Filed under: Uncategorized | Tags: contract, contractors, DCAA, defense contract audit agency, Governement Contracting, Government Contracts
We have been getting a lot of inquiries on the requirements the federal government uses as it relates to Small Business participation for government contracts. The following is a summary excerpt from the SBA Guide and Definitions for Small Business. In general the government contacting officer designates the applicable size standard given the NAICS code for a particular procurement. To bid on government contracts, a company must certify that it is a small business concern under the appropriate size standard for the solicitation. To be awarded a government small business set-aside or 8(a) contract, the company must also be able to perform a given percentage of the contract. This provision limits the amount of subcontracting a concern may enter into with other firms. The breakdown of those percentages is as follows:
Construction: General and heavy – 15%, Special Trade – 25%
Manufacturing: 50% of the cost of manufacturing, not including materials
Services: 50% (contract cost) of SB own employees must perform the service effort
It is extremely important for small businesses to accurately represent their size standard and ability to perform. Although being a small business can be a competitive advantage, criminal penalties may be considered for those businesses knowingly misrepresenting themselves in the conduct of federal procurement.
Get the entire SBA PDF at http://www.sbaonline.sba.gov/idc/groups/public/documents/sba_homepage/guide_to_size_standards.pdf
McNew & Associates, Inc.
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