SBA OHA: VA Mentor-Protege Program Does Not Protect Participants From Affiliation

My parents taught me that it’s not polite to say, “I told you so.”  Mom and Dad are big proponents of being polite, and their lessons (by and large) stuck.  For instance, even in this day and age of abbreviated text messages and quick emails written on handheld devices, I always begin and end every business email with a salutation, and end with “regards,” or something along those lines.  Unnecessary?  Perhaps.  But I like to think I am going the extra mile toward being polite.

Today, however, politeness is going to have to take a little hiatus, because I can’t resist saying, “I told you so.”  For more than a year, I have been warning small government contractors that assistance received from a mentor firm under any federal mentor-protege program other than the SBA 8(a) mentor-protege program or DoD mentor-protege program is probably not shielded from the SBA’s affiliation analysis.

Now, the SBA Office of Hearings and Appeals has confirmed that participating in the VA’s mentor-protege program does not offer any protection from affiliation.

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Mystery, Intrigue and OCIs: Anonymous Source Sinks Contractor’s Bid

It sounds more like a scene from “All the President’s Men” than the factual background of a GAO bid protest.  In McTech Corporation, B-406100, B-406100.2 (Feb. 8, 2012), an anonymous caller tipped off a procuring agency that McTech had an apparent organizational conflict of interest, leading to McTech’s exclusion from the competition.  The resulting GAO bid protest didn’t bring down a presidential administration, but it does provide a cautionary tale on the intersection of SBA mentor-protégé agreements and OCIs.

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8(a) Mentor-Protege Joint Ventures and Subcontracts: An Underused Practice?

The revised 8(a) program regulations adopted in March 2011 contained so many significant changes that some of them seem to have gotten lost in the shuffle.  One of these unheralded changes allows a joint venture comprised of an 8(a) mentor firm and its SBA-approved protégé to joint venture as a small business for federal subcontracts.  It’s a major change because under the old rule, SBA 8(a) mentor-protege joint ventures could only joint venture as “small” for prime contracts.

So,  why aren’t more 8(a) firms taking advantage of this new mentor-protege joint venturing capability?

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8(a) Mentor-Protégé Agreements and Graduation: The Beat Goes On?

After a participant in the SBA’s 8(a) Program graduates, can its mentor-protégé agreement be reapproved for another full year?  Surprisingly, the answer may be “yes.”  At least, this is what happened in the Armed Services Board of Contract Appeals’ decision in HMRTECH2 LLC, ASBCA No. 56829 (2009).  However, subsequent rule changes indicate that the benefits of any such post-graduation re-approval will be limited to contracts obtained prior to graduation.

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