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The SBA’s Utah District Office has rescinded the questionable new restrictions on 8(a) mentor-protege agreements and joint ventures that the District Office imposed last month.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

DoD Proposes Hotline Poster Consolidation

Posted on May 10, 2016 by Steven Koprince

Defense contractors looking for a little more wall space to hang inspirational cat posters may be in luck. Today, the DoD issued a proposal to consolidate the various hotline poster requirements under DFARS 252.203-7004 (Display of Hotline Posters).

The DoD proposal certainly doesn’t fall under the category of major contracting news, but will be a welcome change for contractors feeling a little overburdened with mandatory government posters.

WOSBs, 8(a)s, Affiliation & More: My “Amtower Off-Center” Interview

Posted on May 9, 2016 by Steven Koprince

The WOSB Program, 8(a) Program, and SBA affiliation rules were all on the agenda during my interview today with government contracts guru Mark Amtower on his popular radio show, Amtower Off-Center.

If you weren’t able to catch the show live, just click here to listen or download the audio from Federal News Radio. And be sure to tune in every week as Mark talks government contracts with movers and shakers from industry and government alike.

Small Business Set-Asides: Two Small Manufacturers Required

Posted on May 9, 2016 by Steven Koprince

When an agency acquires manufactured products or supplies, the agency need not set aside the solicitation for small businesses under the FAR’s “rule of two” unless the agency has a reasonable expectation of receiving offers from small businesses offering the products of two or more small manufacturers.

A recent GAO bid protest decision highlights a little-known provision of the FAR, which provides that the “rule of two” does not apply to acquisitions for manufactured products over $150,000 where two or more small business nonmanufacturers are likely to submit offers, but the small business nonmanufacturers will not offer the products of two or more small business manufacturers.