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Contracting officials

Find out how to certify your small business, and qualify for contracts reserved for firms that meet certain socio-economic conditions.

Small business procurement

Find out SBA’s annual small business contracting goals, and find the contractors and information to help your agency meet them.

Find small business vendors

Contracting program administration

Help contracting officials work with small businesses to determine contract eligibility, perform market research, and handle protests.

Learn about contracting program administration

Contract administration

Contracting officers can use SBA resources to help resolve challenges that arise in the course of their work.

Learn about contract administration

Small business procurement

Find out SBA’s annual small business contracting goals, and find the contractors and information to help your agency meet them. Find small business vendors.

Each federal agency has a statutory annual goal for awarding contract dollars to particular groups of contractors. As a contracting official, you’re responsible for finding contractors that can do the work and meet your agency’s goals.

The combined goals for the federal government are:

  • 23% of prime contracts for small businesses
  • 5% of prime and subcontracts for women-owned small businesses
  • 5% of prime contracts and subcontracts for small disadvantaged businesses
  • 3% of prime contracts and subcontracts for HUBZone small businesses
  • 5% of prime and subcontracts for service-disabled veteran-owned small businesses

Agencies have individual goals for what percent of prime and subcontract dollars should go to small businesses. These agency goals may be different than the federal government’s overall goals. SBA publishes annual agency contracting goals.

SBA’s Office of Government Contracting and Business Development determines how agency goals are set.

Monitoring and reporting achievements toward goals

Agencies report information for each award over $25,000 through the Federal Procurement Data System Next Generation. SBA evaluates that information and publishes goaling scorecards that report on individual agency performance. Each agency that fails to achieve any proposed prime or subcontract goal is required to submit a justification and corrective action plan to SBA.

You’re required to use the Small Business Search (SBS, formerly the Dynamic Small Business Search) as a part of your market research. You can use SBS to help determine set-aside or sole-source allocation, or search for contractors for open or upcoming awards.

In addition to using SBS, you can try to find contractors through outreach, by hosting events and industry days.

If your research confirms there are an adequate number of small businesses to justify a set-aside or sole-source award, you should preference those options in order to help your agency meet its goals.

When to use set-aside or sole-source contracts

The federal government prefers to contract with small businesses whenever possible. Contracting officials can use set-aside and sole-source contracts to help their agencies meet their small business contracting goals.

How you should offer a contract will depend largely on two factors:

  • The number and type of small businesses that are able to do the work
  • How much the contract is worth

Determine if there are two or more businesses to do the work

In general, if there are at least two small businesses that could do the work for a fair price, the contract should be set aside exclusively for small businesses to compete. If there are fewer than two, you may be authorized to create a sole-source contract, or otherwise you may offer it for full and open competition.

Contracting officials must base the decision on sufficient facts to prove that they’ve made a reasonable assessment. Agencies can use different methods to assess the availability of small businesses. Common methods include:

Consider the value of the contract

A small business set-aside is based in part on the value and quantity of the goods or services the government wants to purchase.

Contract valueSmall business set-aside requirement
$10,00 to $250,000Automatically and exclusively set aside for small businesses
$250,000 or moreSet aside if there are two or more small businesses that could do the work. (You must first consider 8(a), HUBZone, SDVO, and WOSB set-asides.)
$750,000 or more (non-construction contracts)If not set aside for small business, must have a subcontracting plan if awarded to a non-small business
$1.5 million or more (construction contracts)If not set aside for small business, must have a subcontracting plan if awarded to a non-small business

Set-asides and sole-source for socio-economic programs

Both SBA’s regulations and the Federal Acquisition Regulation require you to consider SBA socio-economic programs first for set-aside and sole-source contracts above $250,000. There is no order of preference among the programs.

The process and conditions of making and releasing procurement requirements for these programs may vary based on your agency and which program you’re using. Find more information about the programs here:

You must document your rationale to support the specific set-aside — including the type and extent of your market research — in the contract file. You must also include documentation of the winning contractor’s certification in the System for Award Management.

