FAR 52.222-46 Again? GAO Sustains Protest that Agency Price Evaluation was Unreasonable

Agencies get a lot of discretion when it comes to evaluating proposals. We’ve explored several different cases where GAO affirmed this principle. However, this principle is not absolute. Contrary to what some might think, there are limits on an agency’s discretion when it comes to how it evaluates proposals. Recently, the Air Force was reminded of this fact in a GAO protest concerning a price evaluation. We explore that decision here.

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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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Be Careful, FAR Updates Generally Not Retroactive, Says COFC

The United States Court of Federal Claims (COFC) produced another decision focused on SAM registration and related FAR updates. We previously discussed the changes to the FAR no longer requiring constant SAM registration to be awarded a contract. We have also blogged on a recent COFC decision regarding solicitation amendments based on the new FAR rule. But, what happens if the old FAR rule, such as one regarding SAM registration, is still in a solicitation and the agency does not amend the solicitation?

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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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Why File: A Once 8(a), Always 8(a) Protest

As our SmallGovCon readers might know, the SBA’s 8(a) Business Development Program is often thought of as the golden goose of federal government contracting, at least for small businesses. And it’s true, in some respects. While it is the most difficult of the SBA’s socioeconomic programs to gain admittance to, if admitted, you stand to reap large benefits such as access to competitive and sole-source contracts. And another SBA rule limits the ability to move contracts away from 8(a) Program set-asides. In that scenario, a contract that had been restricted to 8(a) Program Participants is recompeted as a set-aside for small businesses generally or a different socioeconomic category (SDVOSB, WOSB, HUBZone). Less frequently, it might not set aside for small businesses at all. If that happens, what should you do? Well, you should be familiar with what is commonly referred to as the “once 8(a), always 8(a)” rule as well as when to protest a violation of that rule.

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