I’m taking a chance in trying to explain this subject without it being implemented in the Federal Acquisition Regulation (FAR) System and FAR Supplements. But when has that stopped me before? I will warn you, if there are differences in what I write in this article and implementation in the FAR, the implementation supercedes.

There has been a long-running argument about federal certifications that not only involved the Small Disadvantaged Business (SDB) program, but also the Woman Owned Small Business and Veteran/Service Disabled Veteran Owned Small Business programs. The Veteran/Service Disabled Veteran Owned Small Business program certification issue was resolved by the verification program by the Veteran Affairs office through a registration process on its Web site at www.VETBiz.gov.

On that page click on Acquisition Assistance and then Federal Contracting to register if you have not already done so. Implementation of the WOSB certification program took effect Oct. 31. It is basically a self-certification program, but it requires a formal certification by a recognized certifying agent, such as state or local government or a recognized third party certifier.

If you would like to read the SDB interim final rule, with request for public comments, go to the following link: www.regulations.gov , and in Search Documents type in "Small Disadvantaged Business Program" to get the document – RIN 3245-AF79.

Now let me explain what this new rule will entail for vendors who consider their businesses a SDB.

The effective date for this new rule was Oct. 3. Public comments were accepted until Nov. 3. Simply stated, the federal government has decided there is no longer a need to require a costly and slow formal certification process for SDBs. Therefore, it will again be based on self-certification.

This action was deemed necessary because federal buying offices were not using the SDB set-aside or the SDB 10 percent evaluation procedures to attain their SDB goals. The 6.92 percent performance against the 5 percent goal was being accomplished through 8(a) awards and normal competition. In other words SDBs were giving good price, quality and delivery offers without the help of a preference program. Buying offices decided not to pay the Small Business Administration (SBA) to continue to formally certify an SDB when the SDB preferences were no longer being used.

One of the biggest impacts is to reduce the cost of doing business with not only the federal government directly, but also as a sub-contractor since the rule applied at that level as well. The new rule means that your business must meet the two SBA standards to be eligible.

First, is your business a small business? Check your North American Industry Classification System code size standard. Second, is at least 51 percent of your business owned by one or more socially and economically disadvantaged individuals? If you answer yes to both questions, then you could rightly "self-certify" that your business is an SDB and both the federal buying activity and a large business federal contractor could accept that self-certification in tracking dollars awarded against their SDB goal, a significant benefit for SDBs.

The cost reduction comes from the fact that SDBs no longer need to pay several hundred dollars to a third party to apply for a formal certification.

If the status of a vendor representing itself as an SDB is challenged, the case will be referred to the SBA regional office for a final decision. This decision is binding on all parties. If the decision finds a firm not qualifying as an SDB, the buying office cannot take SDB goaling credit for that contract. The protests and appeals of SDB status will continue to follow the current procedures.

If a federal buying office wishes to use a SDB preference program to increase its performance against its SDB goal, then it must now set up its own formal certification program following the guidelines in the SBA rules. Hopefully this will not happen.

Now allow me to give you a short course in using the www.regulations.govwebsite that may help you in searching for and finding federal rules that may impact you as a business or at the personal level.

First, bookmark the, www.regulations.gov. Now you can easily go to the site when needed.

Second, once at the home page, use the keyword or specific citation for what you are looking for.

Third, read through the various topics identified to find what it is you seek.

Fourth, read the PDF document to find out what the rule states and the effective date.

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