HUBZone Fraud: Government Alleges “Virtual Office” Scheme

A HUBZone contractor has been accused of HUBZone program fraud for allegedly falsely claiming to be located in a HUBZone, when in fact the office in question was a “virtual office” where no employees worked.

According to a Department of Justice press release, the contractor not only misrepresented its principal office location, but submitted a fabricated lease to the SBA as part of its HUBZone application.

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VA CVE Dodges A Bullet: 2015 NDAA Omits SBA Verification Transfer

The VA CVE appears to have survived a Congressional effort to strip the CVE of its verification function.

In May, the House of Representatives included a provision in the 2015 NDAA that would have required the CVE to transfer SDVOSB verification to the SBA.  But after negotiations with the Senate, the House passed a new version of the 2015 NDAA last week–and the new version omits the verification transfer provision.

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8(a) Mentor-Protege JVs: Faulty JV Agreement Results In Affiliation

An 8(a) program protege was deemed affiliated with its mentor–and ineligible for a small business set-aside contract–because the joint venture agreement between the mentor and protege failed to comply with certain mandatory 8(a) joint venture requirements.

In a recent decision, the SBA Office of Hearings and Appeals concluded that an 8(a) mentor-protege joint venture was not entitled to take advantage of the special exception from affiliation because of the flaws in its joint venture agreement.  OHA’s decision is an important reminder to 8(a) mentors and proteges of the critical importance of strictly complying with the 8(a) joint venture regulation.

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Agency Doesn’t Make SBA COC Referral; GAO Sustains Protest

A procuring agency erred by essentially assigning a small business a failing past performance score without referring the matter to the SBA.

In a recent bid protest decision, the GAO held that the assignment of a failing past performance score under a past/fail system constituted a non-responsibility determination–and that the SBA was entitled to review the agency’s determination under the SBA’s Certificate of Competency procedures.

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PTAC Spotlight: Washington PTAC Offers Broad Experience

Small businesses in Washington State are in luck: a highly experienced PTAC team is available to assist contractors with the ins and outs of federal contracting.

The Washington PTAC currently consists of 14 team members, several of whom were government contracting officers before joining PTAC.  This depth and breadth of knowledge allows the Washington PTAC to provide small businesses with practical advice stemming from real-world experience.

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Task Orders: Small Business Set-Asides Not Required, Says GAO

When issuing task order solicitations under unrestricted multiple award contracts, procuring agencies are not required to apply the so-called “rule of two” and set aside task orders for small businesses.

In a recent bid protest decision, the GAO–over the objections of the SBA–held that agencies “may,” but need not, set aside task orders under multiple-award contracts.  The GAO’s decision essentially overturns a 2008 decision in which the GAO held that the rule of two does require agencies to set aside task orders.

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GAO Bid Protests: “Sustains” Lower But “Effectiveness” Steady

The GAO sustained only 13% of bid protests in Fiscal Year 2014, down from 17% in the previous fiscal year.

But although some commentators might interpret the numbers as a sign that more non-meritorious protests were filed, the “effectiveness rate” (which measures sustain decisions plus voluntary agency corrective actions) remained steady at 43%.  In other words, agencies are taking corrective action more frequently in response to GAO bid protests–but when the agency doesn’t take corrective action, the protester’s odds of success may be long.

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