A HUBZone Appeal Appears! Continuing our Look at the HUBZone Appeal Process

Earlier this year, SBA’s Office of Hearings and Appeal (“OHA”) released its first HUBZone status protest appeal decision. That decision, as you may recall was fairly straightforward, resulting in a dismissal of the appeal. About half a year later, OHA has issued its second HUBZone status appeal decision! This one is even more straightforward than the first one, but it is important nonetheless as it now gives us further insight into the HUBZone appeal system. Let’s take a little look.

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Breaking: SBA Proposed Rule Gives OHA Jurisdiction over HUBZone Status Protests

The Small Business Administration (SBA) has proposed to amend the rules of practice for its Office of Hearings and Appeals (OHA) and the Historically Underutilized Business Zone (HUBZone) Program to “implement procedures authorizing appeals to OHA” from adverse status determination protests for certified HUBZone small business concerns. Currently, HUBZone status protest determinations are decided by the Associate Administrator of Government Contracting and Business Development per 13 C.F.R. § 126.805. But those appeals, in our experience, are fairly limited and SBA does not publish the appeal decisions, meaning they provide little help for companies and attorneys wishing to understand how SBA interprets its HUBZone This is a big step for SBA and will certainly bring consistency and insights to the protest process and regulatory interpretation for HUBZone participants, bringing that program more in line with other SBA programs.

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Final 2022 NDAA Draft Allows HUBZone Appeals

The final version of the 2022 National Defense Authorization Act, agreed upon by negotiators for both the House and Senate and signed by the president, will allow the SBA’s Office of Hearings and Appeals to hear appeals related to the SBA’s HUBZone status decisions.

We here at Koprince McCall Pottroff LLC welcome the pending change, which will be a big step forward for the HUBZone program in terms of transparency and fairness.

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New Avenue for SBA Protests: Ostensible Subcontractor Status Protests

SBA has issued a final rule, effective December 30, that will now provide an avenue to protest situations where the prime contractor on a SDVOSB, HUBZone, or WOSB set-aside contract is subcontracting most or all of the work to a non-similarly situated—but still small business—concern.

It will also allow SBA to review eligibility for 8(a) Program contracts on this ground as well.

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OHA Lacks Jurisdiction to Hear HUBZone Status Appeals

While the SBA’s Office of Hearings and Appeals hears appeals for many of the SBA’s programs, there are certain decisions that remain outside of its purview.

As one protester was surprised to learn, among those items outside of OHA’s jurisdiction are appeals of the HUBZone status determinations.

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