The Nonmanufacturer Rule: Even “Rich Chicks” Must Supply Small Business End Items

Under the nonmanufacturer rule, qualifying as a nonmanfucturer requires a small business to provide the end products of a small business–and even “Rich Chicks” must comply.

In a recent decision, the SBA Office of Hearings and Appeals held that a company named “Rich Chicks, LLC” had not complied with the nonmanufacturer rule because Rich Chicks’ proposal did not offer the end products of a small business.

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8(a) Joint Ventures: SBA Approval Not Required At Proposal Submission

A joint venture may be awarded an 8(a) set-aside contract so long as the SBA approves the joint venture before award.

In a recent GAO bid protest decision, a procuring agency rejected a joint venture’s proposal for an 8(a) set-aside contract because the joint venture had not been approved by the SBA as of the date of proposal submission.  The GAO–relying in part on input from the SBA–held that the rejection was improper.

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WOSB Program: House-Passed 2015 NDAA Allows Sole Source Contracts

Women-owned small businesses could receive sole source contracts under the National Defense Authorization Act of 2015, which was passed by the House of Representatives last week.

The House-passed 2015 NDAA includes an amendment authorizing economically disadvantaged women-owned small businesses to receive sole source contracts of up to $6.5 million for manufacturing, and up to $4 million for other industries.  For WOSBs that are not economically disadvantaged, sole source contracts would be available, with the same thresholds, in industries where WOSBs are considered substantially underrepresented.

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SDVOSB Programs: House-Passed 2015 NDAA Transfers Verification To SBA

Last week, the U.S. House of Representatives passed the 2015 defense authorization bill.  The House-passed version of the 2015 National Defense Authorization Act would transfer VetBiz SDVOSB verification from the VA to the SBA.

If the Senate agrees, and the President signs the bill into law, the process of transferring SDVOSB verification from the VA CVE to the SBA could begin later this year.

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SDVOSB Programs: New Bill Would Standardize Eligibility Requirements; Study Government-Wide SDVOSB Verification

The definition of a “service-disabled veteran-owned small business” would be standardized under a new bill introduced by Senators Angus King and Richard Burr.

The King-Burr bill, S.2334, could resolve a serious problem: under current law, the requirements to qualify as a SDVOSB vary (in some cases, significantly) depending on whether an acquisition falls under the VA’s SDVOSB rules or the SBA’s SDVOSB rules.

The King-Burr bill also directs the GAO to study whether it is practical to implement a Government-wide SDVOSB verification system.

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NAICS Code Appeals: No New Challenges To SBA OHA Decisions

A NAICS code appeal cannot validly be filed against a NAICS code designated by the SBA Office of Hearings and Appeals.

In a recent decision, SBA OHA held that when SBA OHA determines the appropriate NAICS code as the result of a NAICS code appeal, that NAICS code cannot itself be attacked in a new NAICS code appeal.  The message to prospective offerors: participate in the initial NAICS code appeal, or hold your peace.

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Thank You, Oklahoma!

I am back in Lawrence after a trip to Oklahoma, where I spoke at an industry day event sponsored by the Mid-America Government Industry Coalition.  My presentation provided an overview of recent legal developments of importance to small government contractors, as well as a look at potential changes on the horizon.

A big “thank you” to Kay Bills and her team at MAGIC for inviting me to participate, and that you to the other speakers who shared their detailed knowledge about social media, cyber security, Department of Labor regulations, and other timely topics.  And of course, a big “thank you” to all the contractors, PTAC counselors and others who attended.

If you are in the Oklahoma area but missed my presentation to MAGIC (or even if you came), I will be back in the Sooner State in August for the Indian Country Business Summit.  Hope to see you there!