SBA OHA Affirms Long-Standing Interpretation Of Recertification Regulations

In a recent decision, the U.S. Small Business Administration’s (“SBA”) Office of Hearing and Appeals (“OHA”) affirmed the widely-understood interpretation of the SBA regulations that a Service-Disabled Veteran-Owned Small Business Concern (“SDVO SBC”) retains its SDVO SBC status for the life of multiple award task order contracts even when acquired by a non-veteran-owned company.

The result of this interpretation is that, unless recertification is requested by the contracting officer or there is an off-ramp provision in the multiple award task order contract, an acquired firm remains eligible for set-aside task orders. However, the procuring agency may not credit an award toward its SDVO SBC goals unless the contractor re-certifies as an SDVO SBC following the acquisition.