8(a) Mentor-Protege Joint Ventures and Subcontracts: An Underused Practice?

Posted on June 6, 2011 by Steven Koprince

The revised 8(a) program regulations adopted in March 2011 contained so many significant changes that some of them seem to have gotten lost in the shuffle. One of these unheralded changes allows a joint venture comprised of an 8(a) mentor firm and its SBA-approved protégé to joint venture as a small business for federal subcontracts. It’s a major change because under the old rule, SBA 8(a) mentor-protege joint ventures could only joint venture as “small” for prime contracts.

So, why aren’t more 8(a) firms taking advantage of this new mentor-protege joint venturing capability?

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8(a) Mentor-Protégé Agreements and Graduation: The Beat Goes On?

Posted on April 15, 2011 by Steven Koprince

After a participant in the SBA’s 8(a) Program graduates, can its mentor-protégé agreement be reapproved for another full year? Surprisingly, the answer may be “yes.” At least, this is what happened in the Armed Services Board of Contract Appeals’ decision in HMRTECH2 LLC, ASBCA No. 56829 (2009). However, subsequent rule changes indicate that the benefits of any such post-graduation re-approval will be limited to contracts obtained prior to graduation.

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Veteran Controls Both 8(a) Company and SDVOSB—By Working 95 Hours Per Week

Posted on March 27, 2011 by Steven Koprince

In the legal profession, some firms are known to encourage a workaholic culture. I have heard tales of associates spending multiple nights sleeping (a couple hours) on office couches, being called away from the Thanksgiving dinner table to work, or awoken by the proverbial “3 a.m. phone call” by a partner demanding immediate attendance at the office. The funny thing is that most of these stories come from the associates themselves—bragging about how much they work!

I work hard for my clients, but with a wonderful wife and daughter in my life, I am of the mind that some of the most important things are found outside the office. However, one small business owner, who was the subject of a recent SBA Office of Hearings and Appeals decision, might feel right at home in one of those workaholic law firms. This business owner was able to convince SBA OHA that he worked full time both for his 8(a) company and his separate service-disabled veteran-owned small business—by putting in a whopping 95 hours per week.
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Applying for 8(a) Certification? Address Potential SBA Affiliation Problems First

Posted on February 22, 2011 by Steven Koprince

Affiliation under the SBA’s rules typically becomes a problem when a small business submits an offer on a set-aside procurement, and a competitor files an SBA size protest, challenging eligibility. But the SBA will examine affiliation issues in other contexts, including when a small business submits an application for the SBA’s 8(a) Business Development Program.

As one unfortunate contractor recently learned, if you do not solve any affiliation problems before you submit your 8(a) application, the SBA may not only reject your 8(a) Program application, but deem you a large business, ineligible to obtain small business set-aside contracts in your primary NAICS code.

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