The Council on Governmental Relations (COGR), representing over 200 public and private research universities and affiliated institutions, submitted formal comments to the U.S. Small Business Administration (SBA) regarding a proposed rule to revise ownership, control, and subcontracting requirements for the 8(a) Business Development Program. COGR expresses support for the intent behind the proposed SBA rule, particularly its objective to include indirect costs in large businesses' subcontracting plans to encourage contracting with small businesses offering such services. However, COGR emphasizes that higher education and nonprofit research institutions, which are governed by existing federal regulations under 2 CFR Part 200 and are subject to rigorous auditing, should be exempt from these requirements.
COGR argues that applying the SBA’s proposed documentation and subcontracting plan requirements to colleges, universities, and nonprofit research organizations would impose unnecessary administrative burdens without advancing the rule’s intended benefits, especially given these institutions’ existing federal compliance frameworks. Additionally, COGR is concerned that such changes could disproportionately impact smaller and minority-serving institutions. Therefore, COGR’s letter urges the SBA to clarify that these academic and nonprofit research entities are not intended as subjects of the proposed rule, and requests confirmation of their exemption to avoid unintended negative consequences.
