Overview
This section establishes the Small Business Administration (SBA) as the authority for determining EDWOSB and WOSB status and outlines the mandatory verification steps a contracting officer must take before awarding set-aside or sole-source contracts.
Key Rules
- Authority: The SBA determines status for EDWOSB and WOSB concerns in accordance with 13 CFR part 127.
- Verification Requirements: Contracting officers must verify that offerors are registered in the System for Award Management (SAM) and designated as certified EDWOSB or WOSB concerns.
- Pending Applications: While certified status is tracked in SAM, pending applications for certification are tracked via the Dynamic Small Business Search (DSBS).
- Ineligibility Consequences: If the SBA finds a concern ineligible, the contracting officer may terminate the contract and is prohibited from exercising options or awarding new task/delivery orders.
- Reporting and Goals: Agencies cannot claim small business goal credit for awards to firms found ineligible by the SBA and must update the Federal Procurement Data System (FPDS) accordingly.
- Joint Ventures: A joint venture is eligible only if the EDWOSB or WOSB partner is certified in SAM and the joint venture entity itself meets specific SBA requirements under 13 CFR 127.506.
Practical Implications
- Contractors cannot rely on self-certification for set-asides; they must complete the formal SBA certification process and ensure their SAM profile accurately reflects this status before an award can be made.
- Contracting officers face strict post-award requirements to monitor eligibility and must take immediate action to cease further spending and correct goal reporting if a firm's status is revoked by the SBA.