Economic Dependence Affiliation Can Be Created By Single Contract

Economic dependence affiliation under the SBA’s affiliation rules can be created by a single ongoing contract, according to the SBA Office of Hearings and Appeals.

In a recent size appeal decision, SBA OHA held that a single contract amounting to more than 90% of an 8(a) applicant’s revenues over two years resulted in economic dependence affiliation.

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8(a) Joint Ventures Are Not 8(a) Program Participants, Says SBA OHA

8(a) joint ventures are not 8(a) program participants, according to a recent (and commonsense) decision of the SBA Office of Hearings and Appeals.

In its decision, SBA rejected a joint venture’s argument that its 8(a) joint venture agreement was essentially an 8(a) program application, drawing a jurisdictional decision between 8(a) program certification and 8(a) joint venture agreement approval.

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SBA’s Successor-In-Interest Affiliation Rule Limited To “Reborn” Companies

The SBA’s “successor-in-interest” affiliation rule provides that a government contractor can be affiliated with a dissolved or liquidated company, but only if the government contractor acquires “all, or nearly all” of the dissolved company’s assets and liabilities.

According to a recent commonsense decision of the SBA Office of Hearings and Appeals, the successor-in-interest affiliation rule does not apply when a government contractor acquires only some of the dissolved company’s assets and liabilities.

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SBA 8(a) Program: Termination For “Full Time Employment” Violation Upheld

A participant in the SBA’s 8(a) Program was appropriately terminated because the company’s disadvantaged owner took another full-time job without the SBA’s permission.

The recent SBA Office of Hearings and Appeals decision upholding the termination is an important reminder of the limitations on outside employment for 8(a) owners–as well as a reminder of the importance to 8(a) firms of ongoing honesty and forthrightness with the SBA.

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SDVOSB Joint Ventures: Supermajority Provision Defeats Eligibility, Says SBA OHA

A SDVOSB joint venture was not eligible for award of a SDVOB set-aside contract because its joint venture agreement called for certain decisions to be made by supermajority vote.

As explained by the SBA Office of Hearings and Appeals in its decision finding the SDVOSB joint venture ineligible, the supermajority provision undermined the regulatory requirement that a SDVOSB joint venture be managed by an eligible SDVOSB.

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SBA Doesn’t Fix Incorrect NAICS Code Regulation; Protester Pays The Price

A contractor’s NAICS code appeal was dismissed as untimely, even though it was filed within the time frame expressly established in an SBA regulation.

In a recent decision, the SBA Office of Hearings and Appeals confirmed its earlier ruling that a NAICS code appeal must be filed within ten calendar days, despite an SBA regulation establishing a filing deadline of ten business days.

SBA OHA’s decision isn’t surprising in light of its prior ruling.  However, in my mind, the decision raises a question of fundamental fairness: should protesters continue to be penalized for the SBA’s failure to fix its conflicting timeliness regulations?

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SBA OHA Decision Highlights Joint Venture “Individual Size Treatment” Rule

The SBA misevaluated a joint venture by basing its ineligibility decision on the joint venture’s revenues, rather than determining whether each joint venturer, individually, qualified as a small business, according to a recent decision of the SBA’s Office of Hearings and Appeals.

SBA OHA’s decision highlights what I like to call the “individual size treatment rule,” a special regulation requiring the SBA to deem a joint venture “small” under certain circumstances, even when the combined sizes of the joint venture’s members exceed the applicable size standard.

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