Set-asides for socio-economic programs can be made if:

  • At least two qualified small businesses are likely to submit offers
  • The contract can be awarded at a fair market price

Set-asides for socio-economic programs cannot be made if:

  • The requirement would be fulfilled through the award of Federal Prison Industries, Inc. or Javits-Wagner-O’Day Act participating nonprofit agencies for the blind and severely disabled
  • The requirement is currently being performed by an 8(a) participant or SBA has accepted that requirement for performance under the authority of the Section 8(a) program

Sole-source contracts for socio-economic programs can be made in accordance with each program’s requirements and procedures.

For full details on the rules and regulations governing set asides, see Title 13 of the Code of Federal Regulation (CFR) Parts 124.503(j), 125.2(f), 126.607(b), 127.503(d), and Subpart 19.5 of the Federal Acquisition Regulation.

Other rules affecting set-asides and sole-source awards

Nonmanufacturer rule

If a small business receives a set-aside award but doesn’t manufacture the products it sells to the government, it must supply the products of another small business that’s manufactured in the United States. As a contracting officer, you can apply for an SBA waiver to this nonmanufacturer rule if it’s not possible to use a small business’ product.

The nonmanufacturer rule does not apply to small business set-aside contracts at or below $250,000, but it does apply to all set-aside contracts under the 8(a), HUBZone, SDVO, and WOSB programs.

The regulations that govern the nonmanufacturer rule are outlined in 13 CFR 121.406.

Learn more about the nonmanufacturer rule.

Set-aside subcontracting limitations

Under set-aside award conditions, small businesses are required to perform minimum levels of work when they receive a federal contract.

These subcontracting limitations apply to contract set-asides for small businesses when the contract amount exceeds $250,000, and all other set-aside or sole-source contracts under the 8(a), HUBZone, SDVOSB, and WOSB programs.

  • Service contracts (except construction): The small business concern will not pay more than 50 percent of the amount paid by the Government for contract performance to subcontractors that are not similarly situated entities.
  • Supply contracts (other than procurement from a nonmanufacturer): The small business will not pay more than 50 percent of the amount paid by the Government for contract performance, excluding the cost of materials, to subcontractors not similarly situated entities.
  • General construction contracts: The small business will not pay more than 85 percent of the amount paid by the Government for contract performance, excluding the cost of materials, to subcontractors not similarly situated entities.
  • Specialty construction contracts: The small business will not pay more than 75 percent of the amount paid by the Government for contract performance, excluding the cost of materials, to subcontractors not similarly situated entities.

Under SBA rules, the small business prime contractor can utilize similarly situated subcontractors to meet these performance requirements. A similarly situated subcontractor is a subcontractor that has the same required size and small business program status as the prime contractor.

Finding industry size standards

In order to compete for set-aside contracts, a business must meet SBA’s size standards – the maximum size a business can be to qualify as small. Businesses can self-certify as small in the System for Award Management (SAM) database.

To check the size standards for specific industries, you can reference SBA’s table of small business size standards. The table lists the current size standards that correspond to individual NAICS codes. Contracting officers must designate a NAICS code for a contract according to Title 13 Part 121.402 of the Code of Federal Regulations (CFR).

You can find small business size regulations in 13 CFR 121.

The regulations in 13 CFR 121.401 through 121.413 apply to all federal contracting programs for which small business status is required or advantageous, including the small business set-aside program.

Common terms

There are some common terms you should be familiar with to help you ensure that a business is classified correctly as small.

  • Affiliates: You must include the employees or receipts of all affiliated when determining the size of a business. Affiliation with another business is based on the power to control, whether exercised or not, or whether a third party controls or has the power to control multiple businesses. The power to control exists when an external party has 50 percent or more ownership. It may also exist with considerably less than 50 percent ownership by contractual arrangement or when one or more parties own a large share compared to other parties. Check SBA’s compliance guide for size and affiliation for more detailed information.
  • Annual receipts: This is the “total income” (or “gross income”) plus the “cost of goods sold.” These numbers can normally be found on the business’ IRS tax return forms. Receipts are averaged over a business’ latest three complete fiscal years to determine the average annual receipts. If a business hasn’t been in business for three years, multiply its average weekly revenue by 52 to determine its average annual receipts.  
  • Employee calculation: This is the average number of people employed for each pay period over the business’ latest 12 calendar months. Any person on the payroll must be included as one employee regardless of hours worked or temporary status. The number of employees of a concern in business less than 12 months is the average for each pay period that it has been in business.

You can find the full definitions of these terms, and others, in 48 CFR 19. 

