partial small business set-aside, the contracting officer considers that award would be detrimental to the public interest (e.g., payment of more than a fair market price ), the contracting officer may withdraw the small business set-aside, whether it was unilateral or joint. The contracting officer shall initiate a withdrawal of an individual total or partial small business set-aside, by giving written notice to the agency small business specialist and the SBA PCR (or, if a PCR is not assigned, see 19.402 (a)) stating the reasons. In a similar manner, the contracting officer may modify a unilateral or joint class small business set-aside to withdraw one or more individual acquisitions .

(b) If the agency small business specialist does not agree to a withdrawal or modification, the case shall be promptly referred to the SBA PCR (or, if a PCR is not assigned, see 19.402 (a)) for review.

(c) The contracting officer shall prepare a written statement supporting any withdrawal or modification of a small business set-aside and include it in the contract file.

(a) If a small business set-aside acquisition or portion of an acquisition is not awarded, the unilateral or joint determination to set the acquisition aside is automatically dissolved for the unawarded portion of the set-aside. The required supplies and/or services for which no award was made may be acquired by sealed bidding or negotiation, as appropriate.

(b) Before issuing a solicitation for the items called for in a small business set-aside that was dissolved, the contracting officer shall ensure that the delivery schedule is realistic in the light of all relevant factors, including the capabilities of small business concerns .

See 36.211 for the requirement to provide a notice to offerors regarding definitization of equitable adjustments for change orders under construction contracts.

(a) In accordance with section 1331 of the Small Business Jobs Act of 2010 ( 15 U.S.C. 644 (r)(3)) and 13 CFR 125.2 (e)(4), contracting officers may , at their discretion when conducting multiple-award procurements using full and open competition , reserve one or more contract awards for any of the small business concerns identified in 19.000 (a)(3), when market research indicates—

(1) A total set-aside is not feasible because there is no reasonable expectation of receiving offers that are competitive in terms of fair market prices , quality, and delivery from at least two responsible small business concerns identified in 19.000 (a)(3), that can perform the entire requirement; and

(2) A partial set-aside is not feasible because—

(i) The contracting officer is unable to divide the requirement into distinct portions; or

(ii) There is no reasonable expectation that at least two responsible small business concerns identified in 19.000 (a)(3) can perform any portion of the requirement competitively in terms of fair market price , quality, and delivery.

(b) A reserve will result in one of the following:

(1) One or more contract awards to any one or more types of small business concerns identified in 19.000 (a)(3).

(2) In the case of a solicitation of a bundled requirement that will result in a multiple-award contract , an award to one or more small businesses with a Small Business Teaming Arrangement .

(c) The specific program eligibility requirements identified in this part apply.

(d) The limitations on subcontracting and the nonmanufacturer rule (see 19.505 ) do not apply to reserves at the contract level, but shall apply to orders that are set aside or issued directly to one small business concern under 19.504 (c)(1)(ii).

(a) General. In accordance with section 1331 of the Small Business Jobs Act of 2010 ( 15 U.S.C. 644 (r)(2)), contracting officers may , at their discretion, set aside orders placed under multiple-award contracts for any of the small business concerns identified in 19.000 (a)(3).

(1) The contracting officer shall state in the solicitation and resulting contract whether order set-asides will be discretionary or mandatory when the conditions in 19.502-2 are met at the time of order set-aside, and the specific program eligibility requirements, as applicable, are also then met.

(2) When setting aside an order at or below the simplified acquisition threshold , the contracting officer may set aside the order for any of the small business concerns identified in 19.000 (a)(3).

(3) When setting aside an order above the simplified acquisition threshold , the contracting officer shall first consider setting aside the order for the small business socioeconomic contracting programs ( i.e. , 8(a), HUBZone , service-disabled veteran-owned small business, and women-owned small business) before considering a small business set-aside.

(4) The contracting officer shall comply with the specific program eligibility requirements identified in this part in addition to the ordering procedures for a multiple-award contract (for orders placed under the Federal Supply Schedules Program, see 8.405-5 ; for orders placed under all other multiple-award contracts , see 16.505 ).

(b) Orders under set-aside contracts—

(1) Orders under total set-aside contracts. Under a total small business set-aside, contracting officers may at their discretion set aside orders for any of the small business socioeconomic concerns identified in 19.000(a)(3) provided that the requirements at paragraph (a) of this section, 19.502-2(b), and the specific program eligibility requirements are met.

(2) Orders under partial set-aside contracts .

(i)  Only small business concerns awarded contracts for the portion(s) that were set aside under the solicitation for the multiple-award contract may compete for orders issued under those portion(s).

(ii)  Small business awardees may compete against other than small business awardees for an order issued under the portion of the multiple-award contract that was not set aside, if the small business received a contract award for the non-set-aside portion.

(c) Orders under reserves.

(1) The contracting officer may —

(i) Set aside orders for any of the small business concerns identified in 19.000 (a)(3) when there are two or more contract awards for that type of small business concern ; or

(ii) Issue orders directly to one small business concern for work that it can perform when there is only one contract award to any one type of small business concern identified in 19.000 (a)(3).

(2) Small business awardees may compete against other than small business awardees for an order that is not set aside if the small business received a contract award for the supplies or services being ordered.

(a) Applicability.

(1) This section applies to small business set-asides above the simplified acquisition threshold and orders issued directly to a small business in accordance with 19.504 (c)(1)(ii) above the simplified acquisition threshold .

(2) This section applies, regardless of dollar value, to the following awards under subparts 19.8 , 19.13 , 19.14 , and 19.15 :

(i) Contracts that are set aside.

(ii) Contracts that are awarded on a sole-source basis.

(iii) Orders that are set-aside as described in 8.405-5 and 16.505 (b)(2)(i)(F).

(iv) Orders that are issued directly in accordance with 19.504 (c)(1)(ii).

(v) Contracts that use the HUBZone price evaluation preference to award to a HUBZone small business concern unless the concern waived the evaluation preference.

(1) Limitations on subcontracting. A small business concern subject to the limitations on subcontracting is required to comply with the following:

(i) For a contract or order assigned a North American Industry Classification System (NAICS) code for services (except construction ), the concern will not pay more than 50 percent of the amount paid by the Government for contract performance to subcontractors that are not similarly situated entities . Any work that a similarly situated entity further subcontracts will count towards the concern 's 50 percent subcontract amount that cannot be exceeded. When a contract includes both services and supplies , the 50 percent limitation shall apply only to the service portion of the contract.

(ii) For a contract or order assigned a NAICS code for supplies or products (other than a procurement from a nonmanufacturer of such supplies or products ), the concern will not pay more than 50 percent of the amount paid by the Government for contract performance, excluding the cost of materials, to subcontractors that are not similarly situated entities . Any work that a similarly situated entity further subcontracts will count towards the concern 's 50 percent subcontract amount that cannot be exceeded. When a contract includes both supplies and services, the 50 percent limitation shall apply only to the supply portion of the contract.

(iii) For a contract or order assigned a NAICS code for general construction , the concern will not pay more than 85 percent of the amount paid by the Government for contract performance, excluding the cost of materials, to subcontractors that are not similarly situated entities . Any work that a similarly situated entity further subcontracts will count towards the concern 's 85 percent subcontract amount that cannot be exceeded.

(iv) For a contract or order assigned a NAICS code for construction by special trade contractors, the concern will not pay more than 75 percent of the amount paid by the Government for contract performance, excluding the cost of materials, to subcontractors that are not similarly situated entities . Any work that a similarly situated entity further subcontracts will count towards the concern ’s 75 percent subcontract amount that cannot be exceeded.

(2) Compliance period. A small business contractor subject to the limitations on subcontracting is required to comply with the limitations on subcontracting—

(i) For a contract that has been set aside, either by the end of the base term and then by the end of each subsequent option period, or by the end of the performance period for each order issued under the contract, at the contracting officer 's discretion; and

(ii) For an order set aside under a contract as described in 19.504 (a), (b), or (c)(1)(i) or an order issued in accordance with 19.504 (c)(1)(ii), by the end of the performance period for the order.

(c) Nonmanufacturer rule. The nonmanufacturer rule applies to nonmanufacturers in accordance with paragraph (c)(1) of this section and to kit assemblers who are nonmanufacturers in accordance with paragraph (c)(2) of this section.

(1) Nonmanufacturers. Any concern , including a supplier, that is awarded a contract or order subject to the nonmanufacturer rule, other than a construction or service acquisition , but proposes to furnish an end item that it did not itself manufacture, process, or produce ( i.e. , a “nonmanufacturer”), is required to—

(i) Provide an end item that a small business has manufactured, processed, or produced in the United States or its outlying areas (see paragraph (c)(3) of this section for determining the manufacturer of an end item);

(ii) Not exceed 500 employees, or 150 employees for information technology value-added resellers under NAICS code 541519;

(iii) Be primarily engaged in the retail or wholesale trade and normally sell the type of item being supplied; and

(iv) Take ownership or possession of the item(s) with its personnel, equipment, or facilities in a manner consistent with industry practice; for example, providing storage, transportation, or delivery.

(2) Kit assemblers. When the end item being acquired is a kit of supplies —

(i) The offeror may not exceed 500 employees, or 150 employees for information technology value-added resellers under NAICS code 541519; and

(ii) At least 50 percent of the total cost of the components of the kit shall be manufactured, processed, or produced in the United States or its outlying areas by business concerns that are small under the size standards for the NAICS codes of the components of the kit.

(3) Identification of manufacturers . For the purposes of applying the nonmanufacturer rule, the manufacturer, processor, or producer is the concern that manufactures, processes, or produces an end item with its own facilities (i.e., transforms raw materials, miscellaneous parts, or components into the end item being acquired). See 13 CFR 121.406 (b)(2).

(4) Waiver of nonmanufacturer rule.

(i) The SBA may grant an individual or a class waiver to the nonmanufacturer rule to allow a nonmanufacturer to provide an end item of an other than small business without regard to the place of manufacture, processing, or production.

(A) Class waiver. An agency may request that SBA waive the requirement at paragraph (c)(1)(i) or (c)(2)(ii) of this section for a specific product or class of products . See 13 CFR 121.1202 for an explanation of when SBA will issue a class waiver.

(B) Individual waiver. The contracting officer may also request a waiver of the requirements at paragraph (c)(1)(i) or (c)(2)(ii) of this section for an individual acquisition once the contracting officer determines through market research that no known small business manufacturers, processors, or producers in the United States or its outlying areas can reasonably be expected to offer an end item meeting the requirements of the solicitation . This type of waiver is known as an individual waiver and would apply only to a specific acquisition .

(ii) Waiver requests. Requests for waivers shall include the content specified at 13 CFR 121.1204 and shall be sent via email to [email protected] or by mail to the—Director, Office of Government Contracting , Small Business Administration, 409 Third Street SW, Washington, DC 20416.

(iii) List of class waivers. For the most current listing of class waivers, contact the SBA Office of Government Contracting or go to https://www.sba.gov/document/support-non-manufacturer-rule-class-waiver-list .

(iv) Notification of waiver. The contracting officer shall provide potential offerors with written notification of any class or individual waiver in the solicitation . If providing the notification after solicitation issuance, the contracting officer shall provide potential offerors a reasonable amount of additional time to respond to the solicitation .

(5) Multiple-item acquisitions .

(i) If at least 50 percent of the estimated contract value is composed of items that are manufactured, processed, or produced by small business concerns , then a waiver of the nonmanufacturer rule is not required. There is no requirement that each item acquired in a multiple-item acquisition be manufactured, processed, or produced by a small business in the United States or its outlying areas .

(ii) If more than 50 percent of the estimated acquisition cost is composed of items manufactured, processed, or produced by other than small business concerns , then a waiver is required. SBA may grant an individual waiver for one or more items in an acquisition in order to ensure that at least 50 percent of the cost of the items to be supplied by the nonmanufacturer comes from small business manufacturers, processors, and producers in the United States or its outlying areas or are subject to a waiver.

(iii) If a small business offeror is both a manufacturer of item(s) and a nonmanufacturer of other item(s) for an acquisition , the contracting officer shall apply the manufacturer size standard.

(1) The contracting officer shall document the rationale when a contract is not totally set aside for small business in accordance with 19.502-2 .

(2) The contracting officer shall document the rationale when a multiple-award contract is not partially set aside, not reserved, and does not allow for setting aside of orders, when these authorities could have been used.

(b) If applicable, the documentation shall include the rationale for not accepting the recommendations made by the agency Director of the Office of Small and Disadvantaged Business Utilization, or, for the Department of Defense, the Director of the Office of Small Business Programs, or the Director's designee, as to whether a particular acquisition should be awarded under subparts 19.5 , 19.8 , 19.13 , 19.14 , or 19.15 .

(c) Documentation is not required if a contract award is anticipated to a small business under subpart 19.5 , 19.8 , 19.13 , 19.14 , or 19.15 .

(b) [Reserved]

(c) The contracting officer shall insert the clause at 52.219-6 , Notice of Total Small Business Set-Aside, in solicitations and contracts involving total small business set-asides. This includes multiple-award contracts when orders may be set aside for any of the small business concerns identified in 19.000 (a)(3), as described in 8.405-5 and 16.505 (b)(2)(i)(F). Use the clause at 52.219-6 with its Alternate I when including FPI in the competition in accordance with 19.502-7 .

(d) The contracting officer shall insert the clause at 52.219-7 , Notice of Partial Small Business Set-Aside, in solicitations and contracts involving partial small business set-asides. This includes part or parts of multiple-award contracts , including those described in 38.101 . Use the clause at 52.219-7 with its Alternate I when including FPI in the competition in accordance with 19.502-7 .

(e) The contracting officer shall insert the clause at 52.219-14 , Limitations on Subcontracting, in solicitations and contracts—

(1) For supplies , services, and construction , if any portion of the requirement is to be set aside for small business and the contract amount is expected to exceed the simplified acquisition threshold , and in any solicitations and contracts that are set aside or awarded on a sole-source basis in accordance with subparts 19.8 , 19.13 , 19.14 , or 19.15 , regardless of dollar value. This includes multiple-award contracts when orders may be set aside for small business concerns , as described in 8.405-5 and 16.505 (b)(2)(i)(F), and when orders may be issued directly to a small business concern as described in 19.504 (c)(1)(ii). For contracts that are set aside, the contracting officer shall indicate in paragraph (f) of the clause whether compliance with the limitations on subcontracting is required at the contract or order level;

(2) Using the HUBZone price evaluation preference. However, if the prospective contractor waived the use of the price evaluation preference, or is an other than small business, do not insert the clause in the resultant contract.

(1) The contracting officer shall insert the clause at 52.219-13 , Notice of Set-Aside of Orders, in all solicitations for multiple-award contracts under which orders may be set aside for any of the small business concerns identified in 19.000 (a)(3), and all contracts awarded from such solicitations .

(2) The contracting officer shall insert the clause at 52.219-13 with its Alternate I in all full and open solicitations and contracts for multiple-award contracts under which orders will be set aside for any of the small business concerns identified in 19.000 (a)(3) if the conditions in 19.502-2 are met at the time of order set-aside, and the specific program eligibility requirements, as applicable, are also then met.

(1) The contracting officer shall insert the provision at 52.219-31 , Notice of Small Business Reserve, in solicitations for multiple-award contracts that have reserves.

(2) The contracting officer shall insert the clause at 52.219-32 Orders Issued Directly Under Small Business Reserves, in solicitations and the resulting multiple-award contracts that have reserves.

(1) The contracting officer shall insert the clause at 52.219-33 , Nonmanufacturer Rule, in solicitations and contracts (including multiple-award contracts when orders may be set aside for small business concerns as described in 8.405-5 and 16.505 (b)(2)(i)(F), and when orders may be issued directly to a small business concern as described in 19.504 (c)(1)(ii)), when—

(i) the item being acquired has been assigned a manufacturing or supply NAICS code, and–

(A) Any portion of the requirement is to be–

(1) Set aside for small business and is expected to exceed the simplified acquisition threshold ; or

(2) Set aside or awarded on a sole-source basis in accordance with subparts 19.8 , 19.13 , 19.14 , or 19.15 , regardless of dollar value; or

(B) Using the HUBZone price evaluation preference. However, if the prospective contractor waived the use of the price evaluation preference, or is an other than small business, do not insert the clause in the resultant contract.

(2) The contracting officer shall not insert the clause at 52.219-33 when the Small Business Administration has waived the nonmanufacturer rule (see 19.505 (c)(4)).

(a) A Certificate of Competency (COC) is the certificate issued by the Small Business Administration (SBA) stating that the holder is responsible (with respect to all elements of responsibility, including, but not limited to, capability, competency, capacity, credit, integrity, perseverance, tenacity, and limitations on subcontracting) for the purpose of receiving and performing a specific Government contract.

(b) The COC program empowers the SBA to certify to Government contracting officers as to all elements of responsibility of any small business concern to receive and perform a specific Government contract. The COC program does not extend to questions concerning regulatory requirements imposed and enforced by other Federal agencies .

(c) The COC program is applicable to all Government acquisitions except for 8(a) sole-source awards. A contracting officer shall , upon determining an apparent successful small business offeror to be nonresponsible, refer that small business to the SBA for a possible COC, even if the next acceptable offer is from a small business.

(d) When a solicitation requires a small business to adhere to the limitations on subcontracting, a contracting officer ’s finding that a small business cannot comply with the limitation shall be treated as an element of responsibility and shall be subject to the COC process. When a solicitation requires a small business to adhere to the definition of a nonmanufacturer, a contracting officer ’s determination that the small business does not comply shall be processed in accordance with subpart  19.3 .

(e) Contracting officers , including those located overseas, are required to comply with this subpart for U.S. small business concerns .

(f) For the purpose of receiving a COC on an unrestricted acquisition , a small business nonmanufacturer may furnish any end item produced or manufactured in the United States or its outlying areas .

(a) Upon determining and documenting that an apparent successful small business offeror lacks certain elements of responsibility (including, but not limited to, capability, competency, capacity, credit, integrity, perseverance, tenacity, and limitations on subcontracting, but for sureties see 28.101-3 (f) and 28.203-1 (e)), the contracting officer shall -

(1) Withhold contract award (see 19.602-3 ); and

(2) Refer the matter to the cognizant SBA Government Contracting Area Office (Area Office) serving the area in which the headquarters of the offeror is located, in accordance with agency procedures, except that referral is not necessary if the small business concern -

(i) Is determined to be unqualified and ineligible because it does not meet the standard in 9.104-1 (g), provided, that the determination is approved by the chief of the contracting office ; or

(ii) Is suspended or debarred under Executive Order 11246 or subpart  9.4 .

(b) If a partial set-aside is involved, the contracting officer shall refer to the SBA the entire quantity to which the concern may be entitled, if responsible.

(c) The referral shall include-

(1) A notice that a small business concern has been determined to be nonresponsible, specifying the elements of responsibility the contracting officer found lacking; and

(2) If applicable, a copy of the following:

(i) Solicitation .

(ii) Final offer submitted by the concern whose responsibility is at issue for the procurement .

(iii) Abstract of bids or the contracting officer ’s price negotiation memorandum.

(iv) Preaward survey .

(v) Technical data package (including drawings, specifications and statement of work).

(vi) Any other justification and documentation used to arrive at the nonresponsibility determination.

(d) For any single acquisition , the contracting officer shall make only one referral at a time regarding a determination of nonresponsibility.

(e) Contract award shall be withheld by the contracting officer for a period of 15 business days (or longer if agreed to by the SBA and the contracting officer ) following receipt by the appropriate SBA Area Office of a referral that includes all required documentation.

Within 15 business days (or a longer period agreed to by the SBA and the contracting agency) after receiving a notice that a small business concern lacks certain elements of responsibility, the SBA Area Office will take the following actions:

(a) Inform the small business concern of the contracting officer ’s determination and offer it an opportunity to apply to the SBA for a COC. (A concern wishing to apply for a COC should notify the SBA Area Office serving the geographical area in which the headquarters of the offeror is located.)

(b) Upon timely receipt of a complete and acceptable application, elect to visit the applicant’s facility to review its responsibility.

(1) The COC review process is not limited to the areas of nonresponsibility cited by the contracting officer .

(2) The SBA may , at its discretion, independently evaluate the COC applicant for all elements of responsibility, but may presume responsibility exists as to elements other than those cited as deficient.

(c) Consider denying a COC for reasons of nonresponsibility not originally cited by the contracting officer .

(d) When the Area Director determines that a COC is warranted (for contracts valued at $25,000,000 or less), notify the contracting officer and provide the following options :

(1) Accept the Area Director’s decision to issue a COC and award the contract to the concern . The COC issuance letter will then be sent, including as an attachment a detailed rationale for the decision; or

(2) Ask the Area Director to suspend the case for one or more of the following purposes:

(i) To permit the SBA to forward a detailed rationale for the decision to the contracting officer for review within a specified period of time.

(ii) To afford the contracting officer the opportunity to meet with the Area Office to review all documentation contained in the case file and to attempt to resolve any issues.

(iii) To submit any information to the SBA Area Office that the contracting officer believes the SBA did not consider (at which time, the SBA Area Office will establish a new suspense date mutually agreeable to the contracting officer and the SBA).

(iv) To permit resolution of an appeal by the contracting agency to SBA Headquarters under 19.602-3 . However, there is no contracting officer ’s appeal when the Area Office proposes to issue a COC valued at $100,000 or less.

(e) At the completion of the process, notify the concern and the contracting officer that the COC is denied or is being issued.

(f) Refer recommendations for issuing a COC on contracts greater than $25,000,000 to SBA Headquarters.

(a) COCs valued between $100,000 and $25,000,000.

(1) When disagreements arise about a concern ’s ability to perform, the contracting officer and the SBA shall make every effort to reach a resolution before the SBA takes final action on a COC. This shall be done through the complete exchange of information and in accordance with agency procedures. If agreement cannot be reached between the contracting officer and the SBA Area Office, the contracting officer shall request that the Area Office suspend action and refer the matter to SBA Headquarters for review. The SBA Area Office shall honor the request for a review if the contracting officer agrees to withhold award until the review process is concluded. Without an agreement to withhold award, the SBA Area Office will issue the COC in accordance with applicable SBA regulations.

