Effective on Jan. 17, 2025, the FAR regulations around Postaward Small Business Rerepresentation will look a little different.

The expected effect of the new rule is to validate the size and socioeconomic status of small businesses. The DoD, NASA, GSA, and SBA fully recognize that “an entity that no longer qualifies as small under the applicable NAICS code associated with an order, or that no longer qualifies for a particular socioeconomic category, will not be eligible for orders placed under certain multiple-award contracts.”

For federal government contractors, the most important changes are baked into the clause at FAR 52.219-28. The Government’s goal here is to have greater transparency around small businesses performing under multiple-award contracts (“MAC”) and ensuring that when a federal agency takes goaling credit for contracting with small businesses, the small businesses are truly small and/or truly belong in the socioeconomic status they have indicated.

Today, the clause instructs contractors to represent as to size or socioeconomic status if and only if the Contracting Officer explicitly requires the contractor to do so:

(c) If the Contractor represented that it was any of the small business concerns identified in [FAR] 19.000(a)(3) prior to award of this contract, the Contractor shall represent its size and socioeconomic status according to paragraph (f) of this clause or, if applicable, paragraph (h) of this clause, when the Contracting Officer explicitly requires it for an order issued under a multiple-award contract.

After Jan. 17, however, the clause changes. For solicitations with the new version of the clause (JAN 2025), contractors will be required to represent as to size and/or socioeconomic status when: 1) the Agency sets aside a specific order on an otherwise unrestricted MAC just for small business offerors; 2) the Agency sets aside a specific order on an already restricted set-aside MAC for offerors in a specific socioeconomic status; 3) the Agency sets aside a specific order on a partially restricted set-aside MAC for offerors in a specific socioeconomic status; and at the discretion of the Contracting Officer when explicitly stated in the order call.

(c) If the Contractor represented its status as any of the small business concerns identified at [FAR] 19.000(a)(3) prior to award of this contract, the Contractor shall represent its size and socioeconomic status according to paragraph (f) of this clause or, if applicable, paragraph (h) of this clause, for the NAICS code assigned to an order (except that paragraphs (c)(1) through (3) of this clause do not apply to an order issued under a Federal Supply Schedule contract at subpart 8.4)—

(1) Set aside exclusively for a small business concern identified at 19.000(a)(3) that is issued under an unrestricted multiple-award contract, unless the order is issued under the reserved portion of an unrestricted multiple-award contract (e.g., an order set aside for a woman-owned small business under a multiple-award contract that is not set-aside, unless the order is issued under the reserved portion of the multiple-award contract);

(2) Issued under a multiple-award contract set aside for small businesses that are further set aside for a specific socioeconomic category that differs from the underlying multiple-award contract (e.g., an order set aside for a HUBZone small business concern under a multiple-award contract that is set aside for small businesses);

(3) Issued under the part of the multiple-award contract that is set aside for small businesses that are further set aside for a specific socioeconomic category that differs from the underlying set-aside part of the multiple-award contract (e.g., an order set aside for a WOSB concern under the part of the multiple-award contract that is partially set aside for small businesses); and

(4) When the Contracting Officer explicitly requires it for an order issued under a multiple-award contract, including for an order issued under a Federal Supply Schedule contract (see 8.405-5(b) and 19.301-2(b)(2)).

Notably, orders under the GSA’s Federal Supply Schedule are expressly exempted from this new subsections (1), (2), and (3), but not (4). A Contracting Officer may still explicitly require Rerepresentation as to size and/or socioeconomic status on an FSS order if they have a reasonable purpose to do so.

Henceforth, Contractors need to carefully read all solicitations for MACs and order calls and regularly review their size and socioeconomic status certifications. Contracting Officers may also rely on a contractor’s registration, including its representations and certifications, in SAM.gov, so contractors are advised to review their registrations to ensure that they are current, accurate, and complete.