SBA Finally Issues Final Rule Establishing Women-Owned Small Business Program

Posted on October 7, 2010 by Lynn Patton Thompson

On October 4, 2010, the U.S. Small Business Administration published a final rule in the Federal Register establishing a federal contracting programs for WOSBs.  See Press Release.  In a press release of the same date, the SBA says the new WOSB program will be used to help achieve a statutory goal that 5% of federal contracting dollars go to women-owned small businesses. [insert pdf] Under the program, contracts may be set-aside for competition among WOSBs when the anticipated contract price is not expected to exceed $3 million, except in the case of manufacturing contracts, is not expected to exceed $5 million.

The basic requirements to qualify as a WOSB are that the company be owned and controlled at least 51% by one or more women who are U.S. citizens and "small" according to its primary industry classification. According to the SBA, it will "pursue vigorously punitive action against ineligible firms which seek to take advantage of this program and in so doing deny its benefits to the intended legitimate WOSBs."

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What do I need to include in a request for equitable adjustment?

Posted on October 6, 2010 by Christopher Solop

The objective of a claim is to explain why the contractor is entitled to equitable adjustment in the contract price and time. This requires the contractor to establish (a) entitlement or the contractual/legal right to additional compensation or time and (b) quantum or the amount of additional compensation to which the contractor is entitled. The contractor provides this information in the form of a narrative statement including all relevant supporting documentation.

The general format for any request for equitable adjustment should include the following:

     

  1. Describe what the contract documents required, citing to the specific portions of the plans and specifications (copy and attach relevant portions of the contract document as part of the claim).

     

  2. Describe how the contractor interpreted the contract documents and relied upon this interpretation in preparing its bid and developing a plan for performance.

     

  3. Explain the contractor’s original plan for performance based upon the representations in the contract documents.

     

  4. Describe how the contractor’s plan for performance was changed or impacted. Include citations to correspondence and other documents to support the change and all notifications to architect/owner. (incorporate photographs if available)

     

  5. Set forth the calculations for quantum and include all supporting data (invoices, payroll documents, green book/corps of engineer pages supporting equipment rates, time sheets and/or daily reports etc.)

In these difficult economic times it is essential that a contractor provides a comprehensive and complete document as the first step in the claim process. If the initial claim is thorough and properly supported, it conveys the message that the contractor knows what he is doing and has legitimate grounds for an equitable adjustment. Conversely, a loosely prepared, unsupported claim sends the message that the contractor is just looking for more money and cannot backup the claim. It takes time to prepare a detailed claim, but it is time well spent.

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