Overview
This section outlines the process and authority of the Small Business Administration (SBA) to conduct reviews of a firm's Small Disadvantaged Business (SDB) status for both prime contracts and subcontracts.
Key Rules
- SBA Authority: The SBA has the power to initiate a review of any firm that self-represents as an SDB on a federal prime contract or subcontract.
- Trigger for Review: Reviews are initiated when the SBA receives "credible information" questioning the validity of a firm's SDB status.
- Submission Process: Requests for status reviews must be directed to the SBA Associate Administrator for Business Development (AA/BD) in Washington, DC.
- Procedural Distinctions: An SDB status review is legally distinct from a formal size protest; size protests for primes and subcontractors are handled under separate FAR subparts (19.302 and 19.703, respectively).
Practical Implications
- Continuous Compliance: Contractors must ensure their SDB self-representations remain accurate throughout the life of a contract, as they can be challenged at any time based on credible evidence.
- Enforcement Mechanism: This provide a mechanism for competitors or government officials to flag potentially fraudulent or inaccurate SDB claims without following the stricter timelines or procedures of a formal size protest.