Size and status protests, which are reviewed by the SBA’s Office of Hearings and Appeals (OHA), are far less common than GAO protests which protest an evaluation aspect of a solicitation or award. But when they are used they can be a powerful tool to keep contracting dollars intended for small businesses to stay with small businesses. In the case of Winergy, LLC, OHA takes a look at an award intended for SDVOSBs, to determine if the awardee is in compliance with the ostensible subcontractor rule or if it is subcontracting out the primary and vital parts of the contract. The lesson? If you want to keep an award, be sure that you, or a similarly situated subcontractor, will be performing the primary and vital parts of the contract and that you can support that assertion with evidence.
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Executive Order for Nondisplacement of Federal Workers Rescinded
Indeed, Executive Order (EO) No. 14055, Nondisplacement of Qualified Workers Under Service Contracts, was only one of many predecessor EOs rescinded by the Trump administration shortly after taking office. But its removal has significant impacts on federal government contracting. As explained in EO No. 14055, its requirements sought to promote skilled worker retention in the federal workforce by placing requirements on contractors (and subcontractors) to provide the service employees from predecessor service contracts an essential right of first refusal of employment in successor or follow-on contracts. But EO No. 14055 has now been officially rescinded as part of the new administration’s stated policy to lift any orders it felt were “replacing hard work, merit, and equality with a divisive and dangerous preferential hierarchy.”
Continue readingFAR Council Establishes New Size and Status Rerepresentation Rules
The FAR Council recently published a final rule dealing with small business certification issues, effective on January 17, 2025. This final rule came about to ensure that certain parts of the FAR and SBA rules are consistent. The change? Adding additional circumstances that require an awardee to rerepresent its size and/or socioeconomic status for orders placed under a multiple-award contract (MAC) per FAR 52.219-28(c) Postaward Small Business Program Rerepresentation.
However, this FAR rule updates the regulation to match the SBA rule that had been issued in 2020, back when SBA consolidated its Mentor-Protégé Program. In the mean time, SBA had updated its recertification rules as discussed in this post outlining the new recertification rules. Under the recent regulation, SBA will be implementing its strategy to include new 13 C.F.R. § 125.12, which sets forth disqualifying size and status events, which would render a business “ineligible for future set-aside or reserved awards, including awards of set-aside or reserved orders against pre-existing unrestricted or set-aside multiple award contracts” if it causes the business to be other than small. In addition, “for a multiple award small business set-aside or reserve, a concern that recertified as other than small or other than the required small business program would be ineligible to receive options.
Unfortunately, the FAR rule will have to be updated again to deal with SBA’s January 2025 rule. Until then, below is what the FAR rule contains. Contractors must be aware of both rules to stay on top of their small business recertification requirements. And contractors may need to inform agencies about what the new SBA rules state.
Continue readingNew OCI Rule Contains Big Changes
The proposed OCI rule implementing the Preventing Organizational Conflicts of Interest in Federal Acquisition Act has just dropped. We started discussing the Act back in early 2023 after it was passed in late 2022, and I outlined my predictions at the Court of Federal Claims judicial conference. This 108-page rule will propose some major changes for organizational conflicts of interest.
Here is a summary of some of the big changes proposed in this new rule. For those concerned about potential organizational conflicts of interest, the examples included in this proposed rule are greater in number than before, and very specific about the situations that may give rise to conflicts. This could empower agencies to look at OCIs more closely than they have in the past. Stay tuned for more updates on SmallGovCon.
Continue readingGame Changers for Government Contractors: Understanding the Small Business Rule of Two
Thanks to Michael LeJeune for hosting me on his podcast, Game Changers for Government Contractors. It’s always great talking to Michael and this is a very pertinent topic for a lot of contractors. The Rule of Two is undergoing some changes in proposed rules and federal contractors need to be aware of those changes. In this episode, I discuss what the Rule of Two is, how it impacts small business set-asides, and the recent changes affecting task orders under multiple award contracts (MACs). We also discuss valuable insights on the differences between the SBA’s Rule of Two and the VA’s version, key exceptions, and how small businesses can respond if they see non-compliant procurements. If you’re a small business looking to leverage the Rule of Two to win more contracts, this episode is packed with actionable strategies and expert advice to help you navigate these changes effectively.
To listen on your favorite podcast platform, click below:
🎙️FA: https://federal-access.com/ep-352-understanding-the-small-business-rule-of-two/
🎙️Apple Podcasts: https://apple.co/3y4sNdA
🎙️Spotify: https://spoti.fi/3SPTZoB
📺To watch, click here: https://youtu.be/xDeoiIEpBeI
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How Extraordinary! Revised SBA Rule Gives Clear Guidance on Extraordinary Circumstances
Many of the SBA’s small business programs have restrictions on what are commonly referred to as “extraordinary circumstances” or “extraordinary actions.” It’s a topic that we have discussed many times before, including this blog post discussing a case at SBA’s Office of Hearings and Appeals, reviewing extraordinary circumstances in the context of control and operating agreements. SBA often discusses extraordinary circumstances in the context of joint venture control, where the managing venturer must control decisions except for those considered to be extraordinary. But there is a different meaning in the context of an entity seeking certification under an SBA socioeconomic program, where the qualifying individual must have control over all actions and circumstances except for those determined to be extraordinary. This post will focus on the latter situation. And, as any knowledgeable small business federal government contractor can attest to, knowing what actions are and are not extraordinary, is very important to maintain eligibility for the SBA’s programs.
Continue readingNews Flash: SBA Releases Final HUBZone Rule Update, Other Small Business Changes
SBA has released the final rule for the HUBZone Program Updates and Clarifications, and Clarifications to Other Small Business Programs on December 17, 2024. As we have discussed, this rule made a lot of changes to the HUBZone program. But it also updated a lot of other small business rules. Below are the details on some of these significant changes. This rule will be effective on January 16, 2025.
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