Fully Devoted or Just Rebuttable? Qualifying Veterans Overcome Full-Time Devotion Rule

It doesn’t take too long to find a blog post where we’ve discussed SBA’s Service-Disabled Veteran-Owned Small Business (SDVOSB) full-time devotion requirement. For a service-disabled veteran (SDV) to meet the SDVOSB control requirements, the SDV must control “the management and daily business operations” of the SDVOSB. This requires the SDV to be fully devoted to the SDVOSB. As a quick refresher on the full-time devotion requirement, a qualifying veteran “may not engage in outside employment that prevents [them] from devoting the time and attention to the concern necessary to control its management and daily business operations.” Further, the veteran must be able to “devote full-time during the business’s normal hours of operation” or SBA will assume lack of control. 13 C.F.R. 128.203(i). The same rule applies for the WOSB and 8(a) programs. In past decisions, SBA was OK with a veteran juggling multiple jobs as long as the hours didn’t overlap. But a recent decision shows that it may be possible to overcome this assumption.

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GAO Says: Solicitation + Q&A = Material Requirements

Recently, GAO sustained a bid protest, finding that the awardee did not meet the material requirements of the solicitation. The GAO held that the requirements of the solicitation included an agency’s answer during the question and answer (Q&A) period.

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NAICS Code Appeal: OHA Says Agency’s Assignment of Code Doesn’t Have to be Perfect

When a contractor believes an agency assigned the wrong North American Industry Classification System (NAICS) code to a solicitation, it can file an appeal with the SBA’s Office of Hearings and Appeals (OHA). However, for OHA to correct the NAICS code, the contractor must show the contracting officer’s assignment was clearly erroneous. As we’ve discussed, counting just those NAICS code appeals decided on the merits, about 45% were granted, per a GAO report. 

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OHA: SBA VetCert Review of Bylaws Was too Strict

We have previously blogged on SBA OHA decisions where an applicant was denied certification in one of SBA’s socioeconomic programs because the applicant failed to meet SBA’s control requirements. (You can check out some recent posts here and here). These decisions served as friendly reminders that before submitting an application, future applicants should take a closer look at its governing documents for potential concerns SBA may raise in its review.  

A recent OHA decision, however, suggests that SBA’s strict interpretation of an applicant’s governing documents isn’t always the correct interpretation.

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GAO Sustain: Offeror’s Failure to Follow Solicitation’s Document Preparation Instructions was Unstated Evaluation Criteria

A recent GAO decision considered whether an agency could reject an offeror’s proposal based on the offeror’s failure to follow document preparation instructions that were not explicitly stated in the solicitation.

In Hometown Veterans Medical, LLC B-422751 (Oct. 11, 2024), the Department of Veterans Affairs (“VA”) issued a request for proposals (“RFP”) from service-disabled veteran-owned small businesses for home oxygen services for patients at the VA’s Birmingham Veterans Medical Center. The RFP stated that offerors would be evaluated on experience and price.

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GAO: Small Business Rule of Two Must be based on Accurate Market Research

The small business rule of two requires agencies to restrict procurements for small businesses when there is a “a reasonable expectation of obtaining offers from two or more responsible small business concerns that are competitive in terms of fair market prices, quality, and delivery.” FAR 19.502-2. Agencies often use market research to assess whether the small business rule of two is met. But what happens when an agency amends its solicitation terms after conducting market research? Can the new terms render the agency’s market research, and therefore its set-aside decision, unreasonable? In a recent decision, GAO concluded that yes, market research may be insufficient to establish a set-aside if an agency amends the solicitation’s terms.

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