A disappointed bidder filed a status protest arguing the awardee of an SDVOSB set aside was not controlled by a veteran. OHA sustained. The awardee’s veteran owner had a second job that impacted his ability to control the day-to-day operations of the awardee.
VSBC Protest of Marathon Industrial Equipment, LLC, Re: Gilk and Sons, LLC, SBA No. VSBC-342-P
- Protest – The agency awarded a contract set aside for SDVOSBs. An unsuccessful offeror filed a status protest. The protester argued that the awardee’s veteran owner worked for another company. He worked for the company that would be supplying the products quoted by the awardee. The protester argued this second job indicated the veteran owner may not exercise control over the awardee.
- Rule – To qualify as an SDVOSB, a company must be owned and controlled by a service-disabled veteran. The veteran must control day-to-day operations. SBA regulations prohibit the veteran from engaging in outside employment that could impact their management of the SDVOSB
- OHA Sustains – OHA asked the awardee to provide additional information about the veteran-owner's second job. The awardee filed an untimely response. OHA found the response deficient. The response did not describe the veteran’s duties at either company or how the veteran could fulfill his duties in each job. The court inferred that outside employment impacted the veteran’s control of the company.
The protester is represented by its President, Philip Kircher. The awardee is represented by John O. Shirley of Phelps Dunbar LLP.
--Case summary by Craig LaChance, Editor in Chief