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ARTICLE · 30 SEPTEMBER 2024

SBA Seeks To Make Changes To Recertification Requirements For Multiple-Award Contracts

Bass, Berry & Sims PLC
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On August 23, the U.S. Small Business Administration (SBA) issued a proposed rule that would make significant changes to SBA's recertification requirements

United StatesGovernment, Public Sector
Todd Overman
Todd Overman

On August 23, the U.S. Small Business Administration (SBA) issued a proposed rule that would make significant changes to SBA's recertification requirements. Most notably, the rule would change when size and socioeconomic status are determined and amend when a contractor's eligibility under certain multiple-award contracts upon recertification.

The change could have significant ramifications for small businesses performing on multiple-award contracts and could impact the valuation of small businesses for M&A purposes.

Recertification under Multiple-Award Contracts

It has been well understood that unless a contracting officer requires size recertification, a small business that loses its status as a result of a transaction remains eligible for the award of task orders because it was eligible as the appropriate small business when it was awarded the underlying contract. However, the proposed rule seeks to change that by "clarifying" the regulations by noting "three

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