GAO Protests: Incumbent Contractor Rejected as Technically Unacceptable

Posted on June 12, 2012 by Steven Koprince

Remember the “Dan & Dave” commercials for Reebok? In advance of the 1992 Olympics, the shoe company launched an advertising campaign centered on the competition between two American decathletes, Dan O’Brien and Dave Johnson. At the time, O’Brien seemed like better bet–he was the reigning world champion and held a new world record in the sport. Reebok’s campaign fizzled, however, when O’Brien missed the pole vault at the Olympic trials and failed to qualify for the U.S. team. It didn’t matter that O’Brien was possibly the best decathlete in the world. He didn’t do well at the trials, so he didn’t get a spot on the team.

If you are an incumbent contractor, Dan O’Brien’s story is worth keeping in mind. As demonstrated in a recent GAO bid protest decision, if you write a technically unacceptable proposal, it doesn’t matter how well you have performed on the incumbent contract. The agency can–and will–disqualify an incumbent contractor for writing an unacceptable proposal.

8(a) Mentor-Protege Joint Ventures: SBA OHA Confirms Broad Exception from Affiliation

Posted on June 11, 2012 by Steven Koprince

I find Google Trends, which catalogs “hot searches” on any given day, rather fascinating. Half of the hot searches seem related to one celebrity or another, but others reveal that many folks are spending their time Googling such things as “zombie apocalypse” and “national doughnut day.” Does anyone remember what office workers actually did all day before the Internet?

If Google Trends had a government contracts subsection, “joint ventures” would be one of the trendiest of search terms. Joint ventures are a hot topic these days, for small and large government contractors alike. 8(a) joint ventures are perhaps the trendiest of all, thanks to a special exception from the ordinary SBA affiliation rules. In a recent SBA size appeal decision, SBA OHA confirmed that this exception from the affiliation rules is broad, even allowing an 8(a) mentor-protege joint venture–potentially–to violate the so-called “three in two” rule.

HUBZone Small Businesses: Don’t Forget to Inform the SBA of “Material Changes”

Posted on June 8, 2012 by Steven Koprince

After GAO reports described the HUBZone program as vulnerable to fraud and abuse, the SBA has cracked down in recent years—making site visits, decertifying HUBZone small businesses, even threatening some with suspension and debarment for violating the regulations.

The SBA should be commended, of course, for taking steps to ensure that HUBZone participants remain on the up-and-up, but the stricter enforcement can spell trouble for HUBZone firms that mean well, but don’t fully understand their ongoing compliance obligations under the HUBZone regulations. Case in point: the SBA has apparently proposed to decertify some HUBZone firms for failing to keep the SBA informed of “material changes” that may affect their program eligibility.

The Small Business Guide to Government Contracts is Here

Posted on June 7, 2012 by Steven Koprince

As a born-and-raised Midwesterner, I freely admit it: I’m a sucker for some good country music. So when the Garth Brooks classic, “Shameless,” popped up on the radio the other day, I did what any self-respecting North Dakotan would do and turned up the volume. (Random music trivia: “Shameless” was written and originally performed by Billy Joel, and appeared on Joel’s Storm Front album).

Which brings me to the topic of this post: a “shameless” plug for my book, The Small-Business Guide to Government Contracts, which is now available at Amazon, Barnes & Noble, and other booksellers. The Small-Business Guide to Government Contracts covers many of the key rules and regulations small government contractors should know, including the SBA size and affiliation rules, subcontracting rules, ethics requirements, wage and hour regulations, and the rules applicable to the 8(a), SDVOSB, HUBZone, and WOSB programs. You can find out more about the book at the Small-Business Guide to Government Contracts website.

So what are you waiting for? Head on over to your favorite bookseller and pick up a copy for yourself and an extra for that special small government contractor in your life. And, if you feel like going country, don’t hesitate to pick up Garth Brooks’ Greatest Hits while you’re at it.

SBA OHA Decides First EDWOSB Eligibility Appeal

Posted on June 7, 2012 by Steven Koprince

My daughter is learning to take her first steps, while holding onto the furniture. Yesterday, she started pushing her stroller around the living room, essentially using it as a walker. My wife and I looked at each other and said something like, “things are about to get really interesting around here.”

Things are also about to get interesting when it comes to the women-owned small business program, and its subset, the economically disadvantaged women-owned small business program. Ever since the WOSB program formally came into being last year, I’ve been saying that it was only a matter of time before WOSBs and EDWOSBs started protesting one another’s eligibility for WOSB and EDWOSB set-aside procurements.

Now, the SBA Office of Hearings and Appeals has ruled on its first WOSB appeal. What happened? Well, for one, all WOSBs should make sure their facsimile machines are in good working order before submitting another bid.

FAR Subcontracting Limitation Mishap Proves Costly

Posted on June 6, 2012 by Steven Koprince

“Pop quiz, hot shot.”

Sound familiar? It’s from the 1994 thriller Speed, in which Dennis Hopper’s deranged character straps a bomb to a passenger bus and rigs the bomb to blow up if the bus’s speed dips below 50 miles per hour.

So why do I bring up one of the few decent movies either Keanu Reeves or Sandra Bullock ever made? Because today’s edition of SmallGovCon also involves a pop quiz, and here it is: what is the subcontracting limit on a small business set-aside contract for services? If you answered “50% of the prime contract’s value,” sorry, your bus just blew up.

Contrary to common wisdom, the subcontracting limit for a services contract encompasses only the costs associated with personnel, not the entire cost of the contract. Confusion over which costs count toward the subcontracting limit can result in the proposal being excluded from the competition, as one contractor recently learned the hard way.

FAA: SDVOSBs Must Be Verified in VetBiz to Receive Set-Aside Awards

Posted on June 5, 2012 by Steven Koprince

Want to receive a service-disabled veteran-owned small business set-aside contract from the Federal Aviation Administration? Get listed in the VA’s VetBiz database. The FAA has adopted a regulation requiring VA VetBiz certification as a requirement of winning a FAA SDVOSB set-aside award. One interesting question: will other agencies follow the FAA’s lead?