Price Reasonableness vs. Price Realism: The GAO Explains The Difference

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Price reasonableness and price realism are both benchmarks against which a procuring agency may evaluate an offeror’s price, but price reasonableness and price realism–though they are often confused for one another–are not the same thing.

As the GAO explained in a recent bid protest decision, one of the terms involves consideration of whether an offeror’s price is too low, whereas the other evaluates whether the price is too high.  The distinction is particularly important for fixed-price procurements, in which the question of whether pricing is too low is not one the procuring agency is always required to ask.

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Economic Dependence and the SBA 8(a) Program

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A contractor’s economic dependence on another company can cause affiliation under the SBA affiliation rules, but economic dependence can also be a major problem when a company applies for 8(a) program certification.

As demonstrated in a recent decision of the SBA Office of Hearings and Appeals, if an 8(a) program applicant has received most of its revenues from another company, the SBA may find that the applicant is economically dependent on the other company–and therefore, ineligible for admission to the 8(a) program.

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Event: Joint Ventures vs. Teaming Agreements

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Do you want to know more about joint ventures and teaming agreements?  Do you want to spend a Friday in November enjoying the warmth of sunny Southern California?

If you answered “yes,” I am pleased to announce that I will be presenting a seminar on “Joint Ventures vs. Teaming Agreements” on November 8, 2013 in Riverside, California.  The seminar will offer a “bird’s eye” overview of the key differences between joint ventures and teaming agreements.  Attendees will learn “do’s” and “don’ts” when setting up a joint venture or team, common pitfalls, and strategies for success.

The seminar is part of the 10th Annual Veterans Economic and Business Summit.  For more information, contact the Riverside Community College District Procurement Assistance Center.  Hope to see you there!

Event: Small Business Teaming Success Workshop

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If you are interested in small business teaming, and located in the Pacific Northwest (or plan to be), please join me and other presenters on May 3, 2013 for a free all-day workshop designed to give small contractors an in-depth look at teaming, joint venturing and subcontracting on federal procurements.

I will offer two sessions during the workshop: “Legal Aspects of Teaming and Government Contracting” and “Compliant and Effective Teaming Documents.”  Other sessions will include “Introduction to Teaming,” “To Bid or Not To Bid,” and “Proposal Writing in the Teaming Environment.”

The workshop will be held in Oregon City, Oregon (near Portland) and is sponsored by two great organizations, Powering Up! Small Business Teams and the Clackamas Small  Business Development Center. Visit the workshop’s registration page to sign up.  I hope to see you there!

Groundhog Day is Here: SBA OHA Shoots Down Another 8(a) Program Rejection

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In the 1990s comedy Groundhog Day, Bill Murray played a weatherman who found himself living the same day over and over again.  I am having the same feeling reading SBA Office of Hearings and Appeals cases these days (yes, this is what qualifies as my reading material of choice; don’t judge).

As it has at least five other times since December, SBA OHA has shot down the SBA’s rejection of an 8(a) application under the “social disadvantage” factor.  As was the case in several other recent decisions, the latest volley from SBA OHA states that the SBA failed to properly consider the evidence and explain its rationale for denying an 8(a) applicant.

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