How size standards are determined

The SBA Administrator establishes size standards. The Office of Size Standards makes recommendations to the Administrator for establishing or revising size standards, according to changes in industries and the economy. When making these recommendations, the office uses the most recent NAICS codes available

The Size Standards Methodology White Paper explains SBA’s process for establishing, reviewing, and modifying size standards.

You can follow announcements about updating size standards from the Office of Size Standards.

Size protests and NAICS code appeals

Size protests

Any interested party, including the contracting officer in certain situations, may protest a winning bidder’s self-certification as a small business.

The protester should send specific reasons for why they believe the winning business is not small to the contracting officer. The contracting officer must then promptly forward the protest to the SBA Government Contracting Area office that serves the location of the protested business’ headquarters.

The contracting officer’s referral must contain the following information:

  • The size protest and any accompanying materials
  • A copy of the self-certification as to size
  • Identification of the applicable size standard
  • A copy of the solicitation
  • Identification of the date of bid opening or notification provided to unsuccessful offerors
  • The date the protest was received
  • A complete address and point of contact for the protested concern

The complete procedures for submitting and handling a size protest are outlined in 13 CFR 121.1001.

NAICS code appeals

Individuals may also appeal the NAICS code designation of any contract. SBA’s Office of Hearings and Appeals handles these appeals, in accordance with 13 CFR 121.1102-03 and 134 Subpart C.

What is the nonmanufacturer rule?

To qualify as a small business concern for set-aside or sole-source supply contracts, the small business must either:

  • Manufacture the product itself
  • Supply a product manufactured by another small business, if it is a nonmanufacturer
  • Supply the product of any sized manufacturer if SBA has granted a waiver to the nonmanufacturer rule

This includes contracts for small businesses certified as service-disabled veteran-owned, women-owned, economically disadvantaged women-owned, HUBZone, and 8(a).

The nonmanufacturer rule applies to socioeconomic categories for contracts valued above the micropurchase threshold. It applies to both socioeconomic categories and small businesses above the simplified acquisition threshold.

Review 13 C.F.R. § 121.406 for detailed information about the nonmanufacturer rule.

Determining manufacturer or nonmanufacturer

A manufacturer is defined as a business that, with its own facilities, performs primary activities in transforming inorganic or organic substances, including the assembly of parts and components, into the end product being acquired. In other words, a manufacturer makes or produces products.

A business may qualify as a nonmanufacturer if it:

  • Does not exceed the 500 employee alternative size standard for nonmanufacturers
  • Is primarily engaged in the retail or wholesale trade and normally sells the type of products being supplied
  • Takes ownership or possession of the item(s) with its personnel, equipment, or facilities in a manner consistent with industry practice
  • Supplies the end products of a small business manufacturer or processor made in the United States, or obtains a waiver of such requirement

Waivers to the nonmanufacturer rule

If SBA determines that there are no small business manufacturers that can supply a product, it may waive the nonmanufacturer rule. There are two types of waivers: class and individual.

See 13 C.F.R §§ 121.1201 -1206 for detailed information concerning waivers of the nonmanufacturer rule for classes of products and for individual contracts.

Class waiver

SBA may issue a class waiver when no small business manufacturer has submitted, performed, or been awarded an offer on a solicitation for a class of products within the previous two years. Anyone can request a class waiver.

The request should include the relevant NAICS code and other identifying information about the product. It should also include market research and detailed information on the efforts made (market research) to identify small business manufacturers for the class of products. This could include a search of SAM.gov, SBA’s Small Business Search (SBS, formerly the Dynamic Small Business Search), and other internet sites, in addition to posting Requests for Information, Sources Sought notices, reviewing previous similar procurements, seeking PCR assistance, and discussions with industry members.

Class waivers remain in place until SBA determines small business manufacturers or processors have become available to participate in the federal market or receives evidence that a small business manufacturer exists in the federal market for a waived class of products. See the list of approved class waivers.

Submit a class waiver request by emailing nmrwaivers@sba.gov. The request should include your name and contact information.

Individual waiver

SBA may issue an individual waiver when there is no small business manufacturer that can meet the requirements of a specific contract.

