In a recent YouTube video, we discussed how the federal government calculates business size. Today’s video provides additional information on how to calculate the size of your business through annual receipts:
For more information, check out Volume 2 of the Koprince Law, LLC GovCon Handbooks Series, SBA Small Business Size and Affiliation Rules, or contact us here.
I’m pleased to announce that volume 5 of the “Koprince Law LLC GovCon Handbooks” series will be published soon! This GovCon Handbook, entitled Procedures and Pitfalls of Size Protests and Appeals, will be published through Amazon. Check the video below and the rest of this post for additional details.
As with many things, when filing a size protest with the Small Business Administration, timing is of the utmost importance! In this YouTube video, I walk you through how to file your size protest on time to avoid dismissal:
Stay tuned to the blog for more important information on size protests and government contracting! And if you think you might have a size protest and require assistance call Koprince Law– before it’s too late!
Affiliation is a dirty word to small business federal government
contractors. For good reason: it can turn a small business into a large one and
destroy its eligibility for socioeconomic programs and set-aside contracts. Proactive
small business contractors, therefore, routinely audit their affiliation risks
and, if necessary, take actions to fracture that affiliation.
One of the ways a company might try to fracture affiliation is
to sell a division or business line to a third party. Because this division is
sold, the company might be tempted to assume that its corresponding revenues
are not considered as part of the affiliation analysis (under the former
A recent OHA decision, however, instructs that a division or line of business does not qualify under the former affiliate rule.
Since being passed by Congress in late 2018, the Runway Extension Act has been the source of great confusion among small business contractors: would size under receipts-based NAICS codes be calculated under the 3-year calculation period set out in the SBA’s regulations, or under the new 5-year calculation period mandated by Congress?
In a decision just publicly released, the SBA Office of Hearings and Appeals has weighed in. As of now, the SBA will still calculate size under the 3-year calculation period.
SBA regulations say that size is determined as of the date an offeror submits its initial proposal, with price. On its face, this rule seems pretty straight forward. But what happens if the initial proposal was filed six years ago? And what if the joint venture that submitted the proposal has since expired? Following OHA’s recent logic, the proposal-date rule stands even in these unique circumstances.
To qualify as a small business under most set-aside or sole source contracts seeking manufactured products or supplies, SBA’s regulations require an offeror to be the item’s manufacturer or, alternatively, comply with the nonmanufacturer rule.
In a prior post, we discussed 5 Things You Should Know about being the item’s manufacturer; in this post, we’ll discuss qualifying under the nonmanufacturer rule.