President Obama has signed the National Defense Appropriations Act of 2013. The Act, under Sec. 1693a, Part IX, Early Stage Small Business Contracting, provides for Contracting Officers to award contracts on a “sole source” basis to “early stage small businesses.”

Excerpt from the Act follows:

Part IX – Early Stage Small Business Contracting

  • (Sec. 1693a) Directs the Administrator to establish and carry out a program to provide increased access to federal contract opportunities for early stage small businesses (no more than 15 employees and average annual receipts of no more than $1 million).
  • Allows a contracting officer to award:
    • a sole source contract under the program if an entity is determined to be a responsible contractor and the officer does not reasonably expect that two or more early stage businesses will submit offers.

Contracting Alternatives for BearDen Solutions, LLC


  • Through our 8(A) and Service Disabled Veteran Owned Small Business (SDVOSB) teaming partners
  • This conforms to FAR 6.302-5 which authorizes sole source awards to 8(a) Program participants; HUBZone Act firms; and certain Veterans Benefit Act participants
  • For purchases under the Micro-purchase Threshold ($3K) – no competition requirement select base value

Limited Competition

  • FAR 19.15 allows for women owned small business competitions, among two or more Woman Owned Small Business (WOSB) firms. There is no financial limit on the total contract value.
  • For purchases between the Micro-purchase Threshold ($3K) and Simplified Acquisition Threshold ($150K) – survey > 3 sources; provide fair opportunity to compete; select best value.
  • NOTE: Some agencies authorize limited competitions among companies that are ½ the size of the associated NAICS code (called very small business competitions), enabling these small companies to compete in a smaller competitive environment (e.g., FAA).

Full and Open Competition

  • FAR Part 19.7 requires any large business with a Government contract, in excess of $650,000, to submit a subcontracting plan and subcontract specific work to WOSB’s, small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, and small disadvantaged businesses.