Earlier this year, SBA’s Office of Hearings and Appeal (“OHA”) released its first HUBZone status protest appeal decision. That decision, as you may recall was fairly straightforward, resulting in a dismissal of the appeal. About half a year later, OHA has issued its second HUBZone status appeal decision! This one is even more straightforward than the first one, but it is important nonetheless as it now gives us further insight into the HUBZone appeal system. Let’s take a little look.
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Room for Improvement: Statistics Suggest It is Unclear if Large Businesses are Meeting Small Business Subcontracting Goals.
Just as agencies have established goals to award a certain percentage of their procurements to small businesses and businesses participating in socio-economic programs like the 8(a) Program, large business contractors must establish goals to include small business subcontractors in their pool of subcontractors for unrestricted awards over the applicable threshold in FAR 19.702 ($750,000 for most contracts, $1.5 million for construction contracts). While the specific goal will vary with each contract (or in some cases may be on a company-wide basis), it is rare for a contracting officer to find a large business hasn’t met the given goal. However, an investigation by GAO indicates that large business contractors aren’t meeting their small business subcontracting goals as often as the government would hope. Let’s take a deeper look at these findings.
Continue readingWatching the Watchman – New FAR Rule Opens Door to Further Feedback on Acquisition Process
In Fiscal Year 2022, 1,595 bid protests were filed with GAO. While that seems like a large number, it pales in comparison to the number of federal contracts the federal government awards in a given year. On average, the government awards over 11 million contracts per year. That’s a lot of acquisitions that are not subject to any feedback from outside the agency. But things might change now with the new rule that the FAR Council enacted. Today, we’ll take a look at what this entails.
Continue readingSBA Releases New Small Business Award Data Hub
While some federal contractors have (understandably) been focused on the court decision that found the 8(a) Program’s rebuttable presumption of social disadvantage for members of certain racial minorities unconstitutional, the SBA doesn’t just operate the 8(a) Program. It has to look out for all small businesses in America as well. In connection with this obligation, the agency recently released a new web application that allows visitors to discover a great deal about federal small business awards and socio-economic set aside awards. Called the “Small Business Data HUB,” this free program provides some interesting insights on how the government awards contracts. In this post, we’re going to explore this datahub a little and see what’s going on.
Continue readingPodcast: Understanding the 8(a) Lawsuit and Its Impact: Attorney John Holtz Reveals All
John Holtz was recently interviewed by Dr. Kizzy Parks with K. Parks Consulting, Inc. about the current 8(a) Program situation and the pause on applications. Please use this link to access this informative podcast and we invite you to visit YouTube for all of Kizzy Parks podcasts concerning federal government contracting matters.
8(a) Rule Update: Agencies Can’t Limit 8(a) Competition to Participants with Additional Certifications, SBA Clarifies Bona Fide Place of Business for Construction Contracts
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.
Continue readingInitial 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.
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