Tag Archives: size protests

2022 NDAA Requires Prompt SAM Update If SBA Issues Adverse Size Determination

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If, as the result of a size protest or appeal, the SBA makes a final determination that a company is not a small business, the company will be required to update SAM within two days to reflect that it is no longer small. And if the company doesn’t recertify within two days, the SBA will do the honors and update the company’s SAM profile.

This tough new requirement is part of the compromise version 2022 National Defense Authorization Act, which is likely to be signed into law in the coming weeks, although it is unclear when the SBA’s regulations will be revised to implement the change.

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Five Things You Should Know: Responding to Size Protests

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There are many things to know about responding to size protests. One could probably fill a book with the information-(actually I did, for those who want a real deep dive!). But if you need to know just the basics, here are five things you should know about size protests that can help you be prepared if your company is facing a size protest.

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Are You a Small Business Being Acquired by a Large Business? Check Your Pending Bids

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Many small business clients of mine have been approached by or considered acquisition by a larger firm. Well, if this sort of sale or merger would turn a small business into a large business, the small business should pay close attention to a little-publicized change stemming from SBA’s Mentor-Protégé Consolidation rule that came out last fall. The new rule could result in a company losing out on an otherwise successful bid.

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Whose Jurisdiction is it Anyways? GAO Dismisses Size Challenge

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GAO recently dismissed a protest to an awardee’s eligibility under the applicable size standard. The protester argued that the agency should have known that the awardee exceeded the nonmanufacturer rule’s 500-employee maximum. After extensive briefing from both parties and from the SBA itself, GAO found that the awardee’s proposal didn’t raise any issues and that it was really up to the SBA to decide the size issues anyway.

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New GovCon Handbook Coming Soon! Procedures and Pitfalls of Size Protests and Appeals

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I’m pleased to announce that volume 5 of the “Koprince Law LLC GovCon Handbooks” series will be published soon! This GovCon Handbook, entitled Procedures and Pitfalls of Size Protests and Appeals, will be published through Amazon. Check the rest of this post for additional details.

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OHA: Sold Corporate Division Isn’t a Former Affiliate

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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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Years after Expiration of Mentor-Protégé Agreement, Joint Venture Still Small Based on Proposal Date

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SBA regulations say that size is determined as of the date an offeror submits its initial proposal, with price. On its face, this rule seems pretty straight forward. But what happens if the initial proposal was filed six years ago? And what if the joint venture that submitted the proposal has since expired?

Following OHA’s recent logic, the proposal-date rule stands even in these unique circumstances.

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