OHA: Respond to SBA Size Determination Questions, or Risk an Adverse Inference

SBA’s size protest rules contain a stick to force companies to respond to SBA as part of size determination. That stick is called the adverse inference rule. The adverse inference rule says that, if SBA requests specific information and a protested company refuses to provide it, SBA may assume that the missing information would show that the company is not a small business. In a recent decision, SBA’s Office of Hearings and Appeals (OHA) upheld the use of the adverse inference.

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GAO: Debriefings Only Delay Filing Deadlines For GAO Protest

While losing a procurement is never easy, many contractors will learn some valuable lessons from a debriefing. On top of that, a debriefing can delay bid protest filing deadlines at GAO. However, recently, GAO clarified that the bid protest filing deadline delay for debriefings only applies to GAO protests. A protestor found this out the hard way after a pre-award debrief, and multiple protest actions.

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Room for Improvement: Statistics Suggest It is Unclear if Large Businesses are Meeting Small Business Subcontracting Goals.

Just as agencies have established goals to award a certain percentage of their procurements to small businesses and businesses participating in socio-economic programs like the 8(a) Program, large business contractors must establish goals to include small business subcontractors in their pool of subcontractors for unrestricted awards over the applicable threshold in FAR 19.702 ($750,000 for most contracts, $1.5 million for construction contracts). While the specific goal will vary with each contract (or in some cases may be on a company-wide basis), it is rare for a contracting officer to find a large business hasn’t met the given goal. However, an investigation by GAO indicates that large business contractors aren’t meeting their small business subcontracting goals as often as the government would hope. Let’s take a deeper look at these findings.

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SmallGovCon Week in Review: November 13-17, 2023

Happy Friday! Next week is Thanksgiving and we want to take this opportunity to thank all of you for your support of SmallGovCon. We always strive to provide helpful content and we appreciate all the wonderful feedback that we have received from our readers. We hope you have a great Thanksgiving and are able to spend some time with friends and family.

This week in federal government contracting news include a plan to fund the government (hear that one before?), AI and its effect on government, and new GSA acquisitions.

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SBA OIG Again Challenges SBA’s Revised Definition of a HUBZone Employee

The U.S. Small Business Administration’s Office of Inspector General isn’t mincing words–OIG thinks that SBA has strayed from Congressional intent with its expansive definition of who qualifies as a HUBZone employee for purposes of satisfying the HUBZone Program’s eligibility requirements. In a recent report, SBA OIG points out that SBA’s broad definition could result in a company becoming HUBZone-eligible even if none of the company’s employees currently live in HUBZones.

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Event: Teaming Agreements & Subcontracts Workshop hosted by The Catalyst Center for Business & Entrepreneurship, November 16, 2023, 3:00-5:00pm CST

This workshop will focus on teaming agreements and subcontracts which can be essential to winning and successfully performing federal government contracts. Greg Weber and I will explain how to develop, negotiate and administer agreements that are both compliant and effective for both small and large contractors. The presentations will cover both the key rules (such as flow-downs and ostensible subcontractor affiliation) and best practices for agreements that go beyond the bare minimum legal requirements. Please join us! Register here.