SBA: 8(a) Prime/Sub Teaming Agreements Do Not Require Prior Approval

SBA 8(a) participants need not obtain the SBA’s prior approval of prime/subcontractor teaming agreements, according to an SBA statement made in a GAO bid protest case.

The SBA’s position makes sense, because the SBA’s regulations only call for prior approval of joint venture agreements.  However, one former 8(a) company might be hopping mad over the SBA’s stated position, because that company was terminated from the 8(a) program for–you guessed it–failing to obtain the SBA’s prior approval of a teaming agreement.

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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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