Only a contracting officer can request an individual waiver. The contracting officer’s request must include:

  • A definitive statement identifying the specific product for which you’re requesting the waiver
  • An explanation addressing why the specific item is required
  • The solicitation number for the procurement, the NAICS code, estimated dollar amount of the procurement, and a brief statement of the procurement history
  • A determination that no small business manufacturer or processor reasonably can be expected to offer a product meeting the specifications of the solicitation
  • A summary of market research detailing efforts to locate a small business manufacturer (not reseller) and provide supporting documentation including:
    • The results of your search from SBA’s Small Business Search
    • The results of your discussions with small business representatives to find manufacturers
    • Other market surveys or research conducted
  • A copy of the Statement of Work if contracts are expected to exceed $500,000

Individual waivers are contract-specific, must be utilized within one year of issuance, and expire at the end of the contract. You may request an individual waiver for more than one product on a contract. You must include the required information for each product. Submit your request for an individual waiver of the nonmanufacturer rule to nmrwaivers@sba.gov. Or mail your request to:

Attn: Director for Government Contracting
U.S. Small Business Administration
409 3rd St., SW
Mail Code 6700, 8th Floor
Washington, DC 20416

Regulations

The regulations that govern the nonmanufacturer rule are provided in the Code of Federal Regulations (C.F.R) and in the Federal Acquisition Regulation (FAR).

Need help?

Office of Government Contracting and Business Development
409 3rd St. SW, Suite 8800
Washington, DC 20416

Contracting program administration

The U.S. Small Business Administration (SBA) sets goals for agencies to award contracts to small businesses. Contracting officials can help their agencies meet these goals by using SBA’s contracting assistance programs.

These programs help contracting officials work with small businesses to determine eligibility for certain types of contracts, perform market research, and handle size and status protests.

These programs are governed by rules in the Code of Federal Regulations and the Federal Acquisition Regulation.

Meeting your agency goals for HUBZone

The HUBZone program encourages economic development in historically underutilized business zones. The federal government’s goal is to award three percent of all prime and subcontracting dollars to businesses in the HUBZone program each year. In addition to this website, SBA offers tips for federal agency Contracting Officers (PDF) and a video tutorial.

Types of HUBZone contracts

As the contracting officer, you’re responsible for determining the type of contract to use when awarding to a HUBZone business. There are several kinds of contracts you can use:

  • A competitive HUBZone set-aside contract can be awarded if the contracting officer has a reasonable expectation that at least two responsible HUBZone small businesses will submit offers and that the resulting contract can be awarded at a fair market price. You can also create set-asides for specific orders within Multiple Award Contracts that were awarded through full and open competition.
  • A sole-source HUBZone contract can be awarded if the contracting officer doesn’t have a reasonable expectation that two or more qualified HUBZone small businesses will submit offers, determines that the qualified HUBZone small business is responsible, and determines that the contract can be awarded at a fair price. The government estimate cannot exceed $7 million for manufacturing requirements or $4.5 million for all other requirements.
  • A full and open competition contract can be awarded with a price evaluation preference for HUBZone small businesses. The offer of a HUBZone small business must be considered lower than the offer of a non-HUBZone/non-small business, provided that the offer of the HUBZone small business is not more than 10 percent higher.

When contracts are worth at or below $250,000, they are automatically set-aside for small businesses. If possible, you can choose to to set it aside specifically for businesses in socio-economic programs like HUBZone.

You also must set aside contracts worth more than $250,000 — as long as you have a reasonable expectation that at least two small businesses will submit bids.

Both SBA’s regulations and the Federal Acquisition Regulation (FAR) require you to consider socio-economic programs first for set-aside or sole-source contracts above $250,000. There is no order of preference among the programs.

You must document the rationale you used to make your decision in the contract file. Include information about your research and documentation of the winning contractor’s certification in the System for Award Management.

If a requirement has been accepted by SBA under the 8(a) program, it must remain in the 8(a) program unless SBA agrees to its release.

How to find HUBZone contractors

As part of your market research, you can find HUBZone-certified businesses — and verify their certification — using SBA’s Small Business Search (SBS, formerly the Dynamic Small Business Search). Contracting officers must ensure that an apparent awardee is HUBZone certified prior to making an award under a HUBZone set-aside process or an award where a price evaluation preference was applied.

