Sunday, September 27, 2020

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$5 Million “Start-Up” Loan from Subcontractor to Small Business Indicative of Unusual Reliance on...

Protest challenging SBA’s size determination is denied. The SBA determined that the protester was not a small business because it was unusually reliant on a subcontractor in violation of the ostensible subcontractor rule. The court agreed with the SBA finding that protester had no experience performing the primary and vital requirements of the contract. Additionally, […]
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Ostensible Subcontractor Rule For SDVOSBs Does Not Apply to Procurements for Goods; CVE Protest...

Protest challenging awardee’s status as a service-disabled veteran-owned small business is denied. The protester alleged that awardee was unduly reliant on a subcontractor in violation of the ostensible subcontractor rule. But the ostensible subcontractor rule applies only to procurements for services. The contract in this case for goods. The protester also alleged  the awardee was […]
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OHA Denies VA Status Protest, Finds that Small Business Is Not Unusually Reliant on...

Protest challenging contractor’s SDVOSB status is denied. The VA filed a protest alleging that the contractor was not an SDVOSB because it was unusually reliant on a large business subcontractor. OHA, however, found that the contractor was performing a mixed contract, providing services and supplies. In a mixed contract, SBA’s limitations on subcontracting prohibit a […]
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Termination for Cause Justified by Contractor’s Shoddy Performance; SCS Building Maintenance, Inc. v. General...

Appeal of a termination for cause is denied. The agency terminated a contract for janitorial services after a significant decline in the quality of...

Joint Venture Agreement that Gave Mentor Too Much Control Invalidates Concern’s SDVOSB Status; Vet...

SBA decision affirming the SDVOSB status of an awardee is reversed. To be eligible for an SDVOSB set-aside, a joint venture must be controlled by an SDVOSB. In this case, the joint venture required unanimous consent from a members committee for several important business actions. This consent requirement gave the larger, non-SDVOSB partner negative control […]
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Agency Chose Wrong NAICS Code for Airport Security Screening Contract; NAICS Appeal of Caduceus...

Appeal challenging the NAICS code assigned to a solicitation is granted. The agency issued a solicitation seeking airport security screening services. The agency assigned an NAICS code for security guards to the solicitation. OHA found that the code the agency assigned applied to firms that provide bodyguards and guard dogs. OHA reasoned that another code […]
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Contracting Officer Can Only Challenge SDVOSB Status of Actual, Not Mere Apparent, Awardee; CVE...

Agency’s protest challenging apparent awardee’s status is dismissed. The agency is only allowed to challenge an awardee’s status during the life of the contract. Because the contracting officer had not yet formally awarded the contract the life of the contract had not yet begun. The protest was premature. OHA dismissed it without prejudice. The Department […]
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Contractor Not an SDVOSB When Veteran Owner Works Full-Time for Another Company; CVE Protest...

Protest challenging concern’s status as a service-disabled veteran owned small business is sustained. The challenged concern’s managing member was a service-disabled veteran, but he...

OHA Reverses SBA Area Office, Finding It Misapplied Ostensible Subcontractor Rule; Size Appeal of...

Appeal of SBA Area Office size determination is granted. The protester contended that the awardee of an SDVOSB set aside was affiliated with a large business under the ostensible subcontractor rule. The SBA Area found no affiliation. On appeal, however, OHA found that the Area Office misapplied the ostensible subcontractor rule. The rule sets forth […]
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Small Business May Have Subcontracted with Incumbent and May Have Also Hired Some Incumbent...

Appeal of SBA size determination finding that challenged firm was a small business is affirmed. The protester alleged that the awardee of 8(a) set aside was too reliant on its subcontractor and thus violated the ostensible subcontractor rule. OHA disagreed, finding that under the awardee’s proposal and teaming agreement, the awardee world perform more than […]
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