124.1001 What is a Small Disadvantaged Business. These activities require a high degree of expertise and training. SBA utilizes 121.107 of this chapter in determining a firm's primary industry classification. Economically disadvantaged individuals are socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same or similar line of business who are not socially disadvantaged. Recently, the IT industry has devoted significant resources to technologies that are expected to contribute to additional output and employment growth over the next decade, such as cloud computing and mobile applications. https:// ensures that you are connecting to the official website and that any (5) Once a Participant has established a bona fide place of business, the Participant may change the location of the recognized office without prior SBA approval. STAY CONNECTED In order to be eligible for sole source 8(a) contracts during year 6 of the transitional stage (year 10 in the program), Firm C must demonstrate at its first or second quarterly review that it had received at least $3.5 million in non-8(a) revenue and new non-8(a) awards (the amount by which it failed to meet the 50% non-8(a) business activity target for year 5 in the transitional stage). The suit alleged that the college enjoyed the right to contract and the government changing that contract was not Where a procuring agency offers a sole source 8(a) procurement on behalf of a joint venture, SBA will conduct an eligibility review of the lead 8(a) party to the joint venture as part of its acceptance, and will approve the joint venture prior to award pursuant to 124.513(e). The Government may consider the following as a ground for suspension or debarment as a willful violation of a regulatory provision or requirement applicable to a public agreement or transaction: (1) Failure to enter a joint venture agreement that complies with paragraph (c) of this section; (2) Failure to perform a contract in accordance with the joint venture agreement or performance of work requirements in paragraph (d) of this section; or. If the Participant is not verified as small, it may request a formal size determination from the appropriate General Contracting Area Office under part 121 of this title. (2) If SBA and the procuring activity are unable to agree as to the proper NAICS code designation for the requirement, SBA may either refuse to accept the requirement for the 8(a) BD program, appeal the contracting officer's determination to the head of the agency pursuant to 124.505, or appeal the NAICS code designation to OHA under part 134 of this title. (f) Dividends and distributions. (c) Factors to be considered. When the suspension is lifted, the length of the suspension will be added to the concern's program term. 124.102 What size business is eligible to participate in the 8(a) BD program? For example, if a concern has been in the 8(a) BD program for five years when a change in ownership occurs, the new owner will have four years remaining until program graduation. Prior SBA approval is not needed. (1) A Participant may have bona fide places of business in more than one location. Many organizations have already adopted cloud computing and multiple studies project cloud computing will grow rapidly over the next several years.6 Cloud computing is a way to replace computer products with services, such as storage space or software, delivered over the Internet.7 Cloud computing service providers manage IT infrastructure and platforms, and provide businesses with access to remote data storage and software packages. [63 FR 35739, June 30, 1998, as amended at 76 FR 8258, Feb. 11, 2011]. Once the AA/BD issues a decision to early graduate or terminate a Participant, the Participant will be immediately ineligible to receive further program assistance. 124.2 What length of time may a business participate in the 8(a) BD program? Productivity & Technology; Employment Projections; Regional News Releases; Classroom . SBA will advise the contracting officer of this effort. Tuesday, April 9, 2013, Employment distribution of computer systems design and related services, 2011. A concern participating in the 8(a) BD program may leave the program by any of the following means: (a) Expiration of the program term established pursuant to 124.2; (b) Voluntary withdrawal or voluntary early graduation; (d) Early graduation pursuant to the provisions of 124.302 and 124.304; or. (c) A concern whose application is denied due to size by 8(a) BD program officials may request a formal size determination under part 121 of this title. Employment of both systems and applications software developers is expected to grow the fastest; employment of most of the other occupations is projected to grow at a rate similar to the industry as a whole. (9) Such other information as SBA may deem necessary. Employment and output in computer systems design and related services are projected to grow rapidly over the next decade, outpacing similar professional, scientific, and technical industries and the economy as a whole. This content is from the eCFR and is authoritative but unofficial. (d) An applicant must be eligible as of the date the AA/BD issues a decision. Eligibility is based on 8(a) BD program criteria, including whether the Participant: (1) Qualifies as a small business under the size standard corresponding to the NAICS code assigned to the requirement; (2) Is in compliance with any applicable competitive business mix targets established or remedial measure imposed by 124.509 that does not include the denial of future sole source 8(a) contracts; (3) Complies with the continued eligibility reporting requirements set forth in 124.112(b); (4) Has a bona fide place of business in