On February 5, 2015, the U.S. Small Business Administration (SBA) issued a Proposed Rule that would establish a government-wide mentor-protégé program (“Proposed Rule”). Currently, the 8(a) Business Development Program is the only SBA program with a mentor-protégé program, but the Proposed Rule would result in the expansion of the mentor-protégé program to all small business contractors. The Proposed Rule would amend SBA’s regulations to implement provisions of the Small Business Jobs Act of 2010 and the National Defense Authorization Act for Fiscal Year 2013 (NDAA). In addition to expanding the mentor-protégé program across all small businesses, the Proposed Rule would make changes to the current 8(a) mentor-protégé program, clarify the meaning of a joint venture, and implement new compliance requirements to approved joint ventures.
Continue Reading SBA Proposes New Mentor-Protégé Program to Expand Teaming Opportunities for Large and Small Businesses
Small Business Regulations and Programs
Protest 101 Presentation for Eastern Foundry
Earlier this year, Geoff Orazem founded Eastern Foundry, an incubator for government contracting companies in Washington, D.C. The veteran-owned business will leverage professional service providers, coaches, mentors, and BD support teams to provide structured and personal coaching for small businesses seeking government contracts.
We had a great time meeting with Geoff and his clients in…
Recent Decision Reinstating Company as SDVOSB
Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) are often protested concerning their eligibility in the small-business program. The VA generally has a great deal of discretion as to the factors it considers in determining eligibility. But can the VA rule a company ineligible as an SDVOSB without any notice or opportunity to address a specific reason for ineligibility? A recent case in the Court of Federal Claims, AmBuild Company, LLC v. United States, No. 14-786C (Oct. 10, 2014), provided an answer to this question.
AmBuild was the apparent lowest-cost bidder on a VA solicitation set-aside for SDVOSBs. The second lowest bidder, Welch Construction Inc., filed a protest challenging AmBuild’s SDVOSB status. Welch alleged that AmBuild was not controlled by a service-disabled veteran due to common ownership or management with other firms and did not meet the size requirements for a SDVOSB. The protest was considered by both the SBA and the VA Center for Verification and Evaluation (CVE), and each rejected Welch’s contentions.Continue Reading Recent Decision Reinstating Company as SDVOSB
Learning from Bid Protests: Responsibility vs. Acceptability
By Bass, Berry & Sims on
In government contracting, offerors are regularly evaluated in their proposed approaches to meet solicitation requirements. Occasionally, an offeror’s proposed solution is immaterial, as the offeror’s overall ability to perform the work required by a solicitation is called into question.
Whether it is inadequate financial resources, an inability to meet delivery schedules or an inability to obtain a security clearance, some offerors fail to meet general criteria of responsibility required to perform. Generally, the procuring agency can eliminate an offeror based on a determination of nonresponsibility. However, small businesses are provided a little cover.Continue Reading Learning from Bid Protests: Responsibility vs. Acceptability
Recent Articles Highlight FCA and Procurement Fraud Risk for Government Contractors Large and Small
Government contractors must always be vigilant of prosecution under the False Claims Act (FCA). Charges and settlements are brought and announced in the news daily against government contractors for violations of this Act. On October 30, we published a client alert, Government Contractors Beware: Increased FCA Enforcement in Government Contracts, discussing recent cases and…
Will “Innovation” Return to the Small Business Innovation Research Program?
By Todd Overman on
In the October 2014 issue of Service Contractor magazine, I authored the article “Will ‘Innovation’ Return to the Small Business Innovation Research Program?” In the article, I outline the recent changes that were implemented to the Small Business Innovation Research (SBIR) program and highlight challenges that remain for an important R&D tool for small businesses.…
A Large Loophole in the Ostensible Subcontractor Rule
On October 20, Law360 published an article that I authored titled “A Large Loophole in the Ostensible Subcontractor Rule.” In the article, I analyze a contractor’s ability to file an ostensible subcontractor size protest under a task order award, as addressed in two recent cases (Strata-G Solutions and U.S. Information Technologies Corp.) before the Small…
SBA Proposed Rule Will Increase Size Standards in Over 200 Manufacturing and Trade Industries
By Todd Overman on
Posted in Small Business Regulations and Programs
The U.S. Small Business Administration (SBA) published in the Federal Register two proposed rules to revise small business size standards in North American Industry Classification System (NAICS) Sectors 31-33 (Manufacturing) and industries with employee-based size standards that are not a part of NAICS Sectors 31-33, Sector 42 (Wholesale Trade), and Sectors 44-45 (Retail Trade). As part of its comprehensive size standards review required by the Small Business Jobs Act of 2010, the SBA evaluated employee-based size standards for all 364 industries in NAICS Sectors 31-33, and 57 industries and five exceptions that are not in NAICS Sectors 31-33, 42, or 44‑45 to determine whether they should be retained or revised.
Increases in Size Standards
The first rule proposes to increase size standards for 209 industries in Sectors 31-33. For instance, Burial Casket Manufacturing (NAICS 339995) and Dog and Cat Food Manufacturing (311111) size standards would increase from 500 to 1,000 (number of employees), and Frozen Specialty Food Manufacturing size standard would increase from 500 to 1,250 (number of employees). The SBA also proposes to increase the refining capacity component of the Petroleum Refiners (NAICS 324110) size standard from 125,000 to 200,000 barrels per calendar day total capacity for businesses that are primarily engaged in petroleum refining. The proposed rule also eliminates the requirement that 90 percent of a refiner’s output being delivered should be refined by the bidder.Continue Reading SBA Proposed Rule Will Increase Size Standards in Over 200 Manufacturing and Trade Industries