(2) SBA Headquarters will furnish written notice to the procuring agency’s Director of the, Office of Small and Disadvantaged Business Utilization (OSDBU) or, for the Department of Defense, the Director of the Office of Small Business Programs, or other designated official (with a copy to the contracting officer ) that the case file has been received and that an appeal decision may be requested by an authorized official.

(3) If the contracting agency decides to file an appeal, it must notify SBA Headquarters through its procuring agency’s Director, OSDBU, or other designated official, within 10 business days (or a time period agreed upon by both agencies) that it intends to appeal the issuance of the COC.

(4) The appeal and any supporting documentation shall be filed by the procuring agency’s Director, OSDBU, or other designated official, within 10 business days (or a period agreed upon by both agencies) after SBA Headquarters receives the agency’s notification in accordance with paragraph (a)(3) of this subsection.

(5) The SBA Associate Administrator for Government Contracting will make a final determination, in writing , to issue or to deny the COC.

(b) SBA Headquarters’ decisions on COCs valued over $25,000,000.

(1) Prior to taking final action, SBA Headquarters will contact the contracting agency and offer it the following options :

(i) To request that the SBA suspend case processing to allow the agency to meet with SBA Headquarters personnel and review all documentation contained in the case file; or

(ii) To submit to SBA Headquarters for evaluation any information that the contracting agency believes has not been considered.

(2) After reviewing all available information, the SBA will make a final decision to either issue or deny the COC.

(c) Reconsideration of a COC after issuance.

(1) The SBA reserves the right to reconsider its issuance of a COC, prior to contract award, if-

(i) The COC applicant submitted false information or omitted materially adverse information; or

(ii) The COC has been issued for more than 60 days (in which case the SBA may investigate the firm’s current circumstances).

(2) When the SBA reconsiders and reaffirms the COC, the procedures in subsection 19.602-2 do not apply.

(3) Denial of a COC by the SBA does not preclude a contracting officer from awarding a contract to the referred concern , nor does it prevent the concern from making an offer on any other procurement .

(a) If new information causes the contracting officer to determine that the concern referred to the SBA is actually responsible to perform the contract, and award has not already been made under paragraph (c) of this subsection, the contracting officer shall reverse the determination of nonresponsibility, notify the SBA of this action, withdraw the referral, and proceed to award the contract.

(b) The contracting officer shall award the contract to the concern in question if the SBA issues a COC after receiving the referral. An SBA-certified concern shall not be required to meet any other requirements of responsibility. SBA COC’s are conclusive with respect to all elements of responsibility of prospective small business contractors. Where SBA issues a COC, the contracting officer may decide not to award to that offeror for reasons unrelated to responsibility.

(c) The contracting officer shall proceed with the acquisition and award the contract to another appropriately selected and responsible offeror if the SBA has not issued a COC within 15 business days (or a longer period of time agreed to with the SBA) after receiving the referral.

As used in this subpart-

Alaska Native Corporation (ANC) means any Regional Corporation, Village Corporation, Urban Corporation, or Group Corporation organized under the laws of the State of Alaska in accordance with the Alaska Native Claims Settlement Act, as amended ( 43 U.S.C. 1601 , et seq .) and which is considered a minority and economically disadvantaged concern under the criteria at 43 U.S.C. 1626(e)(1) . This definition also includes ANC direct and indirect subsidiary corporations, joint ventures, and partnerships that meet the requirements of 43 U.S.C. 1626(e)(2) .

Commercial plan means a subcontracting plan (including goals) that covers the offeror ’s fiscal year and that applies to the entire production of commercial products and performance of commercial services sold by either the entire company or a portion thereof ( e.g., division, plant, or product line).

Electronic Subcontracting Reporting System (eSRS ) means the Governmentwide, electronic, web-based system for small business subcontracting program reporting.

Failure to make a good faith effort to comply with the subcontracting plan means willful or intentional failure to perform in accordance with the requirements of the subcontracting plan, or willful or intentional action to frustrate the plan.

Indian tribe means any Indian tribe, band, group, pueblo, or community, including native villages and native groups (including corporations organized by Kenai, Juneau, Sitka, and Kodiak) as defined in the Alaska Native Claims Settlement Act ( 43 U.S.C.A. 1601 et seq .), that is recognized by the Federal Government as eligible for services from the Bureau of Indian Affairs in accordance with 25 U.S.C. 1452(c) . This definition also includes Indian-owned economic enterprises that meet the requirements of 25U. S.C. 1452(e) .

Individual subcontracting plan means a subcontracting plan that covers the entire contract period (including option periods), applies to a specific contract, and has goals that are based on the offeror ’s planned subcontracting in support of the specific contract, except that indirect costs incurred for common or joint purposes may be allocated on a prorated basis to the contract.

Master subcontracting plan means a subcontracting plan that contains all the required elements of an individual subcontracting plan , except goals, and may be incorporated into individual subcontracting plans , provided the master subcontracting plan has been approved.

Reduced Payment means a payment that is for less than the amount agreed upon in a subcontract in accordance with its terms and conditions, for supplies and services for which the Government has paid the prime contractor.

Subcontract means any agreement (other than one involving an employer-employee relationship) entered into by a Government prime contractor or subcontractor calling for supplies and/or services required for performance of the contract, contract modification , or subcontract .

Total contract dollars means the final anticipated dollar value, including the dollar value of all options .

Untimely Payment means a payment to a subcontractor that is more than 90 days past due under the terms and conditions of a subcontract for supplies and services for which the Government has paid the prime contractor.

Any contractor receiving a contract with a value greater than the simplified acquisition threshold must agree in the contract that small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns will have the maximum practicable opportunity to participate in contract performance consistent with its efficient performance. It is further the policy of the United States that its prime contractors establish procedures to ensure the timely payment of amounts due pursuant to the terms of their subcontracts with small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns .

(1) Except as stated in paragraph (b) of this section, section 8(d) of the Small Business Act ( 15 U.S.C. 637( d)) imposes the following requirements regarding subcontracting with small businesses and small business subcontracting plans:

(i) In negotiated acquisitions , each solicitation of offers to perform a contract that is expected to exceed $750,000 ($1.5 million for construction ) and that has subcontracting possibilities, shall require the apparently successful offeror to submit an acceptable subcontracting plan. If the apparently successful offeror fails to negotiate a subcontracting plan acceptable to the contracting officer within the time limit prescribed by the contracting officer , the offeror will be ineligible for award. For a multiple-award contract with more than one North American Industry Classification System (NAICS) code, see paragraph (a)(2)(i) of this section.

(ii) In sealed bidding acquisitions , each invitation for bids to perform a contract that is expected to exceed $750,000 ($1.5 million for construction ) and that has subcontracting possibilities, shall require the bidder selected for award to submit a subcontracting plan. If the selected bidder fails to submit a plan within the time limit prescribed by the contracting officer , the bidder will be ineligible for award. For a multiple-award contract with more than one NAICS code, see paragraph (a)(2)(i) of this section.

(iii) Each contract modification that causes the value of a contract without a subcontracting plan to exceed $750,000 ($1.5 million for construction ), shall require the contractor to submit a subcontracting plan for the contract, if the contracting officer determines that subcontracting opportunities exist. For a multiple-award contract with more than one NAICS code, see paragraph (a)(2)(ii) of this section.

(i) For a multiple-award contract with more than one NAICS code, the solicitation referenced in paragraphs (a)(1)(i) and (ii) of this section shall require the apparently successful offeror to submit an acceptable subcontracting plan for either the distinct portion(s) or category(ies) of their proposal for which the offeror is other than small or for the entirety of their proposal, at the offeror 's discretion. When determining the need for a subcontracting plan, the contracting officer shall consider the cumulative dollar value of the portion(s) or category(ies) of the offeror 's proposal for which the offeror is other than small.

(ii) For a multiple-award contract with more than one NAICS code, the modification referenced in paragraph (a)(1)(iii) of this section shall require the contractor to submit an acceptable subcontracting plan for either the distinct portion(s) or category(ies) of the contract for which the contractor is other than small or for the entirety of their contract, at the contractor's discretion. When determining the need for a subcontracting plan, the contracting officer shall consider the cumulative dollar value of the portion(s) or category(ies) of the contract for which the contractor is other than small.

(b) Subcontracting plans (see paragraphs (a)(1) and (2) of this section) are not required–

(1) From small business concerns ;

(2) For personal services contracts ;

(3) For contracts or contract modifications that will be performed entirely outside of the United States and its outlying areas ; or

(4) For modifications that are within the scope of the contract and the contract does not contain the clause at 52.219-8 , Utilization of Small Business Concerns .

(c) As stated in 15 U.S.C. 637(d)(9) , any contractor or subcontractor failing to comply in good faith with the requirements of the subcontracting plan is in material breach of its contract. Further, 15 U.S.C. 637(d)(4)(F) directs that a contractor’s failure to make a good faith effort to comply with the requirements of the subcontracting plan shall result in the imposition of liquidated damages.

(d) As authorized by 15 U.S.C. 637(d)(12) , certain costs incurred by a mentor firm in providing developmental assistance to a protégé firm under the Department of Defense Pilot Mentor-Protégé Program, may be credited as if they were subcontract awards to a protégé firm for the purpose of determining whether the mentor firm attains the applicable goals under any subcontracting plan entered into with any executive agency . However, the mentor-protégé agreement must have been approved by the Director, Small Business Programs of the cognizant DoD military department or defense agency, before developmental assistance costs may be credited against subcontract goals. A list of approved agreements may be obtained at https://business.defense.gov/Programs/Mentor-Protege-Program/.

(a) Except as provided in paragraph (c) of this section, to be eligible as a subcontractor under the program, a concern must represent itself as a small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, or women-owned small business concern .

(1) To represent itself as a small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, or women-owned small business concern , a concern must meet the appropriate definition (see 2.101 and 19.001 ). For subcontracting purposes, a concern is small if it does not exceed the size standard for the NAICS code that the prime contractor determines best describes the product or service being acquired by the subcontract .

(i) The prime contractor may accept a subcontractor's written representations of its size and socioeconomic status as a small business, small disadvantaged business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, or a women-owned small business, if the subcontractor represents that the size and socioeconomic status representation with its offer are current, accurate, and complete as of the date of the offer for the subcontracts ; or

(ii) The prime contractor may accept a subcontractor's representation of its size and socioeconomic status as a small business, small disadvantaged business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, or a women-owned small business in the System for Award Management (SAM ) if–

(A) The subcontractor is registered in SAM; and

(B) The subcontractor represents that the size and socioeconomic status representations made in SAM are current, accurate and complete as of the date of the offer for the subcontract .

(iii) The prime contractor may not require the use of SAM for the purposes of representing size or socioeconomic status in connection with a subcontract .

(iv) In accordance with 13 CFR 121.411, 126.900, 127.700, and 128.600, a prime contractor acting in good faith is not liable for misrepresentations made by its subcontractors regarding the subcontractor's size or socioeconomic status.

(b) The contractor, the contracting officer , or any other interested party can challenge a subcontractor's size status representation by filing a protest, in accordance with 13 CFR 121.1001 through 121.1008.

(1) In accordance with 43 U.S.C. 1626 , the following procedures apply:

(i) Subcontracts awarded to an ANC or Indian tribe shall be counted towards the subcontracting goals for small business and small disadvantaged business (SDB) concerns , regardless of the size or Small Business Administration certification status of the ANC or Indian tribe.

(ii) Where one or more subcontractors are in the subcontract tier between the prime contractor and the ANC or Indian tribe, the ANC or Indian tribe shall designate the appropriate contractor(s) to count the subcontract towards its small business and small disadvantaged business subcontracting goals.

(A) In most cases, the appropriate contractor is the contractor that awarded the subcontract to the ANC or Indian tribe.

(B) If the ANC or Indian tribe designates more than one contractor to count the subcontract toward its goals, the ANC or Indian tribe shall designate only a portion of the total subcontract award to each contractor. The sum of the amounts designated to various contractors cannot exceed the total value of the subcontract .

(C) The ANC or Indian tribe shall give a copy of the written designation to the contracting officer , the prime contractor, and the subcontractors in between the prime contractor and the ANC or Indian tribe within 30 days of the date of the subcontract award.

(D) If the contracting officer does not receive a copy of the ANC's or the Indian tribe’s written designation within 30 days of the subcontract award, the contractor that awarded the subcontract to the ANC or Indian tribe will be considered the designated contractor.

(2) A contractor acting in good faith may rely on the written representation of an ANC or an Indian tribe as to the status of the ANC or Indian tribe unless an interested party challenges its status or the contracting officer has independent reason to question its status. In the event of a challenge of a representation of an ANC or Indian tribe, the interested parties shall follow the procedures at 26.103 (b) through (e).

(d) Protests challenging the socioeconomic status of a HUBZone small business concern must be filed in accordance with 13 CFR 126.801 .

(a) Each subcontracting plan required under 19.301-2 (e) and 19.702 (a)(1)(i), (ii), and (iii) shall include-

(1) Separate percentage goals for using small business (including ANCs and Indian tribes), veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business (including ANCs and Indian tribes) and women-owned small business concerns as subcontractors;

(2) A statement of the total dollars planned to be subcontracted and a statement of the total dollars planned to be subcontracted to small business (including ANCs and Indian tribes), veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business (including ANCs and Indian tribes) and women-owned small business concerns , as a percentage of total subcontract dollars. For individual subcontracting plans only, a contracting officer may require the goals referenced in paragraph (a)(1) of this section to be calculated as a percentage of total contract dollars , in addition to the goals established as a percentage of total subcontract dollars;

(3) A description of the principal types of supplies and services to be subcontracted and an identification of types of supplies or services planned for subcontracting to small business (including ANCs and Indian tribes), veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business (including ANCs and Indian tribes), and women-owned small business concerns ;

(4) A description of the method used to develop the subcontracting goals;

(5) A description of the method used to identify potential sources for solicitation purposes;

(6) A statement as to whether or not the offeror included indirect costs in establishing subcontracting goals (for commercial plans, see paragraph (d) of this section), and a description of the method used to determine the proportionate share of indirect costs to be incurred with small business (including ANCs and Indian tribes), veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business (including ANCs and Indian tribes), and women-owned small business concerns ;

(7) The name of an individual employed by the offeror who will administer the offeror ’s subcontracting program, and a description of the duties of the individual;

(8) A description of the efforts the offeror will make to ensure that small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns have an equitable opportunity to compete for subcontracts ;

(9) Assurances that the offeror will include the clause at 52.219-8 , Utilization of Small Business Concerns (see 19.708 (a)), in all subcontracts that offer further subcontracting opportunities, and that the offeror will require all subcontractors (except small business concerns ) that receive subcontracts in excess of $750,000 ($1.5 million for construction ) to adopt a plan that complies with the requirements of the clause at 52.219-9 , Small Business Subcontracting Plan (see 19.708 (b));

(10) Assurances that the offeror will-

(i) Cooperate in any studies or surveys as may be required;

(ii) Submit periodic reports so that the Government can determine the extent of compliance by the offeror with the subcontracting plan;

(iii) After November 30, 2017, include subcontracting data for each order when reporting subcontracting achievements for indefinite-delivery, indefinite-quantity contracts with individual subcontracting plans where the contract is intended for use by multiple agencies;

(iv) Submit the Individual Subcontract Report (ISR), and the Summary Subcontract Report (SSR) using the Electronic Subcontracting Reporting System (eSRS ) ( http://www.esrs.gov ), following the instructions in the eSRS.

(A) The ISR shall be submitted semi-annually during contract performance for the periods ending March 31 and September 30. A report is also required for each contract within 30 days of contract completion. Reports are due 30 days after the close of each reporting period, unless otherwise directed by the contracting officer . Reports are required when due, regardless of whether there has been any subcontracting activity since the inception of the contract or the previous reporting period. When a contracting officer rejects an ISR, the contractor is required to submit a revised ISR within 30 days of receiving the notice of the ISR rejection.

(B) The SSR shall be submitted annually by October 30 for the twelve-month period ending September 30. When an SSR is rejected, the contractor is required to submit a revised SSR within 30 days of receiving the notice of SSR rejection;

(v) Ensure that its subcontractors with subcontracting plans agree to submit the ISR and/or the SSR using the eSRS;

(vi) Provide its prime contract number, its unique entity identifier , and the e-mail address of the offeror ’s official responsible for acknowledging receipt of or rejecting the ISRs to all first-tier subcontractors with subcontracting plans so they can enter this information into the eSRS when submitting their ISRs; and

(vii) Require that each subcontractor with a subcontracting plan provide the prime contract number, its own unique entity identifier , and the e-mail address of the subcontractor’s official responsible for acknowledging receipt of or rejecting the ISRs, to its subcontractors with subcontracting plans;

(11) A description of the types of records that will be maintained concerning procedures adopted to comply with the requirements and goals in the plan, including establishing source lists; and a description of the offeror ’s efforts to locate small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns and to award subcontracts to them;

(12) Assurances that the offeror will make a good faith effort to acquire articles, equipment, supplies , services, or materials, or obtain the performance of construction work from the small business concerns that the offeror used in preparing the bid or proposal, in the same or greater scope, amount, and quality used in preparing and submitting the bid or proposal. Responding to a request for a quote does not constitute use in preparing a bid or proposal. An offeror used a small business concern in preparing the bid or proposal if–

(i) The offeror identifies the small business concern as a subcontractor in the bid or proposal or associated small business subcontracting plan, to furnish certain supplies or perform a portion of the contract; or

(ii) The offeror used the small business concern 's pricing or cost information or technical expertise in preparing the bid or proposal, where there is written evidence of an intent or understanding that the small business concern will be awarded a subcontract for the related work if the offeror is awarded the contract;

(13) Assurances that the contractor will provide the contracting officer with a written explanation if the contractor fails to acquire articles, equipment, supplies , services or materials or obtain the performance of construction work as described in (a)(12) of this section. This written explanation will be submitted to the contracting officer within 30 days of contract completion;

(14) Assurances that the contractor will not prohibit a subcontractor from discussing with the contracting officer any material matter pertaining to payment to or utilization of a subcontractor; and

(15) Assurances that the offeror will pay its small business subcontractors on time and in accordance with the terms and conditions of the subcontract , and notify the contracting officer if the offeror pays a reduced or an untimely payment to a small business subcontractor (see 52.242-5 ).

(b) Contractors may establish, on a plant or division-wide basis, a master plan (see 19.701 ) that contains all the elements required by the clause at 52.219-9 , Small Business Subcontracting Plan, except goals. Master plans shall be effective for a 3-year period after approval by the contracting officer ; however, it is incumbent upon contractors to maintain and update master plans. Changes required to update master plans are not effective until approved by the contracting officer . A master plan, when incorporated in an individual plan, shall apply to that contract throughout the life of the contract.

(c) For multiyear contracts or contracts containing options , the cumulative value of the basic contract and all options is considered in determining whether a subcontracting plan is necessary. If a subcontracting plan is necessary and the offeror is submitting an individual subcontracting plan , the individual subcontracting plan shall contain all the elements required by paragraph (a) of this section and shall contain separate statements and goals based on total subcontract dollars for the basic contract and for each option .

(d) A commercial plan (as defined in 19.701 ) is the preferred type of subcontracting plan for contractors furnishing commercial products and commercial services . The subcontracting goals established for a commercial plan shall include all indirect costs with the exception of those such as the following: Employee salaries and benefits; payments for petty cash; depreciation ; interest; income taxes; property taxes; lease payments; bank fees; fines, claims , and dues; original equipment manufacturer relationships during warranty periods (negotiated up front with the product); utilities and other services purchased from a municipality or an entity solely authorized by the municipality to provide those services in a particular geographical region; and philanthropic contributions. Once a contractor's commercial plan has been approved, the Government shall not require another subcontracting plan from the same contractor while the plan remains in effect, as long as the product or service being provided by the contractor continues to meet the definition of a commercial product or commercial service . The contractor shall —

(1) Submit the commercial plan to either the first contracting officer awarding a contract subject to the plan during the contractor’s fiscal year, or, if the contractor has ongoing contracts with commercial plans, to the contracting officer responsible for the contract with the latest completion date. The contracting officer shall negotiate the commercial plan for the Government. The approved commercial plan shall remain in effect during the contractor’s fiscal year for all Government contracts in effect during that period;

(2) Submit a new commercial plan, 30 working days before the end of the Contractor’s fiscal year, to the contracting officer responsible for the uncompleted Government contract with the latest completion date. The contractor must provide to each contracting officer responsible for an ongoing contract subject to the plan, the identity of the contracting officer that will be negotiating the new plan;

(3) When the new commercial plan is approved, provide a copy of the approved plan to each contracting officer responsible for an ongoing contract that is subject to the plan; and

(4) Comply with the reporting requirements stated in paragraph (a)(10) of this section by submitting one SSR that includes all indirect costs , except as described in paragraph (d) of this section, in eSRS, for all contracts covered by its commercial plan. This report will be acknowledged or rejected in eSRS by the contracting officer who approved the plan. The report shall be submitted within 30 days after the end of the Government’s fiscal year.

(a) The contracting officer may encourage the development of increased subcontracting opportunities in negotiated acquisition by providing monetary incentives such as payments based on actual subcontracting achievement or award-fee contracting (see the clause at 52.219-10 , Incentive Subcontracting Program, and 19.708 (c)). When using any contractual incentive provision based upon rewarding the contractor monetarily for exceeding goals in the subcontracting plan, the contracting officer must ensure that (a) the goals are realistic and (b) any rewards for exceeding the goals are commensurate with the efforts the contractor would not have otherwise expended. Incentive provisions should normally be negotiated after reaching final agreement with the contractor on the subcontracting plan.

(1) Except where a contractor has a commercial plan, the contracting officer shall require a subcontracting plan for each indefinite-delivery, indefinite-quantity contract (including task or delivery order contracts, FSS, GWACs, and MACs), when the estimated value of the contract meets the subcontracting plan thresholds at 19.702 (a) and small business subcontracting opportunities exist.

