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To the Point: My View of the SBA Size Standard Increase

Posted By Guy Timberlake, The American Small Business Coalition, LLC, Friday, February 10, 2012
Let me preface my comments by saying I respect the folks that work at the SBA. Overall, they have a tough task, especially as it relates to government contracting. Traditionally, they have not received the level of credit, respect or support they are due, given the importance of their mission, and the impact of their successes and failurees on the Nation as a whole.

But, I am genuinely concerned about the recently announced size standard increases.

The increase in the size standards is a bona fide threat to current small businesses in the affected industries. In my opinion, this is goal achievement through stacked competition where more and bigger companies are added to the pool of available small businesses, to effect [government] reaching the twenty-three percent goal.

Current small businesses within those industries now face a greater challenge in trying to survive the proving grounds of the small business program, and the irony is those companies being reborn as small businesses on March 12, 2012, will unwittingly subject smaller companies to the exact same challenges they themselves faced outside of the small business program.

For many current small government contractors, the advertised and anticipated benefits of the small business program for direct contracting and subcontracting, will be greatly diminished.


The Chief Visionary

"The person who says it cannot be done should not interrupt the person doing it."

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Gary Gray, Acquisition Systems Associates says...
Posted Monday, February 13, 2012

Perhaps you can go back to SBA directly (with copies to OMB, others) on very small businesses (start-ups) affected with quotes and company names protected. It may be too late, but March 12 is not here yet. Points I would make (anonomously of course) would be:

This severely impacts the startups.
Startups have the largest growth rates that create the most jobs.
Startups need the most help in getting the first jobs with all the other responsibilities they have (marketing, contracts, financials, HR (recruiting, retention, benefits)
Start-ups were too busy doing everything they need to do instead of mounting any substantial grass roots campaign to reply with any impact on the SBA to consider a change of heart. I bet over $7 million companies put in the time and resources to do this.
The companies that benefit from this now had the set-aside protections when they were startups.
Some NAICS codes categories should be reserved for startups to allow for the American Dream to continue.

This ruling essentially excludes startups SB from playing in the government services contracting world as primes.

Best regards,

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Guy Timberlake, The American Small Business Coalition, LLC says...
Posted Monday, February 13, 2012

Thanks for your comments. Unfortunately, while the impending start to these new size standards is not yet here, SBA provides periods of time for comments to be submitted and those periods (prior to adoption of a rule) are closed. I understand your point about a "grass roots campaign" but that is why the comment period exists, so individuals and individual companies can respond and be included in the total response.

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