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This might be a simple answer to my inquiry, but I want to verify based on my interpretation.

Situation: A C-type contract (i.e., single award) was awarded to a small business. At a later date, the firm was bought by a large firm. Thus, the small business CAGE and DUNNS, and their reps and certs. in SAM changed to large business, but the firm kept its company name.

Based on SBA guidance and reading on previous posting relative to mine... the main outcome was "A concern that qualified as a small business at the time it receives a contract is considered a small business throughout the life of that contract."

I addressed the issue to our legal and they provided the following response: "13 CFR §121.404(g)(2)(i) is the applicable section and requires you to "no longer count the options or orders issued pursuant to the contract" towards small business goals" and "immediately revise all applicable Federal contract databases to reflect the new size status."

Reading through the script on the reference legal provided I noticed that it mentioned Multiple Award Contracts nothing specifically for single award.

Question: Does the provided reference Title 13 CFR §121.404(g)(2)(i) warrants me to change the small business status to a large business or is it specifically addressing only Multiple Award Contracts?

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Does the contract include 52.219-28? If the firm was "bought by a large firm," then is seems that para ( b )(2) of that clause requires the contractor to rerepresent. When the contractor represents that it is other than small, then FAR 19.301-2(d)'s direction to the agency on goals is consistent with your citation to the SBA regulations.

When 13 CFR 121.404(g)(4) says, "The requirements in paragraphs (g)(1), (2) and (3) of this section apply to Multiple Award Contracts," it is not saying that these paragraphs ONLY apply to MACs. See 71 Fed. Reg. 66434 (Nov. 15, 2006), pointing out the rule includes "other long-term contracts," not merely contracts under GSA's MAS Program, GWACs, or multi-agency contracts.

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Just a quick observation...continuing the language from your quote "no longer count the options or orders issued pursuant to the contract, from that point forward, towards its small business goals". Therefore any task orders already issued can be completed with full accounting to the small business status of the company at the time of award. It is only new orders or option (e.g., contract option years) that can no longer count. Some agencies have chosen to ignore the "orders" part and only apply this restriction to "options". Others have found innovative work-arounds (circumventing the intent of the regulations IMO) by issuing modifications to prior task orders rather than new task orders then weaseling a justification as to why it is a "change". I don't think they are correct, but understand their frustration after completing a sometimes exhaustive acquisition process only to NOT get credit toward their intended goals.

Good luck.

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