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Avoid Increased Damages, Ensure the Accuracy of Your Size and Status Certifications

July 8, 2013

On June 28, 2013, the SBA issued a final rule, effective August 27, which (1) requires an authorized official of the company to sign representations of size or status in a bid or proposal; (2) provides that the company must update those certifications on SAM at least annually or lose those statuses until recertification; and (3) states that actions such as submission of a bid, proposal, or application for a set-aside award are deemed representations or certifications of size and/or status. The final rule also increases the risk of these representations: if a company willfully seeks and receives an award through misrepresentation of size or status, there is now a legal presumption of damages to the government equal to the total amount expended by the government under the contract, grant, or agreement.

For more information, please contact the professional(s) listed below, or your regular Crowell & Moring contact.

Amy Laderberg O'Sullivan
Partner – Washington, D.C.
Phone: +1.202.624.2563