No SBA Prior Approval of Teaming Agreement Leads to 8(a) Program Termination

In a case that ought to make 8(a) participants sit up and take notice, an 8(a) company was terminated from the 8(a) program for failing to obtain the SBA’s prior approval of its teaming agreement for an 8(a) contract–and the SBA Office of Hearings and Appeals upheld the termination.

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8(a) Mentor-Protege Agreements Cannot Be Protested, Says SBA OHA

8(a) mentor-protege agreements cannot be protested by competitors, according to a recently-issued decision by the SBA’s Office of Hearings and Appeals.  In Size Appeal of Professional Performance Development Group, Inc., SBA No. SIZ-5398 (2012), SBA OHA held that the SBA’s decision to approve an 8(a) mentor-protege agreement is outside the scope of the SBA size protest process.

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Federal Court: 8(a) Program Is Constitutional–Kind Of

The good news for 8(a) Program participants (and applicants) is that the United States District Court for the District of Columbia ruled earlier this month that the 8(a) program is constitutional as a whole.  The bad news is that the same court found the 8(a) Program unconstitutional as applied to the plaintiff’s specific industry, military simulation and training.

For disadvantaged companies in the military simulation and training industry, the court’s decision in Dynalantic Corporation v. United States, No. 95-2301 (2012) is a major setback.  Already, the DoD has apparently suspended 8(a) contract awards under the Simulation, Training and Instrumentation Acquisition Center in the wake of the court’s ruling.  For 8(a) companies in other industries, the critical question now is what impact–if any–Dynalantic will have on 8(a) awards in other industries.

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8(a) Program: SBA OHA Holds Applicant May Work Second Full-Time Job

The 8(a) program regulations require the disadvantaged individual upon whom 8(a) program eligibility is based to manage the firm on a full-time basis, during normal working hours of firms in the same or similar line of business.  When 8(a) program applicants learn about 8(a) program’s “full time devotion” requirement, many ask: “can I work a second job?”

Maybe.  As seen in a recent decision of the SBA Office of Hearings and Appeals, an 8(a) program applicant may be able to engage in outside employment–even a second full-time job–so long as the applicant can demonstrate that the outside employment will not interfere with the applicant’s ability to manage the 8(a) firm full-time during normal working hours.

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