Why Does the 8(a) Program Penalize Older Business Owners?

The 8(a) Program can offer incredible opportunities: sole source contracts, set-aside competitions, mentor-protege relationships, SBA business training and much more.

But for business owners older than 59 1/2, getting admitted to the 8(a) Program can be very difficult: unlike their younger counterparts, funds these owners have saved in traditional retirement accounts will likely count against the 8(a) Program’s $250,000 adjusted net worth cap.

How is this fair? (Spoiler alert: in my opinion, it ain’t).

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SmallGovCon Week In Review December 24, 2018–January 4, 2019

Happy New Year! It looks as if the government needed a longer holiday break than planned. As we enter the third week of the shutdown, it’s our hope that the powers-that-be might reach a quick resolution and let government personnel and contractors alike get back to work.

In this two-week New Year’s edition of the Week In Review, we’ll look (of course) at the effects of the shutdown. But we’ll also look at the need for transparency in the upcoming year’s procurement process, how a contract dispute led up to the closing of living history in Washington D.C., and much more.

Happy New Year—2019 is going to be an exciting year!

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Update: SBA Says 5-Year Receipts Calculation Period Not Yet Effective

On December 17, 2018, the Small Business Runway Extension Act became law. As we’ve previously written, this Act had a single purpose: to extend the measurement period of the SBA’s calculation of average annual receipts, from three years to five.

We opined that the Act became effective with the stroke of the President’s pen. Just a few days ago, however, the SBA disagreed—according to the SBA, the 5-year calculation period will not become effective until its regulations are revised.

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Realities of Cost Recovery in the Wake of the Federal Shutdown

Shuttering of the government (or parts of the government) following appropriations lapses has become an increasingly common phenomenon in recent years. Funding lapses interrupt the usual predictability of government operations, which is often to the detriment of both agencies and federal contractors that are left in proverbial limbo with stop work orders.

Unfortunately, unlike many other topics, the FAR does not substantively address procedures for contractors during or following a government shutdown. As such, recovering expenses incurred as a consequence of government shutdowns can be challenging.

Here are some pointers.

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Failure to Update Joint Venture Agreement Costs Mentor-Protégé SDVOSB JV a Contract

Updating your joint venture agreement is essential to maintaining compliance with SBA’s regulations and failing to update could cost you contracts.

In Stacqme, LLC, SBA No. SIZ-5976 (Dec. 10, 2018), the SBA Office of Hearings and Appeals held that a mentor-protege joint venture’s failure to update its JV agreement caused the agreement to be non-compliant with the SBA’s rules, and meant that the joint venture was ineligible for an SDVOSB set-aside contract.

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