Interaffiliate Transactions Exception Remains Narrow — For Now

The U.S. Small Business Administration, Office of Hearings and Appeals recently affirmed–for now–its narrow reading of the so-called interaffiliate transactions exception.

In a recent size appeal decision, Newport Materials, LLC, SBA No. SIZ-5733 (Apr. 21, 2016), OHA upheld a 2015 decision in which OHA narrowly applied the exception, holding that interaffiliate transactions count against a challenged firm’s annual receipts unless three factors are met: 1) the concerns are eligible to file a consolidated tax return; 2) the transactions are between the challenged concern and its affiliate; and 3) the transactions are between a parent company and its subsidiary.

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Affiliation Allegations Result In $5.8 Million Settlement

A group of companies has agreed to pay $5.8 million to resolve a False Claims Act case stemming from alleged affiliations among the companies.

According to a Department of Justice press release, the settlement resolves claims that En Pointe Gov Inc (now known as Modern Gov IT Inc.) falsely certified that it was a small business for purposes of federal set-aside contracts, despite alleged affiliations with four other companies–all of whom will also pay a portion of the settlement.

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GAO: “Minimal” Solicitation Changes Justified Cancellation

An agency was entitled to cancel a solicitation when its needs changed–even though the anticipated changes in its needs “might be characterized as minimal.”

In a recent bid protest decision, the GAO confirmed that a procuring agency has broad discretion to cancel a solicitation when the agency’s anticipated needs change, and that discretion extends to cases in which the agency’s changed needs could be addressed by amending the existing solicitation.

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GAO: Agency Need Not Perform Calculations For Offeror

An agency ordinarily is not required to perform calculations to determine whether an offeror’s proposal complies with a solicitation’s requirements, according to the GAO.

In a recent bid protest decision, the GAO rejected the protester’s argument that, in determining whether the proposal satisfied certain requirements, the agency should have used the information in the proposal to perform certain calculations. Continue reading…

SmallGovCon Week In Review: July 5-8, 2016

Welcome back after a hopefully enjoyable long 4th of July weekend! Although this week is a shortened one, there was no shortage of government contracting news floating around the county.

This week’s SmallGovCon Week In Review looks at the number of suspensions and debarments of government contractors, a proposed penalty for Pentagon contractors trying to game the system, a case of procurement fraud and much more.

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SmallGovCon Week In Review: June 27 – July 1, 2016

Happy (early) 4th of July! I hope you have something fun planned for this long weekend–and all the better if those plans include sunshine, fireworks, and plenty of BBQ. Before the holiday festivities begin, it’s time for our weekly dose of government contracting news and notes.

This edition of SmallGovCon Week In Review includes articles about a DoD bribery scandal, the release of the solicitation for the major Alliant 2 IT contracts, a look a the top 100 rankings in federal IT spending and much more.

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