Author Archives: Stephanie Ellis

New Report Unveils Magnitude of Fraud in SBA COVID-19 Relief Programs

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Whether we want to or not, the country will continue to feel the effects of the COVID-19 pandemic for years to come in a multitude of ways. Many actions were taken by the government in the early days to help United States’ citizens through the largely unprecedented times, particularly to help support small businesses. As I’m sure many small business owners would say, the assistance offered through the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program was critical to small business owners who, in the early days of 2020, were suddenly facing an unknown future. As closures and restrictions were put into place from every level of government in a bid to try to protect Americans from the novel virus, hospitals and their staff, doctors, and scientists all scrambled to contain the virus and determine the best path forward.

PPP and EIDL applications flooded the SBA in the hopes that the assistance offered through these programs would help to prevent millions of small businesses from sinking under the weight of the pandemic. Unfortunately, the roughly $1.2 trillion in assistance provided by the programs, while good-intentioned and critical to many small business owners’ chances of survival, was not immune to massive levels of fraud. In a report released on January 30, 2023, the Pandemic Response Accountability Committee (PRAC) details a breakdown of the fraud, what is being done about it, and safeguards to help prevent it from happening again.

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Back to Basics: Get in the Zone, The HUBZone

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The SBA’s HUBZone  Program, short for “Historically Underutilized Business Zone,” is likely the SBA program that we hear the least about. Tucked away in Title 13, Section 126 of the U.S. Code of Federal Regulations, the HUBZone Program gives HUBZone participants benefits in multiple federal government contracting situations in an effort to revitalize historically underutilized business zones through increased employment opportunities, investments, and economic development. So, what exactly makes an area a HUBZone, and how can your small business be designated as a HUBZone participant? Read on to find out.

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GAO: Misrepresentation on Key Person Availability Sinks Proposal

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Agencies rely on the representations made by offerors in their proposals to determine how capable each offeror is. In many cases, key personnel are so vital to an offeror’s chance of success that any change to the key personnel must be approved by the agency prior to such a change taking place. Logic follows that the risk of losing a possible award outweighs any benefit that may be reaped from stretching the truth. Nonetheless, from time to time an offeror will decide to give it a try, hoping that any inaccuracies will be overlooked, or will simply unintentionally misrepresent a detail. But, as one offeror learned, the possibility of such inaccuracies being discovered is high, and the end result is far from ideal.

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Breaking: SBA Proposed Rule Gives OHA Jurisdiction over HUBZone Status Protests

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The Small Business Administration (SBA) has proposed to amend the rules of practice for its Office of Hearings and Appeals (OHA) and the Historically Underutilized Business Zone (HUBZone) Program to “implement procedures authorizing appeals to OHA” from adverse status determination protests for certified HUBZone small business concerns. Currently, HUBZone status protest determinations are decided by the Associate Administrator of Government Contracting and Business Development per 13 C.F.R. § 126.805. But those appeals, in our experience, are fairly limited and SBA does not publish the appeal decisions, meaning they provide little help for companies and attorneys wishing to understand how SBA interprets its HUBZone This is a big step for SBA and will certainly bring consistency and insights to the protest process and regulatory interpretation for HUBZone participants, bringing that program more in line with other SBA programs.

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Goodbye PTAC, Hello APEX Accelerators

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The Department of Defense (DOD) and the Small Business Administration (SBA) signed a memorandum of understanding (MOU) on Friday, December 2, 2022, in a bid to strengthen and expand small business development nationally. The most obvious immediate change is that the more than 90 Procurement Technical Assistance Centers (PTAC) will be renamed APEX Accelerators, and the DOD and SBA are hopeful that this rebranding will bring new life to  the program, which provides free procurement assistance to small businesses that work with all levels of the government, whether federal, state, or local.

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GAO Sustains Protest to Best Value Trade Off Where Agency Only Considers “Outstanding” Proposals, Without Weighing Price/Non-Price Factors

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The federal government contracting solicitation, proposal, and selection processes are something that all federal government contractors should strive to know. These methods, found in FAR parts 14 and 15, respectively, can be boiled down to two methods: sealed bidding and contracting by negotiation. Contracting by negotiation can occur either through a competitive award or a sole source award. When used effectively, the parts of the FAR clue contractors into the methods that agencies use to evaluate proposals and can help contractors tailor their proposals to better target agencies’ needs, thereby increasing chances of award. Of particular importance is the method an agency will use to evaluate proposals, and the weight given to technical components of the proposal against the weight given to price. In KPMG LLP, B-420949 (Nov. 7, 2022), GAO takes a look at how agencies evaluate technical proposals and price, and how those evaluations work together in a best-value tradeoff decision.

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8(a) Program and EDWOSB: Are they Economically Disadvantaged Twins or Siblings?

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Two of the Small Business Administration’s programs require the applicant to demonstrate that they are economically disadvantaged: the 8(a) Business Development Program (8(a) Program) and the Economically Disadvantaged Woman-Owned Small Business Program (EDWOSB). The 8(a) Program requires applicants to be owned and controlled by both socially and economically disadvantaged individuals per 13 C.F.R. § 124.101. Applicants of the EDWOSB program must be owned and controlled by one or more economically disadvantaged women per 13 C.F.R. § 127.200(a)(2). But what exactly does it mean to be “economically disadvantaged,” and do both programs have the same requirements? Below I discuss the economically disadvantaged requirement contained in both programs. Read on to find out whether they are the same, and more.

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