Overview
This section outlines the procedures for identifying and verifying Small Disadvantaged Business (SDB) status through offeror self-representation and establishes the legal consequences for misrepresenting that status.
Key Rules
- Self-Representation: Contracting officers are authorized to accept an offeror’s self-certified representation of SDB status at face value for the purpose of contract award.
- Standardized Collection: SDB data must be collected through specific FAR provisions, namely 52.219-1 (Small Business Program Representations) or 52.212-3(c)(5) (for commercial products and services).
- Regulatory Compliance: To be valid, a firm's SDB status must meet the specific requirements defined in 13 CFR 124.1001.
- Strict Penalties: Any entity that provides a false representation of SDB status to obtain a contract is subject to administrative and criminal penalties under Section 16(d) of the Small Business Act (15 U.S.C. 645(d)) and other applicable laws.
Practical Implications
- The regulation streamlines the procurement process by allowing contracting officers to rely on offeror certifications without mandatory independent verification for every bid.
- The burden of compliance and the legal risk of severe financial and criminal penalties are placed entirely on the contractor, necessitating rigorous internal audits of their SDB eligibility before certification.