On August 21, 2023, Small Business Administration (SBA) Administrator Isabella Casillas Guzman announced the extension of the 8(a) Business Development Bona Fide Place of Business (BFPOB) Requirement Moratorium from September 30, 2023 to September 30, 2024. Construction contractors in the 8(a) Program should make note of the new date and prepare accordingly to ensure eligibility for future contracts. Visit this link for PilieroMazza’s previous coverage on this topic.

The BFPOB requirement provides that for 8(a) Business Development Program participants working on government construction projects, the contractor must have an SBA-approved bona fide place of business in the applicable geographical area. In response to the COVID-19 pandemic and remote work conditions, the moratorium was first set in place in August 2021 so 8(a) construction contractors could forgo the requirement of having an established physical presence in a particular location to be awarded a construction contract through the 8(a) Program. The moratorium was extended last year through September 30, 2023, but is now set to expire in 2024. Once the moratorium expires on September 30, 2024, the BFPOB requirement will again be implemented, and requests for a BFPOB determination must be submitted to the appropriate SBA district office at least 20 working days before initial contract offers are due.

If you have any questions about the bona fide place of business requirement, please contact the author, Meghan Leemon, or another member of PilieroMazza’s Government Contracts Group.

Looking for practical insights on gaining a competitive advantage through a deeper understanding of the government’s compliance requirements? Check out PilieroMazza’s podcasts “GovCon Live!” and  “Clocking in with PilieroMazza.”