Government Contracts
On June 28, 2013, the Small Business Administration
("SBA") issued a final rule to implement the statutory
requirements of the Small Business Jobs Act of 2010. The Final Rule
will be effective August 27, 2013.
While the presumed loss sanctions remain severe, to the relief
of many in the industry, the final SBA rule softened and narrowed
the liability scheme compared to the SBA's proposed rule issued
in October 2011. The Final Rule clarifies that when a contractor or
subcontractor willfully misrepresents its small business size
status, there is a rebuttable presumption that a presumed loss to
the government exists for every dollar expended on the contract.
Certain acts are deemed willful certifications under the rule,
including submission of a bid or proposal on any procurement set
aside for small business, or registration on any federal electronic
database such as SAM or ORCA for purposes of being considered for
award as a small business
