This draft bill sponsored by Rep. Mike Rogers (R-AL) has been added as language in the Defense Authorization Act, as a pilot program for the Department of Defense to be tested over the next couple of years to see its effect. This legislation was initiated, worked on and supported by the Mid-Tier Advocacy Group (MTA), and follows through on a bill that was introduced in last year’s session (H.R. 1812).
This program is really at the core of the MTA’s work. It would allow “large-small” businesses – those that have exceeded the small business size standards according to their NAICS code(s) – to still have work set aside so they are not yet competing directly with giant companies. Even though they’ve graduated from the small business program, they will still have a protected status.
This doesn’t affect the existing 23% set-aside for small business (which will go up to 25% if another pending piece of legislation is accepted); this would come out of the remaining 77% (or 75%) from large business. This also won’t be a forever thing, and as companies continue to grow they will eventually be competing with the largest companies in an open field.
Your company is eligible for this program if you have less than 2x the number of employees defined as the size standard in your NAICS code, and fewer then 3x the revenue. As an example, if the revenue standard is $14 million on a three-year average, then to qualify as a mid-tier company your revenues would be more than $14 million but less than $42 million.
Your company must also be independently owned and operated, and this program cannot be combined with a mentor-protégé program. Congratulations to everyone at the Mid-Tier Advocacy Group for their work on this important program!
