Saturday, October 31, 2020

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Contractor’s Failure to Adequately Document Change in Ownership Results in Loss of SDVOSB Status;...

Appeal of the cancellation of a contractor’s SDVOSB status is denied where the company either failed to provide, or furnished incomplete versions of, documents...

Use of Incumbent as Subcontractor, With its Workforce, Did Not Implicate Ostensible Subcontractor Rule;...

Appeal of the SBA area office’s denial of a protest challenging the awardee’s size is denied, where the small business in question in not affiliated with its large subcontractor and the subcontracting arrangement does not run afoul of the ostensible subcontractor rule. iWorks Corporation was awarded a small business set aside to provide personnel security […]
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Protégé’s Reliance on Mentor Does Not Implicate the Ostensible Subcontractor Rule; Size Appeal of...

Size protest alleging that a small business protégé’s mentor was an “ostensible subcontractor” is denied. The SBA properly determined that that the primary purpose of the contract was to maintain relationships with pharmacies, and that the small business prime could self-perform that requirement. Moreover, the small business was not unusually reliant on its mentor. The […]
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SBA Area Office Drew an Improper Adverse Inference on Affiliation; SBA No. SIZ-6005, Size...

SBA determination that offeror was other than small is vacated and remanded for further review, where SBA erred in drawing an adverse inference due to the concern’s failure to provide requested information on affiliation. OHA concluded that the problem was not that the concern failed to provide information, but that SBA did not clearly ask […]
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Sale of Business Division Does Not Metamorphose the Division into a “Former Affiliate” for...

Appeal of size determination in which SBA found that contract awardee was not a small business is denied. The awardee argued that it had sold a business division before bidding on the contract, and if the receipts of that division were deducted from the awardee’s receipts, then the awardee fell within the applicable size standard. […]
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Franchisee’s Affiliation with Franchisor Negates Small Business Status; Size Appeal of The Coleman Group,...

Appeal of an SBA determination finding that a concern was not a small business is denied. The appellant was a franchisee. The franchise agreement...

Agency Misclassified Solicitation Seeking an Equipment Lease Under a Manufacturing Code; NAICS Appeal of...

NAICS appeal is granted in part where the agency assigned a manufacturing code to a solicitation for the lease of a CT scanner. But OHA rejected the protester’s proposed code, because that code was for diagnostic image services. Instead, OHA ordered the agency to reclassify the solicitation as one for an equipment lease. The Department […]
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SBA Improperly Double-Counted Assets in Evaluating Company’s Eligibility for 8(a) Business Development Program; In...

Appeal of a decision finding a company ineligible for SBA 8(a) Business Development program is granted. The SBA found that the net worth of the company’s principal exceeded the $250,000 threshold for 8(a) eligibility. OHA, however, found that the SBA had double-counted the value of one the principal’s rental property. The principal had sold a […]
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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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Acquisition Did Not Affect Company’s Size Status; Size Appeal of AOC Connect, LLC, SBA...

Appeal of a dismissed size protest is denied. The protester alleged that an awardee of a small business set aside had acquired another company before submitting its offer and thus was not small. But size is determined when an offeror submits its initial offeror. The protester wrongly focused on the final offer date. The awardee […]
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