Additionally, you can:

Consider using language in your sources sought announcement that specifically encourages HUBZone small businesses to respond, along with the other federal small business categories if applicable. Ask only for key pieces of information you need to make the set-aside determination and include a page limit to make it easier for interested HUBZone businesses to respond.

Meet your agency goals for small disadvantaged businesses

The federal government’s goal is to award five percent of all prime and subcontracting dollars to small disadvantaged businesses each year. To help meet that goal, you can make set-asides awards for businesses that participate in the 8(a) Business Development program.

Your responsibilities as a contracting officer in connection with the 8(a) Business Development program are outlined in Title 13 Part 124 Subpart A of the Code of Federal Regulations (CFR) and the Federal Acquisition Regulation (FAR).

Types of 8(a) contracts

As a contracting officer, you’re allowed to use set-aside contracts for small disadvantaged businesses. You can find the dollar thresholds for mandatory competition and the procedures for requesting a waiver in 13 CFR 124.506.

You can award a competitive 8(a) set-aside contract if:

  • You have a reasonable expectation that at least two qualified 8(a) small businesses will submit offers
  • The resulting contract can be awarded at a fair market price
  • The government estimate exceeds $7 million for manufacturing requirements or $4.5 million for all other requirements
  • The requirement hasn’t already been accepted by the SBA as a sole-source 8(a) award on behalf of a tribally-owned or ANC-owned business

You can award a sole-source 8(a) contract if:

  • You determine that the qualified small business is responsible
  • The resulting contract can be awarded at a fair market price
  • The government estimate doesn’t exceed $7 million for manufacturing requirements or $4.5 million for all other requirements (There’s an exception to this rule for entity-owned businesses)

Contracts at or below $250,000 are automatically set aside for small businesses. If possible, you can choose to set it aside specifically for businesses in socio-economic programs like the 8(a) program.

Both the SBA’s regulations and the FAR require you to consider socio-economic programs first for set-aside contracts worth above $250,000. There is no order of preference among the programs.

You must document the rationale you used to make your decision in the contract file. Include information about your research and documentation of the winning contractor’s certification in the System for Award Management (SAM).

If a requirement has been accepted by SBA under the 8(a) program, it must remain in the 8(a) program unless the Associate Administrator of the Office of Business Development agrees to its release. You can read more about releasing a requirement in 13 CFR 124.504.

How to find 8(a) program contractors

As part of your market research, you can find 8(a) program-certified businesses using the SBA’s Small Business Search (SBS, formerly the Dynamic Small Business Search).

Additionally, you can:

  • Get personal assistance from the SBA’s local district offices
  • Contact your agency’s Office of Small & Disadvantaged Business Utilization or your Agency Small Business Specialist
  • Issue a sources sought announcement in FedBizOpps seeking interested 8(a) small businesses
  • Use the GSA Schedule program to find certified disadvantaged 8(a) small businesses

Consider using language in your sources sought announcement that specifically encourages targeted 8(a) small businesses to respond, along with the other federal small business categories if applicable. Ask only for key pieces of information you need to make the set-aside determination and include a page limit to make it easier for interested businesses to respond.

You must contact your local district office to verify a business’ 8(a) eligibility.

Meeting your agency goals for women-owned small businesses

To help level the playing field for women businesses owners, the federal government’s goal is to award 5 percent of all prime and subcontracting dollars to women-owned small businesses each year. In FY2022, the federal government spent over $28.1 billion in contracting dollars with on prime contracts women-owned small businesses, about 4.57% of overall contracting dollars spent. Contracting professionals are essential in the government’s mission to reach its 5% goal.

To help your agency meet that goal, you can create set-aside or sole-source awards for businesses that participate in the Women-Owned Small Business (WOSB) Federal Contract program.

Your responsibilities as a contracting officer in connection with the WOSB Federal Contract program are outlined in Title 13 Part 127 of the Code of Federal Regulations (CFR) and Subpart 19.15 of the Federal Acquisition Regulation (FAR).

Contracting officers will now be able to verify a firm’s WOSB Federal Contract program participation status by searching in the Small Business Search database.

Types of WOSB contracts

As a contracting officer, you are allowed to use set-aside and sole source contracts for Women-Owned Small Businesses (WOSBs) and Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs) if the NAICS code assigned to the procurement is authorized for use under the WOSB Federal Contract program.

