In the world of government contracting, most contractors consider protests in the context of bid, size, or status protests. As we’ve discussed before, however, there is another highly useful tool in the toolbox for contractors: the NAICS code appeal. When leveraged correctly, the NAICS code appeal can be quite effective for small businesses in securing a favorable outcome. That said, a recent SBA OHA decision shows that the burden of proof on a NAICS code protester requires some potentially heavy lifting. Today we’re diving into that decision to help clarify what it takes to successfully appeal the NAICS code designation in a federal solicitation, and thereby help determine whether this particular approach is the right one for your business.
Continue readingTag Archives: NAICS Manual
NAICS Code Appeal: OHA Says Agency’s Assignment of Code Doesn’t Have to be Perfect
When a contractor believes an agency assigned the wrong North American Industry Classification System (NAICS) code to a solicitation, it can file an appeal with the SBA’s Office of Hearings and Appeals (OHA). However, for OHA to correct the NAICS code, the contractor must show the contracting officer’s assignment was clearly erroneous. As we’ve discussed, counting just those NAICS code appeals decided on the merits, about 45% were granted, per a GAO report.
Continue readingNAICS Code Challenges Must Show why the Code Chosen is Incorrect, OHA Says
We’ve all seen cases of agencies assigning NAICS codes to solicitations that just seem…off. But, unless a contractor can show that the code chosen was clearly erroneous, government contractors will simply have to make do with what they’ve been given. The OHA recently handed down a decision confirming this.
Continue readingDon’t Skip the Notes: OHA NAICS Code Decision Relies on Footnote
Many people skip the footnotes when they read. Why not? There’s rarely anything important in them, right?
Not necessarily. In recent NAICS appeal Advanced Concepts Enterprises, Inc., SBA No. NAICS-5968 (Oct. 24, 2018), a single footnote made all the difference.
Successful NAICS Code Appeal Dramatically Alters Size Standard
NAICS code appeals, while little known, can be an extraordinarily powerful tool when it comes to affecting the competitive landscape of government acquisitions.
Case in point: in a recent NAICS code appeal decision issued by the SBA Office of Hearings and Appeals, the appellant prevailed–and obtained an order requiring the contracting officer to change the solicitation’s size standard from 500 employees to $15 million.