(2) Contracting officers placing orders may establish small business subcontracting goals for each order. Establishing goals shall not be in the form of a new subcontracting plan as a contract may not have more than one plan ( 19.705-2 (e)).

The contracting officer shall take the following actions to determine whether a proposed contractual action requires a subcontracting plan:

(1) Determine whether the proposed total contract dollars will exceed the subcontracting plan threshold in 19.702 (a).

(2) Determine whether a proposed modification will cause the total contract dollars to exceed the subcontracting plan threshold (see 19.702 (a)).

(b) Determine whether subcontracting possibilities exist by considering relevant factors such as-

(1) Whether firms engaged in the business of furnishing the types of items to be acquired customarily contract for performance of part of the work or maintain sufficient in-house capability to perform the work; and

(2) Whether there are likely to be product prequalification requirements.

(3) Whether the firm can acquire any portion of the work with minimal or no disruption to performance (with consideration given to the time remaining until contract completion), and at fair market value, when a determination is made in accordance with paragraph (a)(2).

(c) If it is determined that there are no subcontracting possibilities, the determination shall include a detailed rationale, be approved at a level above the contracting officer , and placed in the contract file.

(d) In solicitations for negotiated acquisitions , the contracting officer may require the submission of subcontracting plans with initial offers , or at any other time prior to award. In determining when subcontracting plans should be required, as well as when and with whom plans should be negotiated, the contracting officer must consider the integrity of the competitive process, the goal of affording maximum practicable opportunity for small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns to participate, and the burden placed on offerors .

(e) A contract may not have more than one subcontracting plan. However, a contracting officer may establish separate subcontracting goals for each order under an indefinite-delivery, indefinite-quantity contract ( 19.705-1 (b)(2)). When a contract modification exceeds the subcontracting plan threshold (see 19.702 (a)) or an option is exercised, the goals of an existing subcontracting plan shall be amended to reflect any new subcontracting opportunities not envisioned at the time of contract award. These goal changes do not apply retroactively.

(f) If a subcontracting plan has been added to the contract due to a modification (see 19.702 (a)(1)(iii)) or a size re-representation (see 19.301-2 (e)), the subcontracting goals apply from the date of incorporation of the subcontracting plan into the contract and the contractor's achievements must be reported on the ISR (or the SF-294, if applicable) on a cumulative basis from the date of incorporation of the subcontracting plan into the contract.

The contracting officer shall provide the Small Business Administration's (SBA’s) procurement center representative (or, if a procurement center representative is not assigned, see 19.402 (a)) a reasonable period of time to review any solicitation requiring submission of a subcontracting plan and to submit advisory findings before the solicitation is issued.

The contracting officer shall review the subcontracting plan for adequacy, ensuring that the required information, goals, and assurances are included (see 19.704 ).

(a) No detailed standards apply to every subcontracting plan. Instead, the contracting officer shall consider each plan in terms of the circumstances of the particular acquisition , including-

(1) Previous involvement of small business concerns as prime contractors or subcontractors in similar acquisitions ;

(2) Proven methods of involving small business concerns as subcontractors in similar acquisitions ; and

(3) The relative success of methods the contractor intends to use to meet the goals and requirements of the plan, as evidenced by records maintained by contractors.

(b) If, under a sealed bid solicitation , a bidder submits a plan that does not cover each of the 15 required elements (see 19.704 ), the contracting officer shall advise the bidder of the deficiency and request submission of a revised plan by a specific date. If the bidder does not submit a plan that incorporates the required elements within the time allotted, the bidder shall be ineligible for award. If the plan, although responsive, evidences the bidder’s intention not to comply with its obligations under the clause at 52.219-8 , Utilization of Small Business Concerns , the contracting officer may find the bidder nonresponsible.

(c) In negotiated acquisitions , the contracting officer shall determine whether the plan is acceptable based on the negotiation of each of the 15 elements of the plan (see 19.704 ). Subcontracting goals should be set at a level that the parties reasonably expect can result from the offeror expending good faith efforts to use small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business subcontractors to the maximum practicable extent. The contracting officer shall take particular care to ensure that the offeror has not submitted unreasonably low goals to minimize exposure to liquidated damages and to avoid the administrative burden of substantiating good faith efforts. Additionally, particular attention should be paid to the identification of steps that, if taken, would be considered a good faith effort (see 19.705-7 ). No goal should be negotiated upward if it is apparent that a higher goal will significantly increase the Government’s cost or seriously impede the attainment of acquisition objectives. An incentive subcontracting clause (see 52.219-10 , Incentive Subcontracting Program), may be used when additional and unique contract effort, such as providing technical assistance, could significantly increase subcontract awards to small business, small disadvantaged business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, or women-owned small business concerns .

(d) In determining the acceptability of a proposed subcontracting plan, the contracting officer should take the following actions:

(1) Obtain information available from the cognizant contract administration office , as provided for in 19.706 (a), and evaluate the offeror ’s past performance in awarding subcontracts for the same or similar products or services to small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns . If information is not available on a specific type of product or service, evaluate the offeror ’s overall past performance and consider the performance of other contractors on similar efforts.

(2) In accordance with 15 U.S.C.637(d)(4)(F)(iii) , ensure that the goals offered are attainable in relation to-

(i) The subcontracting opportunities available to the contractor, commensurate with the efficient and economical performance of the contract;

(ii) The pool of eligible subcontractors available to fulfill the subcontracting opportunities; and

(iii) The actual performance of such contractor in fulfilling the subcontracting goals specified in prior plans.

(3) Ensure that the subcontracting goals are consistent with the offeror ’s certified cost or pricing data or data other than certified cost or pricing data .

(4) Evaluate the offeror ’s make-or-buy policy or program to ensure that it does not conflict with the offeror ’s proposed subcontracting plan and is in the Government’s interest. If the contract involves products or services that are particularly specialized or not generally available in the commercial market, consider the offeror ’s current capacity to perform the work and the possibility of reduced subcontracting opportunities.

(5) Evaluate subcontracting potential, considering the offeror ’s make-or-buy policies or programs, the nature of the supplies or services to be subcontracted, the known availability of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns in the geographical area where the work will be performed, and the potential contractor’s long-standing contractual relationship with its suppliers.

(6) Advise the offeror of available sources of information on potential small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business subcontractors , as well as any specific concerns known to be potential subcontractors. If the offeror ’s proposed goals are questionable, the contracting officer must emphasize that the information should be used to develop realistic and acceptable goals.

(7) Obtain advice and recommendations from the SBA procurement center representative (or, if a procurement center representative is not assigned, see 19.402 (a)) and the agency small business specialist.

(a) In making an award that requires a subcontracting plan, the contracting officer shall be responsible for the following:

(1) Consider the contractor’s compliance with the subcontracting plans submitted on previous contracts as a factor in determining contractor responsibility.

(2) Assure that a subcontracting plan was submitted when required.

(3) Notify the SBA procurement center representative (or, if a procurement center representative is not assigned, see 19.402 (a)) of the opportunity to review the proposed contract (including the plan and supporting documentation). The notice shall be issued in sufficient time to provide the representative a reasonable time to review the material and submit advisory recommendations to the contracting officer . Failure of the representative to respond in a reasonable period of time shall not delay contract award.

(4) Determine any fee that may be payable if an incentive is used in conjunction with the subcontracting plan.

(5) Ensure that an acceptable plan is incorporated into and made a material part of the contract.

(b) Letter contracts and similar undefinitized instruments, which would otherwise meet the requirements of 19.702 (a)(1)(i) and (ii), shall contain at least a preliminary basic plan addressing the requirements of 19.704 and in such cases require the negotiation of the final plan within 90 days after award or before definitization, whichever occurs first.

After a contract or contract modification containing a subcontracting plan is awarded or an existing subcontracting plan is amended, the contracting officer shall do the following:

(a) Notify the SBA of the award by sending a copy of the award document to the Area Director, Office of Government Contracting , in the SBA area office where the contract will be performed.

(b) Forward a copy of each commercial plan and any associated approvals to the Area Director, Office of Government Contracting , in the SBA area office where the contractor’s headquarters is located.

(c) Give to the SBA procurement center representative (or, if a procurement center representative is not assigned, see 19.402 (a)) a copy of-

(1) Any subcontracting plan submitted in response to a sealed bid solicitation ; and

(2) The final negotiated subcontracting plan that was incorporated into a negotiated contract or contract modification .

(d) Notify the SBA procurement center representative (or, if a procurement center representative is not assigned, see 19.402 (a)) of the opportunity to review subcontracting plans in connection with contract modifications .

(e) Forward a copy of each plan, or a determination that there is no requirement for a subcontracting plan, to the cognizant contract administration office .

(f) Monitor the prime contractor's compliance with its subcontracting plan, to include the following:

(1) Ensure that subcontracting reports are submitted into the eSRS within 30 days after the report ending date ( e.g. , by October 30 th for the fiscal year ended September 30 th).

(2) Review ISRs, and where applicable, SSRs, in eSRS within 60 days of the report ending date ( e.g. , by November 30 th for a report submitted for the fiscal year ended September 30 th).

(3) Either acknowledge receipt of or reject the reports in accordance with subpart  19.7 , 52.219-9 , Small Business Subcontracting Plan, and the eSRS instructions ( www.esrs.gov ).

(i) The authority to acknowledge or reject SSRs for commercial plans resides with the contracting officer who approved the commercial plan.

(ii) If a report is rejected, the contracting officer must provide an explanation for the rejection to allow the prime contractor the opportunity to respond specifically to identified deficiencies.

(g) Evaluate the prime contractor's compliance with its subcontracting plan, to include the following:

(1) Assess whether the prime contractor made a good faith effort to comply with its small business subcontracting plan. See 19.705-7 (b) for more information on the determination of good faith effort.

(2) Assess the prime contractor's written explanation concerning the prime contractor's failure to use a small business concern in the performance of the contract in the same scope, amount, and quality used in preparing and submitting the bid or proposal, if applicable.

(h) Initiate action to assess liquidated damages in accordance with 19.705-7 upon a recommendation by the administrative contracting officer , if one is assigned, or receipt of other reliable evidence to indicate that assessing liquidated damages is warranted.

(i) Take action to enforce the terms of the contract upon receipt of a notice from the contract administration office under 19.706 (f).

(j) Acknowledge receipt of or reject the ISR and the SSR in the eSRS. Acknowledging receipt does not mean acceptance or approval of the report. The report shall be rejected if it is not adequately completed, for instance, if there are errors, omissions, or incomplete data. Failure to meet the goals of the subcontracting plan is not a valid reason for rejecting the report.

(a) General. Maximum practicable utilization of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns as subcontractors in Government contracts is a matter of national interest with both social and economic benefits. When a contractor fails to make a good faith effort to comply with a subcontracting plan, these objectives are not achieved, and 15 U.S.C.637(d)(4)(F) directs that liquidated damages shall be paid by the contractor.

(b) Determination of good faith effort.

(1) In determining whether a contractor failed to make a good faith effort to comply with its subcontracting plan, a contracting officer must look to the totality of the contractor's actions, consistent with the information and assurances provided in its plan. The fact that the contractor failed to meet its subcontracting goals does not, in and of itself, constitute a failure to make a good faith effort (see 19.701 ). For example, notwithstanding a contractor's diligent effort to identify and solicit offers from any of the small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns , factors such as unavailability of anticipated sources or unreasonable prices may frustrate achievement of the contractor's subcontracting goals. The contracting officer may consider any of the following, though not all inclusive, to be indicators of a good faith effort:

(i) Breaking out work to be subcontracted into economically feasible units, as appropriate, to facilitate small business participation.

(ii) Conducting market research to identify potential small business subcontractors through all reasonable means, such as searching SAM, posting notices or solicitations on SBA's SUBNet, participating in business matchmaking events, and attending preproposal conferences.

(iii) Soliciting small business concerns as early in the acquisition process as practicable to allow them sufficient time to submit a timely offer for the subcontract .

(iv) Providing interested small businesses with adequate and timely information about plans, specifications, and requirements for performance of the prime contract to assist them in submitting a timely offer for the subcontract .

(v) Negotiating in good faith with interested small businesses.

(vi) Directing small businesses that need additional assistance to SBA.

(vii) Assisting interested small businesses in obtaining bonding, lines of credit, required insurance , necessary equipment, supplies , materials, or services.

(viii) Utilizing the available services of small business associations; local, state, and Federal small business assistance offices; and other organizations.

(ix) Participating in a formal mentor-protégé program with one or more small business protégés that results in developmental assistance to the protégés.

(x) Although failing to meet the subcontracting goal in one socioeconomic category, exceeding the goal by an equal or greater amount in one or more of the other categories.

(xi) Fulfilling all of the requirements of the subcontracting plan.

(2) When considered in the context of the contractor's total effort in accordance with its plan, the contracting officer may consider any of the following, though not all inclusive, to be indicators of a failure to make a good faith effort:

(i) Failure to attempt through market research to identify, contact, solicit, or consider for contract award small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, or women-owned small business concerns , through all reasonable means including outreach, industry days, or the use of Federal systems such as SBA's Dynamic Small Business Search or SUBNet systems.

(ii) Failure to designate and maintain a company official to administer the subcontracting program and monitor and enforce compliance with the plan.

(iii) Failure to submit an acceptable ISR, or the SSR, using the eSRS, or as provided in agency regulations, by the report due dates specified in 52.219-9 , Small Business Subcontracting Plan.

(iv) Failure to maintain records or otherwise demonstrate procedures adopted to comply with the plan including subcontracting flowdown requirements.

(v) Adoption of company policies or documented procedures that have as their objectives the frustration of the objectives of the plan.

(vi) Failure to pay small business subcontractors in accordance with the terms of the contract with the prime contractor.

(vii) Failure to correct substantiated findings from Federal subcontracting compliance reviews or participate in subcontracting plan management training offered by the Government.

(viii) Failure to provide the contracting officer with a written explanation if the contractor fails to acquire articles, equipment, supplies , services, or materials or obtain the performance of construction work as described in 19.704 (a)(12).

(ix) Falsifying records of subcontract awards to small business concerns .

(c) Documentation of good faith effort. If, at completion of the basic contract or any option , or in the case of a commercial plan, at the close of the fiscal year for which the plan is applicable, a contractor has failed to comply with the requirements of its subcontracting plan, which includes meeting its subcontracting goals, the contracting officer shall review all available information for an indication that the contractor has not made a good faith effort to comply with the plan. If no such indication is found, the contracting officer shall document the file accordingly.

(d) Notice of failure to make a good faith effort. If the contracting officer decides in accordance with paragraph (b) of this section that the contractor failed to make a good faith effort to comply with its subcontracting plan, the contracting officer shall give the contractor written notice in accordance with 52.219-16 , Liquidated Damages—Subcontracting Plan, specifying the material breach, which may be included in the contractor's past performance information, advising the contractor of the possibility that the contractor may have to pay to the Government liquidated damages, and providing a period of 15 working days (or longer period as necessary) within which to respond. The notice shall give the contractor an opportunity to demonstrate what good faith efforts have been made before the contracting officer issues the final decision and shall further state that failure of the contractor to respond may be taken as an admission that no valid explanation exists.

(e) Payment of liquidated damages.

(1) If, after consideration of all the pertinent data, the contracting officer finds that the contractor failed to make a good faith effort to comply with its subcontracting plan, the contracting officer shall issue a final decision to the contractor to that effect and require the payment of liquidated damages in an amount stated. The contracting officer 's final decision shall state that the contractor has the right to appeal under the clause in the contract entitled Disputes. Calculations and procedures shall be in accordance with 52.219-16 , Liquidated Damages—Subcontracting Plan.

(2) The amount of damages attributable to the contractor's failure to comply shall be an amount equal to the actual dollar amount by which the contractor failed to achieve each subcontracting goal. For calculations for commercial plans see paragraph (f) of this section.

(3) Liquidated damages shall be in addition to any other remedies that the Government may have.

(f) Commercial plans. With respect to commercial plans approved under the clause at 52.219-9 , Small Business Subcontracting Plan, the contracting officer that approved the plan shall -

(1) Perform the functions of the contracting officer under this subsection on behalf of all agencies with contracts covered by the commercial plan;

(2) Determine whether or not the goals in the commercial plan were achieved and, if they were not achieved, review all available information for an indication that the contractor has not made a good faith effort to comply with the plan, and document the results of the review;

(3) If a determination is made to assess liquidated damages, in order to calculate and assess the amount of damages, the contracting officer shall ask the contractor to provide-

(i) Contract numbers for the Government contracts subject to the plan;

(ii) The total Government sales during the contractor’s fiscal year; and

(iii) The amount of payments made under the Government contracts subject to that plan that contributed to the contractor’s total sales during the contractor’s fiscal year; and

(4) When appropriate, assess liquidated damages on the Government’s behalf, based on the pro rata share of subcontracting attributable to the Government contracts. For example: The contractor’s total actual sales were $50 million and its actual subcontracting was $20 million. The Government’s total payments under contracts subject to the plan contributing to the contractor’s total sales were $5 million, which accounted for 10 percent of the contractor’s total sales. Therefore, the pro rata share of subcontracting attributable to the Government contracts would be 10 percent of $20 million, or $2 million. To continue the example, if the contractor failed to achieve its small business goal by 1 percent, the liquidated damages would be calculated as 1 percent of $2 million, or $20,000. The contracting officer shall make similar calculations for each category of small business where the contractor failed to achieve its goal and the sum of the dollars for all of the categories equals the amount of the liquidated damages to be assessed. A copy of the contracting officer ’s final decision assessing liquidated damages shall be provided to other contracting officers with contracts subject to the commercial plan.

(5) Every contracting officer with a contract that is subject to a commercial plan shall include in the contract file a copy of the approved plan and a copy of the final decision assessing liquidating damages, if applicable.

The administrative contracting officer is responsible for assisting in evaluating subcontracting plans, and for monitoring, evaluating, and documenting contractor performance under the clause prescribed in 19.708 (b) and any subcontracting plan included in the contract. The contract administration office shall provide the necessary information and advice to support the contracting officer , as appropriate, by furnishing-

(a) Documentation on the contractor’s performance and compliance with subcontracting plans under previous contracts;

(b) Information on the extent to which the contractor is meeting the plan’s goals for subcontracting with eligible small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns ;

(c) Information on whether the contractor’s efforts to ensure the participation of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns are in accordance with its subcontracting plan;

(d) Information on whether the contractor is requiring its subcontractors to adopt similar subcontracting plans;

(e) Immediate notice if, during performance, the contractor is failing to meet its commitments under the clause prescribed in 19.708 (b) or the subcontracting plan;

(f) Immediate notice and rationale if, during performance, the contractor is failing to comply in good faith with the subcontracting plan (see 19.705-7 (b) for more information on the determination of good faith effort); and

(g) Immediate notice that performance under a contract is complete, that the goals were or were not met, and, if not met, whether there is any indication of a lack of a good faith effort to comply with the subcontracting plan.

(a) Under the program, the SBA may -

(1) Assist both Government agencies and contractors in carrying out their responsibilities with regard to subcontracting plans;

(2) Review (within 5 working days) any solicitation that meets the dollar threshold in 19.702 (a)(1)(i) or (ii) before the solicitation is issued;

(3) Review (within 5 working days) before execution any negotiated contractual document requiring a subcontracting plan, including the plan itself, and submit recommendations to the contracting officer , which shall be advisory in nature; and

(4) Evaluate compliance with subcontracting plans, either on a contract-by-contract basis, or, in the case of contractors having multiple contracts, on an aggregate basis.

(b) The SBA is not authorized to-

(1) Prescribe the extent to which any contractor or subcontractor shall subcontract ,

(2) Specify concerns to which subcontracts will be awarded, or

(3) Exercise any authority regarding the administration of individual prime contracts or subcontracts .

(a) Insert the clause at 52.219-8 , Utilization of Small Business Concerns , in solicitations and contracts when the contract amount is expected to exceed the simplified acquisition threshold unless-

(1) A personal services contract is contemplated (see 37.104 ); or

(2) The contract, together with all of its subcontracts , will be performed entirely outside of the United States and its outlying areas .

(1) Insert the clause at 52.219-9 , Small Business Subcontracting Plan, in solicitations and contracts that offer subcontracting possibilities, are expected to exceed $750,000 ($1.5 million for construction of any public facility), and are required to include the clause at 52.219-8 , Utilization of Small Business Concerns , unless the acquisition is set aside or is to be accomplished under the 8(a) program. When-

(i) Contracting by sealed bidding rather than by negotiation, the contracting officer shall use the clause with its Alternate I;

(ii) Contracting by negotiation, and subcontracting plans are required with initial proposals as provided for in 19.705-2 (d), the contracting officer shall use the clause with its Alternate II;

(iii) The contract action will not be reported in the Federal Procurement Data System pursuant to 4.606 (c)(5), or (c)(6), the contracting officer shall use the clause with its Alternate III; or

(iv) Incorporating a subcontracting plan due to a modification as provided for in 19.702 (a)(1)(iii), the contracting officer shall use the clause with its Alternate IV.

(2) Insert the clause at 52.219-16 , Liquidated Damages-Subcontracting Plan, in all solicitations and contracts containing the clause at 52.219-9 , Small Business Subcontracting Plan, or the clause with its Alternate I, II, III, or IV.

(1) The contracting officer may , when contracting by negotiation, insert in solicitations and contracts a clause substantially the same as the clause at 52.219-10 , Incentive Subcontracting Program, when a subcontracting plan is required (see 19.702 ), and inclusion of a monetary incentive is, in the judgment of the contracting officer , necessary to increase subcontracting opportunities for small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns , and is commensurate with the efficient and economical performance of the contract; unless the conditions in paragraph (c)(3) of this section are applicable. The contracting officer may vary the terms of the clause as specified in paragraph (c)(2) of this section.

