Legislative Regulatory Update Bona Fide Location Process.pptx

8(a) Business Development New Rule Process Changes 8(a) Firm Bona Fide Place of Business Approval Process

Final Rule Change:

A Participant must have a bona fide place of business within the applicable geographic location determined by SBA.

Generally the geographic area serviced by the SBA district office, a Metropolitan Statistical Area (MSA), or contiguous county to (whether in the same or different state) where the work will be performed.

SBA may determine that a Participant with a bona fide place of business anywhere within the state (if the state is serviced by more than one SBA district office), one or more other SBA district office.

Once a Participant has established a bona fide place of business, the Participant may change the location of the recognized office without prior SBA approval.

However, the Participant must notify SBA and provide documentation demonstrating an office at that new location within 30 days after the move.

Failure to timely notify SBA will render the Participant ineligible for new 8(a) construction procurements limited to that geographic area.

Final Rule defines bona fide place of business to be the geographic area serviced by the SBA district office, a Metropolitan Statistical Area (MSA), or a contiguous county to (Whether in the same or different state) where the work will be performed.

Bona Fide place of business may or may not apply to a specific procurement.

If it is to a specific procurement, must be submitted at least 20 working days before initial offers that include price are due.

In most cases the offer process allows the BOS to ask CO for additional time to accept the offer. Usually contracting officials will allow additional time if requested for BOS to perform Business Development or Program Eligibility Determination Actions .

SBA may determine that a Participant with a bona fide place of business anywhere within the state (if the state is serviced by more than one SBA district office), one or more other SBA district office.

8(a) Firm Bona Fide Place of Business Final Rule Changes Approval Process

Established timeframe for DOs to process requests for bona fide place of business.

Reviewing office will decide whether the Participant has a bona fide place of business in its geographical boundaries within 5 working days of a site visit or within 15 working days of its receipt of the request from the servicing district office if a site visit is not practical in that timeframe.

If the bona fide place of business request is due to a specific procurement opportunity, the New Rule specifies that bona fide office request must be submitted at least 20 working days before initial offer.

In most cases the offer process allows the BOS to ask CO for additional time to accept the offer. Usually contracting officials will allow additional time if requests are for the BOS to perform Business Development or Program Eligibility Determination Actions.

A firm can have a home-based office that meets all the requirements.

Participant may presume that SBA approved its request for a bona fide place of business if SBA does not respond in the time identified. This allows a Participant to submit an offer where a bona fide place of business is required.

In order to be eligible for award, SBA must approve the bona fide place of business prior to award or offering.

Bona Fide Office Check List:

Letter from District Office stating last annual review approval.

Copy of the Lease Agreement (a minimum of one year).

Copy of Statement of the principal attesting to the authenticity of the materials submitted; including a statement that the bona fide office employee is working full time and a description of his/her duties.

Copy of SAM profile for bona-fide office location (contact person, phone number, address should match information) Copy of Employment Agreement (signed by employee & employer) Copy of Payroll Records for local employees (full time employee(s)) Copy of Resume of Key Personnel (data should be in chronological order) Copy of Occupational License from the City (right to do business in city location) Copy of State Contractor’s License (Registrar of Contractors) Copy of Certificate of Good Standing; Foreign Corporation (Secretary of State) Copy of State Tax Registration Copy of telephone bill (if applicable) Copy of utility bill (electric, gas, water)

New Bona Fide Office Request Process

Participant sends Bona Fide Office request to the Servicing BOS. BOS gathers Bona Fide Checklist items and sends request to reviewing office.

The reviewing office will decide whether the Participant has a bona fide place of business in the district office or Metropolitan Statistical Area.

Reviewing Office will notify servicing BOS of determination. Servicing BOS will annotate the approval of Bona Fide Office in appropriate data collection sited and notify Participant of approval.

If request is for a specific requirement, then request must have been submitted 20 working days before award or offering.

Participant is required to notify servicing SBA of new location within 30 days of existence.

Determination must be made within 15 working days of the request or within 5 working days of a site visit.

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