Small Business Regulations and Programs

On June 2, the Small Business Administration’s (SBA) Office of Hearing and Appeals (OHA) denied a size appeal filed by Veteran Elevator Solutions, LLC (VES) challenging the size of Bass, Berry & Sims’ client GD Resources, LLC (GD Resources). This decision demonstrates the application of the 2023 “safe-harbor” addition to the ostensible subcontractor rule as previously discussed in an earlier blog post.Continue Reading Compliance with Limitation on Subcontractor is Ostensible Subcontractor Safe Harbor

The Small Business Administration’s (SBA) Mentor-Protégé Program allows a large company to joint venture with a smaller firm without the two entities being treated as one for size purposes – so long as a joint venture agreement gives the protégé managerial control. Size Appeal of Acacia7 JV shows how drafting loose managerial terms can lead to an unfavorable outcome.Continue Reading Mentor Protégé Joint Venture Size Determination – A Responsible Manager Must Retain Exclusive Responsibility

On January 24, the SBA announced updated small business contracting goals for fiscal year 2025, significantly decreasing some goals and standardizing targets across federal agencies. These changes bring the small business targets more closely in line with historic targets.Continue Reading Trump Administration Revises SBA’s Small Business Goals

As many of our readers know, the ostensible subcontractor rule is one way in which the Small Business Administration (SBA) can find affiliation between a small business and one of its subcontractors, potentially resulting in the small business’s disqualification from a procurement.  The rule is designed to ensure that small businesses perform the primary and vital requirements of a set-aside contract and are not unduly reliant on an entity that is not similarly situated to perform the contract.  Allegations of affiliation based on this doctrine are frequently made in size protests, putting at risk awards that small businesses have expended significant time and resources to secure. Continue Reading Small Business Size Protest Minute: The Ostensible Subcontractor Exception that (Almost) Swallowed the Rule

On February 19, the Office of Hearings and Appeals (OHA) denied an appeal from an unsuccessful bidder who argued the awardee was large due to an acquisition that occurred while the award was pending. OHA found that Small Business Administration (SBA) regulations prohibit awards to concerns where a merger or acquisition occurs, resulting in the new business becoming “large,” within 180 days of the initial offer rather than a final proposal revision. This understanding follows the general rule that SBA determines a concern’s size as of the date of the initial offer. We explore the decision and its implications below.Continue Reading SBA’s OHA Finds Initial Offer To Be Of Consequence, Not Final Proposal Revision, for the “180-Day Rule”

On December 17, the Small Business Administration (SBA) published its final rule detailing new recertification requirements following mergers and acquisitions (M&A), new language around negative control for affiliation purposes, and changes to 8(a) ownership percentages, among other changes. We discussed the new recertification requirements and their potential impact on GovCon M&A in a previous blog post that can be found here. Below we discuss the new negative control rule and the 8(a) ownership changes.Continue Reading SBA Final Rule Updates Negative Control Requirements and 8(a) Ownership Rule

On December 17, the Small Business Administration (SBA) published its final rule in response to its August 2024 proposed rule and the ensuing comments from the industry. The rule will have a substantial impact on the obligations of government contractors and the small business M&A landscape.Continue Reading New SBA Rule Overhauls Small Business M&A Landscape

Join me on January 29 for a webinar where I’ll break down the new SBA final rule that’s set to reshape the GovCon M&A landscape starting in 2025. If you’re a small business owner planning a sale, merger, or acquisition or even maintaining your small business status, this is information you can’t afford to miss.
Continue Reading Upcoming Webinar | How the SBA’s New Rule Will Reshape GovCon M&A: What Small Business Owners Need to Know

Space has become central to protecting U.S. national security interests as Americans increasingly rely on space-based services to support everyday life. As a result, the U.S. government has bolstered investment in the space sector creating a wealth of opportunities for contractors. For example, the U.S. Department of Defense’s (DoD) budget request for fiscal year 2025 is seeking $33.7 billion for space programs. Continue Reading “Small” Space Companies: Growth Comes at a Cost

From the Bass, Berry & Sims Blog Network
From the Bass, Berry & Sims Blog Network

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