[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR121.404]

[Page 317-318]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
                CHAPTER I--SMALL BUSINESS ADMINISTRATION
 
PART 121--SMALL BUSINESS SIZE REGULATIONS--Table of Contents
 
          Subpart A--Size Eligibility Provisions and Standards
 
Sec. 121.404  When does SBA determine the size status of a business concern?

    (a) SBA determines the size status of a concern, including its 
affiliates, as of the date the concern submits a written self-
certification that it is small to the procuring activity as part of its 
initial

[[Page 318]]

offer (or other formal response to a solicitation) which includes price. 
Where an agency modifies a solicitation so that initial offers are no 
longer responsive to the solicitation, a concern must recertify that it 
is a small business at the time it submits a responsive offer, which 
includes price, to the modified solicitation.
    (b) A concern applying to be certified as a Participant in SBA's 
8(a) Business Development program (under part 124, subpart A, of this 
chapter), as a small disadvantaged business (under part 124, subpart B, 
of this chapter), or as a HUBZone small business (under part 126 of this 
chapter) must qualify as a small business for its primary industry 
classification as of the date of its application and the date of 
certification by SBA.
    (c) The size status of an applicant for a Certificate of Competency 
(COC) relating to an unrestricted procurement is determined as of the 
date of the concern's application for the COC.
    (d) Size status for purposes of compliance with the nonmanufacturer 
rule set forth in Sec. 121.406(b)(1) and the ostensible subcontractor 
rule set forth in Sec. 121.103(h)(4) is determined as of the date of the 
final proposal revision for negotiated acquisitions and final bid for 
sealed bidding.
    (e) For subcontracting purposes, a concern must qualify as small as 
of the date that it certifies that it is small for the subcontract. The 
applicable size standard is that which is set forth in Sec. 121.410 and 
which is in effect at the time the concern self-certifies that it is 
small for the subcontract.
    (f) For purposes of two-step sealed bidding under subpart 14.5 of 
the FAR, 48 CFR, a concern must qualify as small as of the date that it 
certifies that it is small as part of its step one proposal.
    (g) A concern that qualified as a small business at the time it 
receives a contract is considered a small business throughout the life 
of that contract. Where a concern grows to be other than small, the 
procuring agency may exercise options and still count the award as an 
award to a small business.
    (h) A follow-on or renewal contract is a new contracting action. As 
such, size is determined as of the date the concern submits a written 
self-certification that it is small to the procuring agency as part of 
its initial offer including price for the follow-on or renewal contract.
    (i) At the time a novation or change-of-name agreement has been 
executed pursuant to FAR subpart 42.12, the new entity must submit a 
written self-certification that it is small to the procuring agency so 
that the agency can count the award, options, or orders issued pursuant 
to the contract towards its small business goals.

[69 FR 29205, May 21, 2004]