SmallGovCon Week In Review: July 27-31, 2015

With July almost over, we are looking forward to the remainder of the summer.  But even in the hottest weather, government contracting news never stops.  In this week’s SmallGovCon Week In Review, a new study pushes back at “bid protest hysteria,” Guy Timberlake continues his important discussion of federal agency classifications, CNN investigates alleged corruption in the AbilityOne program, and more.

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SBA OHA: NAICS Code Appeals Allowed On Unrestricted Procurements

NAICS code appeals are now allowed on unrestricted procurements, so long as a change in NAICS code would affect the offeror’s size status for the procurement.

In a recent size appeal decision, the SBA Office of Hearings and Appeals confirmed that recent SBA regulatory amendments have overturned prior OHA case law prohibiting most NAICS code appeals on unrestricted procurements.

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Nonmanufacturer Rule Class Waivers: SBA OHA Explains How They Work

Under the nonmanufacturer rule, a class waiver applies to a procurement only if the NAICS code, Product Service Code and NAICS code descriptor match the item being procured.

Contrary to a common misconception, a nonmanufacturer rule class waiver is not authorized on the basis of the NAICS code alone.  In a recent size appeal decision, the SBA Office of Hearings and Appeals concisely explained how nonmanufacturer rule class waivers work.

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Non-Manufacturer Rule Confusion: House Proposes Fix

Many small contractors (and the SBA) were surprised when the Court of Federal Claims held last year that the non-manufacturer rule applies any time the government buys manufactured products–regardless of the NAICS code assigned to the procurement.

Now the U.S. House of Representatives is proposing to fix the confusion caused by the Court’s decision.  The House version of the 2016 National Defense Authorization Act would amend the Small Business Act to specify that the non-manufacturer rule applies only to contracts for supplies.

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NAICS Codes & SAM: Listing Solicitation’s Code Not Required

Contrary to a common misconception, a contractor need not list the solicitation’s NAICS code in its SAM profile in order to qualify for contract award.

In a recent bid protest decision, the GAO confirmed that the government may award a contract to a small business even if the awardee does not list the solicitation’s NAICS code in its SAM profile.

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Non-Manufacturer Rule Applies Regardless of NAICS Code, Court Rules

The non-manufacturer rule applies only when a set-aside solicitation is designated with a manufacturing NAICS code, right?  Not anymore.

A recent Court of Federal Claims case effectively invalidated SBA’s regulations that limit the application of the non-manufacturer rule to procurements for supplies.  Instead, the Court held, the Small Business Act requires that the non-manufacturer rule apply any time that the Government buys manufactured products–regardless of the NAICS code assigned to the procurement.

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SBA Proposed Rule Would Allow PTAC and SBDC Size Status Opinions

Small Business Development Centers and Procurement Technical Assistance Centers would be permitted to issue advisory small business size status opinions under a proposed rule published last week by the SBA.

The proposed rule, which implements a section of the 2013 National Defense Advisory Act, establishes a “safe harbor” from fraudulent misrepresentation penalties for a small business that obtains an advisory size opinion from a SBDC or PTAC.  But the proposed rule acknowledges that SBDCs and PTACs are not required to provide such advisory opinions–and that new funding will not be awarded for this purpose.

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