(2) Various approaches may be used in the development of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns ’ subcontracting incentives. They can take many forms, from a fully quantified schedule of payments based on actual subcontract achievement to an award-fee approach employing subjective evaluation criteria (see paragraph (c)(3) of this section). The incentive should not reward the contractor for results other than those that are attributable to the contractor’s efforts under the incentive subcontracting program.

(3) As specified in paragraph (c)(2) of this section, the contracting officer may include small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business subcontracting as one of the factors to be considered in determining the award fee in a cost-plus-award-fee contract; in such cases, however, the contracting officer shall not use the clause at 52.219-10 , Incentive Subcontracting Program.

(a) Section 8(a) of the Small Business Act ( 15 U.S.C.637(a) ) established a program that authorizes the Small Business Administration (SBA) to enter into all types of contracts with other agencies and award subcontracts for performing those contracts to firms eligible for program participation. This program is the "8(a) Business Development Program," commonly referred to as the "8(a) program." A small business that is accepted into the 8(a) program is known as a "participant." SBA’s subcontractors are referred to as "8(a) contractors." As used in this subpart, an 8(a) contractor is an 8(a) participant that is currently performing on a Federal contract or order that was set aside for 8(a) participants.

(b) Contracts may be awarded to the SBA for performance by eligible 8(a) participants on either a sole source or competitive basis.

(c) Acting under the authority of the program, the SBA certifies to an agency that SBA is competent and responsible to perform a specific contract. The contracting officer has the discretion to award the contract to the SBA based upon mutually agreeable terms and conditions.

(d) The contracting officer shall comply with 19.203 before deciding to offer an acquisition to a small business concern under the 8(a) program. For acquisitions above the simplified acquisition threshold , the contracting officer shall consider 8(a) set-asides or sole source awards before considering small business set-asides.

(e) When SBA has delegated its 8(a) program contract execution authority to an agency, the contracting officer must refer to its agency supplement or other policy directives for appropriate guidance.

Determining the eligibility of a small business to be a participant in the 8(a) program is the responsibility of the SBA. SBA’s regulations on eligibility requirements for participation in the 8(a) program are found at 13 CFR 124.101 through 124.112. SBA designates the concern as an 8(a) participant in the Dynamic Small Business Search (DSBS) at https://web.sba.gov/​pro-net/​search/​dsp_​dsbs.cfm . SBA's designation also appears in the System for Award Management (SAM ).

Through their cooperative efforts, the SBA and an agency match the agency's requirements with the capabilities of 8(a) participants to establish a basis for the agency to contract with the SBA under the program. Selection is initiated in one of three ways:

(a) The SBA advises the contracting activity of an 8(a) participant's capabilities through a search letter and requests the contracting activity to identify acquisitions to support the participant's business plans. In these instances, the SBA will provide at a minimum the following information in order to enable the contracting activity to match an acquisition to the participant's capabilities:

(1) Identification of the participant and its owners.

(2) Background information on the participant, including any and all information pertaining to the participant's technical ability and capacity to perform.

(3) The participant's present production capacity and related facilities.

(4) The extent to which contracting assistance is needed in the present and the future, described in terms that will enable the agency to relate the participant's plans to present and future agency requirements.

(5) If construction is involved, the request shall also include the following:

(i) A participant's capabilities in and qualifications for accomplishing various categories of construction work typically found in North American Industrial Category System subsector 236 ( construction of buildings), subsector 237 (heavy and civil engineering construction ), or subsector 238 (specialty trade contractors).

(ii) The participant’s capacity in each construction category in terms of estimated dollar value ( e.g. , electrical, up to $100,000).

(b) The SBA identifies a specific requirement for one or more 8(a) participant(s) and sends a requirements letter to the agency's Office of Small and Disadvantaged Business Utilization , or for the Department of Defense, Office of Small Business Programs, requesting the contracting office offer the acquisition to the 8(a) program. In these instances, in addition to the information in paragraph (a) of this section, the SBA will provide-

(1) A clear identification of the acquisition sought; e.g. , project name or number;

(2) A statement as to how the required equipment and real property will be provided in order to ensure that the participant will be fully capable of satisfying the agency's requirements;

(3) If construction , information as to the bonding capability of the participant(s); and

(4) Either-

(i) If a sole source request-

(A) The reasons why the participant is considered suitable for this particular acquisition ; e.g. , previous contracts for the same or similar supply or service; and

(B) A statement that the participant is eligible in terms of its small business size status relative to the assigned NAICS code, business support levels, and business activity targets; or

(ii) If competitive, a statement that at least two 8(a) participants are considered capable of satisfying the agency's requirements and a statement that the participants are also eligible in terms of their small business size status relative to the assigned NAICS code, business support levels, and business activity targets. If requested by the contracting office , SBA will identify at least two such participants and provide information concerning the participants’ capabilities.

(c) Agencies may also review other proposed acquisitions for the purpose of identifying requirements which may be offered to the SBA. Where agencies independently, or through the self marketing efforts of an 8(a) participant, identify a requirement for the 8(a) program, they may offer on behalf of a specific 8(a) participant, for the 8(a) program in general, or for 8(a) competition.

In determining the extent to which a requirement should be offered in support of the 8(a) program, the agency should evaluate-

(a) Current and future plans to acquire the specific items or work that 8(a) participants are seeking to provide, identified in terms of-

(1) Estimated quantities of the supplies or services required or the estimated number of construction projects planned;

(2) Length of contract, including option periods (see 19.812 (d)); and

(3)  Performance or delivery requirements, including–

(i) Required monthly production rates, when applicable; and

(ii) For construction , the geographical location where work is to be performed;

(b) The impact of any delay in delivery;

(c) Whether the items or work have previously been acquired using small business set-asides, and the date the items or work were acquired;

(d) Problems encountered in previous acquisitions of the items or work from the 8(a) participants or other contractors; and

(e) Any other pertinent information about known 8(a) participants, the items, or the work. This includes any information concerning the participants' products or capabilities. When necessary, the contracting agency shall make an independent review of the factors in 19.803 (a) and other aspects of the participants' capabilities which would ensure the satisfactory performance of the requirement being considered for commitment to the 8(a) program.

(a) After completing its evaluation, the contracting office shall notify the SBA of the extent of its plans to place 8(a) contracts with the SBA for specific quantities of items or work, including 8(a) contracts that are reserved in accordance with 19.503. The notification, referred to as an offering letter, shall identify the time frames within which resulting 8(a) awards must be completed in order for the agency to meet its responsibilities. The offering letter shall also contain the following information applicable to each prospective contract:

(1) A description of the work to be performed or items to be delivered, and a copy of the statement of work, if available.

(2) The estimated period of performance.

(3) The NAICS code that applies to the principal nature of the acquisition .

(4) The anticipated dollar value of the requirement, including options , if any.

(5) Any special restrictions or geographical limitations on the requirement (for construction , include the location of the work to be performed).

(6) Any special capabilities or disciplines needed for contract performance.

(7) The type of contract anticipated.

(8) The acquisition history, if any, of the requirement, including the names and addresses of any small business contractors that have performed this requirement during the previous 24 months.

(9) A statement that prior to the offering no solicitation for the specific acquisition has been issued as a small business, HUBZone , service-disabled veteran-owned small business set-aside, or a set-aside under the Women-Owned Small Business (WOSB) Program, and that no other public communication (such as a notice through the Governmentwide point of entry (GPE )) has been made showing the contracting agency’s clear intention to set-aside the acquisition for small business, HUBZone small business, service-disabled veteran-owned small business concerns , or a set-aside under the WOSB Program.

(10) Identification of any particular 8(a) participant designated for consideration, including a brief justification, such as-

(i) The 8(a) participant, through its own efforts, marketed the requirement and caused it to be reserved for the 8(a) program; or

(ii) The acquisition is a follow-on or renewal contract and the nominated 8(a) participant is the incumbent.

(11) Bonding requirements, if applicable.

(12) Identification of all 8(a) participants which have expressed an interest in being considered for the acquisition .

(13) Identification of all SBA field offices that have asked for the acquisition for the 8(a) program.

(14) A request, if appropriate, that a requirement with an estimated contract value under the applicable competitive threshold be awarded as an 8(a) competitive contract (see 19.805-1 (d)).

(15) A request, if appropriate, that a requirement with a contract value over the applicable competitive threshold be awarded as a sole source contract (see 19.805-1 (b)).

(16) Any other pertinent and reasonably available data.

(1) An agency offering a construction requirement for which no specific offeror is nominated should submit it to the SBA District Office for the geographical area where the work is to be performed.

(2) An agency offering a construction requirement on behalf of a specific offeror should submit it to the SBA District Office servicing that concern .

(3) Sole source requirements, other than construction , should be forwarded directly to the district office that services the nominated 8(a) participant. If the contracting officer is not nominating a specific 8(a) participant, the offering letter should be forwarded to the district office servicing the geographical area in which the contracting office is located.

(c) All requirements for 8(a) competition, other than construction , should be forwarded to the district office servicing the geographical area in which the contracting office is located. All requirements for 8(a) construction competition should be forwarded to the district office servicing the geographical area in which all or the major portion of the construction is to be performed. All requirements, including construction , must be synopsized through the GPE. For construction , the synopsis must include the geographical area of the competition set forth in the SBA’s acceptance letter.

(a) Upon receipt of the contracting office 's offering letter, SBA will determine whether to accept the requirement for the 8(a) program. SBA’s decision whether to accept the requirement will be transmitted to the contracting office in writing within 10 working days of receipt of the offer if the contract is likely to exceed the simplified acquisition threshold and within two working days of receipt if the contract is at or below the simplified acquisition threshold . The contracting office may grant an extension of these time periods, if requested by SBA.

(1) For acquisitions exceeding the simplified acquisition threshold , if SBA does not respond to an offering letter within ten working days, the contracting office may seek SBA’s acceptance through the Associate Administrator for Business Development. The contracting office may assume that SBA has accepted the requirement into the 8(a) program if it does not receive a reply from the Associate Administrator for Business Development within five calendar days of receipt of the contracting office 's request.

(2) For acquisitions not exceeding the simplified acquisition threshold , when the contracting office makes an offer to the 8(a) program on behalf of a specific 8(a) participant and does not receive a reply to its offering letter within two working days, the contracting office may assume the offer is accepted and proceed with award of an 8(a) contract.

(b) As part of the acceptance process, SBA will review the appropriateness of the NAICS code designation assigned to the requirement by the contracting officer .

(1) SBA will not challenge the NAICS code assigned to the requirement by the contracting officer if it is reasonable, even though other NAICS codes may also be reasonable.

(2) If SBA and the contracting officer are unable to agree on a NAICS code designation for the requirement, SBA may refuse to accept the requirement for the 8(a) program, appeal the contracting officer 's determination to the head of the agency pursuant to 19.810 , or appeal the NAICS code designation to the SBA Office of Hearings and Appeals under subpart C of 13 CFR part 134 .

(c) Sole source 8(a) awards . If an appropriate match exists, SBA will advise the contracting officer whether it will participate in contract negotiations or whether SBA will authorize the contracting officer to negotiate directly with the identified 8(a) participant. Where SBA has delegated its contract execution functions to a contracting agency, SBA will also identify that delegation in its acceptance letter. For a joint venture, SBA will determine eligibility as part of its acceptance of a sole-source requirement and will approve the joint venture agreement prior to award in accordance with 13 CFR 124.513(e) .

(1) Sole source award where the contracting officer nominates a specific 8(a) participant. SBA will determine whether an appropriate match exists where the contracting officer identifies a particular participant for a sole source award.

(i) Once SBA determines that a procurement is suitable to be accepted as an 8(a) sole source contract, SBA will normally accept it on behalf of the 8(a) participant recommended by the contracting officer , provided that the 8(a) participant complies with the requirements of 13 CFR 124.503(c)(1) .

(ii) If an appropriate match does not exist, SBA will notify the 8(a) participant and the contracting officer , and may then nominate an alternate 8(a) participant.

(2) Sole source award where the contracting officer does not nominate a specific 8(a) participant. When a contracting officer does not nominate an 8(a) participant for performance of a sole source 8(a) contract, SBA will select an 8(a) participant for possible award from among two or more eligible and qualified 8(a) participants. The selection will be based upon relevant factors, including business development needs, compliance with competitive business mix requirements (if applicable), financial condition, management ability, technical capability, and whether award will promote the equitable distribution of 8(a) contracts. (For construction requirements see 13 CFR 124.503(d)(1) ).

In order for repetitive acquisitions to be awarded through the 8(a) program, there must be separate offers and acceptances. This allows the SBA to determine-

(a) Whether the requirement should be a competitive 8(a) award;

(b) A nominated 8(a) participant's eligibility, and whether or not it is the same 8(a) participant that performed the previous contract;

(c) The effect that contract award would have on the equitable distribution of 8(a) contracts; and

(d) Whether the requirement should continue under the 8(a) program.

(a) The contracting office shall submit an offering letter for, and SBA must accept, each order under a basic ordering agreement (BOA) or a blanket purchase agreement (BPA) issued under part 13 (see 13.303), in addition to the agency offering and SBA accepting the BOA or BPA itself.

(b) SBA will not accept for award on a sole-source basis any order that would cause the total dollar amount of orders issued under a specific BOA or BPA to exceed the competitive threshold amount in 19.805-1 .

(c) Once an 8(a) participant's program term expires, the participant otherwise exits the 8(a) program, or becomes other than small for the NAICS code assigned under the BOA or the BPA, SBA will not accept new orders under the BOA or BPA for the participant.

(a) Separate offers and acceptances are not required for individual orders under multiple-award contracts (including the Federal Supply Schedules managed by GSA, multi-agency contracts or Governmentwide acquisition contracts, or indefinite-delivery, indefinite-quantity (IDIQ) contracts) that have been set aside for exclusive competition among 8(a) contractors, and the individual order is to be competed among all 8(a) contract holders. SBA's acceptance of the original contract is valid for the term of the contract. Offers and acceptances are required for individual orders under multiple-award contracts that have not been set aside for exclusive competition among 8(a) contractors.

(b) The contracting officer may issue an order on a sole source basis when—

(1) The multiple-award contract was set aside for exclusive competition among 8(a) participants;

(2) The order has an estimated value less than or equal to the dollar thresholds set forth at 19.805-1 (a)(2); and

(3) The offering and acceptance procedures at 19.804-2 and 19.804-3 are followed.

(c) The contracting officer may issue an order directly to one 8(a) contractor in accordance with 19.504 (c)(1)(ii) when—

(1) The multiple-award contract was reserved for 8(a) participants;

(2) The order has an estimated value less than or equal to $7 million for acquisitions assigned manufacturing NAICS codes and $4.5 million for all other acquisitions ; and

(d) An 8(a) contractor may continue to accept new orders under the contract, even if it exits the 8(a) program, or becomes other than small for the NAICS code(s) assigned to the contract.

(e) Agencies may continue to take credit toward their prime contracting small disadvantaged business or small business goals for orders awarded to 8(a) contractors, even after the contractor's 8(a) program term expires, the contractor otherwise exits the 8(a) program, or the contractor becomes other than small for the NAICS code(s) assigned under the 8(a) contract. However, if an 8(a) contractor rerepresents that it is other than small for the NAICS code(s) assigned under the contract in accordance with 19.301-2 or, where ownership or control of the 8(a) contractor has changed and SBA has granted a waiver to allow the contractor to continue performance (see 13 CFR 124.515 ), the agency may not credit any subsequent orders awarded to the contractor towards its small disadvantaged business or small business goals.

(a) Except as provided in paragraph (b) of this section, an acquisition offered to the SBA under the 8(a) program shall be awarded on the basis of competition limited to eligible 8(a) participants when-

(1) There is a reasonable expectation that at least two eligible and responsible 8(a) participants will submit offers and that award can be made at a fair market price ; and

(2) The anticipated total value of the contract, including options , will exceed $7 million for acquisitions assigned manufacturing North American Industry Classification System (NAICS) codes and $4.5 million for all other acquisitions .

(b) Where an acquisition exceeds the competitive threshold (see paragraph (a)(2) of this section), the SBA may accept the requirement for a sole source 8(a) award if-

(1) There is not a reasonable expectation that at least two eligible and responsible 8(a) participants will submit offers at a fair market price ; or

(2) SBA accepts the requirement on behalf of a concern owned by an Indian tribe or an Alaska Native Corporation.

(c) A proposed 8(a) requirement with an estimated value exceeding the applicable competitive threshold amount shall not be divided into several requirements for lesser amounts in order to use 8(a) sole source procedures for award to a single firm.

(d) The SBA Associate Administrator for Business Development may approve a contracting office 's request for a competitive 8(a) award below the competitive thresholds. Such requests will be approved only on a limited basis and will be primarily granted where technical competitions are appropriate or where a large number of responsible 8(a) participants are available for competition. In determining whether a request to compete below the threshold will be approved, the SBA Associate Administrator for Business Development will, in part, consider the extent to which the contracting activity is supporting the 8(a) program on a noncompetitive basis. The agency may include recommendations for competition below the threshold in the offering letter or by separate correspondence to the SBA Associate Administrator for Business Development.

(a) Offers shall be solicited from those sources identified in accordance with 19.804-3 .

(b) The SBA will determine the eligibility of the apparent successful offeror . Eligibility is based on section 8(a) program criteria (see 13 CFR 124.501(g) and 19.816 (c)).

(1) In either negotiated or sealed bid competitive 8(a) acquisitions SBA will determine the eligibility of the apparent successful offeror and advise the contracting office within 5 working days after receipt of the contracting office 's request for an eligibility determination.

(i) If SBA determines that the apparent successful offeror is ineligible , the contracting office will then send to SBA the identity of the next highest evaluated offeror for an eligibility determination. The process is repeated until SBA determines that an identified offeror is eligible for award.

(ii) If the contracting officer believes that the apparent successful offeror (or the offeror SBA has determined eligible for award) is not responsible to perform the contract, the contracting officer must refer the matter to SBA for Certificate of Competency consideration under subpart 19.6 .

(2) For a two-step design-build procurement , an 8(a) participant must be eligible for award under the 8(a) program on the initial date for receipt of phase one offers specified in the solicitation (see 13 CFR 124.507(d)(3) .

(3) In any case in which an 8(a) participant is determined to be ineligible , SBA will notify the 8(a) participant of that determination.

(c) Any party with information questioning the eligibility of an 8(a) participant to continue participation in the 8(a) program or for the purposes of a specific 8(a) award may submit such information to the SBA in accordance with 13 CFR 124.112(c) .

(1) SBA does not certify joint ventures, as entities, into the 8(a) program.

(2) A contracting officer may consider a joint venture for contract award. SBA does not approve joint ventures for competitive awards (but see 13 CFR 124.501(g) for SBA's determination of participant eligibility).

(a) The contracting officer shall price the 8(a) contract in accordance with subpart  15.4 . If required by subpart  15.4 , the SBA shall obtain certified cost or pricing data from the 8(a) contractor. If the SBA requests audit assistance to determine the proposed price to be fair and reasonable in a sole source acquisition , the contracting activity shall furnish it to the extent it is available.

(b) An 8(a) contract, sole source or competitive, may not be awarded if the price of the contract results in a cost to the contracting agency which exceeds a fair market price .

(c) If requested by the SBA, the contracting officer shall make available the data used to estimate the fair market price within 10 working days.

(d) The negotiated contract price and the estimated fair market price are subject to the concurrence of the SBA. In the event of a disagreement between the contracting officer and the SBA, the SBA may appeal in accordance with 19.810 .

(a) The contracting officer shall estimate the fair market price of the work to be performed by the 8(a) contractor.

(b) In estimating the fair market price for an acquisition other than those covered in paragraph (c) of this section, the contracting officer shall use cost or price analysis and consider commercial prices for similar products and services, available in-house cost estimates, data (including certified cost or pricing data ) submitted by the SBA or the 8(a) contractor, and data obtained from any other Government agency.

(c) In estimating a fair market price for a repeat purchase, the contracting officer shall consider recent award prices for the same items or work if there is comparability in quantities, conditions, terms, and performance times. The estimated price should be adjusted to reflect differences in specifications, plans, transportation costs, packaging and packing costs, and other circumstances. Price indices may be used as guides to determine the changes in labor and material costs. Comparison of commercial prices for similar items may also be used.

(a) The SBA may not accept for negotiation a sole-source 8(a) contract that exceeds $25 million unless the requesting agency has completed a justification in accordance with the requirements of 6.303 .

(b) The SBA is responsible for initiating negotiations with the agency within the time established by the agency. If the SBA does not initiate negotiations within the agreed time and the agency cannot allow additional time, the agency may , after notifying the SBA, proceed with the acquisition from other sources.

(c) The SBA should participate, whenever practicable, in negotiating the contracting terms. When mutually agreeable, the SBA may authorize the contracting officer to negotiate directly with the 8(a) participant. Whether or not direct negotiations take place, the SBA is responsible for approving the resulting contract before award.

(d) An 8(a) participant must represent that it is a small business in accordance with the size standard corresponding to the NAICS code assigned to the contract.

(e) A concern must be a current participant in the 8(a) program at the time of an 8(a) sole-source award.

(f) An 8(a) participant owned by an Alaska Native Corporation, Indian Tribe, Native Hawaiian Organization, or Community Development Corporation may not receive an 8(a) sole-source award that is a follow-on contract to an 8(a) contract, if the predecessor contract was performed by another 8(a) participant (or former 8(a) participant) owned by the same Alaska Native Corporation, Indian Tribe, Native Hawaiian Organization, or Community Development Corporation (See 13 CFR 124.109 through 124.111).

In competitive 8(a) acquisitions , including follow-on 8(a) acquisitions , subject to part 15, the contracting officer conducts negotiations directly with the competing 8(a) participants. Conducting competitive negotiations among eligible 8(a) participants prior to SBA's formal acceptance of the acquisition for the 8(a) program may be grounds for the SBA's not accepting the acquisition for the 8(a) program.

The contracting officer should request a preaward survey of the 8(a) participant whenever considered useful. If the results of the preaward survey or other information available to the contracting officer raise substantial doubt as to the participant's ability to perform, the contracting officer shall refer the matter to SBA for Certificate of Competency consideration under subpart  19.6 .

