Minimum Market Research: COFC Confirms that Agency Small Business Market Research was Reasonable

Here at SmallGovCon, we have often discussed the federal government’s small business “Rule of Two” and the basis it provides small business contractors for protesting an agency’s decision not to set aside a procurement for small businesses. One essential component of that rule is a requirement that agencies conduct market research when determining whether or not two or more responsible small businesses are likely to submit offers on the pending solicitation. That market research has always been a loosely-defined, broad concept, one which allows agencies a fair amount of discretion in how they go about assessing the number of potentially-responsible small businesses in a given industry. As a result, agencies have some leeway in how they conduct their market research. Unfortunately, this makes it difficult for contractors to assess what constitutes satisfactory market research—in other words, how can a small business determine whether the agency properly chose an unrestricted procurement?

A potential common-sense approach one might consider would be to look at examples of market research that have been found acceptable under judicial review before. That provides a baseline threshold, and if the agency you are assessing falls short, it might seem reasonable to think that the agency did not carry its burden—i.e., there might be a successful Rule of Two protest basis on hand. This approach was applied by the protester in a recent Court of Federal Claims decision, but as explained below, it was not a successful one. The Court essentially stated that, just because one agency had gone to specific lengths in the past to conduct its market research, this did not mean that other agencies were required to go to similar lengths in order to satisfy their market research requirements. Rather than establish a standard to adhere to, the original agency had instead gone above the minimum.

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COFC: Limitation on Subcontracting Certification Trips Up Contractor Where Solicitation Requires it to be Signed and Attached

When it comes to federal contracting, there are parts that are very detail-oriented.  Countless signatures for countless certifications. We certainly empathize with contractors on this aspect of federal contracting. But just because we are empathetic does not mean that a contractor can ignore such requirements. In a recent decision, Revelations Counseling & Consulting, LLC v. United States, 180 Fed. Cl. 721 (2026), the Court of Federal Claims (COFC) made it very clear: Where the solicitation says sign the certification and include it in the proposal, sign it and include it in the proposal. Anything less and not only should you expect a rejection, the agency is often required to reject the proposal. In this case, the certification was a VA limitations on subcontracting clause that has cropped up multiple times lately in our practice and is an important part of small business contracting. We look at that decision today.

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“I Could Have Competed” Won’t Cut It: COFC Requires Showing Contractor Could Perform Work if it Wants to Protest Solicitation Terms 

You have your eye on a solicitation. You know the work, you know the customer, and you are certain that you would be a front-runner for the award. Then, you learn that the agency is limiting competition for the procurement, and you can no longer compete for the contract. Immediately, you think that the agency must have made a mistake. After all, you were fully prepared to submit a proposal and perform the work. But is believing you could have competed for the contract and won the award enough to satisfy the requirements for filing a bid protest? A recent COFC decision answers this question. 

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Important Exception to “Size at Initial Offer” Rule Dooms Award to Mentor-Protégé JV

As a general rule, when it comes to compliance with a solicitation’s size standard, what matters is the size of the entity at the time it submits its initial offer per 13 C.F.R. § 121.404(a). This is something we’ve seen several times before in other cases. However, that is just the general rule, and there are several exceptions that can change things greatly. Indeed, when it comes to compliance with SBA’s joint venture requirements, we noted earlier this year (in a decision that preceded the one we discuss in this post) and before that such is determined at the time of final proposal revisions as opposed to the initial bid. Recently, a mentor-protégé joint venture learned the hard way via a decision from the Court of Federal Claims (COFC) that the initial offer size rule doesn’t change this requirement. Today, we’ll explore that decision.

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Be Careful, FAR Updates Generally Not Retroactive, Says COFC

The United States Court of Federal Claims (COFC) produced another decision focused on SAM registration and related FAR updates. We previously discussed the changes to the FAR no longer requiring constant SAM registration to be awarded a contract. We have also blogged on a recent COFC decision regarding solicitation amendments based on the new FAR rule. But, what happens if the old FAR rule, such as one regarding SAM registration, is still in a solicitation and the agency does not amend the solicitation?

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A Look at the Duty of Good Faith and Fair Dealing (Part III)

For a few weeks now, we have looked at a recent Court of Federal Claims (COFC) decision in two parts regarding the duty of good faith and fair dealing. In the first part, we observed how insistence on the terms of a contract is not a breach of good faith and fair dealing. In the second part, we discussed several separate considerations ranging from a decision to not move a project forward to the next phase to rejection of a claim of a government cabal. Now, we will conclude our look at this decision with the court’s review of the SBIR/STTR policy directive and its impact on the case.

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A Look at the Duty of Good Faith and Fair Dealing (Part II)

Recently, we looked at part of a Court of Federal Claims (COFC) decision regarding the duty of good faith and fair dealing. In that post, we observed how, unsurprisingly, the government’s insistence that a contractor carry out the express terms of a contract is not strong ground for a claim of breach of the duty of good faith and fair dealing. In this post, we’re going to continue our review of this case (with regards to the duty of good faith and fair dealing) and give more general thoughts on this duty. We’ll finish up with a third post that addresses the biggest issue in this case.

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