The Nonmanufacturer Rule: Even “Rich Chicks” Must Supply Small Business End Items

Under the nonmanufacturer rule, qualifying as a nonmanfucturer requires a small business to provide the end products of a small business–and even “Rich Chicks” must comply.

In a recent decision, the SBA Office of Hearings and Appeals held that a company named “Rich Chicks, LLC” had not complied with the nonmanufacturer rule because Rich Chicks’ proposal did not offer the end products of a small business.

Continue reading

NAICS Code Appeals: No New Challenges To SBA OHA Decisions

A NAICS code appeal cannot validly be filed against a NAICS code designated by the SBA Office of Hearings and Appeals.

In a recent decision, SBA OHA held that when SBA OHA determines the appropriate NAICS code as the result of a NAICS code appeal, that NAICS code cannot itself be attacked in a new NAICS code appeal.  The message to prospective offerors: participate in the initial NAICS code appeal, or hold your peace.

Continue reading

Newly Organized Concern Affiliation: “Key Employee” Must Influence Entire Company

Newly organized concern affiliation under the SBA’s affiliation rules did not exist when the alleged former key employee of the affiliate did not exercise influence over the entire company.

In a recent decision, the SBA Office of Hearings and Appeals held that no matter the size of the alleged affiliate, a former “key employee” must have had the ability to influence the entire company in order for the newly organized concern affiliation rule to apply.

Continue reading

SBA OHA Size Appeals: Request To Reopen Does Not Extend Filing Deadline

A company on the losing end of a SBA size protest can ask the SBA Area Office that issued the decision to consider reopening the size determination case.  However, the 15-day window in which to file a size appeal with the SBA Office of Hearings and Appeals is not extended by virtue of a request to reopen.

In a recent decision, SBA OHA dismissed a size appeal as untimely, holding that the 15-day appeals window begins upon the receipt of the size determination–not upon the SBA Area Office’s refusal to reopen the size determination.

Continue reading

8(a) Task Orders: No Automatic Size Recertifications

Submitting a proposal for a task order under an 8(a) Government Wide Acquisition Contract does not result in automatic recertification of the offeror’s small business size status.

In a recent decision, the SBA Office of Hearings and Appeals held that unless the Contracting Officer expressly requires recertification, an offeror’s size for an 8(a) set-aside task order is governed by that offeror’s size status for the underlying GWAC.

Continue reading

SBA Affiliation Rules: Contractor Affiliated With Puerto Rico, Says SBA

Now here’s one you don’t see every day.  In a recent size appeal decision, the SBA Office of Hearings and Appeals upheld the SBA’s determination that the contractor was affiliated with the government of Puerto Rico.

In Size Appeal of Industria Lechera de Puerto Rico, Inc., SBA No. SIZ-5533 (2014), SBA OHA held that the contractor’s relationship with the Puerto Rican government rendered the contractor, in essence, a quasi-governmental entity, not an independent small business.

Continue reading

SBA OHA Lacks Jurisdiction Over Set-Aside Decisions

The SBA Office of Hearings and Appeals does not have jurisdiction to review a contracting officer’s decision not to set aside a procurement for small business.

In a recent decision, SBA OHA dismissed a contractor’s contention that the procuring agency should have set aside a procurement for small business–and rejected the contractor’s underlying legal argument, as well.

Continue reading