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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SBA’s Successor-In-Interest Affiliation Rule Limited To “Reborn” Companies

The SBA’s “successor-in-interest” affiliation rule provides that a government contractor can be affiliated with a dissolved or liquidated company, but only if the government contractor acquires “all, or nearly all” of the dissolved company’s assets and liabilities.

According to a recent commonsense decision of the SBA Office of Hearings and Appeals, the successor-in-interest affiliation rule does not apply when a government contractor acquires only some of the dissolved company’s assets and liabilities.

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SBA OHA Decision Highlights Joint Venture “Individual Size Treatment” Rule

The SBA misevaluated a joint venture by basing its ineligibility decision on the joint venture’s revenues, rather than determining whether each joint venturer, individually, qualified as a small business, according to a recent decision of the SBA’s Office of Hearings and Appeals.

SBA OHA’s decision highlights what I like to call the “individual size treatment rule,” a special regulation requiring the SBA to deem a joint venture “small” under certain circumstances, even when the combined sizes of the joint venture’s members exceed the applicable size standard.

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SBA Size Protests: Agency’s Corrective Action Did Not Extend Deadline

A procuring agency’s decision to take corrective action in response to a GAO bid protest did not extend the standard five-business day deadline to file a SBA size protest.

This was the decision of the SBA Office of Hearings and Appeals in a recent SBA size appeal case, in which SBA OHA held that a size protest was untimely when it was filed within five business days of the agency’s notification, after taking corrective action, that it would reaffirm its award to the protested contractor.

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SBA OHA: Historic Ties Do Not Equal Affiliation

A history of close ties between companies does not mean that the companies are presently affiliated, according to a recent size appeal decision of the SBA Office of Hearings and Appeals.

In Size Appeal of A&H Contractors, Inc., SBA No. SIZ-5459 (2013), SBA OHA overturned a finding of affiliation because most of the ties relied upon by the SBA Area Office had been severed before the applicable date for determining size.

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