Reporting, Regulatory and Compliance Changes
Transcript Reporting, Regulatory and Compliance Changes
SBA Regulatory and Compliance Update
June 17, 2014
National 8(a) Association Summer Conference
Robert K. Tompkins, Holland & Knight
Melanie Roller, C2 North
Copyright © 2014 Holland & Knight LLP All Rights Reserved
General Regulatory Update
Significant New SBA Final Rules in the last 12 months
June 2013 – Implementation of the Small Business and Jobs Act “Integrity
Provisions” principally through the addition of 13 CFR 121.108.
July 2013 – Small Business Subcontracting
October 2013 – MAC contracting
June 2014 – Correction to 125.6 omission in MAC rule
– June 12, Interim Final Rule with Inflation Adjustment
to Monetary Based Size Standards
• Effective July 14, 2014
• Comments due August 11, 2014
Anticipated Rule-makings (from 2010 JOBS Act and 2013 NDAA)
Size Standard Reviews, Sectors 31 and 33 due out soon.
iii. Limitation on Subcontracting Revisions
SBA Guidance/SOP Updates
– Revisions to SOPs
– SF 1450 and other items (see next slides)
– Guidance on Business Development and Shared
II. Administrative and Personnel Changes
New SBA 1450 Form
New 8(a) Contract Activity Reporting Form
• There is a new SBA 1450 form available on SBA’s
website. However it is not available on BDMIS yet.
• New attachment to Form 1450 (Attachment C)
requires reporting on 8(a) contracts including selfperformance percentages and subcontractors
New System to Replace BDMIS:
• OneTrack CMS (Certification Management System) may complete
user testing in Fall 2014. Possible training for SBA in early 2015 with
user implementation later in the year.
• New system to be more user friendly and will integrate with SAM,
requiring only one user ID/password to access all databases.
• OneTrack will allow you to see where your company is in the review
• Will be able to upload documents to accompany the application.
• OneTrack CMS will have information on mentor-protégé program
and all the required checklists.
SBA Personnel Changes
• Bob Watkins will be serving as SBA Acting Administrator and replaces
Darryl Hairston, who recently retired.
Related to Alaska:
• SBA Alaska District now has dedicated legal counsel which should
speed up future submittals processing.
• SBA Alaska District also has one newly assigned BOS.
III. Enforcement and Oversight Changes and Trends
DPCE Document Requests
• The Division of Program and Certification Eligibility was
established under Section 7(j) of the Small Business Act.
• DPCE is conducting initial and continuing eligibility reviews
of 8(a) program participants in coordination with annual
• DPCE has requested all SBA district offices obtain and
provide documentation on each active 8(a) participant.
• You may receive your request via e-mail from your BOS.
Enforcement and Oversight
SBA OIG activity (see data next slide)
Broader enforcement trends – various components working
together (SBA and other agency OIG or investigative arms (i.e.
Use of administrative reviews in conjunction with other
ENFORCEMENT: STATISTICS TELL THE STORY
SUMMARY OF SBA-RELATED CRIMINAL ACTIONS AND
SUSPENSION/DEBARMENT ACTIVITY BY FISCAL YEAR
IV. Case Law – GAO and OHA cases
CASE LAW DEVELOPMENTS
Cases involving protest rights and timing. (NAICS Code appeals; post-proposal
Cases involving re-certification of size on long-term and MAC contracts.
Ostensible subcontractor cases: factors to consider: what are the “primary and vital”
aspects of the work? Whose employees provide project management? Is the
subcontractor the incumbent?; What are the capabilities of the prime?
Rule of Two Cases. Timing of protest. Adams & Associates, B-409685, April 22,
Past Performance & Experience. Unduly restrictive evaluation criteria. Iyabak
Construction, LLC, B-409169, February 6, 2014
8(a) set-asides. “New” Requirements under 8(a). HRCI-MPSC PASS, LLC, B408919, January 8, 2014, see also Alpa Technologies, B-408762.2, Feb. 12, 2014
Timing of 8(a) JV approval. BGI-Fiore JV, LLC, B-409520, May 29, 2014
Consolidation – low bar for government. American Toner & Ink, B-409528.7, June 9,
• Understand and address issues raised in the new and upcoming
• Take an integrated view toward your interactions with the government
(SBA, contracting agencies, etc.)
• Enhance your compliance programs and training
– Ensure your internal controls on determining size, affiliation and certifications are
sufficient and well-documented
– Right-size your training
• Be aware of the enforcement environment
– Take care in filings and representations to the Government
– Alert your staff to be on the lookout for atypical inquiries
C2 North, LLC
4141 B Street, Suite 201
Anchorage, AK 99503
Robert K. Tompkins
Holland & Knight, LLP
800 17th Street, NW, Suite 1100
Washington, DC 20006
(202) 469-5111 (direct dial)