The Small Business Administration extended through Sept. 30, 2024, a temporary waiver of its Bona Fide Place of Business requirement for construction contracts awarded through the 8(a) Business Development Program. The agency announced the extension on Aug. 21, 2023, describing the moratorium as a response to pandemic-era remote work conditions. [story-s1]
Under the waiver, an 8(a) participant seeking a construction contract—whether sole-source or competitively awarded—did not have to maintain or establish a qualifying office in a specified geographic area. Ordinarily, SBA defines a bona fide place of business for these procurements as an office regularly maintained within the relevant boundary and employing at least one full-time person; temporary construction trailers do not qualify. [story-s1]
SBA said feedback from Alaska’s 8(a) community and congressional stakeholders informed the change, and that federal agencies seeking broader construction procurement opportunities had received it well. The agency particularly pointed to rural and remote areas, where lower population density can make a local-presence condition harder to meet. The announcement described the extension as easing eligibility for these awards; it did not quantify contract wins or establish how many firms benefited. [story-s1]
For small and disadvantaged firms pursuing federal construction work, the practical distinction was narrow but consequential: during the moratorium, the location test did not apply to an 8(a) construction award. The SBA directed participating firms with questions to their servicing district office. [story-s1]
Source documents
- SBA Announces Extension of Moratorium on 8(a) Eligibility Requirementhttps://legacy.sba.gov/article/2023/08/21/sba-announces-extension-moratorium-8a-eligibility-requirement