HUBZone Program: SBA’s Proposed Rule Clears Up Some Common Misconceptions

Last week, the SBA released a proposal to overhaul the HUBZone Program.  The proposed rule will make major changes to almost all aspects of the HUBZone Program, and my colleagues are covering those changes in a series of two posts on SmallGovCon.

But while the proposed HUBZone Program rule changes will garner most of the headlines, the SBA also has used the proposed rule as an opportunity to clear up a few very common HUBZone Program misconceptions–such as the notion that so-called “jobsite employees” don’t count toward the 35% HUBZone residency requirement.

Here are three of the most important clarifications SBA offered in the proposed HUBZone rule.

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SmallGovCon Week in Review: October 29-November 2, 2018

The big government contracting news of the week was certainly the SBA’s proposed changes to the HUBZone regulations. But that wasn’t the only news. So let’s recap in this week’s edition of the SmallGovCon Week In Review!

Below, we’ll look at the DOD’s plan to audit registered SDVOSBs, an update on the CloudSmart strategy, and more.

Have a great weekend (and enjoy that leftover Halloween candy)!

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SBA Proposes Big Changes to the HUBZone Program

The SBA’s Historically Underutilized Business Zone program intends well—by directing awards to contractors in regions that have been passed by economically, the federal government has tried to lift these areas up. But the HUBZone program has exacting regulations, which (ironically) have helped cause it to be an underutilized tool for contracting officers. This could soon change.

On October 31, the SBA published a proposed rule that, if adopted, would bring clarity to the HUBZone regulations. In this post, we wanted to bring you up to speed on some of the more substantive proposed changes regarding certification requirements and the HUBZone protest process. Changes to employee definitions and requirements will be handled in another post.

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GAO: VA’s Compliance Oversight of Subcontracting Limitations Needs Improvement

Recently, the GAO issued a report discussing the VA’s Veterans First Program, made at the request of several members of Congress. The report focused on addressing ongoing implementation challenges regarding compliance with the Rule of Two following the Kingdomware decision.

One of the key challenges facing the VA is ensuring that SDVOSBs comply with the limitations on subcontracting. According to the GAO, the VA’s oversight needs improvement.

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SBA Mentor-Protégé Joint Ventures: Even GAO Appears a Tad Confused

The SBA’s All Small Mentor-Protégé program offers a tremendous opportunity for participants to pursue set-aside contracts as joint venture partners.  But misunderstandings and misconceptions about how SBA mentor-protégé joint ventures work are pervasive.

One very common misconception is that the SBA must pre-approve a mentor-protégé joint venture.  In most cases, that’s not so.  In a recent bid protest decision, even the GAO appeared a little confused, repeatedly mentioning SBA approval of a joint venture even though no such approval was required for the contract in question.

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SmallGovCon Week in Review: October 22-26, 2018

I was unexpectedly out of the office Friday afternoon, so I didn’t get a chance to post our weekly look at the latest and greatest in government contracting.  But better late than never!  It’s time for a slightly-delayed version.

In last week’s edition of SmallGovCon Week In Review, we have articles about House representatives requesting investigation of the JEDI contract, a report that suggests the 8(a) program is full of ineligible participants, GSA creates new a Solicitation Review Tool to better ensure contract compliance, and much more.

Happy Monday!

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GSA Schedule BPA Award Does not Allow for Size Protest

Generally, a size protest must be filed within five business days of when the protester receives notice of the identity of the awardee.  But there are some nuances to this rule, such as whether a corrective action will extend the deadline and whether the clock starts running upon notice of the prospective awardee or the actual contract award date (Hint: notice of awardee).

But when does the 5-day protest period start to run in the context of a Blanket Purchase Agreement issued under a GSA Schedule contract? A recent SBA Office of Hearings and Appeals decision is a reminder that the award of a BPA does not trigger a new 5-day period to file a size protest.

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