Author Archives: Steven Koprince

SBA OHA: Contractor Successfully Fractured Economic Dependence Affiliation

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A contractor is not economically dependent upon another firm where it receives only a small proportion of its revenues from the other firm as of the self-certification date for a set-aside contract–even if the contractor previously received more than 70% of its annual revenues from the other firm.

This was the commonsense decision of the SBA Office of Hearings and Appeals in a recent size appeal case, in which SBA OHA held that a contractor’s prior economic dependence on another company does not necessarily mean that the companies are still affiliated under the SBA’s affiliation rules.

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SBA OHA Overturns Another 8(a) Program Denial

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The SBA’s Office of Hearings and Appeals has overturned yet another SBA 8(a) Program denial decision–at least the fifth such instance since December 2012.

As with the four previous cases, SBA OHA’s most recent 8(a) appeal decision indicates that the SBA improperly evaluated the applicant’s evidence of social disadvantage, both by misapplying the regulatory test for social disadvantage and by requiring the applicant to meet a higher standard of proof than called for by law.

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SDVOSB Fraud: DOJ Alleges Non-SDVs Received $13 Million

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Two brothers fraudulently misrepresented themselves to be service-disabled veterans and received $13 million in VA SDVOSB set-aside awards, according to a U.S. Department of Justice press release.

The brothers, Raymond Testa and Gerald Testa, both of New York, were recently arrested and charged with major wire fraud.  If convicted, they face penalties of up to 10 years in prison and/or a fine of up to $1 million.

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VA CVE: SDVOSB Reconsiderations Taking 128 Days

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Did your company file a request for reconsideration of a VA CVE SDVOSB verification denial?  If so, be prepared to wait awhile–approximately 128 days, according to a recent VA CVE email.

The email, which was sent to a number of SDVOSBs and VOSBs (and kindly shared with me) indicates that the VA CVE is currently processing approximately 300 requests for reconsideration.  As a result, the VA CVE says, the time frame to process a request for reconsideration is now more than double the regulatory goal of 60 days.

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Don’t Forget: Mentor-Protege Town Hall Next Week

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Join me in Oklahoma City March 26-28 as the Mid-America Government Industry Coalition hosts a town hall event on federal mentor-protege programs.

In the wake of major mentor-protege changes enacted in the National Defense Authorization Act, this event couldn’t be more timely.  The program features a diverse panel of subject matter experts from government and industry and will offer plenty of time for questions and networking.

All participants will receive a complimentary copy of my book, The Small Business Guide to Government Contracts.  Best of all, tickets to the March 27 NBA showdown between the Washington Wizards and Oklahoma City Thunder are available.

Please check out the event’s website and contact MAGIC with any questions.  I look forward to seeing you there!

GAO: Proposal Deadline Need Not Be Extended If Solicitation Amended

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The GAO has held that the deadline for offerors to submit proposals need not be extended when an agency issues an amendment to the solicitation, unless the failure to extend adversely affects competition or was a deliberate attempt to exclude an offeror.

In a recent GAO bid protest decision, the GAO rejected the protester’s contention that the agency should have extended the proposal deadline to allow offerors more time to respond to two amendments–which were issued three days and one day, respectively, before the proposal due date.

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After Successful 8(a) Appeal, Veteran-Owned Firm Gains 8(a) Certification

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After prevailing in its SBA OHA 8(a) appeal, a St. Louis-based communications and electrical construction contractor has been certified as a participant in the SBA’s 8(a) program.

The SBA’s decision to certify Innovet, Inc. shows the importance of pursuing an appeal of an unreasonable SBA 8(a) denial–and offers hope that the SBA is learning from its recent string of defeats at SBA OHA.

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