(a) Limitations on subcontracting. To be awarded a contract or order under the 8(a) program, the 8(a) participant is required to perform—

(1) For services (except construction ), at least 50 percent of the cost incurred for personnel with its own employees;

(2) For supplies or products (other than a procurement from a nonmanufacturer of such supplies or products ), at least 50 percent of the cost of manufacturing the supplies or products (not including the cost of materials);

(3) For general construction , at least 15 percent of the cost with its own employees (not including the cost of materials); and

(4) For construction by special trade contractors, at least 25 percent of the cost with its own employees (not including the cost of materials).

(b) Compliance period. An 8(a) contractor is required to comply with the limitations on subcontracting—

(1) For a contract under the 8(a) program, either by the end of the base term and then by the end of each subsequent option period or by the end of the performance period for each order issued under the contract, at the contracting officer 's discretion; and

(2) For an order competed exclusively among contractors who are 8(a) participants or for an order issued directly to one 8(a) contractor in accordance with 19.504 (c)(1)(ii), by the end of the performance period for the order.

(c) Waiver. The applicable SBA District Director may waive the provisions in paragraph (b)(1) requiring a participant to comply with the limitations on subcontracting for each period of performance or for each order. Instead, the SBA District Director may permit the participant to subcontract in excess of the limitations on subcontracting where the SBA District Director makes a written determination that larger amounts of subcontracting are essential during certain stages of performance.

(1) The 8(a) participant is required to provide the SBA District Director written assurance that the participant will ultimately comply with the requirements of this section prior to contract completion. The contracting officer shall review the written assurance and inform the 8(a) participant of their concurrence or nonconcurrence. The 8(a) participant can only submit the written assurance to the SBA District Director upon concurrence by the contracting officer .

(2) The contracting officer does not have the authority to waive the provisions of this section requiring an 8(a) participant to comply with the limitations on subcontracting for each period of performance or order, even if the agency has a Partnership Agreement with SBA.

(3) Where the 8(a) participant does not ultimately comply with the limitations on subcontracting by the end of the contract, SBA will not grant future waivers for the 8(a) participant.

(d) Nonmanufacturer rule. See 19.505 (c) for application of the nonmanufacturer rule, inclusive of waivers and exceptions to the nonmanufacturer rule.

(a) The SBA Administrator may submit the following matters for determination to the agency head if the SBA and the contracting officer fail to agree on them:

(1) The decision not to make a particular acquisition available for award under the 8(a) Program.

(2) A contracting officer ’s decision to reject a specific 8(a) participant for award of an 8(a) contract after SBA’s acceptance of the requirement for the 8(a) program.

(3) The terms and conditions of a proposed 8(a) contract, including the contracting officer ’s NAICS code designation and estimate of the fair market price .

(4) A contracting officer 's decision that an acquisition previously procured under the 8(a) program is a new requirement not subject to the release requirements at 13 CFR 124.504(d)(1) (see 19.815 (a) and (d)(1)).

(1) Notification by SBA of an intent to appeal to the agency head -

(i) Must be received by the contracting officer within 5 working days after SBA is formally notified of the contracting officer 's decision; and

(ii) Must be provided to the contracting agency Director for the Office of Smalland Disadvantaged Business Utilization or, for the Department of Defense, the Director of the Office of Small Business Programs.

(2) SBA must send the written appeal to the agency head within 15 working days of SBA’s notification of intent to appeal or the appeal may be considered withdrawn. Pending issuance of a decision by the agency head , the contracting officer shall suspend action on the acquisition . The contracting officer need not suspend action on the acquisition if the contracting officer makes a written determination that urgent and compelling circumstances that significantly affect the interests of the United States will not permit waiting for a decision.

(c) If the SBA appeal is denied, the decision of the agency head shall specify the reasons for the denial, including the reasons why the selected participant was determined incapable of performance, if appropriate. The decision shall be made a part of the contract file.

(a) The contract to be awarded by the agency to the SBA shall be prepared in accordance with agency procedures and in the same detail as would be required in a contract with a business concern . The contracting officer shall use the Standard Form 26 as the award form, except for construction contracts, in which case the Standard Form 1442 shall be used as required in 36.701 (a).

(b) The contracting officer shall prepare the contract that the SBA will award to the 8(a) participant in accordance with agency procedures, as if awarding the contract directly to the 8(a) participant, except for the following:

(1) The award form shall cite 41 U.S.C. 3304(a)(5) or 10 U.S.C. 3204(a)(5) (as appropriate) as the authority for use of other than full and open competition .

(2) Appropriate clauses shall be included, as necessary, to reflect that the contract is between the SBA and the 8(a) contractor.

(3) The following items shall be inserted by the SBA:

(i) The SBA contract number.

(ii) The effective date.

(iii) The typed name of the SBA’s contracting officer .

(iv) The signature of the SBA’s contracting officer .

(v) The date signed.

(4) The SBA will obtain the signature of the 8(a) contractor prior to signing and returning the prime contract to the contracting officer for signature . The SBA will make every effort to obtain signatures and return the contract, and any subsequent bilateral modification, to the contracting officer within a maximum of 10 working days.

(c) Except in procurements where the SBA will make advance payments to its 8(a) contractor, the agency contracting officer may , as an alternative to the procedures in paragraphs (a) and (b) of this subsection, use a single contract document for both the prime contract between the agency and the SBA and its 8(a) contractor. The single contract document shall contain the information in paragraphs (b) (1), (2), and (3) of this subsection. Appropriate blocks on the Standard Form (SF) 26 or 1442 will be asterisked and a continuation sheet appended as a tripartite agreement which includes the following:

(1) Agency acquisition office, prime contract number, name of agency contracting officer and lines for signature , date signed, and effective date.

(2) The SBA office, the SBA contract number, name of the SBA contracting officer , and lines for signature and date signed.

(3) Name and lines for the 8(a) subcontractor’s signature and date signed.

(d) For acquisitions not exceeding the simplified acquisition threshold , the contracting officer may use the alternative procedures in paragraph (c) of this subsection with the appropriate simplified acquisition forms.

(a) The contract will be prepared in accordance with 14.408-1 (d), except that appropriate blocks on the Standard Form 26 or 1442 will be asterisked and a continuation sheet appended as a tripartite agreement which includes the following:

(1) The agency contracting activity , prime contract number, name of agency contracting officer , and lines for signature , date signed, and effective date.

(2) The SBA office, the SBA subcontract number, name of the SBA contracting officer and lines for signature and date signed.

(b) The process for obtaining signatures shall be as specified in 19.811-1 (b)(4).

(a) The contracting officer shall insert the clause at 52.219-11 , Special 8(a) Contract Conditions, in contracts between the SBA and the agency when the acquisition is accomplished using the procedures of 19.811-1 (a) and (b).

(b) The contracting officer shall insert the clause at 52.219-12 , Special 8(a) Subcontract Conditions, in contracts between the SBA and its 8(a) contractor when the acquisition is accomplished using the procedures of 19.811-1 (a) and (b).

(c) The contracting officer shall insert the clause at 52.219-17 , Section 8(a) Award, in competitive solicitations and contracts when the acquisition is accomplished using the procedures of 19.805 and in sole source awards which utilize the alternative procedure in 19.811-1 (c).

(d) The contracting officer shall insert the clause at 52.219-18 , Notification of Competition Limited to Eligible 8(a) Participants, in competitive solicitations and contracts when the acquisition is accomplished using the procedures of 19.805 . Use the clause at 52.219-18 with its Alternate I when competition is to be limited to 8(a) participants within one or more specific SBA districts pursuant to 19.804-2 .

(e) For contracts or orders resulting from this subpart, see 19.507 (e) for use of 52.219-14 , Limitations on Subcontracting, and 19.507 (h) for use of 52.219-33 , Nonmanufacturer Rule.

(a) The contracting officer shall assign contract administration functions, as required, based on the location of the 8(a) contractor (see Federal Directory of Contract Administration Services Components (available via the Internet at https://piee.eb.mil/pcm/xhtml/unauth/index.xhtml )).

(b) The agency shall distribute copies of the contract(s) in accordance with part  4 . All contracts and modifications, if any, shall be distributed to both the SBA and the 8(a) contractor in accordance with the timeframes set forth in 4.201 .

(c) To the extent consistent with the contracting activity ’s capability and resources, 8(a) contractors furnishing requirements shall be afforded production and technical assistance, including, when appropriate, identification of causes of deficiencies in their products and suggested corrective action to make such products acceptable.

(d) For 8(a) contracts exceeding 5 years including options , the contracting officer shall verify in DSBS or SAM that the concern is an SBA-certified 8(a) participant no more than 120 days prior to the end of the fifth year of the contract. If the concern is not an SBA-certified 8(a) participant, the contracting officer shall not exercise the option (see 13 CFR 124.521(e)(2) ).

(e)  An 8(a) contract, whether in the base or an option year, must be terminated for convenience if the 8(a) contractor to which it was awarded transfers ownership or control of the firm or if the contract is transferred or novated for any reason to another firm, unless the Administrator of the SBA waives the requirement for contract termination (13 CFR 124.515). The Administrator may waive the termination requirement only if certain conditions exist. Moreover, a waiver of the requirement for termination is permitted only if the 8(a) contractor's request for waiver is made to the SBA prior to the actual relinquishment of ownership or control, except in the case of death or incapacity where the waiver must be submitted within 60 calendar days after such an occurrence. The clauses in the contract entitled "Special 8(a) Contract Conditions" and "Special 8(a) Subcontract Conditions" require the SBA and the 8(a) subcontractor to notify the contracting officer when ownership of the firm is being transferred. When the contracting officer receives information that an 8(a) contractor is planning to transfer ownership or control to another firm, the contracting officer shall take action immediately to preserve the option of waiving the termination requirement. The contracting officer shall determine the timing of the proposed transfer and its effect on contract performance and mission support. If the contracting officer determines that the SBA does not intend to waive the termination requirement, and termination of the contract would severely impair attainment of the agency's program objectives or mission, the contracting officer shall immediately notify the SBA in writing that the agency is requesting a waiver. Within 15 business days thereafter, or such longer period as agreed to by the agency and the SBA, the agency head must either confirm or withdraw the request for waiver. Unless a waiver is approved by the SBA, the contracting officer must terminate the contract for convenience upon receipt of a written request by the SBA. This requirement for a convenience termination does not affect the Government's right to terminate for default if the cause for termination of an 8(a) contract is other than the transfer of ownership or control.

(a) The eligibility of an 8(a) participant for a sole source or competitive 8(a) requirement may not be challenged by another 8(a) participant or any other party, either to SBA or any administrative forum as part of a bid or other contract protest (see 13 CFR 124.517 ).

(b) The size status of an 8(a) participant nominated for an 8(a) sole source contract may not be protested by another 8(a) participant or any other party.

(c) The size status of the apparent successful offeror for competitive 8(a) awards may be protested. The filing of a size status protest is limited to-

(1) Any offeror whom the contracting officer has not eliminated for reasons unrelated to size;

(2) The contracting officer ; or

(3) The SBA District Director in either the district office serving the geographical area in which the contracting activity is located or the district office that services the apparent successful offeror , or the Associate Administrator for Business Development.

(d) Protests of competitive 8(a) awards shall follow the procedures at 19.302 . For additional information, refer to 13 CFR 121.1001 .

(a) If the size status of an 8(a) participant nominated for award of an 8(a) sole source contract is called into question, a request for a formal size determination may be submitted to SBA pursuant to 13 CFR 121.1001(b)(2)(ii) by-

(1) The 8(a) participant nominated for award of the particular sole source contract;

(2) The contracting officer who has been delegated SBA’s 8(a) contract execution functions, where applicable, or the SBA program official with authority to execute the 8(a) contract;

(3) The SBA District Director in the district office that services the 8(a) participant or the Associate Administrator for Business Development; or

(4) The SBA Inspector General.

(b) SBA’s Government Contracting Area Director will issue a formal size determination within 15 business days, if possible, after SBA receives the request for a formal size determination.

(c) An appeal of an SBA size determination shall follow the procedures at 19.302 .

(a) Once a requirement has been accepted by SBA into the 8(a) program, any follow-on requirements (see definition at 13 CFR 124.3 ) shall remain in the 8(a) program unless—

(1) SBA agrees to release the requirement from the 8(a) program for a follow-on, non-8(a) procurement in accordance with 13 CFR 124.504(d) (see paragraph (b) of this section); or

(2) There is a mandatory source (see 8.002 or 8.003 ; also see paragraph (f) of this section).

(b) To obtain release of a requirement for a follow-on, non-8(a) procurement , (other than a mandatory source listed at 8.002 or 8.003 ), the contracting officer shall make a written request to, and receive concurrence from, the SBA Associate Administrator for Business Development.

(1) The written request to the SBA Associate Administrator for Business Development shall indicate

(i) Whether the agency has achieved its small disadvantaged business goal;

(ii) Whether the agency has achieved its HUBZone , SDVOSB, WOSB, or small business goal(s); and

(iii) Whether the requirement is critical to the business development of the 8(a) contractor that is currently performing the requirement.

(2) Generally, a requirement that was previously accepted into the 8(a) program will only be released for procurements outside the 8(a) program when the contracting activity agency agrees to set aside the requirement under the small business, HUBZone , SDVOSB, or WOSB programs.

(3) The requirement that a follow-on procurement must be released from the 8(a) program in order for it to be fulfilled outside the 8(a) program does not apply to task or delivery orders offered to and accepted into the 8(a) program, where the basic contract was not accepted into the 8(a) program.

(1) When a contracting officer decides that a requirement previously procured under the 8(a) program is a new requirement and not a follow-on requirement to an 8(a) contract(s), the contracting officer shall coordinate with and submit a written notice to the SBA District Office servicing the 8(a) incumbent firm and to the SBA procurement center representative (or, if a procurement center representative is not assigned, see 19.402 (a)) indicating that the agency intends to procure the requirement outside the 8(a) program (see 19.810 (a)(4)).

(2) The written notice shall include a copy of the acquisition plan, if available; the performance work statement (PWS ), statement of work (SOW), or statement of objectives (SOO ) for the new contract requirement; and the values of the existing 8(a) contract(s) and the new contract requirement.

(1) When a contracting officer decides to procure a follow-on requirement to an 8(a) contract using an existing, limited competition contracting vehicle that is not available to all 8(a) participants, and the current or previous 8(a) contract was available to all 8(a) participants, the contracting officer shall coordinate with and submit a written notice to the SBA District Office servicing the 8(a) incumbent firm and to the SBA procurement center representative (or, if a procurement center representative is not assigned, see 19.402 (a)) indicating the intent to do so.

(2) The written notice shall include a copy of the acquisition plan, if available; the PWS, SOW, or SOO for the new contract requirement; and the values of both contracts.

(1) When a mandatory source will be used for a follow-on requirement to an 8(a) contract, the contracting officer should submit a written notice to the SBA Associate Administrator for Business Development of the intent to do so at least 30 days prior to the end of the contract or order in accordance with 13 CFR 124.504(d)(4)(ii) .

(2) The written notice should include a written determination that a mandatory source will be used to fulfill the requirement.

(a) Except as provided in paragraph (c) of this section, when a contractor exits the 8(a) program, it is no longer eligible to receive new 8(a) contracts. However, the contractor remains under contractual obligation to complete existing contracts, and any priced options that may be exercised.

(b) If an 8(a) contractor is suspended from the program (see 13 CFR 124.305 ), it may not receive any new 8(a) contracts unless the head of the contracting agency makes a determination that it is in the best interest of the Government to issue the award and SBA adopts that determination.

(c) A contractor that has completed its term of participation in the 8(a) program may be awarded a competitive 8(a) contract if it was an 8(a) participant eligible for award of the contract on the initial date specified for receipt of offers contained in the solicitation , and if the contractor continues to meet all other applicable eligibility criteria (see 13 CFR 124.507(d) ).

(d) SBA's regulations on exiting the 8(a) program are found at 13 CFR 124.301 through 124.305, and 13 CFR 124.507(d) .

(a) The Historically Underutilized Business Zone ( HUBZone ) Act of 1997 ( 15 U.S.C.631 note) created the HUBZone Program.

(b) The purpose of the HUBZone Program is to provide Federal contracting assistance for qualified small business concerns located in historically underutilized business zones, in an effort to increase employment opportunities, investment, and economic development in those areas.

(a) Status as a HUBZone small business concern is determined by the Small Business Administration (SBA) in accordance with 13 CFR Part 126 .

(b) If SBA determines that a concern is a HUBZone small business, it will designate the concern as a HUBZone small business in the Dynamic Small Business Search (DSBS) at https://web.sba.gov/​pro-net/​search/​dsp_​dsbs.cfm . SBA's designation also appears in SAM. Only firms designated in DSBS and SAM as HUBZone small business concerns are eligible for HUBZone preferences. HUBZone preferences are not contingent on the place of performance.

(c) A joint venture may be considered a HUBZone small business concern if—

(1) The joint venture qualifies as small under 19.301-1 (a)(2)(i);

(2) At least one party to the joint venture is a HUBZone small business concern ; and

(3) The joint venture complies with 13 CFR 126.616(a) through (c) .

(d) To be eligible for a HUBZone contract under this section, a HUBZone small business concern must be a HUBZone small business concern at the time of its initial offer .

This subpart does not apply to-

(a) Requirements that can be satisfied through award to-

(1) Federal Prison Industries , Inc. (see subpart  8.6 ); or

(2) AbilityOne participating non-profit agencies for the blind or severely disabled (see subpart  8.7 );

(b) Orders under indefinite-delivery contracts (see subpart 16.5 ). (But see 16.505 (b)(2)(i)(F) for discretionary set-asides of orders);

(c) Orders against Federal Supply Schedules (see subpart 8.4 ). (But see 8.405-5 for discretionary set-asides of orders);

(d) Requirements currently being performed by an 8(a) participant or requirements SBA has accepted for performance under the authority of the 8(a) program, unless SBA has consented to release the requirements from the 8(a) program; or

(e) Requirements for commissary or exchange resale items.

(a) The contracting officer -

(1) Shall comply with 19.203 before deciding to set aside an acquisition under the HUBZone Program;

(2) May set aside acquisitions exceeding the micro-purchase threshold for competition restricted to HUBZone small business concerns when the requirements of paragraph (b) of this section can be satisfied; and

(3) Shall consider HUBZone set-asides before considering HUBZone sole-source awards (see 19.1306 ) or small business set-asides (see subpart 19.5 ).

(b) To set aside an acquisition for competition restricted to HUBZone small business concerns , the contracting officer must have a reasonable expectation that-

(1) Offers will be received from two or more HUBZone small business concerns ; and

(2) Award will be made at a fair market price .

(c) If the contracting officer receives only one acceptable offer from a HUBZone small business concern in response to a set aside, the contracting officer should make an award to that concern . If the contracting officer receives no acceptable offers from HUBZone small business concerns , the HUBZone set-aside shall be withdrawn and the requirement, if still valid, set aside for small business concerns , as appropriate (see 19.203 ).

(d) The procedures at 19.202-1 and, at 19.402 apply to this section.

(1) When the SBA intends to appeal a contracting officer ’s decision to reject a recommendation of the SBA procurement center representative (or, if a procurement center representative is not assigned, see 19.402 (a)) to set aside an acquisition for competition restricted to HUBZone small business concerns , the SBA procurement center representative shall notify the contracting officer , in writing , of its intent within 5 business days of receiving the contracting officer ’s notice of rejection.

(2) Upon receipt of notice of SBA’s intent to appeal, the contracting officer shall suspend action on the acquisition until the head of the contracting activity issues a written decision on the appeal, unless the head of the contracting activity makes a written determination that urgent and compelling circumstances, which significantly affect the interests of the Government, exist.

(3) Within 15 business days of SBA’s notification to the contracting officer , SBA must file its formal appeal with the head of the agency , or the appeal will be deemed withdrawn. The head of the agency shall reply to SBA within 15 business days of receiving the appeal. The decision of the head of the agency shall be final.

(a) A contracting officer shall consider a contract award to a HUBZone small business concern on a sole-source basis (see 6.302-5 (b)(5)) before considering a small business set-aside (see 19.203 and subpart 19.5 ), provided none of the exclusions at 19.1304 apply; and-

(1) The contracting officer does not have a reasonable expectation that offers would be received from two or more HUBZone small business concerns ;

(2) The anticipated price of the contract, including options , will not exceed-

(i) $7 million for a requirement within the North American Industry Classification System (NAICS) codes for manufacturing; or

(ii) $4.5 million for a requirement within all other NAICS codes;

(3) The requirement is not currently being performed by an 8(a) participant under the provisions of subpart  19.8 or has been accepted as a requirement by SBA under subpart  19.8 ;

(4) The HUBZone small business concern has been determined to be a responsible contractor with respect to performance; and

(5) Award can be made at a fair and reasonable price.

(b) The SBA has the right to appeal the contracting officer ’s decision not to make a HUBZone sole-source award (see 13 CFR 126.610 ).

(a) The price evaluation preference for HUBZone small business concerns shall be used in acquisitions conducted using full and open competition . The preference shall not be used-

(1) Where price is not a selection factor so that a price evaluation preference would not be considered ( e.g., Architect/Engineer acquisitions ); 

(2) Where all fair and reasonable offers are accepted ( e.g., the award of multiple award schedule contracts); or

(3) For the reserved portion of a solicitation for a multiple-award contract (see 19.503 ).

(b) The contracting officer shall give offers from HUBZone small business concerns a price evaluation preference by adding a factor of 10 percent to all offers , except-

(1) Offers from HUBZone small business concerns that have not waived the evaluation preference; or

(2) Otherwise successful offers from small business concerns .

(c) The factor of 10 percent shall be applied on a line item basis or to any group of items on which award may be made. Other evaluation factors, such as transportation costs or rent-free use of Government property, shall be added to the offer to establish the base offer before adding the factor of 10 percent.

