The Small Business Blog

TIPS * UPDATES * INDUSTRY NEWS

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.

SBA OHA's Recent Decision Clarifies Relevant Time for Determining Ostensible Subcontractor Affiliation & The Significance Of Knowing a Contract's Primary & Vital Requirements

11/28/2016

On October 12, 2016, the SBA Office of Hearings & Appeals (OHA) issued a decision in the matter of: Size Appeal of: Greener Construction Services, Inc. This appeal arose out of the SBA's size determination which concluded that Greener Construction Services, Inc. ("Greener Construction") is affiliated with its subcontractor EnviroSolutions, Inc. ("ESI") under the ostensible subcontractor rule and is therefore not a small business under the applicable size standard.

paid sick leave regulations for federal contractors takes effect on January 1, 2017

10/9/2016

On September 7, 2015, President Obama signed Executive Order 13706, "Establishing Paid Sick Leave for Federal Contractors." On September 30, 2016, the Department of Labor issued a Final Rule implementing the Executive Order on paid sick leave for federal contractors. The Final Rule applies to covered prime contracts and subcontracts entered into on or after January 1, 2017. Many of our clients have called with questions about the Final Rule, so the following provides some general information about it.

SBA Issues Final Rule Implementing Provisions of the 2013 NDAA Pertaining to Limits on Subcontracting

6/11/2016

On May 31, 2016, the Small Business Administration issued a Final Rule implementing provisions of the 2013 National Defense Authorization Act, which pertain to performance requirements applicable to small business subcontracting, affiliation and joint ventures. Holomua Consulting Group submitted comments in response to the Proposed Rule and we are pleased to note that many of our comments were taken into consideration and our suggestions reflected in the Final Rule. The Final Rule takes effect on June 30, 2016. The following is a summary of the major points of the Final Rule.

Almost All Federal Contractors and Subcontractors Must Now Meet Minimum Cybersecurity Requirements

6/11/2016

On May 16, 2016, the Federal Acquisition Regulation (FAR) was amended to add a new subpart and contract clause for the basic safeguarding of contractor information systems. Put another way, these provide baseline or minimum cybersecurity requirements which almost all federal contractors and subcontractors will have to comply with. The rule will take effect on June 15, 2016.

Busy Employee's Failure to Respond to SBA Size Protest Results In Issuance of Adverse Size Determination

3/10/2016

On January 19, 2016, the SBA's Office of Hearings and Appeals (OHA) issued a decision in the Matter of: Size Appeal of Oxyheal Medical Systems, Inc. This appeal arose out of the SBA's size determination that Oxyheal was not a small business for the procurement at issue. The subject procurement was set aside entirely for small businesses under NAICS Code 811219, Other Electronic and Precision Equipment Repair and Maintenance, with a corresponding size standard of $20.5 million.

Affiliation: Common Ownership in 8 Firms Leads to Finding of Affiliation Based on Common Investment Afffiliation

2/14/2016

On December 23, 2015, the SBA's Office of Hearings and Appeals (OHA) issued a decision in the Matter of: Size Appeal of Tenax Aerospace, LLC. (Tenax) This appeal, fiiled by Tenax Aerospace, LLC, arose out of a size protest filed by Flight Support, Inc. (FSI) (an unsuccessful offeror) and subsequent size determination by SBA that Tenax was not an eligible small business for purposes of the procurement at issue.

Affiliation: Hiring Subcontractor's Project Manager Does Not Violate the Ostensible Contractor Rule

12/5/2015

On October 29, 2015, the Small Business Administration (SBA) Office of Hearings and Appeals (OHA) issued a decision in the Size Appeal of: Giacare and Medtrust JV, LLC, SBA No. SIZ-5690. The appeal, filed by GiaCare and Medtrust JV, LLC (an unsuccessful offeror) arose from a size determination which concluded that Global Dynamics, LLC (GDL) was not affiliated with its subcontractor, OMV Medical, Inc. (OMV) and was therefore a small business.

Contractor Indicted for 8(a) Contract Fraud

11/30/2015

On November 16, 2015, the United States Department of Justice issued a Press Release announcing that a Federal grand jury in Maryland had indicted Anthony "Tony" Nwagbara Daniels (age 59 of Silver Springs, Maryland) on wire fraud charges arising from a scheme to defraud the United States by fraudulently obtaining a government contract through the SBA's 8(a) Business Development Program from 2011 through 2014.

GAO Report on Defense Cybersecurity: Opportunities Exist for DOD To Share Cybersecurity Resources with Small Businesses

10/1/2015

On September 24, 2015, the Government Accountability Office (GAO) published a report titled: "Defense Cybersecurity - Opportunities Exist for DOD to Share Cybersecurity Resources With Small Businesses" which addresses "the extent to which the DOD Office of Small Business Programs (OSBP) has integrated cybersecurity into its existing outreach and education efforts for defense small business." GAO's review and subsequent Report were done as a result of a provision in the Joint Explanatory Statement accompanying the 2015 NDAA which required GAO to perform such an assessment.

Back to top