In June of 2013, almost three years after the Small Business Jobs Act of 2010 was first established, the U.S. Small Business Administration issued its final rules implementing the Act’s provisions on small business size and status integrity. Any company caught improperly certifying their size, unless done as the result of a good faith error, can and will be punished and assessed penalties equal to the value of the contract won as a result of this misrepresentation. “This rule dramatically changes the legal situation which existed previously,” explains Offit Kurman government contracting attorney Edward Tolchin. “Prior to issuance of the rule, the Government would likely have needed to show actual damages, which would be difficult if the miscertifying contractor performed and delivered the products or services the Government ordered.” Previously, the Government could sue for damages, but was unlikely to recover much, if anything. “Furthermore, the new regulations indicate that some penalties for size misrepresentations apply even if a contract award does not result from the miscertification,” added Tolchin. “This would include suspension or disbarment, civil penalties, or criminal prosecution.” These new rules regarding the Small Business Jobs Act of 2010’s provisions on small business size and status integrity do not change the basic needs for accurate certification. They do, however, change the dangers of improper certifications. If you have any questions regarding the Small Business Job Act of 2010 or its provisions pertaining to small business size and status integrity, please contact Offit Kurman government contracting attorney Edward Tolchin at 240-507-1769 or firstname.lastname@example.org. Mr. Tolchin’s practice is focused on government contracting, business litigation, and technology matters. Offit Kurman Government Contracting Practice Group At Offit Kurman Attorneys at Law, the lawyers in our Government Contracting Practice Group educate clients on steps to take and pitfalls to avoid when entering into, performing and/or closing out prime contracts and subcontracts in the government contracting environment. Results-oriented and experienced, our attorneys offer counsel to help contractors thrive in this heavily regulated environment. The primary areas in which we assist clients are Bid Protests, Contract Claims, Compliance, Proposals and other business issues, Data Rights, Litigation and Arbitration and Construction Claims. To learn more about Offit Kurman’s Government Contracting Practice Group, please fill out our contact form to access the sound legal guidance that our experienced business law team of attorneys has to offer. You can also connect with Offit Kurman via Facebook, Twitter, Google+, YouTube, and LinkedIn.