The FAA operates under special statutory authority and is exempt from the Small Business Act, which gives the SBA authority to arbitrate size protests and issue size determinations. As a result, by law, the FAA is exempt from normal small business contracting rules for government procurements.
SBA rules are not binding on the FAA and the SBA does not have authority to hear protests relating to FAA procurements.
Any small business status protest on an FAA contract is filed with the FAA Office of Dispute Resolution for Acquisition (ODRA) and decided by FAA program office representatives.
The FAA often adopts and relies upon rules, regulations, and decisions made by the SBA. Additionally, ODRA treats decisions by the SBA Office of Hearings and Appeals (OHA) as credible authority for decisions they make. ODRA has previously applied the SBA’s subcontractor rule (and OHA decisions interpreting that rule) to find that an FAA contract awardee was an eligible small business.
The FAA has its own Office of Small Business Development that:
• Reviews procurement requests to: (1) assure that small and disadvantaged businesses are afforded an equitable opportunity to compete; (2) initiate recommendations for small business, socially and economically disadvantaged business (SEDB), service disabled veteran owned small business (SDVOSB), and very small business set asides; (3) identify possible breakout of items or services suitable for acquisition from small and disadvantaged businesses.
• Serves as an advocate for small and disadvantaged businesses.
• Responds to written, telephone and internet inquiries from small and disadvantaged businesses seeking procurement opportunities
• Socially and Economically Disadvantaged Business (SEDB 8(a)) Competitive/Non- Competitive Set-Aside Program.
• Very Small Business Competitive Set-Aside Program.
• Small Business Competitive Set-Aside Program.
• Woman Owned Small Business Program.
• Service-Disabled Veteran Owned Small Business Competitive/Non-Competitive Set-Aside Program.
• Reviews and coordinates on proposed contract subcontracting plans.
• Establishes mechanisms for monitoring and evaluating the effectiveness of the small and disadvantaged business utilization Program.
• Small Business Innovation Research (SBIR) Program.
In sum, the FAA has an interest in ensuring that small business set-aside procurements are awarded to eligible small businesses. The FAA adjudicates size protests and makes size determinations and, in doing so, will often look to the SBA for guidance. Therefore, firms interested in pursuing FAA small business set-aside contracts must ensure they understand the FAA rules of engagement for small businesses.