Important Changes to Eligibility Calculations under the SBA Size Standards for Service Contracts

This week, the President executed a new law, H.R. 6330 – the Small Business Runway Extension Act of 2018. The law, which took effect immediately, will significantly affect service contractors by modifying the basis by which the SBA calculates a concern’s eligibility for small-business set aside service contracts. Under the new law, a contractor’s size will now be calculated by averaging its annual receipts over a five year period. Expanding the period by which annual receipts are averaged from the previous three year period to five years will likely extend contractors’ eligibility for small business set aside service contracts.