Federal Court: Temp Workers Count As Employees Under SBA Rules

Small business size for federal procurement can be measured based on receipts or employee counts. Some small business procurements are set aside for small businesses as determined by the employee counts of those businesses, as opposed to the more common receipts based size-standard. SBA size rules, in turn, define what is an employee for those size standards that use employee counts, including whether temporary workers must be included in the employee count.

Employee counts were also utilized for PPP loan purposes, to determine what companies were eligible for PPP loans, with PPP loans only available to companies under certain headcounts. A recent federal district court decision turned on the definition of employee for PPP loan purposes. However, this case should be instructive for determining employee counts for all SBA purposes, including federal procurement, since the employee definitions for PPP loans and small business contracting are the same.

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GAO: No Notice of New Opportunity Needed for Incumbents

Often Incumbents on a contract feel that the agency owes them some notice on when a new procurement for the work they are performing is published. While this may happen in practice, it is yet another occurrence in Federal contracting that, while common, is not a requirement. GAO recently examined whether an incumbent in frequent contact with and in current performance with an agency should have been given direct notice that the work it had been performing was being re-solicited. Plainly put, GAO held that no special individualized notice was required to be sent to the incumbent, that there was to be a solicitation posted.

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SmallGovCon Week in Review: February 9-13, 2026

Happy Friday the 13th! We hope your day is off to a lucky start and that everything is running smoothly. As a quick reminder, Valentine’s Day is tomorrow—so if it slipped your mind, there’s still time to grab some chocolate and flowers (and maybe avoid any Friday the 13th surprises!).

Valentine’s Day Fun Facts:

  • The Oldest Valentine: The oldest known valentine was a poem written in 1415 by Charles, Duke of Orleans, to his wife while he was imprisoned in the Tower of London.
  • Teachers Get the Most Love: Teachers receive the highest number of Valentine’s Day cards, followed by children, mothers, and wives.
  • Flower Power: Valentine’s Day and Mother’s Day are the busiest holidays for florists, with 189–250 million roses grown for the holiday.
  • Not Just for Humans: About 3% of pet owners give Valentine’s Day gifts to their pets.

We hope you get to spend time celebrating with your loved ones this weekend. Enjoy!

Now, on to this week in federal government contracting news. Key stories including the cancellation of CIO-SP4 and SBA moving forward with additional 8(a) terminations.

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Why File: A Refresher on Challenging Solicitation Terms in a Pre-Award Protest

It is not uncommon for a disappointed bidder to consider filing a protest only after the agency has issued the award. While this is understandable, sometimes the basis for protesting stems from a misunderstanding of the solicitation’s terms, or that the terms felt unreasonably restrictive. However, unfortunately for the eager protester, it is by that point generally too late to challenge the terms of the solicitation.

In a previous blog, Why File: A GAO Pre-Award Protest, we provided an overview of different reasons to file a pre-award protest. As noted there, the most common basis for a pre-award protest is a challenge to the solicitation terms.

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SmallGovCon Week in Review: February 2-6, 2026

Happy Friday! It’s time for another week in review. There was a lot happening across the federal government this week, as you can see from the long list of articles included below. We hope you have a chance to sit back, relax, and catch up on everything that unfolded. Have a wonderful weekend in your neck of the woods.

This week saw stories on ending the government shutdown, new spending bills, and cybersecurity.

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OHA Reminder: Compliance with SBA Joint Venture Requirements is Determined at Final Proposal Revisions

In most size and status protests, SBA’s Office of Hearings and Appeals (OHA) will determine an offeror’s eligibility for a procurement as of the date of initial offer including price for that procurement. Indeed, with regards to SDVOSBs and VOSBs specifically, 13 C.F.R § 134.1003(e)(1) states that “[i]f the VOSB or SDVOSB status protest pertains to a procurement, the Judge will determine a protested concern’s eligibility as a VOSB or SDVOSB as of the date of its initial offer or response which includes price for a competitively awarded VOSB/SDVOSB contract, order, or agreement, and as of the date of award for any sole source VOSB or SDVOSB award.” But there is an important exception to this rule (something another company found out regarding its mentor-protégé joint venture recently) in that very clause, and, recently, OHA pointed this out in a GSA-led protest of an SDVOSB joint venture (VSBC-459-P, January 15, 2026). Today, we’ll look at that decision.

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Webinar Announcement! Understanding the SBA Mentor-Protégé Program, February 17, 2026 hosted by Kansas APEX Accelerators

First launched in 2016 as the “All Small Mentor-Protégé Program,” this powerful initiative by the U.S. Small Business Administration (SBA) has evolved—but it remains a game-changing tool for both small and large federal contractors.

In this informative webinar, we will break down the key elements of the SBA Mentor-Protégé Program. You’ll learn how this program can help small businesses enhance their capabilities and compete for larger contracts—with the support of an experienced mentor. The session will also cover how mentor-protégé joint ventures can create new contracting opportunities and expand your footprint in the federal marketplace. Additionally, we will provide an introduction to the even older DoD Mentor-Protege Program, which set the stage for the SBA’s program, and compare the two programs.

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