SBA Denies 8(a) Status Based on Applicant’s Ability to Successfully Overcome Gender-Based Discrimination in Her Field

OHA recently affirmed the 8(a) status denial of a 100% woman-owned small business performing in the historically male-dominated renewable energy field. The applicant—who SBA called an “advocate” and “mentor” to women in the industry—detailed specific instances of gender-based-discrimination that plagued her education, employment, and career.

But SBA was unmoved, instead focusing its analysis on the applicant’s triumph over these obstacles—apparently an indication that she was not socially disadvantaged in the first place. Unfortunately, this perplexing holding does fall in line with many past SBA denials of women-owned companies for 8(a) status.

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SmallGovCon Week in Review: June 3 – 7, 2019

Now that it’s summer, it means means hot weather, farmer’s markets, baseball, barbecues and all the other things on the summer bucket list. We hope you’re enjoying your summer!

This week, we share some interesting federal government contracting stories with you including new contracting initiatives at the Departments of Energy and Health and Human Services, a few bad behaving contractors getting sentenced for fraud and bribery and where to find several June contracting conferences.

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GAO: Exclusion Improper Because Former Official Didn’t Have Competitive Information

Hiring former government officials can sometimes be tricky business for contractors. As we discussed in a previous post, this is particularly true if the former official, based on work at an agency, could give the contractor a leg up in a specific procurement.

But hiring a former government official isn’t always a problem. And as a recent GAO decision illustrates, as long as the former official doesn’t have competitively useful, non-public information, an agency shouldn’t exclude an offeror from competition merely because it employs a former government official.

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Report: Federal Spending up $100B since 2015

GAO recently released a snapshot of 2018 fiscal year federal spending. Although it is a very high-level review, it provides some interesting information for government contractors. Among the highlights are the fact that federal discretionary spending has increased year over year and competitive contracts are becoming less common among defense agencies. GAO also identified four key high-risk acquisition areas that it is monitoring.

It’s dry stuff, but never fear, we read it for you. Here’s a quick summary of the findings.

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CAGE-y Evaluation: Agency Unreasonably Failed to Consider CAGE Codes Provided in Proposal

Facilities security clearances are a common requirement for Department of Defense procurements. While important for national security reasons, these solicitation requirements can also create confusion with respect to evaluation.

A recent GAO decision demonstrates how confusion can arise when a contractor holds multiple CAGE codes, only one of which corresponds to a cleared facility.

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SBA OHA: For Calculating Receipts, Look to Tax Returns

To calculate a company’s size under a receipts-based NAICS code, the SBA will add the company’s total income to its costs of goods sold, as those amounts are reported on its tax returns. In fact, the SBA’s regulations are clear that it must use these reported amounts to determine a company’s size status.

What happens, then, when a company’s taxes show “income” that might not really reflect money in the company’s accounts? The SBA’s Office of Hearings and Appeals recently considered this question, and affirmed a company’s ineligibility based on the income reported in its tax returns.

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SmallGovCon Week in Review: May 28 – 31, 2019

We hope you all enjoyed your Memorial Day Weekend. At the same time, our thoughts go out to to those affected by recent weather events, including a tornado that touched down just outside of Lawrence. While none of us at Koprince Law were directly affected by the tornado in Lawrence, many members of our community were. We thank the forecasters, first responders, and others who worked to warn us and are helping people rebuild after this event.

In this week’s roundup of recent news in the government contracting world, you can read some interesting items, including a study of how whistleblowers can reduce government fraud, government procurement innovations, and a request by the DOD to defend against cyber attacks.

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