The Small Business Runway Extension Act: Contractors Are Not Cleared for Take Off

One of the more significant developments in 2018 for both small business primes and large companies with small business subcontractors was the passage of the Small Business Runway Extension Act (the “Act”), which was signed into law December 17, 2018.  The Act, in amending the Small Business Act, increases the look-back period for determining a contractor’s size status based on average annual revenues from three years to now five years.  For many services-based procurements, a contractor must average its annual receipts over a certain period to determine if it falls under the revenue-based size standard for the opportunity, and if so, whether it is a small business for that contract.