SBA Clarifies Inconsistencies in 8(a) and Mentor-Protégé Ownership Rules

A lot has been happening in the 8(a) Business Development Program world over the past couple of weeks. SBA has been busy updating regulations applicable to the 8(a) Program to both bring SBA rules into alignment with the economic realities in a post-COVID world and to make 8(a) requirements more uniform across the board. Here, we focus on a change to ownership rules for non-disadvantaged owners of 8(a) Program participants that are also part of an SBA-approved Mentor-Protégé Agreement.

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Event: “Small Business is BIG Business in Government Procurement” Training Workshop, August 15, 2023 San Antonio

The San Antonio Business Opportunity Counsel will be hosting this workshop that will include a day of training, networking, speakers and exhibitors in beautiful San Antonio, Texas. I’m excited for the opportunity to be the keynote speaker and will be presenting on Mentor-Protégé, Teaming and Joint Venture Agreements. For more information on this event please visit www.saboc.org. Hope to see you there!

Event: SBA Mentor Protege Program Webinar hosted by Texas El Paso APEX Accelerators, June 27, 10:00am-11:30am MDT

Touted as a “game-changer” when it was first introduced in 2016, the U.S. Small Business Administration’s All Small Mentor-Protégé Program isn’t new anymore. Known now as simply the “SBA Mentor-Protégé Program,” it is still extremely powerful for large and small contractors alike.

In this course, Koprince McCall Pottroff LLC government contracts attorneys Stephanie Ellis and I will explain the ins and outs of the Mentor-Protégé Program, covering the program’s eligibility requirements, its potent benefits (including the ability to form special mentor-protégé joint ventures), the application process, and common misconceptions and pitfalls. Free Registration Link here. Hope you will join us!

COFC Part II: Evaluation of Mentor-Protégé Joint Ventures

A couple of weeks ago, I explored the Court of Federal Claims case of SH Synergy, LLC v. United States. In that blog, linked below, I looked at the first question raised in the protest that centered on the question of whether a mentor with two approved mentor protégé joint ventures with two different protégés under the SBA’s Mentor-Protégé Program is restricted from placing competing offers for a solicitation, in this case GSA’s Polaris solicitation. The answer to that was yes, they are restricted pursuant to 13 C.F.R. § 125.9. Because this decision was chocked full of useful information, and as promised, I’m back to look at the second issue tackled in this mammoth COFC opinion: did the solicitation’s terms, which required mentor-protégé joint ventures, woman-owned small business joint ventures, and service-disabled veteran owned small business joint ventures to be evaluated in the same manner as offerors, generally, violate procurement regulations? As you will see, the answer to that question is also yes, and it appears that this decision has already had an impact on other procurements.

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COFC Confirms: Mentor-Protege JVs from the Same Mentor Can’t Bid Against Each Other

Those who work within the federal government contracting world are likely to have noticed that, lately, many large indefinite delivery, indefinite quantity (IDIQ) contracting vehicles are soliciting offers. However, with large contracting vehicles, which are often worth billions of dollars and promise many awards, there are often many protests. And Polaris, Transformation Twenty-One Total Technology Next Generation 2 (T4NG2), and Chief Information Officer – Solutions and Partners 4 (CIO-SP4), to name just a few of such solicitations, are no exception. Although many bid protests are filed with the Government Accountability Office (GAO), the Court of Federal Claims (COFC) also has jurisdiction over such matters, and COFC decisions are usually more indepth and the review of information from the agency more robust than at GAO.. This post will discuss the first of three main issues SH Synergy, LLC v. United States, and, because there is so much useful information packed into the decision’s 75 pages, we’ll plan a separate post for other issues.  

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Govology Webinar: Still A Game Changer: The SBA Mentor-Protégé Program (2023 Update), April 27, 2023, 1:00pm EDT

I hope you will join Nicole Pottroff and I as we discuss the benefits of the SBA’s Mentor-Protégé Program. We will be covering the program’s eligibility requirements, application process, options such as forming a special Mentor-Protégé Joint Venture and much more. Hope to see you there! Register here.

The Dog Ate my Addendum: Don’t Neglect your Joint Venture Addendum, says OHA

Spring is upon us, and for many of us, it evokes thoughts of friendly weather, and new life. In the world of federal contracting, new life is often seen through the forming of new joint ventures. As most contractors and readers of this blog know, there are many requirements placed on a joint venture that intends to bid on set-asides, and most deal with the content of a joint venture agreement between the joint venture members. In a recent case, the SBA Office of Hearings and Appeals (OHA) reviewed a joint venture agreement and addendums. Through its decision, OHA sent a clear warning to the industry to complete and sign both the joint venture agreement and any addendums, and make sure to have all items completed and signed prior to proposal submission deadlines, at the latest, the date of final proposal revisions.

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