SmallGovCon Week In Review: Sept. 23-27, 2013

On a typical September 27, government contracting headlines are dominated by last-minute fiscal year spending.  But this year, government shutdown talk has drowned out most other government contracts news.

This week’s SmallGovCon Week In Review features articles on the shutdown, as well as a few headlines you might have missed regarding Federal Prison Industries, OASIS, and more.

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Ostensible Subcontractor Rule: Management Ain’t Enough to Comply

When it comes to the SBA’s ostensible subcontractor rule, managing a contract, by itself, is not enough to avoid affiliation.

As demonstrated in a recent decision of the SBA Office of Hearings and Appeals, a small business and its subcontractor violate the ostensible subcontractor rule whenever the subcontractor will perform the primary and vital work required under the prime contract–even if the small business will perform the management function.

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Small Business Set-Asides Not Required For Simplified Acquisitions Outside U.S., Says GAO

Small business set-asides are not required for simplified acquisitions conducted outside the United States and its outlying areas, according to a recent GAO bid protest decision.

In Latvian Connection General Trading and Construction LLC, B-408633 (Sept. 18, 2013), the GAO rejected the protester’s contention–which was backed by the SBA–that simplified acquisitions must be set-aside whenever the “rule of two” is satisfied, notwithstanding the fact that the procurement is outside the United States.

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SBA 8(a) Program: Participant Terminated For Missing Annual Report

When it comes to the regulations governing small government contractors, lateness can lead to tough consequences.  For instance, responding late to a small business size protest might cause the SBA to conclude that the contractor is a large business, and a late proposal submission can get a bid tossed out.

Lateness can also lead to severe consequences within the SBA 8(a) program.  In a recent decision, the SBA Office of Hearings and Appeals held that the SBA properly terminated an 8(a) program participant because the participant had failed to submit a complete 8(a) annual report–months after the deadline had passed.

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