SDVOSB’s ESOP Caused Ineligibility, Says SBA OHA

A SDVOSB’s Employee Stock Ownership Plan caused the company to be ineligible under the SBA’s SDVOSB rules because the service-disabled veteran did not own 51% of the ESOP class of stock.

A recent SBA Office of Hearings and Appeals decision should serve as a cautionary tale to any SDVOSB contemplating establishing an ESOP–or any other ownership structure consisting of multiple classes of stock.

Continue reading

NAICS Codes & SAM: Listing Solicitation’s Code Not Required

Contrary to a common misconception, a contractor need not list the solicitation’s NAICS code in its SAM profile in order to qualify for contract award.

In a recent bid protest decision, the GAO confirmed that the government may award a contract to a small business even if the awardee does not list the solicitation’s NAICS code in its SAM profile.

Continue reading

SBA 8(a) JVs: No OHA Appeals Of Disapprovals

The SBA’s Office of Hearings and Appeals does not have jurisdiction to hear an appeal challenging the SBA’s refusal to approve a joint venture for an 8(a) set-aside contract.

In a recent decision, OHA dismissed an appeal filed by an 8(a) mentor-protege joint venture, in which the joint venture attempted to challenge the SBA’s decision not to approve the joint venture to pursue an 8(a) set-aside.

Continue reading

GAO: Subcontracting Plan Requirement Applies Broadly

When a Contracting Officer determines that subcontracting possibilities will exist under a qualifying unrestricted contract, subcontracting plans are required from all offerors other than small businesses–including entities that do not intend to issue any subcontracts.

In a recent bid protest decision, the GAO rejected a protester’s argument that the subcontracting plan requirement is to be determined on an “offeror by offeror” basis, and held that the requirement to provide a subcontracting plan is broadly applied.

Continue reading

GovConChat: The 2015 NDAA

Last week, I joined Guy Timberlake of the American Small Business Coalition for another segment of the popular “GovConChat” podcast series.

Guy and I discussed the impact of the 2015 National Defense Authorization Act on small contractors, including provisions (or a lack thereof) involving SDVOSBs, WOSBs, and reverse auctions.  Guy and I also chatted about a recent allegation of HUBZone fraud stemming from a contractor’s alleged use of a “virtual office” as its supposed HUBZone location.

It’s always a pleasure speaking to Guy, who brings a great perspective to the issues (as well as a memorable voice tailor-made for podcasts).  Check out the full podcast by following this link, and be sure to check out the GovConChat archives for Guy’s conversations with other movers and shakers in federal procurement.

WOSB Program: 2015 NDAA Eliminates Self-Certification

With little fanfare, Congress just passed legislation eliminating the ability of WOSBs to self-certify for purposes of WOSB set-aside contracts.

The 2015 National Defense Authorization Act rewrites the portion of the Small Business Act governing WOSB set-asides, deleting what I have called the “trust but verify” option: the ability for putative WOSBs to self-certify as such, then back up their self-certifications by submitting supporting documentation to the WOSB Document Repository.  Instead, the 2015 NDAA would appear to require a formal certification in order for a small business to be awarded a WOSB set-aside contract.

Continue reading

Thank You, Veterans!

I am back in the Midwest after traveling to Atlanta last week for the National Veterans Small Business Engagement.  This annual event was everything it was cracked up to be, featuring an incredible array of government officials, veteran-owned businesses, large prime contractors, and industry leaders.

Thank you to everyone who attended my learning session on GAO bid protests–you were a very engaged audience.  Thank you, as well, to the organizers of the event, who assembled an outstanding variety of sessions and kept everything running very smoothly.

Thanks also to all of my veteran-owned clients and contacts who attended from all over the country.  It was good to see so many familiar faces, and in some cases to put faces to names for the first time.  And most importantly, for all the veterans who attended (and those who were unable to do so this year), thank you for your service to our country.