Government Contracts Rule Expands Small Business Access to Surplus Property
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Monday, November 30, 2020

Rule Expands Small Business Access to Surplus Property

By Government Contracts Editorial Staff

The Small Business Administration has finalized its proposed rule (¶70,425.645) implementing three statutory programs that address the transfer of federal surplus personal property to certain small businesses. The rule implements the Recovery Improvements for Small Entities After Disaster Act of 2015 (PL 114-88), which authorizes the transfer of surplus personal property to small businesses in disaster areas under certain conditions; the Veterans Small Business Enhancement Act (PL 115-416), which authorizes the transfer of surplus personal property to certain veteran-owned small businesses; and section 861 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (PL 115-232), which authorizes small business concerns located in Puerto Rico to receive federal surplus personal property under certain conditions. The rule amends SBA 124.405 and SBA 129.100 through SBA 129.500, and adds new SBA 125.100, to expand access for these concerns to the General Services Administration’s Federal Surplus Personal Property Donation Program. The program currently allows eligible state and local government agencies and nonprofit organizations to obtain personal property that the federal government no longer needs. In response to a comment on the proposed rule regarding the certification and verification of small firms, the final rule makes changes to SBA 129.201 and SBA 129.301. The rule goes into effect on December 2, 2020. For the text of this final rule, see ¶70,425.686.

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