As of June 30, new federal contract rules will require all small businesses to have their size recertified every five years.
The new rules are for small-business owners who hold federal contracts. These rules were put into place to ensure that large corporations are not awarded the federal contracts meant for small-businesses.
Under the new rules, small-businesses that merge or are acquired by another company and are federal contract holders will be immediately reassessed for size, along with other companies that have existing contracts of five years or more. The old regulations allowed businesses to retain their contracts for up to 20 years regardless of merging or being acquired by another company.
This change in regulations was brought on by government agencies receiving criticism for misallocating federal contracting dollars to large companies in 2005. The SBA is working with the CEOs of large federal contractors to enforce compliance of the new regulations. For more information on this subject, please visit the U.S. Small Business Administration at sba.gov or click here to view press release.
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