What Every Contractor Should Know About The SBA’s New Rules

#1: Presumption of Loss for Willful Size Misrepresentations

If a contractor is found, through misrepresentation, to have “willfully sought and received” an award for a contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant that is “set aside, reserved, or otherwise classified as intended for award to small business concerns,” the Final Rule establishes a “presumption of loss” to the Government which is equal to the value of the funding instrument.

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#2: Deemed Certifications

The Final Rule lists three categories of conduct that are “deemed” to constitute “affirmative, willful and intentional certifications of small business size and status.” Accordingly, any of the following acts can give rise to criminal or civil liability based on a deemed certification as to size or status:

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GovCon Shepperd MullinFull Article at GovCon by Sheppherd Mullin website:  https://www.governmentcontractslawblog.com/2013/07/articles/compliance/threats-and-vulnerabilities-what-every-contractor-should-know-about-the-sbas-new-presumed-loss-and-deemed-certification-rules/

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