FAR CHANGE REQUIRES SIZE CERTIFICATION AT TIME OF BPA TASK ORDER

Small businesses must actually be small at the time an agency places an order with them via a GSA Schedule Blanket Purchase Agreement (BPA) or Basic Ordering Agreement (BOA) according to a recent change made to the Federal Acquisition Regulations (FAR).  FAR 19.301-1, in pertinent part, now states, “To be eligible for an award of an order under a basic ordering agreement or a BPA issued pursuant to part 13 as a small business concern identified in 19.000(a)(3), the offeror must be a small business concern identified in 19.000(a)(3) at the time of award of the order.”  The change was made as part of a final rule issued in February to implement small business size changes initiated by the Small Business Administration in 2013.  This change is in conflict with a host of small business precedents, perhaps chief among them being that companies can certify their status based on a rolling 5-year period.  The SBA, though, has sometimes taken a dim view of the GSA Schedules program, despite the fact that it routinely exceeds the government’s own small business use goals.  While frustrating, it is not entirely surprising that they would single out Schedule BPA’s.  Whatever the reason, though, companies absolutely must be aware of this new rule and how it could impact their business.  No contractor should certify to something that it knows it is not or cannot do.  Being the target of a False Claims action is more expensive to your bottom line and reputation than the piece of business your company would have obtained.  Competent counsel can assist in seeing you through this maze – and at a price far less than a False Claims Act case.  Proceed accordingly.