Unpopulated Joint Venture Can Be “Manufacturer” For SBA Size Purposes

Posted on January 11, 2019 by SmallGovConContributor

When a small business sells products to the government under a contract designated with a manufacturing NAICS code, the small business either must be the “manufacturer” of the products, or separately qualify under the nonmanufacturer rule. The nonmanufacturer rule, in turn, requires the prime contractor to have no more than 500 employees, whereas manufacturers may fall under larger size standards–some as big as 1,500 employees.

But what about an unpopulated joint venture that doesn’t itself manufacture any products, relying on the individual venturers to manufacture the solicited goods? Does it also have to comply with the 500-employee size standard under the nonmanufacturer rule? Or can the joint venture be deemed the “manufacturer” of the products in question?

Agency May Request SDVOSB Recertification on MATOC Orders, Says GAO

Posted on January 10, 2019 by SmallGovConContributor

In a recent decision, GAO determined an agency could reasonably amend a solicitation for a task order issued under a set-side base contract to require offerors to recertify their size and SDVOSB status at the task order level.

COFC: Agency Cannot Ignore Changed Solicitation Requirements after 4-Year Bid Protest Saga

Posted on January 9, 2019 by Shane McCall

A recent court case details the aftermath of a bid protest battle lasting over four years. During that period, the agency’s requirements had changed, and the court held that the agency was required to amend its solicitation as a result.

GAO Affirms Broad Corrective Action Authority for Agencies

Posted on January 8, 2019 by SmallGovConContributor

As we have previously noted on the blog, a substantial number of protests filed before GAO end in voluntary corrective action taken by the protested agency. In recent decision, GAO addressed just how much discretion agencies have in designing corrective actions.

Spoiler alert: it’s a lot.

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

Posted on January 7, 2019 by Steven Koprince

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).

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

Posted on January 4, 2019 by SmallGovConContributor

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!

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

Posted on January 4, 2019 by SmallGovConContributor

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.