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NAICS Appeals: What Are They and Do They Work?

8/14/2017

In the world of federal contracting, whether a business is small depends on the applicable NAICS Code and the corresponding size standard, which is expressed either in terms of number of employees OR in terms of revenue (see our prior Blog Post on this subject for more information). All federal procurement opportunities are assigned a NAICS Code by the Contracting Officer (CO), and the assigned NAICS Code is especially relevant for businesses that would like to represent themselves as small. That is, a particular business may be considered small for one NAICS Code but other than small for another NAICS Code.

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

3/2/2017

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.

Can Federal contractors utilize A professional employer organization (peo)?

10/10/2016

One way of determining whether a business is small, for purposes of federal contracting and small business contracting programs, is by looking at the number of employees the business and its affiliates have. In addition, questions regarding who a business' employees are come up in the context of compliance with labor and employment laws/regulations. We are frequently asked whether federal contractors can utilize a Professional Employer Organization (PEO) and if so, employees under a PEO arrangement are considered employees of the business.

SBA OHA: Compliance With Limits on Subcontracting Are Part of Responsibility Determination Not Size Determination

3/14/2016

On January 19, 2016, the SBA Office of Hearings and Appeals (OHA) issued a decision in the Matter of: Prosouth Construction Svcs, LLC. This appeal arose out of Prosouth's size protest against Birmingham Industrial Construction, LLC in conjunction with a construction procurement. In its protest, Prosouth, an unsuccessful offeror, alleged generally that Birmingham was not a small business under the applicable $15 million size standard and questioned whether Birmingham had the ability to self-perform at least 25% of the cost of contract performance, in accordance with the applicable limits on subcontracting.

Affiliation: Minority Ownership In Another Company Can Lead To Common Ownership Affiliation

2/15/2016

On January 13, 2016, the SBA's Office of Hearings and Appeals (OHA) issued a decision in the Matter of: Size Appeal of Government Contracting Resources, Inc. This appeal, filed by Government Contracting Resources, Inc. (GCR) arose out of a size protest filed by two unsuccessful offerors and the subsequent size determination that GCI was not a small business due to its affiliation with Valley Indemnity, LTD. (Valley).

Recent GAO Decision Illustrates Importance of Being Proactive When It Comes to 8(a) Joint Ventures

12/6/2015

On October 26, 2015, the Government Accountability Office (GAO) issued a decision In the Matter of FedServ-RBS JV, LLC, File No. B-411790. Although this case is consistent with current precedent and applicable regulations, it highlights several things, including: the significant challenges 8(a) Joint Ventures (JV) face in getting approval; the power the Small Business Administration (SBA) holds relative to 8(a) JVs being awarded 8(a) contracts; and the fact that contracting agencies are forced to award contracts to second place bidders (which may not be the lowest price or even the best value) if the SBA fails to timely approve a JV application.

Holomua Consulting Group's Comments On The SBA's Proposed Rule on Sole Source Contracts to WOSB/EDWOSB

7/1/2015

As we previously reported in our May 4, 2015 Blog Post, the SBA issued a Proposed Rule on May 1, 2015 implementing those provisions of the 2015 NDAA which provide for sole source contracting opportunities for Women-Owned Small Businesses (WOSB) and Economically Disadvantaged Women-Owned Small Businesses (EDWOSB). Comments in responses to this Proposed Rule were due June 30, 2015.

Holomua Consulting Group's Comments on The SBA Proposed Rule re: Mentor-Protege, Joint Ventures and the 8(a) BD Program

5/5/2015

On February 5, 2015, the Small Business Administration (SBA) issued its Proposed Rule which created a new mentor-protege program for small businesses and made other changes relevant to small business joint ventures and the 8(a) Business Development Program. Comments in response to the Proposed Rule were initially due on April 6, 2015 but the deadline was extended until May 6, 2015 - presumably due to the relatively small number of comments that had been submitted as of April 6, 2015.

Get Ready for WOSB Sole-Source Contracts

5/4/2015

On Friday, May 1, 2015 and just in time for National Small Business Week (May 4 -8) , the Small Business Administration (SBA) issued a Proposed Rule implementing those provisions of the 2015 National Defense Authorization Act (NDAA) which provide for sole-source contracts for Women-Owned Small Businesses (WOSB) and Economically Disadvantaged Women-Owned Small Businesses (EDWOSB).

Holomua Consulting Group's Comments On The SBA Proposed Limitations on Subcontracting Rule

3/30/2015

On December 29, 2014, the SBA issued its Proposed Rule announcing changes to the calculation(s) of the limitations on subcontracting, as well as other changes implemented by the 2013 National Defense Authorization Act. Comments were initially due on February 27, 2015; however, as we previously reported, the SBA reopened the comment period due to requests to extend the deadline and the scope/significance of the proposed rule. Comments are now due on April 6, 2015.

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