Congress Authorizes SBA Mentor-Protege Program For All Small Businesses, Centralizes Oversight

Posted on January 7, 2013 by Steven Koprince

Congress has authorized the SBA to create a mentor-protege program for all small businesses, not just socioeconomically disadvantaged companies.

This major change was included in the 2013 National Defense Authorization Act and signed into law by President Obama on January 3. The 2013 NDAA also addresses the recent proliferation of agency mentor-protege programs (and, by extension, the SBA’s refusal to acknowledge an exception from affiliation for participants in most other agencies’ mentor-protege programs) by requiring most procuring agencies to obtain SBA approval for their mentor-protege programs.

GAO: Q&A Qualified As Solicitation Amendment

Posted on January 4, 2013 by Steven Koprince

A contractor’s proposal may be rejected for failing to address a requirement contained in a question-and-answer document, so long as the Q&A contains all of the essential elements of a solicitation amendment.

This was the ruling of the GAO in a recent bid protest decision, Energy Engineering & Consulting Services, LLC, B-407352 (Dec. 21, 2012), in which an offeror’s proposal was rejected as technically unacceptable for failing to address a standard imposed in a Q&A.

SBA 8(a) Termination Appeals: The Importance of Technicalities

Posted on January 3, 2013 by Steven Koprince

When it comes to SBA 8(a) termination appeals, failing to follow technical filing requirements can be fatal, as one contractor recently learned the hard way.

In James Kelly Construction Co., SBA No. BDPT-459 (2012), the SBA terminated James Kelly Construction Company from the 8(a) program, alleging that the company’s owner owed outstanding taxes. The company filed a SBA 8(a) termination appeal with the SBA Office of Hearings and Appeals, arguing that the owner did not, in fact, owe taxes.

Unfortunately, the company–which prepared and filed its appeal without a lawyer–failed to include with its appeal a copy of the SBA’s termination determination and the date the determination was received. Because both of these items are required by regulation, SBA OHA dismissed the company’s SBA 8(a) termination appeal, and subsequently denied the company’s request that SBA OHA reconsider its dismissal.

SBA OHA appeals, including 8(a) termination appeals, come with a variety of technical requirements. As the James Kelly Construction Co. case demonstrates, meeting those technical requirements is imperative, or the appeal could be lost before SBA OHA ever reaches the merits of the matter.

No SBA Prior Approval of Teaming Agreement Leads to 8(a) Program Termination

Posted on January 2, 2013 by Steven Koprince

In a case that ought to make 8(a) participants sit up and take notice, an 8(a) company was terminated from the 8(a) program for failing to obtain the SBA’s prior approval of its teaming agreement for an 8(a) contract–and the SBA Office of Hearings and Appeals upheld the termination.

VA CVE Reconsideration: A Primer for SDVOSBs

Posted on December 31, 2012 by Steven Koprince

The VA CVE reconsideration process is an important component of the VA’s SDVOSB verification program–especially in light of news earlier this year that the VA’s Center for Veterans Enterprise is rejecting 60% of new SDVOSB verification applications.

For many companies, SDVOSB verification hinges on a successful VA CVE reconsideration request, but VA CVE reconsideration is often misunderstood. After working with many SDVOSBs to successfully obtain verification through the VA CVE reconsideration process, I have compiled this list of common “Q&As” regarding SDVOSB reconsideration.

SBA OHA: 21.2% Minority Owner Controlled Contractor

Posted on December 30, 2012 by Steven Koprince

A minority owner with a mere 21.2% stake in a government contractor controlled that contractor for SBA size and affiliation purposes, according to a recent SBA Office of Hearings and Appeals decision.

SBA OHA’s decision in Size Appeal of Civitas Group, LLC, SBA No. SIZ-5424 (2012) is an important reminder that a contractor’s single largest minority shareholder may be deemed to control the company under the SBA size and affiliation rules–even if the contractor’s governing documents do not grant that shareholder actual legal control.

Contractor Improperly Downgraded for Lack of Agency-Specific Experience, Says GAO

Posted on December 20, 2012 by Steven Koprince

A contractor bidding on a U.S. Department of State contract was improperly downgraded for failing to possess direct experience working with DOS, according to a recent GAO bid protest decision.

The GAO’s decision in Exelis Systems Corporation, B-407111; B-407111.2; B-407111.3; B-407111.4 (Nov. 13, 2012) is notable because it is not unusual for procuring agencies to consider agency-specific experience as part of a past performance and/or experience evaluation. According to Exelis Systems Corporation, such considerations may be deemed improper, unless they are spelled out in (or can be reasonably inferred from) the solicitation.