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Level Playing Field

The SBA evens the odds for smaller businesses seeking to win contracts.

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This story appears in the February 2004 issue of Entrepreneur. Subscribe »

The SBA has handed sledge hammers to federal contractingofficials and told them to "break 'em up." Thatadmonition, provided by the SBA in the form of new rules, is meantto force contracting officers to think twice before bundling smallcontracts, which could go to small businesses, into jumbo contractsmeant for large primes. The new rules finalized by the SBAimplement recommendations published in October 2002 by the Officeof Federal Procurement Policy.

The new rules impose requirements on federal contractingofficials. If contracts are over a certain dollar amount (varyingby agency), the agency must coordinate its acquisition strategywith its Small Business Specialist no later than 30 days before theissuance of the solicitation. Part of that coordination requiresthe agency to identify alternatives to reduce or minimizebundling.

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