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SBA FINAL RULE: CHANGES TO ECONOMIC DISADVANTAGE REQUIREMENT FOR 8(A) ELIGIBILITY (INDIVIDUAL-OWNED COMPANIES) AND NEW REQUIREMENTS FOR WOSB/EDWOSB CERTIFICATION

5/20/2020

On May 11, 2020 the U.S. Small Business Administration (SBA) published a Final Rule in the Federal Register. Although the focus of the Final Rule is primarily on the WOSB/EDWOSB certification process/requirements (which we will discuss later in this post), there were a few major changes which also directly affect and in our opinion, have a significant impact on 8(a) eligibility requirements for individual-owned companies.

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8(A) CERTIFICATION: WILL OUTSIDE EMPLOYMENT AND OWNERSHIP IN OTHER COMPANIES IMPACT YOUR APPLICATION?

4/10/2018

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We are often approached by business owners that want to apply their company for the 8(a) program but who at the same time, still hold full-time (or even part-time) employment with another company and/or have ownership interests in other companies. Quite honestly, this is understandable - most people don't have the financial resources to quit their job and start a business unless they have guaranteed customers and/or sources of revenue. However, when it comes to the 8(a) program, what many don't understand is that the program is not a program for startup businesses.

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At What Point Must An SBA 8(A) Joint Venture Be Approved?

10/30/2017

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Recently, during the proposal process, we were asked by a Client to confirm at what point an SBA 8(a) Joint Venture must be approved by the SBA. Upon further consideration, we realized that there generally tends to be confusion surrounding Joint Ventures with respect to Federal contracting, so we thought we would do a blog post addressing the basics of which Joint Ventures need approval and at what point approval is required before a contract can be awarded to a JV.

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8(a), SDVOSB, HUBZone or DBE Certification: Should You Work With a Consultant?

9/11/2017

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If you are considering pursuing certification in one of the small business contracting programs administered by the SBA, the VA or the DOT, you may also be considering whether you should utilize the services of a consultant to assist you. Using a consultant is not for everyone and we at Holomua Consulting Group (HCG) never discourage anyone from completing their own application(s). In fact, there are very good reasons why one should want to complete their own application. However, there are also very legitimate reasons for utilizing the services of a consultant.

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8(a) Certification: Should You Be Concerned If You Derive More than 70 Percent Of Your Revenue From a Single Source?

9/7/2017

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When it comes to 8(a) certification, in short, yes you should be concerned if your company earns more than 70% of its revenue from a single client or source (commercial). As part of the 8(a) application, applicants must provide a list of the company's contracts over the previous 12 months, including the following information: award date, customer name, description of work, dollar value and applicable NAICS code. In some cases, during the back and forth process with the SBA that is inherent in the 8(a) application process, the SBA will request contract information for the previous 3 years.

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What Are The Advantages and Disadvantages of An SBA 8a Joint Venture?

3/7/2017

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One of the benefits of being an SBA 8(a) Business Development Program participant is the ability to enter into an 8(a) Joint Venture with another company (or possibly companies) to pursue 8(a) contracts. Many 8(a) companies come to us and tell us that they want to do a joint venture (JV) with another company, and after speaking with them, it becomes clear they don't necessarily have a good understanding of what a JV is and what the implications are for their company. This blog post will provide a general overview of 8(a) JVs, including some of the advantages and disadvantages.

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How The SBA's Presumed Loss Rule Impacts All Small Businesses, Including 8(a) Firms

3/2/2017

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On August 23, 2014, the "Presumed Loss Rule" went into effect. This rule was issued as part of the SBA's June 2013 Final Rule implementing provisions of the Small Business Jobs Act of 2010. Essentially, the rule creates a rebuttable presumption with respect to a firm's willful misrepresentation of size or status in order to receive a contract (subcontract, grant or cooperative agreement) that has been set-aside for small businesses. In such a case, the loss to the government is "presumed" to be the total amount expended by the government on the contract.

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SBA OHA Case Reminds Us That Familial Relationships Can Impact Small Business Size Status

3/2/2017

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On February 13, 2017, the SBA Office of Hearings and Appeals (OHA) issued a decision in the matter of: Size Appeal of Prosol Associates, LLC, Appellant. Appellant was named the apparent awardee of a contract for IT training with the marine Corps Systems Command (MCSC). In response, an unsuccessful offeror filed a size protest alleging affiliation with ProSol, LLC (Prosol) based on an identity of interest, the newly organized concern rule, and totality of the circumstances. This appeal arose out of the SBA Area Office's size determination that Appellant was not a small business under the applicable $15 million size standard due to its affiliation with ProSol based on identity of interest (based on familial relationship between father and son).

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Understanding The Paths to an 8(a) Sole-Source Award

2/8/2017

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We often hear about companies in year 5 (or later) of their 9-year 8(a) BD program term voluntarily withdraw from the program and/or express unhappiness with the program because they haven't yet received an 8(a) contract. More often than not, this situation is a result of a misconception on the firm's part that once in the 8(a) program, Federal contracts will just miraculously fall into their lap. The reality is that getting an 8(a) sole-source contract requires a lot of time and effort on the part of the 8(a) firm. This blog post will provide a general overview of the various paths to an 8(a) sole-source award.

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Recent GAO Decision Reminds Us That 8(a) Sole-Source Contracts Are Difficult to Protest (And Prevail on)

2/7/2017

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One of the primary benefits of the SBA's 8(a) Business Development Program is the ability of the program participant to pursue and receive sole-source contracts with various Federal Agencies. A sole-source contract is generally defined as any contract entered into without resort to the competitive process, based on a specific justification (i.e., it is authorized by law, or there is only one known source that can perform the work or supply the contract requirements).

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The Small Business Blog

SBA FINAL RULE: CHANGES TO ECONOMIC DISADVANTAGE REQUIREMENT FOR 8(A) ELIGIBILITY (INDIVIDUAL-OWNED COMPANIES) AND NEW REQUIREMENTS FOR WOSB/EDWOSB CERTIFICATION

8(A) CERTIFICATION: WILL OUTSIDE EMPLOYMENT AND OWNERSHIP IN OTHER COMPANIES IMPACT YOUR APPLICATION?

At What Point Must An SBA 8(A) Joint Venture Be Approved?

8(a), SDVOSB, HUBZone or DBE Certification: Should You Work With a Consultant?

8(a) Certification: Should You Be Concerned If You Derive More than 70 Percent Of Your Revenue From a Single Source?

What Are The Advantages and Disadvantages of An SBA 8a Joint Venture?

How The SBA's Presumed Loss Rule Impacts All Small Businesses, Including 8(a) Firms

SBA OHA Case Reminds Us That Familial Relationships Can Impact Small Business Size Status

Understanding The Paths to an 8(a) Sole-Source Award

Recent GAO Decision Reminds Us That 8(a) Sole-Source Contracts Are Difficult to Protest (And Prevail on)

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