(d) When the two highest rated offerors are a HUBZone small business concern and a large business, and the evaluated offer of the HUBZone small business concern is equal to the evaluated offer of the large business after considering the price evaluation preference, the contracting officer shall award the contract to the HUBZone small business concern .

(a) The contracting officer shall insert the clause 52.219-3 , Notice of HUBZone Set-Aside or Sole-Source Award, in solicitations and contracts for acquisitions that are set aside or awarded on a sole-source basis to, HUBZone small business concerns under 19.1305 or 19.1306 . This includes multiple-award contracts when orders may be set aside for HUBZone small business concerns as described in 8.405-5 and 16.505 (b)(2)(i)(F) or when orders may be issued directly to one HUBZone small business concern in accordance with 19.504 (c)(1)(ii).

(b) The contracting officer shall insert the clause at 52.219-4 , Notice of Price Evaluation Preference for HUBZone Small Business Concerns , in solicitations and contracts for acquisitions conducted using full and open competition .

(c) For use of clause 52.219-14 , Limitations on Subcontracting, see the prescription at 19.507 (e).

(d) For use of clause 52.219-33 , Nonmanufacturer Rule, see the prescription at 19.507 (h).

(a) The Veterans Benefit Act of2003 ( 15 U.S.C.657f ) created the procurement program for small business concerns owned and controlled by service-disabled veterans (commonly referred to as the "Service-Disabled Veteran-owned Small Business (SDVOSB) Procurement Program").

(b) The purpose of the Service-Disabled Veteran-Owned Small Business Program is to provide Federal contracting assistance to service-disabled veteran-owned small business concerns .

The procedures in this subpart apply to all Federal agencies that employ one or more contracting officers .

(a) Status as a service-disabled veteran-owned small business concern is determined in accordance with 13 CFR Parts 125.8 through 125.13; also see 19.307 .

(b) At the time that a service-disabled veteran-owned small business concern submits its offer , it must represent to the contracting officer that it is a—

(1) Service-disabled veteran-owned small business concern ; and

(2) Small business concern under the North American Industry Classification System (NAICS) code assigned to the procurement .

(c) A joint venture may be considered a service-disabled veteran owned small business concern if—

(2) At least one party to the joint venture is a service-disabled veteran-owned small business concern , and makes the representations in paragraph (b) of this section; and

(3) The joint venture complies with the requirements of 13 CFR 125.18(b) .

(d) Any service-disabled veteran-owned small business concern (nonmanufacturer) is required to meet the requirements in 19.505 to receive a benefit under this program.

(1) Federal Prison Industries , Inc. (see subpart  8.6 );

(c) Orders against Federal Supply Schedules (see subpart 8.4 ). (But see 8.405-5 for discretionary set-asides of orders); or

(d) Requirements currently being performed by an 8(a) participant or requirements SBA has accepted for performance under the authority of the 8(a) program, unless SBA has consented to release the requirements from the 8(a) program.

(1) Shall comply with 19.203 before deciding to set aside an acquisition under the SDVOSB Program;

(2) May set-aside acquisitions exceeding the micro-purchase threshold for competition restricted to SDVOSB concerns when the requirements of paragraph (b) of this section can be satisfied; and

(3) Shall consider SDVOSB set-asides before considering SDVOSB sole source awards (see 19.1406 ) or small business set-asides (see subpart 19.5 ).

(b) To set aside an acquisition for competition restricted to service-disabled veteran-owned small business concerns , the contracting officer must have a reasonable expectation that-

(1) Offers will be received from two or more service-disabled veteran-owned small business concerns ; and

(c) If the contracting officer receives only one acceptable offer from a service-disabled veteran-owned small business concern in response to a set-aside, the contracting officer should make an award to that concern . If the contracting officer receives no acceptable offers from service-disabled veteran-owned small business concerns , the service-disabled veteran-owned set-aside shall be withdrawn and the requirement, if still valid, set aside for small business concerns , as appropriate (see 19.203 ).

(d) The procedures at 19.202-1 and, except for acquisitions not exceeding the simplified acquisition threshold , at 19.402 apply to this section. When the SBA intends to appeal a contracting officer ’s decision to reject a recommendation of the SBA procurement center representative (or, if a procurement center representative is not assigned, see 19.402 (a)) to set aside an acquisition for competition restricted to service-disabled veteran-owned small business concerns , the SBA procurement center representative shall notify the contracting officer , in writing , of its intent within 5 working days of receiving the contracting officer ’s notice of rejection. Upon receipt of notice of SBA’s intent to appeal, the contracting officer shall suspend action on the acquisition unless the head of the contracting activity makes a written determination that urgent and compelling circumstances, which significantly affect the interests of the Government, exist. Within 15 working days of SBA’s notification to the contracting officer , SBA shall file its formal appeal with the head of the contracting activity , or that agency may consider the appeal withdrawn. The head of the contracting activity shall reply to SBA within 15 working days of receiving the appeal. The decision of the head of the contracting activity shall be final.

(a) A contracting officer shall consider a contract award to a SDVOSB concern on a sole source basis (see 6.302-5 (b)(6)), before considering small business set-asides (see 19.203 and subpart 19.5 ) provided none of the exclusions of 19.1404 apply and—

(1) The contracting officer does not have a reasonable expectation that offers would be received from two or more service-disabled veteran-owned small business concerns ;

(2) The anticipated award price of the contract, including options , will not exceed-

(i) $7 million for a requirement within the NAICS codes for manufacturing; or

(ii) $4 million for a requirement within any other NAICS code;

(4) The service-disabled veteran-owned small business concern has been determined to be a responsible contractor with respect to performance; and

(b) The SBA has the right to appeal the contracting officer ’s decision not to make a service-disabled veteran-owned small business sole source award.

(a) The contracting officer shall insert the clause at 52.219-27 , Notice of Service-Disabled Veteran-Owned Small Business Set-Aside, in solicitations and contracts for acquisitions that are set aside or awarded on a sole- source basis to, service-disabled veteran-owned small business concerns under 19.1405 and 19.1406 . This includes multiple-award contracts when orders may be set aside for service-disabled veteran-owned small business concerns as described in 8.405-5 and 16.505 (b)(2)(i)(F) or when orders may be issued directly to one service-disabled veteran-owned small business contractor in accordance with 19.504 (c)(1)(ii).

(b) For use of clause 52.219-14 , Limitations on Subcontracting, see the prescription at 19.507 (e).

(c) For use of clause 52.219-33 , Nonmanufacturer Rule, see the prescription at 19.507 (h).

(a) Section 8(m) of the Small Business Act ( 15 U.S.C. 637 (m)) created the Women-Owned Small Business (WOSB) Program.

(b) The purpose of the WOSB Program is to ensure women-owned small business concerns have an equal opportunity to participate in Federal contracting and to assist agencies in achieving their women-owned small business participation goals (see 13 part CFR 127).

(c) An economically disadvantaged women-owned small business (EDWOSB) concern and a WOSB concern eligible under the WOSB Program are subcategories of “ women-owned small business concern ” as defined in section 2.101 .

(a) Status as an EDWOSB concern or WOSB concern eligible under the WOSB Program is determined by the Small Business Administration in accordance with 13 CFR part 127 .

(b) For a WOSB that seeks a WOSB or EDWOSB set-aside or sole-source contract, the contracting officer shall verify that the offeror —

(1) Is registered in the System for Award Management (SAM ); and

(2) Is designated as a certified EDWOSB or WOSB concern in SAM (see 19.1505(d) for set aside procedures). Pending applications for certification are only in the Dynamic Small Business Search (DSBS) at https://web.sba.gov/​pro-net/​search/​dsp_​dsbs.cfm .

(c) If there is a decision issued by SBA as a result of a current eligibility examination finding that the concern did not qualify as an EDWOSB concern or WOSB concern eligible under the WOSB Program, the contracting officer may terminate the contract, and shall not exercise any option , or award further task or delivery orders . Agencies shall not count or include the award toward the small business goals for an EDWOSB concern or WOSB concern eligible under the WOSB Program and must update FPDS from the date of award to reflect the final SBA decision.

(d) A joint venture may be considered an EDWOSB concern or WOSB concern eligible under the WOSB Program if the EDWOSB or WOSB participant is certified in SAM (see section 19.1505(d) for set-aside procedures) and the joint venture meets the requirements of 13 CFR 127.506 .

(a) Requirements that an 8(a) contractor is currently performing under the 8(a) program or that SBA has accepted for performance under the authority of the 8(a) program, unless SBA has consented to release the requirements from the 8(a) program;

(b) Requirements that can be satisfied through award to mandatory Government sources (see section 8.002 );

(c) Orders under indefinite-delivery contracts (see subpart 16.5 ). (But see 16.505 (b)(2)(i)(F) for discretionary set-asides of orders); or

(d) Orders against Federal Supply Schedules (see subpart 8.4 ). (But see 8.405-5 for discretionary set-asides of orders.)

(1) Shall comply with 19.203 before deciding to set aside an acquisition under the WOSB Program;

(i) May set aside acquisitions exceeding the micro-purchase threshold for competition restricted to EDWOSB concerns when the acquisition is assigned a NAICS code in which SBA has determined that WOSB concerns are underrepresented in Federal procurement ; or

(ii) Is assigned a NAICS code in which SBA has determined that WOSB concerns are substantially underrepresented in Federal procurement , as specified on SBA’s Web site at http://www.sba.gov/WOSB .

(b) For requirements in NAICS codes designated by SBA as underrepresented, a contracting officer may restrict competition to EDWOSB concerns if the contracting officer has a reasonable expectation based on market research that-

(1) Two or more EDWOSB concerns will submit offers for the contract and;

(2) Contract award will be made at a fair and reasonable price.

(c) A contracting officer may restrict competition to WOSB concerns eligible under the WOSB Program (including EDWOSB concerns ), for requirements in NAICS codes designated by SBA as substantially underrepresented if there is a reasonable expectation based on market research that-

(1) Two or more WOSB concerns eligible under the WOSB Program (including EDWOSB concerns ), will submit offers and;

(2) Contract award may be made at a fair and reasonable price.

(d) An EDWOSB or WOSB concern may submit an offer under an EDWOSB or WOSB set-aside when the offeror —

(1) Qualifies as a small business concern under the size standard corresponding to the NAICS code assigned to the contract; and

(i) For an EDWOSB set-aside, is certified pursuant to 13 CFR 127.300 as an EDWOSB or has a pending application for EDWOSB certification in the DSBS (see 13 CFR 127.504(a) ); or

(ii) For a WOSB set-aside, is certified pursuant to 13 CFR 127.300 as an EDWOSB or WOSB, or has a pending application for EDWOSB or WOSB certification in the DSBS (see 13 CFR 127.504(a) ).

(e) The contracting officer shall verify that offers received are eligible for consideration for award by checking SAM to see if the EDWOSB or WOSB concern is designated as a certified concern or checking DSBS for a pending application for certification.

(1) If the offeror is designated as certified in SAM or has a pending application for certification in DSBS, proceed with the offer evaluation.

(2) Unless the offeror is designated as certified in SAM or has a pending application for certification in DSBS, the offer is not eligible for award and shall be removed from consideration.

(f) Prior to award, the contracting officer shall verify the apparently successful offeror is certified in SAM, or has a pending application for certification in DSBS. If the apparently successful offeror 's EDWOSB or WOSB certification is pending in DSBS, the contracting officer shall notify SBA's Director/Government Contracting by email at [email protected] , and request SBA's status determination. The contracting officer shall provide SBA with the offeror 's name, unique entity identifier , type of set-aside, NAICS code, and solicitation number.

(1) Within 15 calendar days from the date of the contracting officer 's notification, SBA will make a determination regarding the offeror 's status as an EDWOSB or WOSB eligible under the WOSB program.

(2) If the contracting officer does not receive a determination from SBA within 15 calendar days, the contracting officer at their discretion, may provide SBA additional time to make a determination, or may proceed with award to the next highest evaluated offeror .

(3) The contracting officer shall not make award to an offeror who is not a certified EDWOSB or WOSB concern eligible under the WOSB program.

(g) The contracting officer may make an award, if only one acceptable offer is received from a qualified EDWOSB concern or WOSB concern eligible under the WOSB Program.

(h) If no acceptable offers are received from an EDWOSB concern or WOSB concern eligible under the WOSB Program, the set-aside shall be withdrawn and the requirement, if still valid, must be considered for set aside in accordance with 19.203 and subpart 19.5 .

(i) The SBA procurement center representative (PCR) may recommend use of the WOSB Program. If the contracting officer rejects a recommendation by SBA's PCR—

(1) The contracting officer shall notify the PCR as soon as practicable;

(2) SBA shall notify the contracting officer of its intent to appeal the contracting officer ’s decision no later than five business days after receiving notice of the contracting officer ’s decision;

(3) The contracting officer shall suspend further action regarding the procurement until the head of the agency issues a written decision on the appeal, unless the head of the agency makes a written determination that urgent and compelling circumstances which significantly affect the interests of the United States compel award of the contract;

(4) Within 15 business days of SBA’s notification to the head of the contracting activity , SBA shall file a formal appeal to the head of the agency , or the appeal will be determined withdrawn; and

(5) The head of the agency , or designee, shall specify in writing the reasons for a denial of an appeal brought under this section.

(a) A contracting officer shall consider a contract award to an EDWOSB concern on a sole-source basis (see 6.302-5 (b)(7)) before considering small business set-asides (see 19.203 and subpart  19.5 ) provided none of the exclusions at 19.1504 apply and-

(1) The acquisition is assigned a NAICS code in which SBA has determined that WOSB concerns are underrepresented in Federal procurement ;

(2) The contracting officer does not have a reasonable expectation that offers would be received from two or more EDWOSB concerns ; and

(3) The conditions in paragraph (c) of this section exist.

(b) A contracting officer shall consider a contract award to a WOSB concern (including EDWOSB concerns ) eligible under the WOSB Program on a sole-source basis (see 6.302-5 (b)(7)) before considering small business set-asides (see 19.203 and subpart  19.5 ) provided none of the exclusions at 19.1504 apply and-

(1) The acquisition is assigned a NAICS code in which SBA has determined that WOSB concerns are substantially underrepresented in Federal procurement ;

(2) The contracting officer does not have a reasonable expectation that offers would be received from two or more WOSB concerns (including EDWOSB concerns ); and

(1) The anticipated award price of the contract, including options , will not exceed-

(ii) $4.5 million for a requirement within any other NAICS codes.

(2) The EDWOSB concern or WOSB concern has been determined to be a responsible contractor with respect to performance.

(3) The award can be made at a fair and reasonable price.

(d) A contracting officer shall only award a sole-source contract to a concern that has been certified pursuant to 13 CFR 127.300 as an EDWOSB or WOSB eligible under the WOSB program. Contracting officers shall not request a status determination from SBA on pending applications for certification for EDWOSB or WOSB sole-source awards.

(e) The SBA has the right to appeal the contracting officer ’s decision not to make a sole-source award to either an EDWOSB concern or WOSB concern eligible under the WOSB program.

(a) The contracting officer shall insert the clause at 52.219-29 , Notice of Set-Aside for, or Sole-Source Award to, Economically Disadvantaged Women-owned Small Business Concerns , in solicitations and contracts for acquisitions that are set aside or awarded on a sole-source basis to, EDWOSB concerns under 19.1505 (b) or 19.1506 (a). This includes multiple-award contracts when orders may be set aside for EDWOSB concerns as described in 8.405-5 and 16.505 (b)(2)(i)(F) or when orders may be issued directly to one EDWOSB contractor in accordance with 19.504 (c)(1)(ii).

(b) The contracting officer shall insert the clause at 52.219-30 , Notice of Set-Aside for, or Sole-Source Award to, Women-Owned Small Business Concerns Eligible Under the Women-Owned Small Business Program, in solicitations and contracts for acquisitions that are set aside or awarded on a sole-source basis to WOSB concerns under 19.1505 (c) or 19.1506 (b). This includes multiple-award contracts when orders may be set aside for WOSB concerns eligible under the WOSB Program as described in 8.405-5 and 16.505 (b)(2)(i)(F) or when orders may be issued directly to one WOSB contractor in accordance with 19.504 (c)(1)(ii).

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Expanded clean energy credits, helping workers pay off student loans, 1099-K rules and more

IR-2023-95, May 2, 2023

WASHINGTON — The Internal Revenue Service today urged business taxpayers to begin planning now to take advantage of tax-saving opportunities and get ready for reporting changes that take effect in 2023.

During National Small Business Week , April 30 to May 6, the IRS is joining the Small Business Administration and others in both the public and private sector to celebrate the hard work, ingenuity and dedication of America’s small businesses and their contributions to the economy.

With next year’s filing deadline nearly a year away, entrepreneurs still have time to identify possible tax benefits, take action to qualify for them and then claim them when they file in 2024. They also have time to plan for reporting changes and even claim overlooked tax benefits from the recent past.

Cutting energy costs for small businesses

The Inflation Reduction Act (IRA), enacted last summer, includes provisions that can save small business owners money on energy costs. For example:

  • Small businesses can receive a tax credit covering 30% of the cost of switching over to low-cost solar power, lowering operating costs and protecting against volatile energy prices. 
  • Small business building owners can receive a tax credit up to $5 per square foot to support energy efficiency improvements that deliver lower utility bills.
  • Through the Clean Commercial Vehicle Credit , small businesses that use vehicles such as trucks and vans can benefit from tax credits up to 30% of purchase costs for clean commercial vehicles, like electric and fuel cell models that meet applicable requirements. There is no limit on the number of Clean Commercial Vehicle credits a business can claim.

These credits are nonrefundable, so businesses can't get back more on the credit than they owe in taxes.

Employee Retention Credit: Claim it if eligible but avoid ERC scams   

Eligible employers who overlooked the Employee Retention Credit (ERC) when they filed payroll tax returns for 2020 and 2021 can still claim it by filing an amended federal payroll tax return.

At the same time, the IRS has warned businesses not to fall victim to one of the many ERC-related scams being promoted online, in social media, on the radio and even phone calls and emails. Anyone who improperly claims the ERC has to pay it back, possibly with penalties and interest, so it’s important to avoid getting scammed. 

Among other things, scammers misrepresent many features of the ERC and in some cases are merely using the credit as a ploy to steal the taxpayer’s identity or take a cut of the taxpayer’s improperly claimed credit. Eligible employers who need help claiming the credit should work with a trusted tax professional , not one of these scammers. ERC scams are so widespread this year that the IRS added them to its annual Dirty Dozen list of tax scams.

The ERC is designed to help employers who kept paying their employees while shut down during the pandemic or who suffered a significant decline in gross receipts during the eligibility period. The ERC is a payroll tax credit, not an income tax credit, and it was available only during 2020 and 2021.

Most eligible employers who overlooked the credit can still claim it by filing Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund , available on IRS.gov. Form 941-X filers and businesses that file other types of returns can visit IRS.gov/ERC for details, forms and instructions.

Educational assistance programs can be used to pay student loans

Employers who have educational assistance programs can use them to help pay student loan obligations for their employees. 

Though educational assistance programs have been available for many years, the option to use them to pay student loans has been available only for payments made after March 27, 2020, and, under current law, will continue to be available until Dec. 31, 2025.

Traditionally, educational assistance programs have been used to pay for books, equipment, supplies, fees, tuition and other education expenses for the employee. These programs can now also be used to pay principal and interest on an employee’s qualified education loans. Payments made directly to the lender, as well as those made to the employee, qualify.

By law, tax-free benefits under an educational assistance program are limited to $5,250 per employee per year. Normally, assistance provided above that level is taxable as wages.

Employers who don’t have an educational assistance program may want to consider setting one up. In a tight labor market, worthwhile fringe benefits such as educational assistance programs can help employers attract and retain good workers.

These programs must be in writing and cannot discriminate in favor of highly compensated employees. For information on other requirements, see Publication 15-B, Employer’s Tax Guide to Fringe Benefits . For details on what qualifies as a student loan, see Chapter 10 in Publication 970, Tax Benefits for Education . 

More people will receive 1099-Ks

Starting in 2023, businesses and other taxpayers who receive more than $600 in income from third-party settlement organizations, including popular payment apps, may receive Forms 1099-K, Payment Card and Third Party Network Transactions . Typically, they’ll receive these reporting forms during January 2024.

The $600 reporting threshold is lower than it’s been in the past. For that reason, some people and businesses may receive a Form 1099-K that didn’t receive one in previous years.

There are no changes to what counts as income or how tax is calculated. For business taxpayers, most income is taxable, even if it’s not reported to them on a 1099 or another form issued by a third party. The 1099-K reports various business transactions, including income from: 

  • A business the taxpayer owns.
  • Self-employment. 
  • Activities in the gig economy.
  • The sale of personal items and assets.

Good recordkeeping is key. For more information, visit the Understanding Your Form 1099-K page on IRS.gov.

Other tax benefits

From business start-up expenses and the home office deduction to the qualified business income deduction and the health-insurance deduction for self-employed individuals, there are a variety of tax benefits that may be available to entrepreneurs and other business owners. 

For details on these and other tax benefits see Publication 535, Business Expenses . Details on another major expense for most businesses, depreciation of buildings, equipment and other assets can be found in Publication 946, How to Depreciate Property .

Yet another worthwhile resource for any small business is the agency’s Publication 334, Tax Guide for Small Business . All these publications are available on IRS.gov. 

For more information featuring useful tax-related tools and resources to help small business owners, employers and self-employed individuals succeed visit the IRS.gov Small Business Week webpage .

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Start » strategy, how to file a beneficial ownership information report for your business.

Under the Corporate Transparency Act, U.S. small businesses must file beneficial ownership information reports with the Department of the Treasury.

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The Corporate Transparency Act (CTA) , aimed at combating illicit financial activity, went into effect on January 1, 2024. Under the act, small businesses across the United States need to file beneficial ownership information reports, also known as corporate transparency reports.

Here’s everything small business owners need to know about filing a corporate transparency report.

