New Defenses to the Ostensible Subcontractor Rule are Coming

You may have noticed that SBA issued a final rule last week that created sweeping changes to the SBA’s 8(a) Program regulations, but along with that, SBA made sure to slip in a change to the ostensible subcontractor rule that has been a sticking point for many contractors when facing affiliation concerns. With this final rule, SBA will update the regulations to provide contractors certain ways to defend against potential ostensible subcontractor rule affiliation, depending on the type of contract at issue. This represents a shift in thinking, related to how to combat allegations brought under this affiliation rule and could present some new wrinkles for contractors to consider when setting up subcontracting arrangements.

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SmallGovCon Week in Review: April 24-28, 2023

It’s Friday, Readers! Hope everyone is ready for the weekend. The NFL Draft is right down the road in Kansas City this weekend and if you’re an NFL fan (as is almost required in Kansas City), I’m sure you are anxiously awaiting to see if your favorite players will be selected. What better way to welcome the weekend than with a bit of football excitement and a review of what’s been happening in the government contracting world?

In this week’s roundup, there were several articles concerning DoD contracts and some cautionary tales on why defrauding the federal government is a really bad decision. Enjoy your weekend!

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GAO Upholds Low Agency Bar to Waive OCI

The FAR requires offerors, in most situations, to disclose any actual or potential organizational conflicts of interest (OCI) that exist when submitting an offer or proposal in response to a solicitation. While it is rare that an offeror will be excluded from competition solely due to the existence or potential of an OCI, offerors who do not disclose as required will most likely be excluded, making this a situation where you generally want to disclose the existence of an OCI up front, not explain after the agency’s discovery through other means. Offerors may choose to avoid, mitigate, or neutralize an OCI by putting up a organizational barrier between the individual creating the OCI and the perceived or actual conflict. However, in some situations, avoiding, mitigating, or neutralizing the OCI may not be in the agency’s best interest. In that case, and as happened in Accenture Federal Services, LLC, agencies are given the option to waive the requirements of FAR subpart 9.5, thereby making award regardless of the existence or potential of an OCI.

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SBA Final Rule Relaxes Change of 8(a) Program Ownership, Allows Limited Populated Joint Ventures

SBA has issued a final rule updating some of its rules relating to the 8(a) Program. The final rule will have an impact on some aspects of ownership and control requirements for the 8(a) Program, including providing some flexibility for change of ownership and making some 8(a) set-aside processes a little cleaner. The rule would also allow for populated joint ventures between similarly situated joint venture members.

We wrote about the proposed rule last year. Below are some of the key takeaways from the final rule and any changes from the proposed rule.

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SmallGovCon Week in Review: April 17-21, 2023

Yet another beautiful Spring Friday for us at SmallGovCon! And you guessed it, it’s time for your week in review. 

As the flowers continue to blossom all around us, so do the partnerships between agencies (such as GSA and DHA). And as allergies are reaching an all-time high for many, so too is the government’s spending on AI and other technology solutions and innovation! We’ve included some fascinating articles on these topics, and many others we think you will enjoy. Have a wonderful weekend!

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Back to Basics: GAO’s Protest Timeliness Rules

Here in Kansas, it is certainly starting to feel like thunderstorm season–and one of my favorite seasons, I might add. But over in D.C., some may say it is starting to feel like protest season! That said, anyone familiar with the protest process at D.C.’s Government Accountability Office (GAO) is probably also quite familiar with the strict timeliness rules GAO applies to such protests. And frankly, even for the seasoned GAO protesters, a refresher on the timeliness rules can be quite beneficial–especially given the answer to when a certain type of protest is due is not always an easy calculation. So, let’s take it back to the basics and run through some of those rules here.

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GAO: Agency Can’t Combine Evaluation Factors After the Fact

Typically, agencies will provide a handful of evaluation factors, sometime more, in a solicitation. Common evaluation factors are technical, past performance, and cost. A recent protest decision looked at a solicitation that contained separate factors for 1) offeror’s technical capability and 2) staffing and management approach. The question was, can an agency combine its evaluation for two different factors? If it does mix the two evaluation criteria, is that enough to sustain a protest?

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