A contractor has agreed to pay the government $1 million–and to dissolve as an ongoing entity–to resolve allegations that it falsely claimed SDVOSB status in order to receive VA SDVOSB set-aside contracts.
According to a government press release, the settlement comes after VA investigators alleged that the company’s non-veteran partner made all important corporate decisions, while the service-disabled veteran partner spent much of his time away from the company.
Of 34 WOSB and EDWOSB set-aside awards examined by the SBA Office of Inspector General, 15 of those awards were improper.
The SBA OIG’s conclusion comes in a new WOSB program report, and suggests that some Contracting Officers are unaware of the WOSB progran’s unique requirements, including the NAICS code limitations for WOSB and EDWOSB set-asides.
I am excited to announce the re-launch of the popular SmallGovCon Week In Review series! Each Friday, SmallGovCon will provide a snapshot of some of the week’s top news and commentary from the government contracting community.
In this week’s SmallGovCon Week In Review, a False Claims Act settlement, a proposal to ban so-called “inverted” firms from receiving government contracts, Guy Timberlake weighs in on the proposed increase to the Simplified Acquisition Threshold, and much more.
In a reverse auction, a bid filed literally at the last second was excluded as late, perhaps because the reverse auction system did not process the bid until a few seconds after the deadline.
As a recent GAO protest demonstrates, reverse auctions–by their very nature–encourage last-second bids, but it is the prospective contractor that may pay the price if the reverse auction system does not immediately process a bid.
A size appeal filed with the SBA Office of Hearings and Appeals may be submitted by email, but it is up to the appellant to verify that its email was received.
As demonstrated in a recent size appeal decision, OHA will dismiss an appeal that is not received by OHA within 15 days of the appellant’s receipt of a size determination–even if the appellant attempted to send the size appeal by email during the 15-day window.
The simplified acquisition threshold would increase to $500,000 under the version of the 2016 National Defense Authorization Act currently before the U.S. House of Representatives.
If the House proposal ultimately becomes law, the simplified acquisition threshold would more than triple from its current $150,00 level. Such a dramatic increase in the simplified acquisition threshold could affect nearly all federal contractors–especially small businesses.
Many small contractors (and the SBA) were surprised when the Court of Federal Claims held last year that the non-manufacturer rule applies any time the government buys manufactured products–regardless of the NAICS code assigned to the procurement.
Now the U.S. House of Representatives is proposing to fix the confusion caused by the Court’s decision. The House version of the 2016 National Defense Authorization Act would amend the Small Business Act to specify that the non-manufacturer rule applies only to contracts for supplies.