Sullivan Secures Long Overdue Fix to SBA Rule for Small Business Contracting

WASHINGTON—U.S. Senator Dan Sullivan (R-Alaska) announced today that the Small Business Administration (SBA) has formally implemented his long-sought fix to the “bona fide place of business” requirement, an unnecessary barrier that for years prevented small businesses from fairly competing for federal construction contracts. Under the updated policy, 8(a) firms will no longer need to establish a staffed physical office in a state prior to bidding on a federal contract. Instead, businesses will have 60 days after a contract is awarded to meet any location requirement, allowing more small businesses across Alaska and the nation to compete for federal contracts.
“Throughout my time in the Senate, I have been a strong supporter of the SBA 8(a) Program, which has provided countless opportunities for Alaskans and Alaska businesses,”Senator Sullivan said.“Many 8(a) firms are proven federal contractors that perform mission-critical work for the federal government, particularly for the Department of Defense, with efficiency and speed. However, for years, the ‘bona fide office’ requirement worked directly against these objectives. By forcing small businesses to open a fully staffed physical office in every state before even bidding on a federal contract, SBA imposed an unworkable and unnecessary barrier to entry. Today, I’m pleased to share that, after years of my team and I relentlessly pushing the SBA, that barrier has finally been eliminated. Under this change, 8(a) firms will no longer be required to establish a physical office in a state before they have a contract in hand. This long-overdue fix opens the door for more of Alaska’s businesses—including disabled-veteran-owned firms, women-owned firms, and Alaska Native Corporations—to compete and deliver results for our federal government and for taxpayers. I very much appreciate Administrator Loeffler for working with me to get this commonsense solution across the finish line.”
“Senator Sullivan has been a tireless champion for Alaska Native Corporations participating in the SBA 8(a) Program, and we’re grateful for his leadership in securing this common-sense fix to the bona fide place of business requirement,”Chugach President Katherine Carlton said.“This change removes an onerous, one-of-a-kind restriction on 8(a) construction firms and will help Native and other 8(a) contractors compete, hire locally, and deliver for federal customers. For decades, ANC participation in the 8(a) Program has been constitutionally grounded, fiscally responsible, and essential to both Federal mission success and Alaska Native self-determination. This is a long-standing policy choice rooted in Federal Indian law and the Federal trust responsibility, and we are dedicated to ensuring the 8(a) Program can continue working as Congress intended: Empowering Alaska Native communities while delivering reliable, cost-effective results for the nation.”
Below is a timeline of Senator Sullivan and his team’s efforts to resolve the “bona fide place of business” barrier.
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