US Federal Contractor Registration: Small Business Set-Asides Discontinued After 30 Days of Large Business Acquisition

ORLANDO, FL--(Marketwired - May 30, 2015) - US Federal Contractor Registration assists small businesses with their government registration and comprehensive federal marketing campaigns. Their successful track record with helping thousands of businesses win millions in government contracts has given their company a creditable authority in the federal community. However, one of the biggest issues they encounter with new small businesses emerging in the federal marketplace is making sure they are actually a small business.

The Small Business Administration (SBA) states that 23% of all government contracting dollars must be devoted to registered small business set-asides holders. These set-asides include: Woman Owned, VetBiz, HUBZone, 8a, Economically Disadvantaged, and total small business. However, organizations like the American Small Business League and Public Citizen report that a great deal of these small business contracts are being illegally awarded to large businesses. Generally this dilemma steams from small businesses that qualify for small business federal set-asides and then are merged with a larger business. Businesses are confused if small businesses still retain their set-aside credentials after they have been bought out by a larger business.

In a recent interview with Government Executive an SBA spokesperson stated in an email response, “When a firm grows organically, the agency can continue receiving small business credit for up to five years. … [But] in the case of a merger or acquisition, the agency (SBA) should be notified within 30 days and the small business credit should be discontinued.” This has been a looming issue that has been apparent in government contracting for over a decade.

Lylod Chapman in an interview with GovernmentContractingTips.com commented about these figures stating, “Federal law states that 23% of all government contracting dollars must be given to registered small business government contractors according to the Small Business Act. The most recent data from the Federal Procurement Data System (FPDS) show that the federal government spent around $1.1 trillion on unclassified contracts. That means that small businesses should be receiving around $253 billion. The SBA stated that $89.9 billion went to small businesses in 2012, which is 22.25 percent. Well, that is just not true. When you look at FPDS, not what Lloyd Chapman (referring to oneself) says, it shows that some of the companies that received small business contracts were Fortune 500 companies. Sears, Honeywell, IBM, HP, General Dynamics and Coke to name a few directly out of FPDS. So when you look at the SBA’s $89.8, of the top 100 recipients of small business government contracts today 72% are currently large businesses. So in my viewpoint, people think that the SBA is there to help small businesses but is actually the most anti-small business organization out there.”

The United States Federal Government spends on average $100 billion on government contractors that qualify for federal set-asides. US Federal Contractor Registration registers small businesses in System for Award Management (SAM) and qualifies their business for federal set-asides. US Federal Contractor Registration will help small businesses win these available contracts. If your business is currently a government contractor and looking to win government contracts or if you are interested in learning more about the subject call the Contractor Hotline 877-252-2700 Ext.1.

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