Under the nonmanufacturer rule, qualifying as a nonmanfucturer requires a small business to provide the end products of a small business–and even “Rich Chicks” must comply.
In a recent decision, the SBA Office of Hearings and Appeals held that a company named “Rich Chicks, LLC” had not complied with the nonmanufacturer rule because Rich Chicks’ proposal did not offer the end products of a small business.
To regular SmallGovCon readers this may seem obvious, but protesters keep doing it, so it deserves a post.
By “it,” I mean filing small business size challenges as part of GAO bid protests. As demonstrated once again in a recent GAO bid protest decision, the GAO typically lacks jurisdiction over size challenges, which must be filed with the SBA.
Now here’s one you don’t see every day. In a recent size appeal decision, the SBA Office of Hearings and Appeals upheld the SBA’s determination that the contractor was affiliated with the government of Puerto Rico.
In Size Appeal of Industria Lechera de Puerto Rico, Inc., SBA No. SIZ-5533 (2014), SBA OHA held that the contractor’s relationship with the Puerto Rican government rendered the contractor, in essence, a quasi-governmental entity, not an independent small business.
A prime contractor was not economically dependent on its subcontractor for purposes of the SBA affiliation rules because a prime contractor “has the power to choose whatever subcontractor it desires.”
In a recent size appeal decision, the SBA Office of Hearings and Appeals stopped short of holding that a prime contractor could never be economically dependent on a subcontractor, but SBA OHA’s decision indicates that if such dependence ever existed, it would be in an unusual case.
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.
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.”
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.