Tag Archives: affiliation

OHA Says: For a Size Protest, Bring the Receipts or Face Dismissal

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Filing a size protest requires more than just pointing the finger at the protested concern and hoping SBA decides to investigate further. The protest must contain at least some level of specific information that demonstrates why the protested concern is other than small.

SBA regulations, in particular, require that the size protest be “sufficiently specific to provide reasonable notice as to the grounds upon which the protested concern’s size is questioned.” 13 C.F.R. § 121.1007(b). The protest should provide a basis for the belief or allegation. In other words, the protester can’t simply allege a concern is other than small or affiliated without providing specific information to support the claim. SBA warns that a protest lacking “sufficient specificity” will be dismissed.

Now, it doesn’t happen too often, but a recent decision shows that SBA will dismiss protests when it finds the initial support to be lacking.

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SBA Aims to Streamline SBIC Program, Make Investment Easier

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For years, the Small Business Administration (SBA) has run a program for Small Business Investment Companies (or SBICs) to, in part, allow for “low-cost, government-backed capital that you can use to increase private investments in U.S. small businesses.” For small business federal contractors, there is also an affiliation benefit that applies to SBICs. But, we have often heard from clients and others that it is not straightforward to work with an SBIC. Today, we look at a rule recently proposed by SBA that aims to make the SBIC program more flexible and easier to work with, entitled “Small Business Investment Company (SBIC) Regulatory Amendments.”

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Govology Webinar Announcement! Small Business Size Standards and Affiliation: Lessons for Every Federal Contractor, May 15, 2025, 1:00pm EDT

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For small business set-aside contracts, including socioeconomic set-asides like the 8(a) program, a federal contractor must meet the SBA’s size standards. These size standards vary by industry and solicitation and are based on either average annual receipts or the number of employees. But size alone doesn’t tell the whole story. Many small businesses are surprised to learn that they could be deemed affiliated with other entities based on factors such as ownership, management, family relationships, or subcontracting. If the SBA finds companies affiliated, it will combine the receipts or employees of the various companies, which can disqualify a company from small business programs.

In this training, you will learn:

  • How the SBA determines business size using receipts or employee counts
  • When and how size standards apply in federal contracting
  • Common size determination pitfalls small businesses face
  • The SBA’s concept of affiliation and why it matters (and doesn’t always match up with common sense)
  • The various SBA rules governing affiliation, and what does not trigger affiliation
  • How sharing resources, including subcontracts, in certain contexts could trigger affiliation
  • Examples of affiliation inspired by actual situations
  • Tips for avoiding unintended affiliation and staying compliant
  • What happens if you’re found “other than small”—and how to respond

Whether you’re new to federal contracting or looking to grow your small business through set-aside opportunities or partnering with small businesses, this session will give you the tools to know about small business size standards, affiliation, and positioning your company to play by these rules. 

Hope you can join us! Register here.

Are Mentor-Protégé Joint Ventures Just Too Successful, Asks SBA

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SBA recently issued a proposed rule purportedly concerning the HUBZone Program and its regulations–but actually, covering a bevy of other discussions and proposed changes relating to size, SBA’s other small business socioeconomic programs, and even teaming. Specifically, regarding teaming, SBA revealed that it has apparently decided to take a deeper look into the immense success of mentor-protégé joint venture teaming. It is also requesting comments on this concern, as well as potential policy changes for joint venturing in SBA programs, more generally.

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SBA: Ostensible Subcontractor Affiliation Arises from Improper Limitations on Subcontracting in Proposal

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The SBA ostensible subcontractor affiliation rule has long confused contractors and their attorneys alike because its standards were not very clear. It was based on whether, in a small business contract, a subcontractor performs the “primary and vital requirements of a contract” or the prime contractor was “unusually reliant” on the subcontractor. SBA’s Office of Hearings and Appeals filled in the gaps on these terms. But in 2023, SBA updated its definition for these rules, declaring that if a small business prime contractor (other than under a general construction contract) met the limitations on subcontracting, it basically was not violating the ostensible subcontractor rule. A recent case looked at a circumstance where a small business prime contractor was not meeting the limitations on subcontracting.

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Why File: A Size Protest

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We at SmallGovCon are excited to announce this first in a new line of blogs we call Why File. Our firm handles a wide variety of federal procurement and contract litigation matters–from SBA size and status protests to contract claims and appeals, and everything in between. One of the most common and important questions we get in that regard is, should I file? Of course, we can only directly answer that question for our current clients after reviewing the relevant facts giving rise to the potential filing. But through our new Why File series, we will cover some of the most common facts and circumstances that lead contractors to initiate litigation. So, without further adieu, here is the first blog in the series, covering some of the most common reasons contractors file size protests.

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Event: Meet the Buyers Fall 2023 Conference | October 17-19 | Scottsbluff, Nebraska

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Please join attorney John Holtz, as he heads back to his home state of Nebraska, to the Meet the Buyers Conference. This is Nebraska’s premier government contracting conference where businesses can advance their contracting knowledge, connect with other business owners, and network directly with agency representatives and buyers. John will be doing two presentations: joint ventures, as well as size and affiliation issues.

Don’t miss the chance to meet directly with Federal, State, and Local government agency reps, government contracting industry people, and resource providers and please stop by the Koprince McCall Pottroff table and say hi to John. More information and registration here.