Federal Court Enjoins Contract Award Pending SBA OHA Size Appeal

Posted on March 1, 2013 by Steven Koprince

If a contractor ends up on the losing end of a SBA size protest, the contractor has the right to appeal to the SBA Office of Hearings and Appeals. The problem is that SBA OHA size appeals can take months. A contracting officer may be unwilling to wait, and simply award the contract to the next company in line.

Neither the FAR nor the SBA’s regulations require the contracting officer to suspend award or performance pending SBA OHA’s decision. However, as a recent case demonstrates, if the SBA OHA appeal has a reasonable likelihood of success, the U.S. Court of Federal Claims may issue an injunction prohibiting the procuring agency from awarding the contract pending the result of the SBA OHA size appeal.

SBA Size Protests: Timeliness Mistake Proves Costly

Posted on February 26, 2013 by Steven Koprince

SBA size protests are often dismissed when contractors misunderstand the size protest timeliness rules.

A recent SBA Office of Hearings and Appeals decision offers an important reminder that for negotiated procurements, the clock starts ticking on a potential SBA size protest upon notification of the prospective awardee–not when the contract is actually awarded.

The False Claims Act, Lance Armstrong, and “Reps & Certs”

Posted on February 25, 2013 by Steven Koprince

On Friday, the Department of Justice joined a False Claims Act lawsuit against Lance Armstrong.

Among his many troubles, Lance Armstrong now has a big government contracts problem on his hands–and Lance’s problem can provide an important lesson about “representations and certifications” for the less-famous government contractors among us.

GAO: Agency Failed To Identify Proposal Weaknesses In Discussions

Posted on February 20, 2013 by Steven Koprince

A procuring agency failed to conduct meaningful discussions where it merely asked a contractor to clarify its understanding of a certain portion of the solicitation, rather than informing the contractor of specific proposal weaknesses relating to that same portion of the solicitation.

The GAO’s bid protest decision in Nexant, Inc., B-407708, B-407708.2 (Jan. 30, 2013) demonstrates that when an agency has identified specific weaknesses in a contractor’s proposal, discussions must be sufficiently detailed to enable the contractor to understand the agency’s concern and have the opportunity to improve its proposal.

8(a) Mentor Protege Agreements And Shared Employees: A Risk Of Affiliation?

Posted on February 19, 2013 by Steven Koprince

Can an SBA 8(a) program mentor and protege be affiliated, notwithstanding their 8(a) mentor-protege arrangement, if the firms engage in extensive employee sharing?

Maybe.

In a recent decision, the SBA Office of Hearings and Appeals suggested that extensive employee sharing between an 8(a) protege and its mentor might be outside the bounds of protected “assistance” under the 8(a) mentor-protege program. And in the same case, SBA OHA raised an interesting question: does a mentor-protege relationship protect the mentor from affiliation, as well as the protege?

SDVOSB Eligibility Not Affected By Ownership Transfer Restriction, Says Federal Court

Posted on February 18, 2013 by Steven Koprince

As many service-disabled veteran-owned small businesses have discovered, the VA CVE believes that so-called “right of first refusal” provisions prevent veterans from freely selling or transferring their ownership interests. Because such transfer restrictions are commonplace in standard corporate bylaws and operating agreements, countless SDVOSBs have been denied VA CVE verification for including them.

Those days may be over.

In a decision released to the public late last week, the U.S. Court of Federal Claims held that the VA OSDBU had erred by sustaining a SDVOSB eligibility protest on the basis of the company’s right of first refusal provision. That decision, Miles Construction, LLC v. United States, No. 12-597C (2013), also includes other important rulings on the scope of “unconditional” ownership and the VA OSDBU’s evaluation of SDVOSB eligibility protests.