Once Again, SBA Strictly Interprets SDVOSB Joint Venture Agreement Requirements

The SBA takes its SDVOSB joint venture requirements very seriously, and even a relatively minor deviation or omission can be enough to render a joint venture ineligible.

Time and time again, the SBA’s Office of Hearing and Appeals has shown that it will strictly enforce the rules governing SDVOSB status. OHA’s stance on SDVOSB joint venture agreements is no different. A recent OHA ruling reinforces that SDVOSB joint venture agreements must abide by the letter of the regulation when it comes to required items in the agreement.

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OHA Lacks Jurisdiction to Hear HUBZone Status Appeals

While the SBA’s Office of Hearings and Appeals hears appeals for many of the SBA’s programs, there are certain decisions that remain outside of its purview.

As one protester was surprised to learn, among those items outside of OHA’s jurisdiction are appeals of the HUBZone status determinations.

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SBA OHA Rejects “Chain Affiliation” Theory

Ordinarily, a company isn’t affiliated with the affiliates of its affiliates.

That sentence may sound a little silly, but it encapsulates an important principle about the breadth of the SBA’s affiliation rules.  As demonstrated in a recent SBA Office of Hearings and Appeals decision, the SBA doesn’t apply its rules to create “chain affiliation.”

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SBA Affiliation Rules: Owner of One Share (of 120) Controlled Company

The owner of a 1/120th interest was presumed to control a company under the SBA’s affiliation rules.

You read that right.  In a recent size appeal decision, the SBA Office of Hearings and Appeals held that where 120 owners each held one share of stock in a company, all 120 were presumed to control the company for size purposes.

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No Competitor Size Protests of 8(a) Sole Source Awards, Says SBA OHA

The SBA’s regulations do not allow an 8(a) company to file a size protest challenging the award of an 8(a) sole source contract to a competitor.

In a recent size appeal decision, the SBA Office of Hearings and Appeals confirmed that size protests relating to 8(a) sole source awards can be filed by contracting officers or the SBA itself–but not by competitors.

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Small Business Status: Ongoing Fiscal Year Usually Isn’t Included

Under the SBA’s size regulations, when a size standard calls for a company’s size to be determined by its average annual receipts, the company’s ongoing fiscal year usually isn’t included.

In a recent size appeal decision, the SBA Office of Hearings and Appeals rejected an argument that the SBA’s evaluation of a company’s size should have included receipts from the company’s current fiscal year.

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SBA Size Protest Deadlines: What About Corrective Action?

If a prospective contractor wishes to file a size protest, it must act quickly: the protester ordinarily has five business days to initiate its protest. But does the deadline get extended if the agency takes corrective action in response to a bid protest?

Maybe, maybe not.  A recent SBA Office of Hearings and Appeals decision examines that question.

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