GAO: Awardee’s Low Price Isn’t Too Low, Absent a Price Realism Evaluation

Posted on May 26, 2016 by SmallGovCon Contributor

In a fixed-price procurement, an agency cannot reject an offeror for proposing a “too low” price unless the solicitation specifically contemplates a price realism evaluation.

This point is one of several interesting issues recently addressed by GAO in URS Federal Services, Inc., B-412580 et al. (Mar. 31, 2016). Another interesting issue—pertaining to an offeror’s protest of the awardee’s subcontractors’ size—will be addressed in a forthcoming post. But this post serves as a reminder of an important limitation to a protester’s ability to challenge an awardee’s price.

SBA: Interaffiliate Transactions Exception Will Be Broadly Applied

Posted on May 25, 2016 by Steven Koprince

The SBA will broadly apply the so-called “interaffiliate transactions” exception under the SBA’s size rules, essentially overturning an SBA Office of Hearings and Appeals decision issued last year, in which OHA interpreted the exception very narrowly.

In a Policy Statement issued May 24, 2016, the SBA states that it will broadly apply the interaffiliate transactions exception “regardless of the type of relationship that resulted in the finding of affiliation.”

SmallGovCon Week In Review: May 16-20, 2016

Posted on May 20, 2016 by Steven Koprince

As we forge into the second half of May, those of us around the Lawrence, KS are are preparing for a nice weekend full of beautiful weather and outdoor fun. But our weekend plans won’t stop us from bringing you the top stories from around the country in this week’s SmallGovCon Week In Review.

This week’s edition brings you a look at the possible hold put on DISA’s RFP, False Claims Act allegations leading to a $2.25M settlement, a company forced to dispose of its yacht and pay a hefty fine, and much more.

SBA OHA Reaffirms 70% Threshold For Economic Dependence Affiliation

Posted on May 18, 2016 by SmallGovCon Contributor

Under the SBA’s affiliation rules, one of the many ways a small business can be deemed affiliated with another is through the economic dependence rule: where a small business derives 70% or more of its revenues from another entity, the SBA ordinarily considers it to be economically dependent upon—and thus subject to the control of—that other entity.

So it was in a recent decision from the SBA’s Office of Hearings and Appeals (“OHA”), which confirmed the so-called “70% rule” for economic dependence.

SBA Size Protests: File With Contracting Officer, Not OHA

Posted on May 16, 2016 by Steven Koprince

The SBA Office of Hearings and Appeals is an appellate forum and lacks jurisdiction to hear initial size protests.

As explained in a recent SBA OHA decision, size protests must be filed with the relevant Contracting Officer, who then refers the matter to the appropriate SBA Area Office. Only after the SBA Area Office issues a size determination does OHA have jurisdiction to consider a size appeal.

Update: SBA Utah District Office Rescinds Questionable 8(a) JV Policy

Posted on May 11, 2016 by Steven Koprince

The SBA’s Utah District Office has rescinded the questionable new restrictions on 8(a) mentor-protege agreements and joint ventures that the District Office imposed last month.

A brief email to Utah 8(a)s on May 5, which was forwarded to me by an industry connection, states “The Utah District Office hereby rescinds the e-mail dated April 21, 2016 regarding Mentor Protégé and Joint Venture relationships.”

No reason was given for the sudden change, but I think it’s the right call.

GAO: Protester Must Show Awardee’s “Specific Exception” to Subcontracting Limitation

Posted on May 11, 2016 by SmallGovCon Contributor

A protester challenging an awardee’s compliance with the FAR’s limitation on subcontracting faces an uphill battle.

As explained in a recent GAO bid protest decision, an offeror’s compliance with the limitation on subcontracting is presumed; a protester, therefore, must present specific evidence demonstrating that the awardee will not comply with the limitation. In many cases–especially when the solicitation does not require offerors to provide a breakdown of costs of the work performed by the prime and its subcontractors–such evidence may be next to impossible to obtain.