Note:  Not all NAICS codes are authorized for use under the WOSB Federal Contract program. SBA maintains a list of eligible industries and their NAICS codes.

  • You can solicit a competitive WOSB set-aside contract if you have a reasonable expectation that at least two responsible WOSBs or EDWOSBs will submit offers and that the resulting contract can be awarded at a fair market price.
  • You can award a sole-source WOSB contract if you don’t have a reasonable expectation that two or more qualified WOSBs or EDWOSBs will submit offers, determine that the qualified small business is responsible, and determine that the contract can be awarded at a fair price. The government estimate cannot exceed $7 million for manufacturing requirements or $4.5 for all other requirements. Please note that a Justification and Approval is required.

When contracts are at or below $250,000, they are automatically set aside for small businesses. If within the eligibility criteria, you may choose to set aside the contract specifically for businesses in socio-economic programs like the WOSB Federal Contract program.

Both SBA’s regulations and the FAR require you to consider socio-economic programs first for set-aside contracts above $250,000. There is no order of preference among the programs.

You must document the rationale you used to make your decision in the contract file, which includes your research and documentation of the winning contractor’s certification.

If a requirement has been accepted by SBA under the 8(a) program, it must remain in the 8(a) program unless SBA agrees to its release.

Improvements to the certification process

The certification process for WOSBs and EDWOSBs has changed. SBA has implemented Congress’ changes to the WOSB Federal Contract program, as put forth in the 2015 National Defense Authorization Act (NDAA).

These updated regulations make it easier for qualified small businesses to participate in the WOSB Federal Contract program by improving the customer experience. They also make it easier and more efficient for contracting officers to set aside contracts for and make awards to, firms certified as WOSBs and EDWOSBs. At the same time, SBA is also strengthening oversight and maintaining the integrity of the certification process.

The updated WOSB Federal Contract program regulations were published in the Federal Register in May 2020. These regulations detail changes to the certification process.

With the updated WOSB Federal Contract program regulations in effect:

  • Contracting officers no longer have to verify a WOSB firm’s documentation. Program participation will be displayed on the firm’s Small Business Search profile.
  • New applications for WOSBs and EDWOSBs can be completed on SBA Certifications. Existing certifications should be still be managed on wosb.certify.sba.gov.
  • SBA allows participation from firms certified by SBA’s VetCert program and 8(a) Business Development Certification Program, provided they meet all eligibility requirements.
  • SBA allows continued participation from businesses that utilize approved Third-Party Certifiers (TPCs) to obtain WOSB or EDWOSB certification.
  • If firms currently have active contracts through the WOSB Federal Contract program, they will remain certified for those contracts through the duration of any such contracts (this applies to currently self-certified or TPC-certified).
  • New applications for WOSBs and EDWOSBs can be completed on SBA Certifications. However, any new or existing WOSB firms that want to compete for set-aside and/or sole-source contracts will need to take action in wosb.certify.sba.gov. This will be based on status. See specifics in the sections below.

Please review SBA’s latest FAQs, and visit sba.gov/wosbready for more information about our application process.

How to find WOSB Federal Contracting Program contractors

A few simple steps, including market research, will set you up for success to find qualified WOSB Federal Contract program contractors. First, you can find businesses that participate in the WOSB Federal Contract program by using SBA’s Small Business Search (SBS, formerly the Dynamic Small Business Search). 

Additionally, you can:

  • Contact your agency’s Office of Small & Disadvantaged Business Utilization or your Agency Small Business Specialist.
  • Get guidance or training from SBA’s WOSB Federal Contract program office.
  • Issue a sources sought announcement in SAM.gov seeking interested WOSB Program participants.
  • Use the GSA Schedule program to find WOSBs.

Consider using language in your sources sought announcement that specifically encourages targeted small businesses to respond, along with the other federal small business categories, if applicable. Ask only for key pieces of information you need to make the set-aside or sole-source determination and include a page limit to make it easier for interested businesses to respond.

Contract administration

Common challenges

Contracting officers play an important role addressing size protests, status protests, and in ensuring government resources are used responsibly. Use U.S. Small Business Administration (SBA) resources to help resolve these issues.

Small business size protest

Any interested party may claim that a winning businesses doesn’t meet size standards, and therefore isn’t eligible for the contract under set-aside rules.

