The SBA ostensible subcontractor affiliation rule has long confused contractors and their attorneys alike because its standards were not very clear. It was based on whether, in a small business contract, a subcontractor performs the “primary and vital requirements of a contract” or the prime contractor was “unusually reliant” on the subcontractor. SBA’s Office of Hearings and Appeals filled in the gaps on these terms. But in 2023, SBA updated its definition for these rules, declaring that if a small business prime contractor (other than under a general construction contract) met the limitations on subcontracting, it basically was not violating the ostensible subcontractor rule. A recent case looked at a circumstance where a small business prime contractor was not meeting the limitations on subcontracting.
Continue readingAuthor Archives: Shane McCall
SmallGovCon Week in Review: August 5-9, 2024
Happy Friday, All. Please enjoy our latest week in review in order to stay on top of federal contracting news. Some interesting stories include Senate efforts to enhance oversight of Other Transaction Authority (OTA) agreements and address delays in Major Acquisition Programs (MTA). Meanwhile, the GSA is pushing forward with updated standards to accelerate federal buildings toward zero emissions, reflecting a broader shift towards sustainability. In cybersecurity, CISA’s CDM program is set to tackle emerging threats in the cloud, while the Department of State is piloting AI adoption to improve operations. You can read more about these topics in the articles below. Have a great weekend!
Continue readingSmallGovCon Week in Review: July 22-26, 2024
Happy Friday! This week saw several large contract awards that reflect the federal government’s ongoing efforts to modernize its technology infrastructure, enhance defense capabilities, and improve emergency services and IT support across various agencies. In other news, SBA will be holding a tribal consultation that seeks to reduce administrative burdens and increase autonomy for Tribal Nations in addressing their specific needs. You can read more about this week’s developments in the articles below. And we will do a deeper dive into SBA’s recent announcement in an upcoming blog post. Have a great weekend.
Continue readingOstensibly OK: SBA Decision on Ostensible Subcontractor Rule Gives Contractors Some Clear Guidelines
In a recent post, we looked at the implications of BA OHA’s reasoning in In & Out Valet Co., SBA No. VSBC033-P, 2024 (June 12, 2024) on the full-time devotion requirement. Today we look at the impact of that case on another of SBA’s rules that has implications for both small businesses and for companies in the 8(a) Program, Women-Owned Small Business Program (WOSB), and the Service-Disabled Veteran-Owned Small Business Program (SDVOSB)–the ostensible subcontractor rule. The rule requires contractors not to rely too heavily on a subcontractor in the performance of a contract set aside under an SBA socioeconomic program. In practice, this standard may be confusing to a lot of hopeful contractors. What, after all, constitutes “undue reliance?” How reliant is too reliant? OHA’s reasoning in this recent decision helps clarify their application of the regulations, with results that may have far-reaching implications.
Continue readingSmallGovCon Week in Review: July 15-19, 2024
Happy Friday! July sure is flying by! We’ve been very busy here at SmallGovCon with all that is happening in the federal government contracting world. We have included an extensive list of informative articles for this week in review.
At the top of our week in review articles, SmallGovCon contributor Nicole Pottroff was quoted in a touching Washington Post story that we have included this week, concerning the SBA’s 8(a) Program social disadvantage narrative requirements. Enjoy your weekend!
Continue readingSmallGovCon Week in Review: July 8-12, 2024
Hello readers and happy Friday! We hope you had a nice 4th of July and were able to spend some time with friends and family. This week’s round-up of federal government news, includes some cautionary tales on why defrauding the government is a very bad idea, the impact of the Boeing guilty plea on its federal contracts, and commentary on the Percipient.ai case and its effect on COFC jurisdiction.
Have a great weekend!
Continue readingHappy Independence Day from SmallGovCon!
We at SmallGovCon wanted to take a moment to wish everyone a happy and safe Independence Day! It’s always a great time to celebrate our nation and be with family and friends. But it’s also a time to reflect on the sacrifices made by those who came before us and those who have served our country in myriad ways. The citizens of a nation must always strive to improve its governance and civil participation. And federal contractors are a key part of how the government operates. Happy 4th of July!