When companies seek to join forces under an 8(a) joint venture agreement, they often focus on meeting the SBA’s specific joint venture requirements. In doing so, however, they might overlook the threshold goal of an 8(a) joint venture: to allow an 8(a) to develop the necessary capacity to perform a contract.
As a recent Court of Federal Claims decision shows, overlooking this requirement can cause an 8(a) joint venture agreement to be rejected by SBA—and lead to the joint venture being found ineligible for an award.
When many people think of small business federal contractors, they probably picture a local business and not a subsidiary of a foreign entity. But this image isn’t always accurate—small business federal contractors don’t often neatly fit in the mold of local, mom-and-pop shops.
The SBA’s small business regulations confirm this to be true. Indeed, to qualify as a small business for most federal contracting purposes, a company can be a subsidiary of a foreign firm—so long as certain criteria are met. This point was recently affirmed by the SBA Office of Hearings and Appeals, when it found that a domestic affiliate of an international conglomerate qualified as a small business.
With the finalization of the new SBA Small Business Mentor Protégé Program, other agencies without statutorily-authorized mentor-protege programs must seek SBA approval of their mentor-protege programs within one year, if they wish those programs to continue.
In a final rule scheduled to be effective August 24, 2016, the SBA questioned the need for other agencies (except the Department of Defense) to continue to operate their own mentor-protege programs, but provided a road map for agencies to preserve their separate mentor-protege programs if they wish.
The HUBZone program will see significant changes to its rules as a result of major SBA changes set to take effect in late August.
These changes apply generally to two aspects of the HUBZone program: that relating to the SBA’s processing of HUBZone applications, and a significant expansion of the HUBZone joint venture requirements.
Before an agency can award an 8(a) contract, the prospective awardee must first be deemed eligible for award under the 8(a) business development program criteria by the Small Business Administration. The SBA has a tight deadline to make this determination—a mere five days.
But what happens when the SBA’s eligibility evaluation is more complicated than a determination of whether the awardee meets the program’s basic eligibility requirements? The GAO recently addressed this issue in FedServ-RBS JV, LLC, B-411790 (Oct. 26, 2015), where the GAO held that the applicable regulations do not require the agency to stay its proposed award beyond five days pending the SBA’s approval of an 8(a) joint venture agreement. Continue reading