Affiliation is a notorious term in the world of federal procurement, especially when it comes to SBA size determinations. And affiliation analyses can be even more confusing when it comes to joint ventures. A recent SBA OHA decision, however, answered some common questions regarding joint ventures and affiliation. It also reiterated some fundamental standards of a size determination and OHA size determination appeal.
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No Ostensible Subcontractor Affiliation With ANC Parent & Sister Companies, Says SBA OHA
An Alaska Native Corporation subsidiary was not affiliated with its parent company and two sister companies under the ostensible subcontractor affiliation rule, even though the company in question would rely on the parent and sister companies for managerial personnel, financial assistance and bonding.
A recent decision of the SBA Office of Hearings and Appeals highlights the breadth of the exemption from affiliation enjoyed by ANC companies.