[Read More: What Every Small Business Needs to Know About the Corporate Transparency Act ]

What to know about beneficial ownership information reporting

The CTA was developed to increase transparency in business ownership and curtail the use of anonymous shell corporations for tax fraud, money laundering, and other illegal financial activity. Under this act, all businesses that fall under the definition of a reporting company must file a beneficial ownership information report (BOIR) with the Financial Crimes Enforcement Network (FinCEN).

A reporting company is any privately held company, whether domestic or foreign, registered to conduct business in the U.S. Publicly traded companies do not fall under the CTA, as they are subject to their own reporting requirements.

A beneficial owner is any individual who owns or controls at least 25% of an organization, or directly or indirectly exercises substantial control in any of the following roles:

  • They serve as a senior officer, such as a president, CEO, or general counsel.
  • They have the authority to appoint or remove senior officers, board members, or other similar roles.
  • They make important decisions concerning the company’s business, finances, and/or structure.

[Read More: How to Prevent Bank Fraud and Protect Your Business Account ]

Reporting requirements for small businesses

Eligible small businesses will need to report the following information about their companies:

  • The full legal name of the company.
  • The company’s business address; P.O. boxes or lawyer’s/adviser’s offices cannot be accepted.
  • The state or Tribal jurisdiction where the company was formed or first registered.
  • The taxpayer identification number and an identity document, such as a filed Articles of Incorporation or Organization.

Corporate transparency reports must also include the below information about any beneficial owners:

  • Their full legal name and date of birth.
  • Their home address; P.O. boxes or lawyer’s/adviser’s offices cannot be accepted.
  • A photocopy of their U.S. driver’s license or passport.

Under this act, all businesses that fall under the definition of a reporting company must file a beneficial ownership information report (BOIR) with the Financial Crimes Enforcement Network (FinCEN).

How to file your corporate transparency report

As of January 1, 2024, FinCEN has begun accepting beneficial ownership information reports. Here are four steps you can take to prepare your corporate transparency report.

1. Determine whether your business is required to file.

Under the CTA, LLCs and corporations must file beneficial ownership information reports unless they qualify for an exemption. The following entities are exempt from reporting:

  • Large operating companies; those with over 20 full-time employees in the U.S. and over $5 million in gross sales or receipts from U.S.-based sources.
  • Inactive entities that were established on or before January 1, 2020, but are not in active business.
  • Any other exemption from CTA reporting. If you aren't sure if your business falls under other CTA reporting exemptions, speak with a lawyer.

If your company is not an LLC or corporation, establish whether your business falls under the definition of a reporting company as defined above; a legal professional can also help you make this determination.

2. If your business qualifies, learn who the beneficial owners are.

List out any individuals who own or control 25% of your company, or otherwise exercise substantial control as defined above. If you are unsure if an individual meets the requirements of a beneficial owner, consult with a legal professional.

Once you have identified any beneficial owners, contact each to inform them that the CTA requires your business to report their personal information to FinCEN. Beneficial owners can choose to apply for a FinCEN Identifier and provide information to FinCEN directly. Otherwise, they can send the necessary information directly to you (the company) to be included in your business’s beneficial ownership information report.

3. Create a procedure.

Whether your beneficial owners are submitting their information via FinCEN or to your company, establish a process to keep all personal information organized, secure, and current. In addition to your initial report, you will need to file updated reports should there be a change in personal information or beneficial ownership.

[Read More: How to Choose the Best Business Entity for Your Small Business ]

4. File your report online.

All companies required to submit beneficial ownership information reports must file online via FinCEN . You can file one of two ways:

Complete and upload a PDF. Download a copy of the blank BOIR form as a PDF here and fill in the information. They can then upload the completed PDF using this page . It should be noted that Adobe Acrobat is required to open and complete this PDF.

Use FinCEN’s online platform. If you do not have Adobe Acrobat or simply wish to complete and file your BOIR within FinCEN’s platform, you can visit this page and follow the prompts. You will need to fill in information for and upload a photo of an identification document for each beneficial owner.

Reporting companies established before January 1, 2024, have until January 1, 2025, to file their initial corporate transparency reports. Companies established between January 1, 2024, and January 1, 2025, must file within 90 days from the notification or public announcement of their formation, whichever date comes first.

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What do new & recent data tell us about small business fortunes.

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Small businesses across the country display a mix of optimism and apprehension about the economy and ... [+] their own performance.

Inflation hurts—but business growth is expected. We’re hiring—but still having trouble filling job openings. Last year was tough—2024 will be the year for us.

Those, at least at a high level, are some takeaways from a recent batch of small business data from a variety of surveys and other sources. The latest entrant on the small business data landscape is the Small Business Cash Flow Trend Report from OnDeck and Ocrolus, released today.* The report, in contrast with some other sources of small business information, has the virtue of combining survey results with information derived from actual small business cash flow data. The result is a robust measure of small business performance and strong addition to existing data sources.

Survey Says ...

Inflation continues to plague small businesses. In the OnDeck-Ocrolus survey, 80% of small business respondents cited inflation as their top concern. That echoes other small business surveys in which respondents express concern over high prices:

  • MetLife & U.S. Chamber Small Business Index : 50%
  • Goldman Sachs 10,000 Small Businesses Voices (10KSBV): 71%

The Census Bureau’s Business Trends and Outlook Survey ( BTOS ) also finds evidence that business owners expect little moderation in prices. The latest survey, running through the end of January, finds increases across all sizes of businesses in the share saying their input prices had recently risen. The sharpest spikes were seen among the smallest firm size categories.

Do they expect input prices to moderate in the next six months? No. Across all sizes of businesses, the largest share still expect prices to have risen in six months—although a growing share expect “no change.” Still, almost no businesses expect input prices to fall in the near future.

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Ios 17 4 release date awesome iphone update just days away, putin critic alexei navalny has died russian prison service says, ... real growth is coming.

Business owners are nothing if not a hardy bunch. The OnDeck-Ocrolus Small Business Cash Flow Trend Report finds an astonishing 92% of respondents are optimistic about their future business growth. For good reason: according to the report’s cash flow data, small businesses on their platform, on average, enjoyed 25% growth in median revenues over the prior 18 months. This optimism matches what is found in other reports.

Toward the end of 2023, small business optimism ticked up slightly in one widely-tracked measure. The 91.9 reading in the December Small Business Optimism Index from the National Federation of Independent Business (NFIB) was, along with last July, the highest reading of last year. Despite declines in the latter half of 2023, the MetLife & U.S. Chamber Small Business Index found healthy levels of small businesses to be satisfied with their current business health and cash flow.

In the 10KSBV survey, one-third of businesses said 2023 was the toughest year to run their business since 2020 (a high bar!), yet three-quarters are optimistic about their 2024 finances. A similar share of respondents (71%) in the Slack 2024 Small Business Outlook expressed optimism about 2024—and 40% said 2024 is their “make or break” year.

Interestingly, the Census BTOS survey data show a marked difference in optimism according to business size. When asked about current performance, there is a steady decline in the share answering “above average” as business size gets smaller, especially those with fewer than 50 employees. The largest firms provide the healthiest assessment of themselves. Looking forward, optimism rises with business size. For firms with fewer than five employees, 20% expect their company’s performance in six months to have improved. (Just over half, 52%, expect no change.) For businesses with between 100 and 249 employees, 38% say they expect performance to have improved.

And Workers Still Needed

This is, by now, a common finding. The Small Business Cash Flow Trend Report from OnDeck and Ocrolus finds that over half of respondents have difficulty finding qualified employees. In some of the major metro areas surveyed—such as, ahem, the home of the repeat Super Bowl champions—two-thirds of small businesses said finding qualified employees was moderately or extremely difficult.

In the NFIB’s January Jobs Report , four in ten small business respondents said they had job openings they couldn’t fill. Among those actively hiring, 89% said they had no or few qualified applicants. A similar share (81%) reported recruitment difficulties in the 10KSBV survey.

Like optimism, hiring expectations rise with business size in the Census BTOS. Among small businesses with fewer than five employees, just 11% percent expect to have added staff within six months. For those businesses with between 20 and 49 employees, 31% expect to have more employees in six months—a share that has risen from 25% in late September. Over one-third (36%) of firms with between 50 and 99 employees said they plan to add more.

Where does this leave us? Undoubtedly, keeping tabs on signals from small business data will be important this year. Mixed signals continue to lurk in the data. This brief look at small business surveys is by no means exhaustive. A future column will dig more into the new OnDeck-Ocrolus report and canvass other recent surveys as well.

*Full disclosure: OnDeck Capital is part of Enova, which provides financial support to the author’s employer, the Bipartisan Policy Center.

Dane Stangler

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Farm Law for Producers and Landowners

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Business Entities: New Federal Reporting Requirements for Small Businesses, Including Farms (UPDATED)

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[Farm Law (FLW) Editor’s Note: This entry will be coninually updated. This new federal reporting requirement adds a required element of reporting for businesses in the farm and forestry industry organized as limited liability companies and corporations.]

What’s this is about then?

As of January 1, 2024, limited liability companies, corporations, and some business trusts and partnerships are subject to a new reporting requirement under the federal Corporate Transparency Act (CTA) , passed in 2020 as part of the federal Anti-Money Laundering Act of 2020 (itself attached to that year’s National Defense Authorization Act [P.L. 116-283]). The CTA was passed out of public concern that – of the 2 million limited liability companies and corporations formed each in year in the states – a sufficient number are used by domestic and foreign actors with malign design or pursuing illicit activity detrimental to U.S. security and commerce.

While there are some business-type exemptions (e.g. such as banking and insurance), the reporting requirement does apply to farm business operations and landholding entities. Such entities are required to submit disclosure of their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN). Under regulations ( 31 CFR §1010.380 ) effective January 1, 2024, and entities formed after that date must submit their information within 90 days.

[Reporting entities should note that the NC Secretary of State has issued a warning of fraudulent attempts to collect information, usually by email or text under the heading “Important Compliance Reporting.” The Department of the Treasury (including the Internal Revenue Service) does not conduct any business by email or text.)

Farms Are Not Exempt

While there are numerous listed exemptions in the final reporting rule, farm production and landowning entities (such as Limited Liability Companies (LLCs) that hold farm production assets or land) are  not exempt  from this reporting requirement. Non-profit (e.g. 501[c][3]) organizations are exempt [§1010.380 (B)(2)(xix)]. Also exempt are “large operating companies” with 20 or more full time employees  and a prior year federal tax filing showing gross sales receipts above $5,000,000 are also exempt. There are numerous other exempted types of businesses (such as insurance companies and brokerage houses) which are not descriptive of farm enterprises.

Though farms and land-holding entities are not exempt from the reporting requirement, some of their “beneficial owners” will be exempt from disclosure. The rules define beneficial owner as “any individual who, directly or indirectly, either exercises substantial control over such reporting company or owns or controls at least 25 percent of the ownership interests of such reporting company.” [§1010.380(B)(2)(d)]. Thus, a member of an LLC with less than a 25% share of total ownership will not be reported. Regarding “substantial control,” the rules appear to capture most individuals directing the affairs of the company, which for an LLC will be the “manager.” (officers are likewise included) [see  §1010.380(B)(2)(d)(1) ]

Information Required

The BOIR has three [3] general information requirements: entity identification, beneficial ownership identify, and identify of who formed the company.

1. For entity identification , the BOIR requires the following [per §1010.380(b)(1)(i)]:

(A) The full legal name of the reporting company;

(B) Any trade name or ‘‘doing business as’’ name of the reporting company (FLW comment: this likely includes any name used in marketing materials that is different from the unique entity name filed with Secretary of State, but definitely any business name appearing on a recorded Assumed Name Certificate (DBA) recorded with county register of deeds) ;

(C) A complete current address consisting of:

(1) In the case of a reporting company with a principal place of business in the United States, the street address of such principal place of business (FLW note: the NC Secretary of State form lists this information as optional, but this requirement supersedes) ; and

(2) In all other cases, the street address of the primary location in the United States where the reporting company conducts business;

(D) The State, Tribal, or foreign jurisdiction of formation of the reporting company;

(E) For a foreign reporting company, the State or Tribal jurisdiction where such company first registers; and

(F) The Internal Revenue Service (IRS) Taxpayer Identification Number (TIN) (including an Employer Identification Number (EIN) ) of the reporting company, or where a foreign reporting company has not been issued a TIN, a tax identification number issued by a foreign jurisdiction and the name of such jurisdiction;

2. For entity beneficiary identification , the following disclosure is required [per §1010.380(b)(1)(ii)]:

(A) The full legal name of the individual;

(B) The date of birth of the individual;

(1) In the case of a company applicant who forms or registers an entity in the course of such company applicant’s business, the street address of such business; or

(2) In any other case, the individual’s residential street address;

(D) A unique identifying number and the issuing jurisdiction from one of the following documents:

(1) A non-expired passport issued to the individual by the United States government;

(2) A non-expired identification document issued to the individual by a State, local government, or Indian tribe for the purpose of identifying the individual;

(3) A non-expired driver’s license issued to the individual by a State; or

(4) A non-expired passport issued by a foreign government to the individual, if the individual does not possess any of the documents described in paragraph (b)(1)(ii)(D)(1), (b)(1)(ii)(D)(2), or (b)(1)(ii)(D)(3) of this section; and

(E) An image of the document from which the unique identifying number in paragraph (b)(1)(ii)(D) of this section was obtained.

3. For applicants  who filed the entity, the above information is also required for disclosure on the BOIR. Note that this requirement applies to the person who originally signed the submission form for limited liability company, a partnership registration, or articles of incorporation. This may or may not be a family member relation to the beneficial owners of the business, and may include attorneys and accountants who filed the original paperwork. A performance of an entity search on the NC Secretary of State website, then a click on “show document filings” for that business should reveal a pdf of the original filing.

Reporting Deadlines

The date from which the reporting deadline (below) is calculated is the date upon which the entity is formed by submission of the organizational forming document with the Secretary of State. For LLCs, this will be the Articles of Organization; for corporations, the Articles of Incorporation. Though the regulations are not clear on exact date the entity becomes active, one should consider the moment of submission to be the starting of the clock. In other words, if an entity was formed on or about January 1 this year, that entity must report its owners to FinCen by close of March. Below is the deadline schedule:

Entities formed before January 1, 2024 have until January 1, 2025 to file their report (§1010.380(a)(iii).

Entities formed after January 1, 2024 must report their beneficial information within 90 days of formation filing.

Entities formed after January 1, 2025, the reporting window decreases to 30 days.

Trusts are not required to report their beneficiaries,  unless  trust holds interests in an entity required to report. For example, if a grantor/settlor of a trust owns a membership interest in a farm operation or landholding limited liability company, and has transferred that membership to their trust. The trust may be required to report the beneficial owners of the entity. [More on this to come re farm succession planning implications]

Entities are required to file an update upon “any change with respect to required information previously submitted to FinCEN concerning a reporting company or its beneficial owners” within 30 days of such change. [see FR §1010.380(a)(2) ]

Here is the FinCen window for submitting the entity beneficial ownership information report (BOIR).

Non-Compliance

The Corporate Transparency Act reads as follows regarding failure of entities to report their information:

‘‘(i) shall be liable to the United States for a civil penalty of not more than $500 for each day that the violation continues or has not been remedied; and ‘‘(ii) may be fined not more than $10,000, imprisoned for not more than 2 years, or both…”

These figures are to be indexed upward slightly per proposed federal rule [see  89 FR 4820 ]

The route to discovery of a failure to file is not clear, but one logical route would be matching a requested list of all state annual filings with the FinCen database, OR perhaps a cross reference of entities filing their annual LLC and corporate tax returns, and whether these entities’ TINs (EINs) are consistent with FinCen filings.

A question was posed to this initial post about the relationship between entity information disclosed to Farm Service Agency [on Form CCC-9021 ] and the FinCen database, and whether non-compliance with BOIR will interrupt farm program payments (or alert FinCen to a non-reporting entity). While no link has yet been discerned – and USDA is not mentioned in the CTA as having access – note again that the Internal Revenue Service has access to the FinCen database. [will update as more info discovered, as in any information-sharing between state secretaries on new business filings and FinCen.]

Here is a US Treasury fact sheet on this new reporting requirement.

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The Wall Street Journal

Small Businesses Must Now Report Ownership Information to the Government. But Many Don’t Know About it.

A new federal rule now requires more than 32 million small businesses nationwide to file ownership information to a little known agency in the U.S. Treasury Department or face potential penalties. The problem: Many of these businesses don’t know about it.

The Financial Crimes Enforcement Network, the anti-money-laundering bureau of the Treasury Department, says it has been working hard to inform those affected by the new law, spreading the word through social media and asking other government agencies to help. But small-business advocates say more needs to be done.

“As we talk to small businesses, there is a great lack of awareness on this,” said Todd McCracken, president of the National Small Business Association, on the requirements. The advocacy group in 2022 filed a lawsuit challenging the law.

The new filing requirements are mandated by the Corporate Transparency Act, a piece of sweeping bipartisan legislation passed in 2021 that Congress hopes will curtail the use of anonymous shell companies and track the flow of illicit money. The new law became effective on Jan. 1. The law creates a beneficial ownership database and reporting requirements for companies to file ownership information to FinCEN, similar to existing requirements in the U.K. and the European Union.

In a NSBA survey of its membership published in November, about 47% of respondents said they had no idea what the Corporate Transparency Act was, while another 25% said they had heard of the law but didn’t know whether they needed to report. Only about 16% said they were aware and did have to report and 12% said they were aware but weren’t required to report.

Not filing ownership information to FinCEN can carry significant criminal and civil penalties, including for companies’ senior executives, according to the agency. Willful failure to comply can also lead to fines of up to $591 a day for each violation.

FinCEN received about 400,000 filings in its first month. But small businesses and the secretaries of states responsible for registering new companies say the number of filings received so far are only a drop in the bucket compared with the total number of entities required to file and that FinCEN’s educational campaign has so far come up short.

Daniel Turner, owner of TCG, a Washington, D.C.-based information technology services contractor, said he wasn’t aware of the reporting requirements until asked by The Wall Street Journal.

Turner, whose company has 183 employees but owns real estate under several limited liability companies, said his banks asked him recently to provide beneficial ownership information for his companies’ bank accounts, but made no mention of requirements for the database. He said so far he hasn’t seen anything about the new FinCEN reporting requirements, but added that he would now check with his lawyers and accountants about what to do next.

“The financial institutions do all the filing on the ownership information, as far as I know. But maybe I’m missing something,” he said.

Part of the reason for the lack of awareness, those working with small businesses say, is the unfamiliarity with FinCEN itself, a small, relatively obscure bureau that in the past typically dealt with banks and other financial institutions.

“FinCEN has never dealt with small businesses, and small businesses don’t know who FinCEN is and FinCEN doesn’t know how to regulate the small businesses,” McCracken, the NSBA president, said.

The reporting requirements, which exempt businesses with more than 20 employees as well as many heavily regulated public entities, focus primarily on small and private companies, many of which may lack the staffing and resources to meet the obligations.

The pressure to comply is particularly urgent for new companies, small business advocates and legal consultants said. Entities created in 2024 have only 90 days to file after they initially register, making early April the first possible deadline, while companies created before this year have one year to file their report, according to FinCEN. The report includes identifying information about who directly or indirectly owns or controls the company, including names, addresses and identification documents.

FinCEN has been focusing on raising awareness of the reporting requirements over the past few months, according to its director Andrea Gacki. Efforts to spread the word include hiring a public relations contractor to create advertisements publicizing the new law, and reaching out to other agencies that deal with small businesses, such as the Internal Revenue Service, the Small Business Administration and government minority business development offices.

FinCEN has also become more active on its social media channels and has contacted payroll companies and banking industry associations that small businesses owners would encounter in the process of setting up their businesses.

In addition, the agency said it has published a 57-page compliance guide for small businesses in several languages, set up a direct inquiry line to take questions about the new requirements, and has partnered with federal and state government offices to host virtual and in-person educational events.

A bipartisan letter led by Sen. Rick Scott (R., Fla.) in December asked FinCEN to delay the reporting system implementation by a year, but the agency declined.

Secretaries of state have been asked to help spread the word about the beneficial ownership reporting requirements. Many have posted information about the new requirements on their state websites and have sent out notifications to those required to file.

Massachusetts Secretary of the Commonwealth William Galvin said he wasn’t sure there was yet a national level of understanding and awareness of the filing obligations, comparing the requirements to the fact that almost every business owner knows they must file their taxes with the IRS.

“In theory, it makes a lot of sense to look for criminal activities by doing so. But the national regulation that proposed this doesn’t understand that the educational efforts need to be equally aggressive,” said Galvin.

He compared the efforts so far as “one group of bureaucrats talking to another one,” and that information on the reporting obligations need to be made more available to the general public.

Gacki, director of FinCEN, acknowledged the issue, saying that the agency’s focus for the first year of implementing the reporting requirements is to raise awareness of the requirements, rather than on strict enforcement of the new law.

“We’re not interested in hitting small businesses with excessive fines or penalties…The Corporate Transparency Act penalizes willful violations of law,” Gacki said. “We are not looking to take ‘gotcha’ action on the basis of people who aren’t aware of our rule.”

Gacki said she doesn’t have a ready answer in terms of the agency’s benchmark for success on the awareness campaign for the database, but she said filings are arriving at a steady pace.

“Without a doubt, enforcement is a key aspect of [Corporate Transparency Act implementation efforts], but I want to stress that the first year is about driving compliance,” she said.

Write to Mengqi Sun at [email protected]

Small Businesses Must Now Report Ownership Information to the Government. But Many Don’t Know About it.

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Nvidia holdings disclosure pumps up shares of small AI companies

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  • A filing by Nvidia shows the chipmaker has stakes in a handful of public companies.
  • Shares of most of those companies soared even though Nvidia's involvement was already known.
  • While Nvidia has long been involved with venture investing, its more recent deals are likely to be much more significant given the boom in artificial intelligence.

In this article

Investors have become so enamored with Nvidia's artificial intelligence story that they want a piece of anything the chipmaker touches.

