COFC: Ostensible Subcontractor Rule for General Construction Still Looks at all Circumstances 

As frequent SmallGovCon readers know, the Small Business Administration’s ostensible subcontractor rule can be tricky to navigate. The rule requires contractors not to rely too heavily on a subcontractor in the performance of a contract set aside under an SBA socioeconomic program, but what constitutes relying too heavily can be confusing for small business contractors. Without a clear measure of how reliant is too reliant, businesses have to worry that they may be denied an award or even worse, lose one in a post-award protest. In a recent decision, Daniels Building Company, Inc. v. United States, 24-1787, 175 Fed. Cl. 767 (2025), the Court of Federal Claims (COFC) provided potentially helpful insight into what SBA’s Office of Hearings and Appeals (OHA) and the Court of Federal Claims will consider when determining whether a prime contractor is “unusually reliant” on its subcontractor. 

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SmallGovCon Week in Review: May 26-30, 2025

Happy Friday! The sun is shining here in the Midwest and after several days of rain, June is upon us. Time to get the lawn mower started this weekend. We hope you have some fun plans for the summer, other than mowing the lawn, with friends and family.

This week in federal government news, catch up on a potential small business rule of two statute, additional contract-cutting, and GSA becoming a central contracting power player.

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SmallGovCon Week in Review: May 19-23, 2025

Happy Friday, SmallGovCon readers! Hope you had a great week and have some nice plans for the long weekend. Memorial Day, originally known as Decoration Day, originated in the years following the Civil War and became an official federal holiday in 1971. Unofficially, it marks the beginning of the summer season. To all those that served and or on active duty, thank you for your service! Have a wonderful weekend.

This week in federal government contracting news, there are updates on an increase in government buying, cutting costs for large software vendors, and the federal budget.

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Switcheroo – FAR Change Allows Agency to Amend Solicitation to Broaden Eligibility for Procurement 

This past November, we observed a change in the rules regarding SAM registration requirements for procurements. Prior to this rule change, both GAO and the Court of Federal Claims (COFC) had found that the FAR requires offerors to maintain SAM registration throughout the evaluation period for a procurement. With the rule change, FAR 52.204-7 (the regulation at issue) now only requires that an offeror be registered at the time of offer submission and at the time of contract award. A lapse in SAM registration in between those events, in other words, would not be fatal to an offeror’s proposal. Unfortunately for one company, this resulted in a COFC case that essentially reversed its victory at a prior COFC protest. Today, we’ll look at this second case and what happened.

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SmallGovCon Week in Review: May 12-16, 2025

Happy Friday! You’ve made it through another week, and your reward is the Week in Review. This week saw some interesting stories: VA is getting a new top watchdog, there is a new budget proposal, and GAO is highlighting over $100M in potential savings from consolidating IT systems. You can read more about these topics in the articles below. Have a great weekend!

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SmallGovCon Week in Review: April 5-9, 2025

Happy Friday and Happy Mother’s Day weekend! Mother’s Day is a time to celebrate the incredible strength, love, and dedication that mothers show every day. Take a moment to say thank you, share a memory, or simply let her know how much she means.

This week in federal government contracting news included stories about the upcoming federal budget and updates to the National Defense Strategy.

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Govology Webinar Announcement! Small Business Size Standards and Affiliation: Lessons for Every Federal Contractor, May 15, 2025, 1:00pm EDT

For small business set-aside contracts, including socioeconomic set-asides like the 8(a) program, a federal contractor must meet the SBA’s size standards. These size standards vary by industry and solicitation and are based on either average annual receipts or the number of employees. But size alone doesn’t tell the whole story. Many small businesses are surprised to learn that they could be deemed affiliated with other entities based on factors such as ownership, management, family relationships, or subcontracting. If the SBA finds companies affiliated, it will combine the receipts or employees of the various companies, which can disqualify a company from small business programs.

In this training, you will learn:

  • How the SBA determines business size using receipts or employee counts
  • When and how size standards apply in federal contracting
  • Common size determination pitfalls small businesses face
  • The SBA’s concept of affiliation and why it matters (and doesn’t always match up with common sense)
  • The various SBA rules governing affiliation, and what does not trigger affiliation
  • How sharing resources, including subcontracts, in certain contexts could trigger affiliation
  • Examples of affiliation inspired by actual situations
  • Tips for avoiding unintended affiliation and staying compliant
  • What happens if you’re found “other than small”—and how to respond

Whether you’re new to federal contracting or looking to grow your small business through set-aside opportunities or partnering with small businesses, this session will give you the tools to know about small business size standards, affiliation, and positioning your company to play by these rules. 

Hope you can join us! Register here.