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Acquisition Policy Flash! 23-05

What's Changed?

Class Deviation from the Federal Acquisition Regulation (FAR) Regarding the Threshold for Small Disadvantaged Business (SDB)

Purpose: To issue a class deviation, in accordance with FAR 1.404 and as authorized by the Civilian Agency Acquisition Council letter 2023-02, dated December 15, 2022, to implement the threshold increase at 13 CFR 124.104(c)(2). The increase was implemented in the Small Business Administration’s (SBA) interim final rule published in the Federal Register at 87 FR 69118, on November 17, 2022, effective December 19, 2022. The SBA87 FR 69118 incrthe eased net worth threshold for an individual to be eligible as an economically disadvantaged small business concern from $750,000 to $850,000. The FAR Council has opened FAR case 2023-004, Small Disadvantaged Business Threshold, to implement the increase in the SDB threshold. This deviation is issued in advance of a FAR final rule as authorized in the referenced CAAC letter.

FAR Parts Referenced: FAR parts 2 and 52

Effective Date: November 17, 2022.

Background: Currently, the net worth threshold of $750,000 appears in the FAR within the definition of “small disadvantaged business concern,” at:

  • 2.101(b);
  • 52.212-3 (a), Offeror Representations and Certifications – Commercial Products and Commercial Services;
  • 52.219-1(a), Small Business Program Representations; and
  • 52.219-8(a), Utilization of Small Business Concerns.

Beginning December 19, 2022, the definition of “small disadvantaged business concern” needs to be amended to remove any conflict with the SBA increase to the net worth threshold at 13 CFR 124.105(c)(2).

Applicability: This class deviation applies to all VA contracting activities.

Action Required: Contracting officers shall comply with the attached class deviation to implement the aforementioned changes. Note: VA authorized contract writing systems (eCMS/AAMS and iFAMS Enterprise Acquisition System) will be updated with the clause changes required.

Additional Information: Direct any questions or comments regarding this deviation to the Office of Acquisition and Logistics (003A), Procurement Policy and Warrant Management Service (003A2A) at va.procurement.policy@va.gov.

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