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Why Are Small Federal VARs Up In Arms?

Here are 10 things to know about a possible rule change that could cause some federal VARs to lose their small-business designation and what they’re doing to get their voices heard.

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Small-Business Cutoff Lowered

In a nutshell, the Footnote 18 exception of the North American Industry Classification System (NAICS) Code 541419 sets the definition of a small VAR as 150 employees or fewer. If the footnote is removed, as the Small Business Administration (SBA) is proposing, a small VAR could only be defined as having $27.5 million in revenue or less, the alternative option also allowed in the exception. The SBA told CRN that the rule change would help simplify and provide consistencies in the federal contracting process.

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