GovContractPros (“GCP”) has noticed an increase in scrutiny that Business Opportunity Specialists (“BOS”) are applying to evaluating Business Activity Targets (“BAT”). Beginning in Program Year Five (5) – or Year One (1) of the “Transitional Stage” of the 8(a) Business Development Program (“the Program”), participants are required to meet certain thresholds for non-8(a) awards, to ensure participants do not become overly reliant on 8(a) contracts. Failure to meet appropriate BAT can result in serious consequences including sole source restriction or potentially, termination from the Program.
Historically, participants have been able to avoid sole source restrictions by demonstrating “good faith” efforts it made towards compliance. This recent increased scrutiny is consistent with the proposed changes that GCP previously discussed in our Blog, which would significantly narrow the definition of “good faith”.
For now, GCP urges all 8(a)s to carefully review their current contract pipeline and awarded contracts to assess compliance with BATs. Those BATs are measured as a 8(a)’s non-8(a) revenue as a percentage of total revenue, i.e. 8(a) set aside contracts and all revenue during the Transitional Stage. Although BATs reporting is required during an Annual Review, in our experience 8(a)s often do not have their BATs accurately tracked either on an on-going basis or prior to prior to their submission of the Annual Review. As described above, not tracking BATs can disqualify 8(a)s from sole source awards.
GCP is ready to advise new and existing clients with BATs advice and tracking on an on-going basis, to ensure that when it comes times for a sole source, clients can be confident that their eligibility for award is tracked on an on-going basis. If you have questions about BATs or are interested in assistance with tracking BATs on ongoing basis, please contact Glenn Ronk and Trevor Skelly.
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