GAO Highlights SBA Oversight Issues with WOSB Certification and Lack of Use of WOSB Set-Asides

This is our second blog on GAO’s recent report on SBA’s management of the Woman-Owned Small Business program. Here is our initial post.

In the report, GAO analyzes SBA’s oversight of the current certification program, and reports on its study of why contracting officers don’t use the WOSB set-asides as much as one might think.

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SmallGovCon Week In Review April 29, 2019-May 3, 2019

Hope everyone is ready for the weekend. Around here, we’ll be enjoying a break from the intense rain that’s been coming down in the Lawrence area over the past week. What better way to welcome the weekend than with a review of what’s been happening in the government contracting world?

In this week’s roundup, we take note of new DoD rules on performance based contract payments and fixed-price contracts, ramifications of changes in the security clearance process, changes in supply chain security programs, and more.

Enjoy your weekend!

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GAO to SBA: Please Address “Ongoing Oversight Issues” for the WOSB Program

GAO recently issued a report on several ongoing issues with SBA’s management of the Woman-Owned Small Business program. Because of the number of issues in the report, we’ll summarize it in a few posts.

In this post, we’ll provide some background on GAO’s review of the WOSB program and address how (and whether) SBA has implemented the changes required in the WOSB program by the 2015 National Defense Authorization Act. Long story short, SBA has still not done all Congress has asked of it in the 2015 NDAA, particularly with regard to eliminating WOSB self-certification.

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VA CVE, Under New Rules, Closely Examining Franchise and Similar Agreements

Government contractors seeking to be certified through the Vets First Verification Program under the VA’s Center for Verification and Evaluation have to submit a number of documents. We’ve recently been hearing that CVE is taking a closer look at some of these documents, and this is in line with VA’s recent rule change expanding its list of required documents for verification.

Specifically, CVE will examine franchise agreements and similar documents like distributor agreements. Depending on the language in those agreements, this could lead to a denial of CVE verification. Because of that, we offer a reminder of CVE’s position on these types of agreements, which seems to still be quite strict in spite of regulatory changes implemented last fall.

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Losing Key Owners of SBA Set-Aside Businesses – Now Out in Contract Management Magazine

Clients who own businesses under one of SBA’s socioeconomic designations have often asked us, what happens after I’m gone? Meaning, if the key owner becomes incapacitated or dies, what happens to the set-aside designation for future contracts and ongoing contracts, and are there restrictions on transferring the ownership interest?

While we can’t answer all their questions, my recent article in the March 2019 issue of Contract Management Magazine (the monthly publication of the National Contract Management Association), outlines some of the key issues and answers from the government contracting perspective.

The magazine has nicely allowed us to reprint the article. Click here to read!

SBA OHA: Common Investment Affiliation Analysis Not Tied to Entity Treatment on Tax Returns

Common investment affiliation can arise when SBA believes that two individuals’ common investments in multiple entities may make the individuals in question act with a common purpose. As few as two common investments can form the basis for affiliation.

A recent SBA Office of Hearings and Appeals opinion examines the argument that the number of common investments should be counted the same way the number of entities is treated for tax purposes. OHA’s answer: Nope.

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GAO Investigates Buy American Act Exceptions and Waivers

The Buy American Act includes a number of waivers and exceptions. The Section 809 panel, for one, has called for expanding these exceptions, at least for the DOD. A recent GAO report examines how agencies apply the existing waivers and exceptions to the Buy American Act.

GAO’s general opinion is that agencies should improve their Buy American Act data reporting and enhance training on its waivers and for procument personnel. The report also provides some interesting details about the scope of the Buy American Act, and how agencies implement it.

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