19.301-2
Rerepresentation by a contractor that represented its status as a small business concern
Contractors who previously represented themselves as small businesses must rerepresent their size and socioeconomic status at specific contract milestones and events to ensure accurate reporting and compliance with small business goals.
Overview
FAR 19.301-2 outlines the requirements for contractors who previously represented themselves as small business concerns to rerepresent their size and socioeconomic status at specific times during contract performance. This ensures that agencies have accurate, up-to-date information for reporting and compliance with small business goals, especially in the context of long-term and multiple-award contracts.
Key Rules
- Definition of Long-term Contract
- Contracts exceeding five years (excluding certain short extensions) are considered long-term and trigger rerepresentation requirements.
- Mandatory Rerepresentation Events
- Contractors must rerepresent their status within 30 days of a novation, merger, or acquisition, or when the relevant clause is added to the contract.
- For long-term contracts, rerepresentation is required 60-120 days before the end of the fifth year and before exercising any subsequent options.
- Rerepresentation may also be required for certain orders under multiple-award contracts, especially when set-asides or specific socioeconomic categories are involved.
- NAICS Code Size Standard
- Rerepresentation must use the size standard in effect at the time of rerepresentation for the NAICS code assigned to the contract or order.
- Agency Reporting and Goal Achievement
- Agencies must update contract records and report rerepresentations to FPDS within 30 days. Changes in status affect how contract values are counted toward small business goals.
- Impact of Size Status Change
- A change in size status does not alter contract terms, but may trigger a requirement for a subcontracting plan if the contractor becomes other than small.
Responsibilities
- Contracting Officers: Must ensure rerepresentation clauses are included, monitor for triggering events, modify contracts, and report changes.
- Contractors: Must timely rerepresent their size and socioeconomic status as required and provide accurate information.
- Agencies: Must update records and adjust small business goal reporting based on rerepresentation outcomes.
Practical Implications
- This regulation ensures the integrity of small business contracting goals and accurate reporting.
- Contractors must be vigilant about events that trigger rerepresentation and comply with deadlines to avoid compliance issues.
- Failure to rerepresent or provide accurate information can impact eligibility for small business set-asides and agency reporting.