Ostensible Subcontractor Rule: Management Ain’t Enough to Comply

When it comes to the SBA’s ostensible subcontractor rule, managing a contract, by itself, is not enough to avoid affiliation.

As demonstrated in a recent decision of the SBA Office of Hearings and Appeals, a small business and its subcontractor violate the ostensible subcontractor rule whenever the subcontractor will perform the primary and vital work required under the prime contract–even if the small business will perform the management function.

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SmallGovCon Week in Review: September 16-20, 2013

In this week’s SmallGovCon Week In Review, the American Legion asks an appellate court to overturn the infamous Kingdomware SDVOSB decision, the Office of Management and Budget prepares for a potential government shutdown, a blogger writes that despite new rules, small subcontractors may be mistreated by large primes, and much more.

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Small Business Set-Asides Not Required For Simplified Acquisitions Outside U.S., Says GAO

Small business set-asides are not required for simplified acquisitions conducted outside the United States and its outlying areas, according to a recent GAO bid protest decision.

In Latvian Connection General Trading and Construction LLC, B-408633 (Sept. 18, 2013), the GAO rejected the protester’s contention–which was backed by the SBA–that simplified acquisitions must be set-aside whenever the “rule of two” is satisfied, notwithstanding the fact that the procurement is outside the United States.

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SBA 8(a) Program: Participant Terminated For Missing Annual Report

When it comes to the regulations governing small government contractors, lateness can lead to tough consequences.  For instance, responding late to a small business size protest might cause the SBA to conclude that the contractor is a large business, and a late proposal submission can get a bid tossed out.

Lateness can also lead to severe consequences within the SBA 8(a) program.  In a recent decision, the SBA Office of Hearings and Appeals held that the SBA properly terminated an 8(a) program participant because the participant had failed to submit a complete 8(a) annual report–months after the deadline had passed.

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Affiliation, Fourth Quarter Spending and Teaming: Position To Win Radio Show

In today’s segment of our BlogTalk  radio show, Position to Win, Guy Timberlake, Larry Allen and I discuss:

  • A recent SBA OHA decision on economic dependence affiliation
  • Fourth quarter spending projections in the year of sequestration
  • Teaming and mentor-protege relationships

Tune in to Position to Win every two weeks for more insights, commentary, and wisecracks.

SmallGovCon Week In Review: September 9-13, 2013

As the end of the fiscal year nears, keeping up with the news may be the last thing on the minds of small government contractors.

So, in case you missed it, this week’s SmallGovCon Week in Review features a dispute over the VA’s SDVOSB contracting practices, the Federal Times‘ take on procurement reforms proposed by the Professional Services Council, a thoughtful blog by Guy Timberlake on small business goals, and much more.

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8(a) Program: OHA Judge Slams SBA For Claim It Cannot Play DVDs

The SBA’s claim that it could not access information provided by an 8(a) program applicant in DVD format was “not credible,” according to a recent 8(a) program appeal ruling issued by the SBA Office of Hearings and Appeals.

In Sunrise Staffing, SBA No. BDPE-499 (2013), the SBA OHA–in an unusually sharply-worded opinion–rejected the SBA’s excuses for not reviewing relevant information provided by the 8(a) program applicant, and granted the applicant’s 8(a) appeal.

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