COR Small Business Programs 3 — Questions and Answers
Question 1: For a total small business set-aside, what minimum percentage of the contract work must be performed by the small business prime contractor in a service contract?
- 25%
- 40%
- 50% (Correct answer)
- 75%
Correct answer: 50%
Under the Limitations on Subcontracting rule for service contracts, the small business prime must perform at least 50% of the cost of the contract incurred for personnel.
Question 2: When must a prime contractor on a contract above the simplified acquisition threshold include a small business subcontracting plan?
- Always, regardless of contract size
- Only when the contracting officer specifically requests one
- When the prime is an other-than-small business and the contract exceeds $750,000 ($1.5M for construction) (Correct answer)
- Only on cost-reimbursement contracts
Correct answer: When the prime is an other-than-small business and the contract exceeds $750,000 ($1.5M for construction)
FAR 19.702 requires other-than-small business prime contractors to submit subcontracting plans on contracts exceeding $750,000 ($1.5M for construction).
Question 3: Which agency is responsible for certifying firms as eligible for the HUBZone program?
- Department of Defense
- General Services Administration
- Small Business Administration (Correct answer)
- Office of Federal Procurement Policy
Correct answer: Small Business Administration
The SBA is the sole authority for determining HUBZone eligibility and certifying firms for the program.
Question 4: A COR discovers a contractor claimed small business status at award but has since grown beyond the size standard. What should the COR do?
- Ignore it, since size is determined at time of offer
- Terminate the contract for cause
- Report the concern to the CO for possible referral to the SBA (Correct answer)
- Renegotiate the contract as a large business contract
Correct answer: Report the concern to the CO for possible referral to the SBA
Size is generally determined at time of offer, but misrepresentation concerns should be reported to the CO, who may refer the matter to the SBA Office of Inspector General.
Question 5: What is the Mentor-Protégé Program's primary benefit for an 8(a) small business?
- Automatic price preference on all federal contracts
- Access to joint ventures with larger, more experienced firms while retaining 8(a) eligibility (Correct answer)
- Exemption from competitive bidding requirements
- Guaranteed contract awards for the first three years
Correct answer: Access to joint ventures with larger, more experienced firms while retaining 8(a) eligibility
The SBA Mentor-Protégé Program allows 8(a) firms to enter joint ventures with mentor firms, gaining business development assistance while the joint venture can compete as a small business.
Question 6: Under WOSB set-aside authority, which additional designation allows WOSB set-asides in industries where women are substantially underrepresented?
- Economically Disadvantaged WOSB (EDWOSB) (Correct answer)
- SDB certification
- 8(m) designation
- Priority WOSB status
Correct answer: Economically Disadvantaged WOSB (EDWOSB)
Economically Disadvantaged WOSBs (EDWOSBs) qualify for set-asides in all NAICS codes where women are underrepresented, while standard WOSB set-asides apply only to substantially underrepresented industries.
Question 7: How does a COR verify that a firm qualifies as a small business for a specific procurement?
- Review the firm's tax returns for the past three years
- Check the System for Award Management (SAM.gov) and the firm's self-certification (Correct answer)
- Obtain a letter from the firm's bank confirming annual revenues
- Require the firm to submit a SBA size determination letter for every contract
Correct answer: Check the System for Award Management (SAM.gov) and the firm's self-certification
Small business status is self-certified by the contractor in SAM.gov; the COR can verify current registration and size representation through SAM.gov.
COR Small Business Programs 3
For a total small business set-aside, what minimum percentage of the contract work must be performed by the small business prime contractor in a service contract?