the applicable geographic area if the procurement is for construction; (5) Has not received 8(a) contracts in excess of the dollar limits set forth in 124.519 for a sole source 8(a) procurement; (6) Has complied with the provisions of 124.513(c) and (d) if it is seeking a sole source 8(a) award through a joint venture; and. When a procuring activity does not nominate a particular concern for performance of a sole source 8(a) contract (open requirement), the following additional procedures will apply: (1) If the procurement is a construction requirement, SBA will examine the portfolio of Participants that have a bona fide place of business within the geographical boundaries served by the SBA district office where the work is to be performed to select a qualified Participant. (b) If 8(a) BD program officials determine that a concern may not qualify as small, they may deny an application for 8(a) BD program admission or may request a formal size determination under part 121 of this title. This information may include, but not be limited to, financial data and statements, copies of filed Federal personal and business tax returns, individual and business bank statements, personal history statements, and any additional information or documents SBA deems necessary to determine eligibility. SBA may authorize another Participant to complete performance and, in conjunction with the procuring activity, permit novation of an 8(a) contract without invoking the termination for convenience or waiver provisions of 124.515 where a procuring activity contracting officer demonstrates to SBA that the Participant that was awarded the 8(a) contract is unable to complete performance, where an 8(a) contract will otherwise be terminated for default, or where SBA determines that substitution would serve the business development needs of both 8(a) Participants. Business Operations, Management Consulting, and Professional Support Services 541611 | 541614 | 541618 | 541990 | 541512 | 561110 Information Technology (IT) Services, Governance, and Data Management If SBA grants a waiver with respect to a specific procurement, the firm will be able to self-market its capabilities to the applicable procuring activity with respect to that procurement. (3) The presumption of social disadvantage may be overcome with credible evidence to the contrary. (i) The management and daily business operations of a Tribally-owned concern must be controlled by the Tribe. See generally 41 CFR part 102-37 and/or 102-37.125 of that title. 124.206 What appeal rights are available to an applicant that has been denied admission? For purposes of this paragraph, the same primary NAICS code means the six-digit NAICS code having the same corresponding size standard. (5) A proposed 8(a) requirement with an estimated value exceeding the applicable competitive threshold amount may not be divided into several separate procurement actions for lesser amounts in order to use 8(a) sole source procedures to award to a single contractor. (5) Where SBA finds that a recipient has sold or otherwise disposed of the acquired surplus property in violation of the agreement covering sale and disposal, the Participant is liable for the agreed upon fair market value of the property at the time of the transfer, or the sale price, whichever is greater. (2) For a negotiated procurement, a Participant may submit revised offers, including a best and final offer, and be awarded a competitive 8(a) contract if it was eligible as of the initial date specified for the receipt of offers in the solicitation, even though its program term may expire after that date. 41 U.S.C. 124.110 Do Native Hawaiian Organizations (NHOs) have any special rules for applying to and remaining eligible for the 8(a) BD program? A broker is a concern that adds no material value to an item being supplied to a procuring activity or which does not take ownership or possession of or handle the item being procured with its own equipment or facilities. (iii) In determining the size of a small business concern owned by a socially and economically disadvantaged Indian tribe (or a wholly owned business entity of such tribe) for either 8(a) BD program entry or contract award, the firm's size shall be determined independently without regard to its affiliation with the tribe, any entity of the tribal government, or any other business enterprise owned by the tribe, unless the Administrator determines that one or more such tribally-owned business concerns have obtained, or are likely to obtain, a substantial unfair competitive advantage within an industry category. A partnership in which no disadvantaged individual is a general partner will be ineligible for participation. In making a final decision that a group should be considered presumptively disadvantaged, SBA must find that a preponderance of the evidence demonstrates that the group has met the standards set forth in paragraph (d)(2) of this section based on SBA's consideration of the group petition, the comments from the public, and any independent research it performs. Based on its knowledge of the 8(a) BD portfolio, SBA will determine whether a competitive 8(a) construction requirement should be competed among only those Participants having a bona fide place of business within the geographical boundaries of one or more SBA district offices, within a state, or within the state and nearby areas. 124.203 What must a concern submit to apply to the 8(a) BD program? (5) SBA will discount or disbelieve statements made by an individual seeking to establish his or her individual social disadvantage where such statements are inconsistent with other evidence contained in the record. 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