Tag Archives: 8(a) eligibility

SBA Didn’t Properly Justify 8(a) Termination, Says Court

Posted on by

SBA’s regulations provide that an 8(a) program participant that no longer is owned or controlled by socially and economically disadvantaged person can be terminated from the 8(a) program. But the decision to terminate is not one to be made lightly: SBA must make sure that it not only has evidence in support of its termination decision, it must also explain how that evidence demonstrates its conclusions.

This requirement was at issue in a recent court decision that found an SBA 8(a) program termination decision to be based on “numerous erroneous assumptions” and “unsupported conclusions, not substantial evidence.”

Continue reading →

8(a) Program Participation Down 34% Since 2010

Posted on by

Participation in the SBA’s 8(a) Program has declined from about 7,000 firms in 2010 to only around 4,500 today–a sharp drop of approximately 34% in only six years.

These startling numbers come from a recent SBA Office of Inspector General report, which focuses on whether the SBA properly documented the reasons for admitting certain 8(a) participants.  While that matter is interesting in its own right, the most revealing part of the SBA OIG report is the rapid decline in 8(a) Program participation, and the SBA’s plans to reverse it.

Continue reading →

8(a) Program Denial: Federal Lawsuit Available, Says SBA OHA

Posted on by

An 8(a) Program applicant may challenge the SBA’s denial of its application in federal court if the SBA Office of Hearings and Appeals lacks jurisdiction to hear the case.

According to a recent OHA decision, although OHA’s own jurisdiction in 8(a) denial matters is limited, a rejected applicant “is not utterly without recourse” because relief can be sought in court.

Continue reading →

8(a) Program: “Honest Mistake” Not Grounds For Termination

Posted on by

An honest mistake made in a company’s 8(a) Program application may not support termination of the company from the 8(a) Program.

In a recent decision, the SBA’s Office of Hearings and Appeals held that the SBA could not validly terminate an 8(a) participant for submitting false information in the 8(a) application because the SBA had not considered whether the 8(a) participant honestly, and reasonably, believed that she was not required to report the information.

Continue reading →

8(a) Fraudster Hit With 42-Month Prison Sentence

Posted on by

A federal judge has sentenced a Maryland man to 42 months in prison for fraudulently obtaining contracts under the 8(a) Program.

According to a Department of Justice press release, after Vernon J. Smith III serves his prison sentence, he will be subject to three years of supervised release.  And on top of the prison sentence, the federal judge ordered Smith to pay more than $7 million in restitution and forfeiture.

Continue reading →

8(a) Joint Ventures: SBA Approval Not Required At Proposal Submission

Posted on by

A joint venture may be awarded an 8(a) set-aside contract so long as the SBA approves the joint venture before award.

In a recent GAO bid protest decision, a procuring agency rejected a joint venture’s proposal for an 8(a) set-aside contract because the joint venture had not been approved by the SBA as of the date of proposal submission.  The GAO–relying in part on input from the SBA–held that the rejection was improper.

Continue reading →

Women 8(a) Applicants Don’t Need “Smoking Gun” Evidence Of Bias, Says SBA OHA

Posted on by

A woman does not need to provide the SBA with “smoking gun” evidence of bias in order to be considered socially disadvantaged for purposes of her company’s application to the 8(a) program.

In a recent decision, the SBA Office of Hearings and Appeals sharply criticized the SBA’s evaluation of a woman-owned small business’s 8(a) application, holding that the SBA had improperly discounted evidence of bias, needlessly demanded that the woman provide irrelevant details, and made several other errors.

Continue reading →