A few months ago, we explored SBA’s new rule that made changes to the 8(a) program, the limitations on subcontracting rules, and the ostensible subcontractor rule. There was another aspect of that new rule that also makes some needed clarification on how contracting officers can limit 8(a) competitions, and we want to briefly explore that here.
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Initial Challenge to 8(a) Presumption of Social Disadvantage for Certain Minority Groups Succeeds: What This Means for Now
On July 19, 2023, the federal district court of the Eastern District of Tennessee issued a decision regarding a case involving the rebuttable presumption of social disadvantage in place under the 8(a) Business Development Program. Ultima Servs. Corp. v. U.S. Dep’t of Agric., 220CV00041DCLCCRW, 2023 WL 4633481, at *1 (E.D. Tenn. July 19, 2023). This decision found that this presumption is unconstitutional as it violates the right to equal protection. This, understandably, has caused a great deal of confusion and concern for current and potential 8(a) Program participants. In this post, we will not be providing our opinion on the correctness of the court’s decision (or analyze it from a policy perspective), as we will leave that to attorneys who specialize in constitutional law. Instead, we will go over the decision, what it means, and what it could affect down the road.
Continue readingThe Thaw: Dealing with the End of the HUBZone Map Freeze
Well, summer is certainly here. You only need to step outside to be able to tell. And with the arrival of summer, the long-awaited end to the HUBZone map freeze just occurred on June 30, 2023. The new map took effect the following day, July 1, 2023. If you’re in the HUBZone program, or are considering certification in the HUBZone program, you might have some questions as to what this means for you. In this post, we’ll explore what the changes will bring.
Continue readingClarity is Key: An Example of Why Clear Language is Important for Showing SDVOSB Control
While SBA has taken over SDVOSB certification from the VA (along with some other rule changes), some things remain the same. One thing which we think will never change, is that making sure the language in your agreements is clear, is vital for the federal contractor (and indeed all businesses). While this is obvious for things like operating agreements and bylaws, documentation like meeting minutes should be clear as well. In a recent appeal of a denial of SDVOSB certification, a company had to go through what must have been a frustrating ordeal that might have been prevented with just a little extra language in the meeting minutes, only to have to deal with further frustration due to a couple of details.
Continue readingOASIS+ Small Business: A Preview
GSA has produced a number of successful contract vehicles over the years, one of which was the One Acquisition Solution for Integrated Solution or “OASIS.” This vehicle, used to acquire professional services (not including information technology) for the government, was so successful that GSA is in the process of preparing its sequel, OASIS+. On March 6, 2023, the agency issued its second draft RFP, and the final RFP is expected soon. In light of this, we’re going to go through some of the planned provisions for OASIS+ for small businesses, with special attention to the provisions on teaming arrangements and joint ventures.
Continue readingSBA New Rule: Guidelines for Compliance with Limitations on Subcontracting in 13 C.F.R. 125.6
13 C.F.R. § 125.6 sets out the limitations on subcontracting for all small business set-asides (including 8(a), SDVOSB/VOSB, HUBzone, and WOSB/EDWOSB set asides.) These limitations on subcontracting are crucial for any small business federal contractor to be familiar with, and we have discussed how they work here. But, while the regulation does provide for certain legal penalties for violations of these limitations, up until SBA’s recent rule change, it didn’t provide for any direct consequences for a company’s past performance (although conceivably an agency could mention limitations on subcontracting as part of a CPARS review). Furthermore, SBA now will require that compliance with the limitations be looked at on an order-by-order basis for multi-agency set aside contracts where more than one agency can issue orders under the contract, and for full and open contracts where the task order is set aside for small businesses. All this is effective May 30, 2023, and we explore these changes here.
Continue readingThe HUBZone 35% Residency Requirement in Between Certifications
It is well established that, in order to be eligible for HUBZone certification or recertification, one of the requirements is that 35% of a company’s employees must reside in a HUBZone. That part is (relatively) straightforward. But, as we all know, employees might come and go at any time. This raises a few questions about what the requirement is when a company is preparing to bid on contracts as well as when performing them. We explore this question here.
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