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

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.