On Wednesday, Nvidia disclosed in a regulatory filing that it has stakes in a handful of public companies: Arm , SoundHound AI , Recursion Pharmaceuticals , Nano-X Imaging , and TuSimple .

With the exception of Arm, which topped $130 billion in market cap recently, shares of the Nvidia-backed companies soared Thursday following the 13F filing, a form that must be submitted by institutional investment managers overseeing at least $100 million in assets.

But none of these investments would be surprising to anyone who took the time to sift through old news reports and filings. The AI mania is firmly in an irrational exuberance phase, and investors are pouncing on anything and everything in the space.

Nvidia's earnings numbers will continue to go up, says Bernstein's Stacy Rasgon

No stock is hotter than Nvidia, which passed Amazon in market value Tuesday and then Alphabet on Wednesday to become the third-most-valuable company in the U.S., behind only Apple and Microsoft . Nvidia shares are up more than 200% over the past 12 months due to seemingly limitless demand for its AI chips, which underpin powerful AI models from Google, Amazon, OpenAI and others.

SoundHound, which uses AI to process speech and voice recognition, jumped 67% on Thursday, after Nvidia disclosed a stake that amounted to $3.7 million at the time of the filing. Nvidia invested in SoundHound in 2017 as part of a $75 million venture round.

SoundHound went public through a special purpose acquisition company in 2022, and Nvidia was named in its presentation as a strategic investor.

Nano-X uses AI in medical imaging. Nvidia's disclosure of a $380,000 investment in the company sent the stock up 49% on Thursday. Nvidia's involvement dates back years to a venture investment in Zebra Medical , an Israeli medical imaging startup. Nano-X acquired Zebra in 2021.

TuSimple, an autonomous trucking company, rocketed 37% on Thursday after the disclosure of Nvidia's $3 million stake. The share rally comes a month after the company announced plans to delist from the Nasdaq due to a "significant shift in capital markets" since its 2021 IPO. TuSimple debuted at $40 a share and now trades for roughly 50 cents.

"Accordingly, the Special Committee determined that the benefits of remaining a publicly traded company no longer justify the costs," TuSimple said in a release Jan. 17. "The Company is undergoing a transformation that the Company believes it can better navigate as a private company than as a publicly traded one."

Nvidia invested in TuSimple in 2017, four years before the IPO.

Nvidia acquired its stake in biotech company Recursion more recently. Like TuSimple, Recursion went public in 2021 , but Nvidia bought in two years later through what's called a private investment in public equity, or PIPE. Nvidia bought $50 million worth of shares in 2023 and now has an investment worth $76 million, according to its filing.

Recursion shares spiked 14% on Thursday.

Nvidia's own financials will be on full display next week, when the company reports quarterly earnings. Analysts are expecting year-over-year revenue growth above 200% to more than $20 billion.

The company's more recent investments are likely to be much more significant than its earlier bets, disclosed late Wednesday, because they're at the heart of the AI boom. In recent years, Nvidia has backed hot AI startups including Cohere , Hugging Face , CoreWeave and Perplexity.

"AI is transforming the way consumers access information," said Jonathan Cohen, Nvidia's vice president of applied research, in Perplexity's announcement of a $73.6 million funding round in January. "Perplexity's world-class team is building a trusted AI-powered search platform that will help push this transformation forward."

WATCH: Perplexity AI aims to rival Google

Perplexity AI aims to rival Google

Don't miss these stories from CNBC PRO:

  • Three stocks that could replace Tesla in the 'Magnificent 7'
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  • Vanguard launches two new ETFs to hit this sweet spot of tax-free fixed income
  • Berkshire Hathaway topped $600,000 a share last week, aiming at $1 trillion market value

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small business plan reporting

Create a form in Word that users can complete or print

In Word, you can create a form that others can fill out and save or print.  To do this, you will start with baseline content in a document, potentially via a form template.  Then you can add content controls for elements such as check boxes, text boxes, date pickers, and drop-down lists. Optionally, these content controls can be linked to database information.  Following are the recommended action steps in sequence.  

Show the Developer tab

In Word, be sure you have the Developer tab displayed in the ribbon.  (See how here:  Show the developer tab .)

Open a template or a blank document on which to base the form

You can start with a template or just start from scratch with a blank document.

Start with a form template

Go to File > New .

In the  Search for online templates  field, type  Forms or the kind of form you want. Then press Enter .

In the displayed results, right-click any item, then select  Create. 

Start with a blank document 

Select Blank document .

Add content to the form

Go to the  Developer  tab Controls section where you can choose controls to add to your document or form. Hover over any icon therein to see what control type it represents. The various control types are described below. You can set properties on a control once it has been inserted.

To delete a content control, right-click it, then select Remove content control  in the pop-up menu. 

Note:  You can print a form that was created via content controls. However, the boxes around the content controls will not print.

Insert a text control

The rich text content control enables users to format text (e.g., bold, italic) and type multiple paragraphs. To limit these capabilities, use the plain text content control . 

Click or tap where you want to insert the control.

Rich text control button

To learn about setting specific properties on these controls, see Set or change properties for content controls .

Insert a picture control

A picture control is most often used for templates, but you can also add a picture control to a form.

Picture control button

Insert a building block control

Use a building block control  when you want users to choose a specific block of text. These are helpful when you need to add different boilerplate text depending on the document's specific purpose. You can create rich text content controls for each version of the boilerplate text, and then use a building block control as the container for the rich text content controls.

building block gallery control

Select Developer and content controls for the building block.

Developer tab showing content controls

Insert a combo box or a drop-down list

In a combo box, users can select from a list of choices that you provide or they can type in their own information. In a drop-down list, users can only select from the list of choices.

combo box button

Select the content control, and then select Properties .

To create a list of choices, select Add under Drop-Down List Properties .

Type a choice in Display Name , such as Yes , No , or Maybe .

Repeat this step until all of the choices are in the drop-down list.

Fill in any other properties that you want.

Note:  If you select the Contents cannot be edited check box, users won’t be able to click a choice.

Insert a date picker

Click or tap where you want to insert the date picker control.

Date picker button

Insert a check box

Click or tap where you want to insert the check box control.

Check box button

Use the legacy form controls

Legacy form controls are for compatibility with older versions of Word and consist of legacy form and Active X controls.

Click or tap where you want to insert a legacy control.

Legacy control button

Select the Legacy Form control or Active X Control that you want to include.

Set or change properties for content controls

Each content control has properties that you can set or change. For example, the Date Picker control offers options for the format you want to use to display the date.

Select the content control that you want to change.

Go to Developer > Properties .

Controls Properties  button

Change the properties that you want.

Add protection to a form

If you want to limit how much others can edit or format a form, use the Restrict Editing command:

Open the form that you want to lock or protect.

Select Developer > Restrict Editing .

Restrict editing button

After selecting restrictions, select Yes, Start Enforcing Protection .

Restrict editing panel

Advanced Tip:

If you want to protect only parts of the document, separate the document into sections and only protect the sections you want.

To do this, choose Select Sections in the Restrict Editing panel. For more info on sections, see Insert a section break .

Sections selector on Resrict sections panel

If the developer tab isn't displayed in the ribbon, see Show the Developer tab .

Open a template or use a blank document

To create a form in Word that others can fill out, start with a template or document and add content controls. Content controls include things like check boxes, text boxes, and drop-down lists. If you’re familiar with databases, these content controls can even be linked to data.

Go to File > New from Template .

New from template option

In Search, type form .

Double-click the template you want to use.

Select File > Save As , and pick a location to save the form.

In Save As , type a file name and then select Save .

Start with a blank document

Go to File > New Document .

New document option

Go to File > Save As .

Go to Developer , and then choose the controls that you want to add to the document or form. To remove a content control, select the control and press Delete. You can set Options on controls once inserted. From Options, you can add entry and exit macros to run when users interact with the controls, as well as list items for combo boxes, .

Adding content controls to your form

In the document, click or tap where you want to add a content control.

On Developer , select Text Box , Check Box , or Combo Box .

Developer tab with content controls

To set specific properties for the control, select Options , and set .

Repeat steps 1 through 3 for each control that you want to add.

Set options

Options let you set common settings, as well as control specific settings. Select a control and then select Options to set up or make changes.

Set common properties.

Select Macro to Run on lets you choose a recorded or custom macro to run on Entry or Exit from the field.

Bookmark Set a unique name or bookmark for each control.

Calculate on exit This forces Word to run or refresh any calculations, such as total price when the user exits the field.

Add Help Text Give hints or instructions for each field.

OK Saves settings and exits the panel.

Cancel Forgets changes and exits the panel.

Set specific properties for a Text box

Type Select form Regular text, Number, Date, Current Date, Current Time, or Calculation.

Default text sets optional instructional text that's displayed in the text box before the user types in the field. Set Text box enabled to allow the user to enter text into the field.

Maximum length sets the length of text that a user can enter. The default is Unlimited .

Text format can set whether text automatically formats to Uppercase , Lowercase , First capital, or Title case .

Text box enabled Lets the user enter text into a field. If there is default text, user text replaces it.

Set specific properties for a Check box .

Default Value Choose between Not checked or checked as default.

Checkbox size Set a size Exactly or Auto to change size as needed.

Check box enabled Lets the user check or clear the text box.

Set specific properties for a Combo box

Drop-down item Type in strings for the list box items. Press + or Enter to add an item to the list.

Items in drop-down list Shows your current list. Select an item and use the up or down arrows to change the order, Press - to remove a selected item.

Drop-down enabled Lets the user open the combo box and make selections.

Protect the form

Go to Developer > Protect Form .

Protect form button on the Developer tab

Note:  To unprotect the form and continue editing, select Protect Form again.

Save and close the form.

Test the form (optional)

If you want, you can test the form before you distribute it.

Protect the form.

Reopen the form, fill it out as the user would, and then save a copy.

Creating fillable forms isn’t available in Word for the web.

You can create the form with the desktop version of Word with the instructions in Create a fillable form .

When you save the document and reopen it in Word for the web, you’ll see the changes you made.

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‘We’ve lost both engines,’ pilot said before private jet crashed onto Florida interstate, killing 2

A pilot and co-pilot were identified as the two killed in a fiery plane crash on a Florida highway, law enforcement officials said Saturday afternoon.

Smoke and fire fills the air after an airplane crashed on Interstate 75, Friday, Feb. 10, 2024 near Naples, Fla. Federal authorities have launched an investigation to determine why the private jet tried to make an emergency landing on the Florida interstate, colliding with a vehicle and sparking a fiery crash that left two people dead. (Chris O'Conner via AP)

Smoke and fire fills the air after an airplane crashed on Interstate 75, Friday, Feb. 10, 2024 near Naples, Fla. Federal authorities have launched an investigation to determine why the private jet tried to make an emergency landing on the Florida interstate, colliding with a vehicle and sparking a fiery crash that left two people dead. (Chris O’Conner via AP)

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Emergency officials work the scene of a small plane crash on Interstate 75 in Naples, Fla., near Exit 105, Friday, Feb. 9, 2024. Two people were confirmed dead. (Andrew West/The News-Press via AP)

In this image provided by the Florida Department of Transportation, Florida Highway Patrol troopers are on the scene of a small airplane landing on southbound Interstate 75 in Naples, Fla., Friday, Feb. 9, 2024. The plane collided with a vehicle as it made the emergency landing. (Florida DOT/The News-Press via AP)

The Collier County Sheriff’s Office identified Edward Daniel Murphy, a 50-year-old pilot and co-pilot Ian Frederick Hofmann, 65, as the deceased. The three survivors were crew member Sydney Ann Bosmans, 23, and passengers Aaron Baker, 35, and Audra Green, 23, both of Columbus, Ohio. The three were taken to a local hospital for injuries. Their conditions are unknown.

Moments before the private jet slammed into a Florida highway, the pilot had calmly told an airport controller that the aircraft “was not going to make the runway” because it had lost both engines.

Plane Lands Florida Interstate-Pilot 1

Listen to the charter jet pilot declaring an emergency, as the plane nears the airport in Naples, Florida. COURTESY: LiveATC.Net

The jet, with five people aboard, was bound for the airport in Naples when it tried to make an emergency landing on Interstate 75 on Friday afternoon. But witnesses say it collided with a vehicle — the wing of the plane dragging a car before slamming into a wall. An explosion followed, with flames and black smoke rising from the scene.

FILE - Sen. Jean Carnahan, D-Mo. expressed her simpathy and commented on the death of fellow Sen. Paul Wellstone, D-Minn, Saturday Oct. 26, 2002 in St. Louis. Carnahan, who became the first female senator to represent Missouri after she was appointed to replace her husband following his death, died Tuesday, Jan. 30, 2024. She was 90. (AP Photo/David Kennedy, File)

Two people were killed, according to the Collier County Sheriff’s Office.

Federal authorities have launched an investigation into the crash near Naples, just north of where the interstate heads east toward Fort Lauderdale along what is known as Alligator Alley.

The plane had taken off from an airport at Ohio State University in Columbus, Ohio, about 1 p.m. It was scheduled to land in Naples around the time of the crash, Naples Airport Authority spokesperson Robin King said, when pilot contacted the tower requesting an emergency landing.

“Got that. Emergency. Clear to land. Runway. Two. Three,” the air traffic controller responded to the pilot, in audio obtained by The Associated Press.

“We’re clear to land, but we’re not gonna make the runway. We’ve lost both engines,” the pilot calmly replied.

The tower lost contact, and then airport workers saw the smoke from the interstate just a few miles away, King said.

King said they sent fire trucks with special foam to the scene, and three of the five people on board were taken from the wreckage alive.

Brianna Walker saw the wing of the plane drag the car in front of hers and slam into the wall.

“It’s seconds that separated us from the car in front of us,” she said. “The wing pulverized this one car.”

Walker and her friend spotted the plane moments before it hit the highway, allowing her friend to pull over before the crash.

“The plane was over our heads by inches,” she said. “It took a hard right and skid across the highway.”

According to the FlightAware aircraft tracker, the plane was operated by Hop-a-Jet Worldwide Charter based in Fort Lauderdale, Florida. The aircraft had been scheduled to fly back to Fort Lauderdale on Friday afternoon.

Hop-a-Jet said Friday night that it had “received confirmed reports of an accident involving one of our leased aircraft near Naples” and would send a team to the crash site, the Naples Daily News reported .

“Our immediate concern is for the well-being of our passengers, crew members, and their families,” the statement said. It didn’t contain details of the crash.

A spokesperson for Ohio State University said the aircraft is not affiliated with the university, and they had no further information about it.

Federal authorities said a preliminary report about the cause of the crash can be expected in 30 days.

Cline reported from Baton Rouge, Louisiana.

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  1. 52.219-9 Small Business Subcontracting Plan.

    Electronic Subcontracting Reporting System (eSRS) means the Governmentwide, electronic, web-based system for small business subcontracting program reporting. The eSRS is located at http://www.esrs.gov.

  2. IAE: ESRS (Electronic Subcontracting Reporting System)

    Reporting Deadline - Due to the ongoing COVID-19 pandemic, the Small Business Administration extended the time for filing ISRs and SSRs by 15 days for FY 2021 reports. View the official announcement here .

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    You will need to do some comprehensive research, create operational standpoints, describe your product, define your goals, and pave out a road map for future growth. In other words, you are going to need a business plan. A business plan is a document that precisely explains how you are going to make your startup a success.

  4. PDF eSRS Quick Reference for

    This report collects prime and subcontractors' subcontract award data for a specific Federal Government agency when a Prime/Subcontractor: (a) holds one or more contracts over $650,000 (over $1,500,000 for construction of a public facility); and (b) is required to report subcontracts awarded to Small Business (SB), Small Disadvantaged Business (...

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    7. Perform a business financial analysis. 8. Make financial projections. 9. Add additional information to an appendix. Business plan tips and resources. MORE LIKE THIS Small-Business Loans Small ...

  6. Free Small Business Plan Templates

    This one page small business plan template is ideal for quick, simple presentations. Use this template to summarize your business overview, market analysis, marketing, and sales plan, key objectives and success metrics, and milestones timeline. Complete the fillable sections to educate investors and inform stakeholders.

  7. Simple Business Plan Template (2024)

    This section of your simple business plan template explores how to structure and operate your business. Details include the type of business organization your startup will take, roles and ...

  8. Write your business plan

    Include your mission statement, your product or service, and basic information about your company's leadership team, employees, and location. You should also include financial information and high-level growth plans if you plan to ask for financing.

  9. PDF Guide to Preparing and Reviewing a Summary Subcontract Report (SSR) for

    subcontracting plan • Section 15(g) Small Business Act - 15 USC ... • Specifies government -wide goals for contracts and subcontracts awarded to small business concerns • Includes reporting on subcontracting . Regulations: • FAR 19.7 / DFARS 219.7 • FAR 52.219- 9, Small Business SubcontractingPlan • DFARS 219.706 Class Deviation ...

  10. How to Write a Business Report: A Step By Step Guide with Examples

    A business report is an informative document that contains important data such as facts, analyses, research findings, and statistics about a business with the goal to make this information accessible to people within a company.

  11. Subcontracting

    View procedures and guidance documents related to subcontracting plans and reporting. The guidance is relevant for DoD Contracting Officials and Small Business Professionals, as well as Contractors preparing subcontracting plans and subcontracting reports. DoD Test Program for a Comprehensive. Subcontracting Plan.

  12. Changes to the Small Business Subcontracting Plan Reporting

    The SSR provides information on subcontract awards made to small businesses by the contractor. If a contractor is performing work for more than one federal agency, a separate report is submitted to each federal agency covering only subcontracting accomplishments for that agency's contracts.

  13. PDF Submitting an Individual Subcontract Report (ISR)

    This report collects prime contractor and subcontractor subcontract award data for a specific Federal Government agency when a Prime/Subcontractor: (a) holds one or more contracts over $700,000 (over $1,500,000 for construction of a public facility); and (b) is required to report subcontracts awarded to Small Business (SB), Small Disadvantaged B...

  14. PDF A Guide to Starting a Small Business

    This Small Business Guide is intended to provide quick references about Federal tax considerations when opening and running a small business. Publication 5557 (9-2021) Catalog Number 57953U Department of the Treasury Internal Revenue Service www.irs.gov Business Types

  15. 550+ Sample Business Plan Examples to Inspire Your Own

    550+ Business Plan Examples to Launch Your Business Need help writing your business plan? Explore over 550 industry-specific business plan examples for inspiration. Go even further with LivePlan, which harnesses AI-assisted writing features and SBA-approved plan examples to get you funded. Find your business plan example

  16. Part 19

    19.202-5 Data collection and reporting requirements. 19.202-6 Determination of fair market price. 19.203 Relationship among small business programs. ... Small Business Subcontracting Plan, if a prime contractor's size status changes from small to other than small as a result of a size rerepresentation ...

  17. National Small Business Week advice from the IRS: Plan now to take

    Expanded clean energy credits, helping workers pay off student loans, 1099-K rules and more. IR-2023-95, May 2, 2023. WASHINGTON — The Internal Revenue Service today urged business taxpayers to begin planning now to take advantage of tax-saving opportunities and get ready for reporting changes that take effect in 2023.

  18. How to File a Beneficial Ownership Report for Your Small Business

    Under the act, small businesses across the United States need to file beneficial ownership information reports, also known as corporate transparency reports. Here's everything small business owners need to know about filing a corporate transparency report. [Read More: What Every Small Business Needs to Know About the Corporate Transparency Act]

  19. Prime and subcontracting

    The Office of Policy, Planning & Liaison can help you with questions about subcontracting rules and regulations. If you have questions about the Electronic Subcontracting Reporting System (eSRS), visit the Federal Service Desk or call 866-606-8220 (within the United States) or 334-206-7828 (outside the United States).

  20. What Do New & Recent Data Tell Us About Small Business Fortunes?

    Real Growth Is Coming. Business owners are nothing if not a hardy bunch. The OnDeck-Ocrolus Small Business Cash Flow Trend Report finds an astonishing 92% of respondents are optimistic about their ...

  21. Policy Guidance: FY 2023 SBIC Annual Letter year-end Reporting

    Under 13 CFR 107.630 of the Code of Federal Regulations, each Small Business Investment Company (SBIC) must file an audited Annual Financial Report, SBA Form 468, within 90 calendar days from the close of its fiscal year. For example, if the SBIC's fiscal year-end is December 31st, the SBIC must file its audited Annual Financial Report, SBA Form 468, no later than no later than 90 calendar ...

  22. PDF eSRS Quick Reference

    Quick Reference #9: How to View an Existing SSR for "Commercial Subcontracting Plan Submitted to the Government. At the top of eSRS home page, click on. Select "Summary Contract Reports" "File/Review Report". from the drop-down menu. At the top of the next screen, choose the tab "Open", "Pending", "Closed", or "All".

  23. Business Entities: New Federal Reporting Requirements for Small

    As of January 1, 2024, limited liability companies, corporations, and some business trusts and partnerships are subject to a new reporting requirement under the federal Corporate Transparency Act (CTA), passed in 2020 as part of the federal Anti-Money Laundering Act of 2020 (itself attached to that year's National Defense Authorization Act [P ...

  24. Small Businesses Must Now Report Ownership Information to the ...

    A new federal rule now requires more than 32 million small businesses nationwide to file ownership information to a little known agency in the U.S. Treasury Department or face potential penalties.

  25. Nvidia holdings disclosure pumps up shares of small AI companies

    Nano-X uses AI in medical imaging. Nvidia's disclosure of a $380,000 investment in the company sent the stock up 49% on Thursday. Nvidia's involvement dates back years to a venture investment in ...

  26. Create a form in Word that users can complete or print

    Show the Developer tab. If the developer tab isn't displayed in the ribbon, see Show the Developer tab.. Open a template or use a blank document. To create a form in Word that others can fill out, start with a template or document and add content controls.

  27. Hear the audio from pilot before private jet crashes into Florida

    The Associated Press is an independent global news organization dedicated to factual reporting. Founded in 1846, AP today remains the most trusted source of fast, accurate, unbiased news in all formats and the essential provider of the technology and services vital to the news business.