OHA: Sold Corporate Division Isn’t a Former Affiliate

Affiliation is a dirty word to small business federal government contractors. For good reason: it can turn a small business into a large one and destroy its eligibility for socioeconomic programs and set-aside contracts. Proactive small business contractors, therefore, routinely audit their affiliation risks and, if necessary, take actions to fracture that affiliation.

One of the ways a company might try to fracture affiliation is to sell a division or business line to a third party. Because this division is sold, the company might be tempted to assume that its corresponding revenues are not considered as part of the affiliation analysis (under the former affiliate rule).

A recent OHA decision, however, instructs that a division or line of business does not qualify under the former affiliate rule.

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SmallGovCon Week In Review: January 13 – January 17, 2020

You’ve got to love Kansas weather. Last week it was 65 degrees and sunny, and now we’re due for an ice storm. There’s always something new if you don’t like the current weather.

It’s kind of the same way with government contracting. There’s always something new. This week, there are updates about the government getting over $3 billion from False Claims Act Case, updates about the timing for CMMC cybersecurity certifications, and the goals of the new SBA administrator.

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