SBA OHA: SBA Cannot Belatedly Oppose Size Appeal

No matter your political persuasion, it’s hard to forget the image of Senator John Kerry windsurfing in the famous 2004 Bush-Cheney ad.  The ad attacked Kerry for supposedly changing his mind too often–“flip-flopping,” in political parlance.

It turns out that the dangers of flip-flopping are not limited to politics.  In a recent SBA size appeal decision of the SBA Office of Hearings and Appeals, SBA OHA held that if the SBA’s Office of Government Contracting, or OGC elects not to formally oppose a SBA size appeal, it cannot later change its mind and ask SBA OHA to revisit the size appeal decision.  Because the SBA OGC does not formally oppose most SBA size appeals, SBA OHA’s decision forces the SBA OGC to make up its mind quickly about whether it will play a role in the SBA size appeal process.

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8(a) Contractor Fraudulently Evades 8(a) Sole Source Threshold–With Procuring Agency’s Knowledge

A soon-to-graduate 8(a) contractor submitted a fraudulent proposal designed to evade the 8(a) Program’s sole source limits, with the full knowledge of the procuring agency in question, according to a decision issued by the U.S. Court of Federal Claims.

As described in Veridyne Corporation v. United States, No. 06-150C (Fed.Cl. 2012),Veridyne Corporation greatly underestimated the cost of a contract in order to slip it under the 8(a) Program’s sole source threshold, but the scheme eventually collapsed, leaving Veridyne liable for false claims and procurement fraud–and leaving the procuring agency in question with egg on its face and a lot of explaining to do.

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Event: SDVOSB Joint Venturing, Teaming and Subcontracting (El Paso, TX)

I am excited to announce that I will be speaking on “SDVOSB Teaming, Joint Venturing, and Subcontracting” at the 7th Annual Veterans Business Conference in El Paso, Texas.  The conference will be held August 15, 2012 at the Wyndham Airport Hotel.

Joint venturing and teaming can make a SDVOSB more competitive, but can also be complex and risky.  In this presentation, I will demystify the SDVOSB teaming process.  For SDVOSB prime contractors, I will explain how to put together strong and effective joint venture agreements, teaming agreements and subcontracts, avoid common compliance mistakes, and deal with the day-to-day challenges of managing a relationship with a large subcontractor.  And for SDVOSB subcontractors, I will discuss how to negotiate a better deal with a large prime contractor and earn a reputation as the first company a large prime calls when it needs a SDVOSB subcontractor.

In addition to speaking, I will be on the trade show floor at the Petefish, Immel, Heeb & Hird, LLP booth, where I will answer attendees’ questions and sign copies of my book, The Small-Business Guide to Government Contracts.

Many thanks to Joseph Conway and the El Paso Contract Opportunities Center for inviting me to be a part of this great event.  For more information, visit the El Paso Contract Opportunities Center website.

Subcontractors And Past Performance: What Are The Risks?

Inexperienced small government contractors sometimes rely primarily (or completely) on larger subcontractors to boost their past performance scores.  Although this practice sometimes results in better past performance scores, there are two risks small government contractors should be aware of when it comes to relying on a subcontractor’s past performance: poor evaluations and ostensible subcontractor affiliation.

A recent GAO bid protest decision, coupled with a decision of the SBA Office of Hearings and Appeals, demonstrates how each risk may affect a small government contractor.

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GovCon Compliance And More: Catch Me Monday On “Amtower Off Center”

If you are interested in hot-button compliance issues facing small government contractors, tune in to Federal News Radio Monday, July 9 at noon Eastern when I join government contracts guru Mark Amtower on his popular radio show, “Amtower Off Center.”   We will talk about affiliation, ethics plans, employment issues, and other compliance matters from my book, The Small-Business Guide to Government Contracts, as well as the SBA’s 2011 Small Business Procurement Scorecard.

Not in the DC area?  Not to worry.  You can catch my appearance–and all of Mark’s recent shows–on the Federal News Radio website.

DOD, VA, DHS Moving In The Wrong Direction: A Closer Look At The 2011 SBA Small Business Scorecard

The Department of Defense, Department of Veterans Affairs, and Department of Homeland Security, among other federal procuring agencies, awarded smaller percentages of contracts to small businesses in 2011 than in the previous year, according to the 2011 SBA Small Business Procurement Scorecard.

Fewer small business awards by major procuring agencies was an important contributing factor to the government’s overall drop in small business contracting, off more than $6 billion from last year.  Although most of the news was grim, a handful of agencies continue to demonstrate a strong commitment to small business, while others improved their results from 2010–though still have a ways to go.

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Small Business Procurement Goals: Catch Me On Federal News Radio Today

Even with the Fourth of July holiday almost here, the fine folks at Federal News Radio are still working hard to bring you the latest in federal news and commentary.  I will be on the air today with Federal News Radio’s Jason Miller discussing the SBA’s 2011 Small Business Procurement Scorecard.  If you are in the metro Washington, DC area, you can catch the interview by tuning in to 1500 AM around 5:15 this afternoon.