The SBA’s ostensible subcontractor rule can be a minefield for small prime contractors, who must be careful to avoid risk factors for affiliation with their large subcontractors.
But not every small prime need worry about ostensible subcontractor affiliation. As a recent SBA Office of Hearings and Appeals decision confirms, the ostensible subcontractor rule does not apply to procurements for manufactured products.
Continue reading…I was going to wish a Happy New Year to our readers, and I still hope people are having a nice start to the New Year. But the recent violence in the Capital has cast a pall over the start to this year. As citizens of this fine country and people striving to improve federal government services, I think we can agree it was an event that should never be repeated.
But, as federal contractors know, the government continues to function and we bring you these recent federal contracting updates, including reports on spending in the last fiscal year, relief funds going to contractors, and an expansion of Women’s Business Centers.
Continue reading…The DoD, NASA, and GSA have proposed new rules aimed at providing transparency for reverse auctions after GAO reports in 2013 and 2018 signaled the need for guidance on reverse auctions to achieve cost savings and reduce fees.
As context, the FAR was amended in 1997 to allow for the use of reverse auctions. Six agencies conducted approximately 15,000 reverse auctions in 2016 alone. Reverse auctions, despite their wide use, are not without controversy. Application of fees, and inability to verify actual cost savings plague the use of reverse auctions.
Private companies have developed software and services which companies use to, hopefully, increase their chances in reverse auctions.
As a result, a new proposed rule is open for comments here.
Continue reading…When a federal solicitation is vague, ambiguous or internally contradictory, it is common for offerors to hold their tongues. Instead of challenging the solicitation’s defects before proposals are due, many offerors decide to submit proposals and “see how it plays out.” Later, if the award goes to a competitor, these offerors may try to protest the solicitation’s defects.
It’s unsurprising that offerors can be reticent to rock the boat before an award is made. But a recent GAO bid protest decision demonstrates, complaining about the ground rules after award rarely works.
Continue reading…Since the COVID-19 Relief Bill passed was enacted on December 27 (including the 8(a) term extension that we discussed earlier), the 15-day window for SBA’s rules on the extension falls on January 11. Here are some thoughts on how we think SBA may fill in the gaps for this important 8(a) term extension, based on our interpretation of the statute and feedback from SBA.
Continue reading…While it’s always exciting to look to a new year, moving on from 2020 will be especially meaningful. However, there were a number of important updates to federal contracting rules in 2020 that we were excited to share with our readers.
We wish our readers a happy and healthy start to 2021! We’ll continue to keep you up to date on all matters federal contracting.
In a recent decision, OHA ruled that the ostensible subcontractor rule requires a two-prong evaluation before SBA can find affiliation. The SBA Area Office took a look at only one prong, which resulted in a remand from OHA. Ultimately, OHA found affiliation, reversed the SBA Area Office and found the concern ineligible. As OHA made clear, entities can’t fix deficiencies after the fact.
Think of the ostensible subcontractor rule like the preferred go-to move (other than line dancing) at a Country/Western Dance Hall, it is the ostensible subcontractor two-step. Follow along as I lead you through the dance you need to get right to avoid stepping on the toes of your proposal.
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