SBA Size Protests: COs Not Required To Assist Protesters

Contracting Officers are not required to assist potential protesters by furnishing them with information to use in SBA size protests.

According to a recent size appeal decision of the SBA Office of Hearings and Appeals, the SBA properly dismissed a size protest for lack of support, notwithstanding the protester’s allegation that the Contracting Officer had failed to provide information needed to support the size protest.

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SBA OHA: Small Business Size Not Measured By Profits

A firm’s small business size status for federal procurements is measured by the firm’s revenues, not by its profits.

As the SBA Office of Hearings and Appeals explained in a recent size determination, measuring small business status by reference to profits would allow some very large companies to qualify as “small.”

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SBA Size Protests: Expressing “Concerns” Is Not Enough

An unsuccessful offeror’s email to the Contracting Officer, in which the offeror expressed “concerns” about the awardee’s small business size status, was too vague to constitute an SBA size protest.

According to a recent decision of the SBA Office of Hearings and Appeals, a viable size protest must be explicit enough to alert the Contracting Officer that the offeror is protesting the awardee’s size.

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SBA Size Protests: “Bare Allegations” Are Insufficient

A SBA size protest must contain some basis for the belief that the company being protested is not an eligible small business.

As demonstrated in a recent decision of the SBA Office of Hearings and Appeals, a protester’s “bare allegation” that the protested firm does not qualify is insufficient, and will cause the SBA to dismiss the size protest.

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SBA OHA: Favorable SBA Size Determinations Not Binding In Future Cases

A SBA size determination issued in 2007 was not binding on the question of whether the same company was still small in 2013.

According to a recent decision of the SBA Office of Hearings and Appeals, there is no rule providing that an SBA Area Office must follow its own prior size determination.  Rather, an SBA Area Office is free to issue a size determination contradicting its own prior ruling.

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Ostensible Subcontractor Rule: Management Ain’t Enough to Comply

When it comes to the SBA’s ostensible subcontractor rule, managing a contract, by itself, is not enough to avoid affiliation.

As demonstrated in a recent decision of the SBA Office of Hearings and Appeals, a small business and its subcontractor violate the ostensible subcontractor rule whenever the subcontractor will perform the primary and vital work required under the prime contract–even if the small business will perform the management function.

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Economic Dependence Affiliation Can Be Created By Single Contract

Economic dependence affiliation under the SBA’s affiliation rules can be created by a single ongoing contract, according to the SBA Office of Hearings and Appeals.

In a recent size appeal decision, SBA OHA held that a single contract amounting to more than 90% of an 8(a) applicant’s revenues over two years resulted in economic dependence affiliation.

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