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Small Business Graduation During Acquisition


Mayonayze

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If a small business graduates after initial proposal submission, at what point prior to award or after award does the prime no longer get credit for that small business against thier small business requirements? There is a BAFO coming, would the prime be required to swap that former small business out at that time, or do the reps and certs carry forward into award and then the prime would have to swap that former small business out at option renewal? Is it defective pricing to continue slotting LOE against the former small business during the BAFO knowing that they no longer qualify under the NAICS code that the reps & certs tied them to during the initial submission?

Please cite any specific FAR references that informs this situation.

TIA!

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that was helpful. the only question remaining is when re-representation needs to occur. that portion of the FAR was not entirely clear about that when a proposal is in evaluation status. my gut says that we ought to resubmit our section K and any pricing changes driven from swapping out graduated small business, but i still would like to see something in the regulation that discreetly requires it. anyone?

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Mayo, your description of the situation is not clear. Graduation only applies to 8(a) concerns. Are you talking abut a concern that graduates from the 8(a) program after submitting a proposal for a subcontract? If not, exactly what are you asking and what are the facts of your situation?

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Mayo, your description of the situation is not clear. Graduation only applies to 8(a) concerns. Are you talking abut a concern that graduates from the 8(a) program after submitting a proposal for a subcontract? If not, exactly what are you asking and what are the facts of your situation?

We are the prime submission on a proposal for a 5 year IDIQ. We have a number of small business 8a subcontrators as required by the solicitaiton SBA goals. We submitted the initial proposal several months ago. Several of the firms have graduated from 8a since submission and i have no idea what our obligation is to disclose thier new status, if any. the graduations were based on organic growth vice acquisition or merger. let me know if you need more!

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I am still confused by what is happening. You say that the solicitation requires you to utilze 8(a) concerns as subcontractors. You did not say that this is the result of what is required of you by FAR 52.219-9. If you need small business subs to comply with 52.219-9, please note that 8(a) is not one of the categories of small businesses that is covered by that clause. Instead, SDB is listed as one of the categories. 8(a) is a subset of SDB concerns. Therefore, a concern may still be an SDB although it has graduated from the 8(a) program. The question is whether it is still small for the applicable NAICS code. In any event, graduation while a proposal is pending does not seem to be a factor in regard to whether credit can be taken for subcontracts to SDBs. Look at 13 CFR 125.3©(1)(v). What counts is the status of the concern at the time it submits its proposal for the subcontract.

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I am still confused by what is happening. You say that the solicitation requires you to utilze 8(a) concerns as subcontractors. You did not say that this is the result of what is required of you by FAR 52.219-9. If you need small business subs to comply with 52.219-9, please note that 8(a) is not one of the categories of small businesses that is covered by that clause. Instead, SDB is listed as one of the categories. 8(a) is a subset of SDB concerns. Therefore, a concern may still be an SDB although it has graduated from the 8(a) program. The question is whether it is still small for the applicable NAICS code. In any event, graduation while a proposal is pending does not seem to be a factor in regard to whether credit can be taken for subcontracts to SDBs. Look at 13 CFR 125.3©(1)(v). What counts is the status of the concern at the time it submits its proposal for the subcontract.

yes, that our subs no longer fall under the $ threshold for the applicable NAICS code is the issue. But your final sentence seems to indicate we should be fine. I looked through the CFR section you referenced, but i didnt find anything that discreetly informs your conclusion. but i'm dumb and probably just missed it.

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Here is the sentence that i relied upon "The prime contractor may rely on subcontractor self-certifications made in SAM (or any successor system), if the subcontract contains a clause which provides that the subcontractor verifies by submission of the offer that the size or socioeconomic representations and certifications in SAM (or any successor system) are current, accurate and complete as of the date of the offer for the subcontract." The SBA rules do not say what the outcome is if the solicitation for the subcontract does not contan such a clause.

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