{
  "id": "R40987",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "R40987",
  "active": true,
  "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department",
  "versions": [
    {
      "source": "EveryCRSReport.com",
      "id": 448246,
      "date": "2015-12-18",
      "retrieved": "2016-04-06T17:41:05.351372",
      "title": "\u201cDisadvantaged\u201d Small Businesses: Definitions and Designations for Purposes of Federal and Federally Funded Contracting Programs",
      "summary": "Three primary categories of \u201cdisadvantaged\u201d small businesses are currently eligible for various contracting programs under federal law: (1) small businesses participating in the Small Business Administration\u2019s (SBA\u2019s) Minority Small Business and Capital Ownership Development Program (commonly known as the 8(a) Program) (8(a) participants); (2) \u201csmall disadvantaged businesses\u201d (SDBs); and (3) \u201cdisadvantaged business enterprises\u201d (DBEs). All programs are based in statute. Section 8(a) of the Small Business Act authorizes the 8(a) Program; Section 8(d) of the Small Business Act, the SDB program; and various transportation statutes, the DBE program. However, many of the specific requirements pertaining to these programs derive from agency regulations.\n8(a) firms, SDBs, and DBEs are all characterized as \u201cdisadvantaged\u201d because they are at least 51% owned and controlled by one or more socially and economically disadvantaged individuals or groups. However, social and economic disadvantage is defined somewhat differently for each program. Members of certain racial and ethnic groups are presumed to be socially disadvantaged for purposes of the 8(a) and SDB programs, while women are also presumed to be socially disadvantaged for purposes of the DBE program. Similarly, individuals\u2019 net worth must be $250,000 or less for entry into the 8(a) Program, while net worth can be as high as $750,000 for newly designated SDBs and $1.32 million for newly designated DBEs. \nThe programs for the various types of firms also differ in their operation. The 8(a) Program is open only to firms that have been certified by SBA, and firms and individual owners may generally participate in the 8(a) Program for a maximum of nine years. 8(a) participants are eligible for set-aside or sole-source contracts, as well as other assistance from the SBA. All 8(a) firms qualify as SDBs. Non-8(a) firms must be certified as SDBs by procuring agencies, private certifying entities, or state or local governments to qualify for federal programs for SDB prime contractors, although they may self-certify for similar programs for SDB subcontractors. SDB certification, when required, generally lasts three years, but could last longer and apparently be renewed. There are government-wide and agency-specific goals for the percentage of federal contract and subcontract dollars awarded to SDBs. Additionally, certain prime contractors must have \u201cplans\u201d for subcontracting with SDBs as terms of their contracts. Agencies may also use past performance in subcontracting with SDBs as an evaluation factor in source selection decisions, or give prime contractors \u201cmonetary incentives\u201d for subcontracting with SDBs. DBEs must be certified by the state of the funding recipient. Certifications generally last \u201cuntil and unless revoked,\u201d and there is no apparent limit on the number of times firms may be recertified. There is a national goal that 10% of federal funding for certain transportation-related projects be awarded to DBE contractors and subcontractors. Funding recipients must generally set similar goals, including on individual contracts. \nContracting opportunities for disadvantaged small businesses are perennially of interest to the Members and committees of Congress because of small businesses\u2019 widely asserted role in job creation. Also, there has recently been concern that the recession of 2007-2009 disproportionately affected disadvantaged small businesses, and that such businesses have been slow to recover. A separate report, CRS Report R43573, Federal Contracting and Subcontracting with Small Businesses: Legislation in the 113th Congress, by Kate M. Manuel, discusses recently enacted and introduced legislation pertaining to the 8(a) and SDB programs.",
      "type": "CRS Report",
      "typeId": "REPORTS",
      "active": true,
      "formats": [
        {
          "format": "HTML",
          "encoding": "utf-8",
          "url": "http://www.crs.gov/Reports/R40987",
          "sha1": "0a9f4b6795da853a83dbc4748d24b1ae34110e94",
          "filename": "files/20151218_R40987_0a9f4b6795da853a83dbc4748d24b1ae34110e94.html",
          "images": null
        },
        {
          "format": "PDF",
          "encoding": null,
          "url": "http://www.crs.gov/Reports/pdf/R40987",
          "sha1": "357274d50da62edf059473a5c7afb9b129382468",
          "filename": "files/20151218_R40987_357274d50da62edf059473a5c7afb9b129382468.pdf",
          "images": null
        }
      ],
      "topics": [
        {
          "source": "IBCList",
          "id": 2636,
          "name": "Small Business Policy"
        },
        {
          "source": "IBCList",
          "id": 4628,
          "name": "Government Contracts"
        }
      ]
    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc805590/",
      "id": "R40987_2015Feb06",
      "date": "2015-02-06",
      "retrieved": "2016-03-19T13:57:26",
      "title": "\u201cDisadvantaged\u201d Small Businesses: Definitions and Designations for Purposes of Federal and Federally Funded Contracting Programs",
      "summary": null,
      "type": "CRS Report",
      "typeId": "REPORT",
      "active": false,
      "formats": [
        {
          "format": "PDF",
          "filename": "files/20150206_R40987_ea83e197c4f010edd93eb10cb02b543b9881c217.pdf"
        },
        {
          "format": "HTML",
          "filename": "files/20150206_R40987_ea83e197c4f010edd93eb10cb02b543b9881c217.html"
        }
      ],
      "topics": []
    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc227655/",
      "id": "R40987_2011Jan03",
      "date": "2011-01-03",
      "retrieved": "2013-11-05T18:07:05",
      "title": "\"Disadvantaged\" Small Businesses: Definitions and Designations for Purposes of Federal and Federally Funded Contracting Programs",
      "summary": "This report discusses what constitutes a \"disadvantaged\" small business for purposes of federal and federally funded contracting programs and how firms are certified or otherwise designated as such.",
      "type": "CRS Report",
      "typeId": "REPORT",
      "active": false,
      "formats": [
        {
          "format": "PDF",
          "filename": "files/20110103_R40987_8b808a9aec1f5efffa1ef36ae35e10de07023c88.pdf"
        },
        {
          "format": "HTML",
          "filename": "files/20110103_R40987_8b808a9aec1f5efffa1ef36ae35e10de07023c88.html"
        }
      ],
      "topics": [
        {
          "source": "LIV",
          "id": "Business",
          "name": "Business"
        },
        {
          "source": "LIV",
          "id": "Small business",
          "name": "Small business"
        },
        {
          "source": "LIV",
          "id": "Government and business",
          "name": "Government and business"
        }
      ]
    }
  ],
  "topics": [
    "National Defense"
  ]
}