Filing a Size Protest (13 CFR § 121.1001)

When a federal agency awards a small business set-aside contract, disappointed bidders can challenge the awardee's small business status [1]. The protest rules are codified under 13 CFR § 121.1001. The protest must be filed with the contracting officer within 5 business days of bid opening or notification of the apparent awardee [cfr-sba-13].

The contracting officer forwards the protest to the SBA Government Contracting Area Office, which conducts a review. The SBA Area Office issues a formal Size Determination. Disappointed parties can appeal this decision to the SBA Office of Hearings and Appeals (OHA) within 15 calendar days of receipt [cfr-sba-13].

Federal Size Standards & Regulatory Rules

To support the core compliance tasks detailed in this guide on SBA Size Protests: Eligibility, Filing, and Appeals Processes, compliance officers and corporate attorneys must consult several small business size standards references. The main limits are outlined in the U.S. Small Business Administration (SBA) Table of Small Business Size Standards, and codified in federal law in the Electronic Code of Federal Regulations (eCFR) 13 CFR Part 121 - Small Business Size Regulations. Size protests and legal appeals are decided by the SBA Office of Hearings and Appeals (OHA) Size Appeal Decisions and SBA Rules of Practice. Monetary standards are adjusted for inflation according to the Federal Register Small Business Size Standards Adjustment for Inflation Notice. Affiliation audits examine corporate structures under the rules of Electronic Code of Federal Regulations (eCFR) 13 CFR § 121.103 - SBA Corporate Affiliation Rules. Calculation of corporate revenues averages receipts using Electronic Code of Federal Regulations (eCFR) 13 CFR § 121.104 - Calculation of SBA Annual Receipts, while employee headcounts are calculated under Electronic Code of Federal Regulations (eCFR) 13 CFR § 121.106 - Calculation of SBA Employee Headcount. Contractor sizes are verified in the federal procurement database using the GSA Federal Procurement Data System (FPDS) FPDS Government Contracting Size Standard Verification Guidance. The statistical models for size limits are detailed in the U.S. Small Business Administration (SBA) SBA Size Standards Methodology Whitepaper, and audit integrity reviews are published in the Government Accountability Office (GAO) SBA Size Standards: Actions Needed to Improve Registry Integrity.

💡 Expert Guidance: SBA Size Protest Deadline Laches

Filing an SBA size protest too late is the most common cause of dismissal. Under SBA rules, a protest must be submitted to the contracting officer within 5 business days of receiving notification of the apparent successful offeror. Protests filed even hours after this window are dismissed without review.