The procedure for filing a size protest is fully explained in Title 13 Part 121.1001-1008 of the Code of Federal Regulations (CFR).

How to handle a size protest

A contracting officer, an unsuccessful bidder, SBA, or other interested parties can file a size protest.

As a contracting officer, if you receive a size protest, you must forward it to the SBA Government Contracting Area office serving the area in which the protested business’ headquarters is located.

There’s no standard format for a size protest. However, it must be in writing and contain specific evidence to support the claim that the protested business is not small.

The protest must include a referral letter, written by the contracting officer, containing the following information:

  • A copy of the protested business’ size self-certification
  • Identification of the applicable size standard
  • A copy or an electronic link to the solicitation and any amendments (if requested)
  • The name, address, telephone number, email address, and fax number of the contracting officer
  • Identification of the bid opening date or the date of notification provided to unsuccessful offerors
  • The date the contracting officer received the protest
  • A complete address and point of contact for the protested business

Time limit

There’s no time limit for when a contracting officer can file a size protest, and you may file one before or after an award. However, SBA may dismiss a protest as premature if it’s made before you announce the identity of the business that won the contract.

Anyone other than the contracting officer who wants to file a size protest has five business days after unsuccessful bidders are notified. They must deliver the written protest to you in person, by mail, email, or fax.

Size determination

The SBA area office will make a size determination — usually within 15 business days of receiving the protest — and notify you, the protester, and the protested business.

If SBA determines that the protested business is small, or dismisses the protest, you may award the contract. If SBA determines that the winning business is not small, the business is not eligible for that contract. The ineligible business can’t become eligible for the contract by reducing its size after SBA’s determination.

Any interested party may appeal an area office’s determination. That appeal is heard by the Office of Hearings and Appeals, which will issue a final ruling.

Small business status protest

Someone also may protest a winning business’ socio-economic status under one of SBA’s contracting programs.

How to handle a status protest

The process for filing a status protest is similar to filing a size protest. However, there are some key differences for each program.

The general process for a status protest is:

  • In a negotiated acquisition, the contracting officer must receive the protest prior to the close of business on the fifth business day after notification by the contracting officer of the apparent successful offeror. In a sealed bid acquisition, the contracting officer must receive the protest prior to the close of business on the fifth business day after bid opening.
     
  • The contracting officer must forward all protests to the corresponding SBA program office, regardless of the timeliness or specificity. These program offices are within the Office of Government Contracting and Business Development.
     
  • Include in your referral letter:
    • Solicitation number
    • NAICS code assigned to the procurement
    • Contact information of the contracting officer
    • Protested business and the protester
    • Date of notification on the apparent successful offeror
    • Received date of the protest
       
  • SBA will determine the status of the protested business within 15 business days after the receipt of the protest, or within any extension of that time that the contracting officer may grant the SBA. If the SBA doesn’t issue the decision within 15 business days, the contracting officer may award the contract if you determine in writing that there’s an immediate need to award the contract. The contracting officer must include the determination in the contract file and send a written copy to the SBA Director for Government Contracting.
     
  • SBA will notify the contracting officer, the protestor, and the protested business in writing of its determination. The determination is in full effect unless an appeal is filed with the SBA Office of Hearings and Appeals and OHA overturns it.

The status protest process for each program is explained in the CFR:

Report fraud, waste, and abuse

You may report fraud, waste, mismanagement, or misconduct involving SBA programs or employees using the Office of the Inspector General online complaint submission system.

You may choose to remain anonymous. However, in that case, SBA OIG will not be able to contact you for more information regarding your complaint. This may hinder our ability to fully investigate the complaint, and we will not be able to inform you about the results of our review.

You may also request that your identity remain confidential. In this case, SBA OIG will not release your name without your prior consent unless we determine that such disclosure is absolutely unavoidable during the course of an investigation or audit.

If you are having a problem with a product or service purchased from a business or merchant, you should contact your state or local government’s consumer affairs department, state attorney general’s office, or local Better Business Bureau.

If you have a question regarding an SBA loan or any SBA program, please contact your local SBA District Office or the SBA Answer Desk at answerdesk@sba.gov, 1-800-827-5722, or speak with an American Sign Language (ASL) interpreter via videophone at 855-440-4960.

Report fraud, waste or abuse online