Non-Manufacturer Rule Applies Regardless of NAICS Code, Court Rules

The non-manufacturer rule applies only when a set-aside solicitation is designated with a manufacturing NAICS code, right?  Not anymore.

A recent Court of Federal Claims case effectively invalidated SBA’s regulations that limit the application of the non-manufacturer rule to procurements for supplies.  Instead, the Court held, the Small Business Act requires that the non-manufacturer rule apply any time that the Government buys manufactured products–regardless of the NAICS code assigned to the procurement.

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SBA Affiliation Rules: President Controlled Company Despite Removal Provision

A company’s President was deemed to control the company for purposes of the SBA affiliation rules, even though the company’s majority shareholder had the unilateral right to remove the President from office at any time.

In a recent size appeal decision, the SBA Office of Hearings and Appeals held that a company’s President exercised “critical influence” over the company, and that the President’s influence was not rendered illusory simply because the 100% owner could remove the President from office.

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8(a) Program: Is The SBA “Searching For Reasons To Deny” Women?

The SBA’s course of conduct in reviewing the 8(a) applications of companies owned by women “gives the distinct impression that the SBA is simply searching for reasons to deny every claim” of social disadvantage made by women applicants.

These strong words come from a recent SBA Office of Hearings and Appeals decision, in which OHA again overturned the SBA’s denial of a woman-owned business’s 8(a) application.

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Forming Eight JVs Did Not Create Affiliation Between JV Members

An 8(a) protege and its mentor were not affiliated with one another, despite forming eight joint ventures over a four-year period–and winning 15 contracts with those joint ventures.

In a recent size appeal case, the SBA Office of Hearings and Appeals upheld the decision of the SBA Area Office, which found that the mentor and protege were not affiliated despite their substantial history of joint venturing.

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NAICS Code Appeals Allowed On 8(a) Set-Asides, Says SBA OHA

A NAICS code appeal can be filed even after a SBA District Office accepts the procurement for competition in the 8(a) Business Development (BD) Program.

In a recent decision, SBA Office of Hearings and Appeals rejected the argument that acceptance of a procurement into the 8(a) Program results in the approval of the NAICS code assigned to that procurement, thus preventing subsequent NAICS code appeals.  Had SBA OHA reached the opposite conclusion, the decision might have effectively excluded 8(a) contracts from the reach of traditional NAICS code appeals.

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GAO Task Order Protests: Protester’s Price Does Not Establish Jurisdiction

The GAO’s jurisdiction over task order protests turns on whether the award price of the task order exceeds $10 million–not whether the protester’s proposed price exceeds $10 million.

In a recent bid protest decision, the GAO held that it lacked jurisdiction over a task order protest because the award price was under $10 million, even though the protester had proposed a price of approximately $11.4 million.

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Contractor Proposes Unavailable Key Employee, GAO Sustains Protest

A contractor’s proposal to use an unavailable employee to fill a key personnel position caused the GAO to sustain a competitor’s protest.

In a recent bid protest decision, the GAO concluded that a offeror failed to satisfy a material solicitation requirement concerning key personnel where the employee included in the proposal left the offeror’s employment–and the agency knew that the employee was not available to perform the contract.

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