SBA Eliminates “Direct” Ownership Rules for HUBZone Program

On March 26, 2018, the U.S. Small Business Administration (SBA) issued a direct final rule that changed the wording of 13 C.F.R. § 126.200(b)(1) to allow indirect ownership by U.S. citizens of companies in the HUBZone program. The stated purpose of the rule change is to align more accurately the rule with the underlying statutory authority. Prior to this change the HUBZone rules required that a HUBZone company be “unconditionally and directly owned” by U.S. citizens. The rule took effect . . . Read More

Navigating SBA’s “Present Effect” on Your Corporate Strategies

Presented by Jon Williams and Kimi Murakami   Click here  to view the recorded session.   Session Description: When looking to make an investment in or purchase a small business contractor, it is critical to understand the potential impact of your corporate strategy under SBA’s small business rules. SBA has a unique rule called the “present effect rule” which can create adverse consequences for mergers and acquisitions, stock options, and convertible securities – even before the transaction is finalized or the option . . . Read More

SBA Amends Its Recertification Rules: Effectively Overturns Recent OHA Case

In a noteworthy decision earlier this year, the Small Business Administration’s (“SBA”) Office of Hearings and Appeals (“OHA”) confirmed the broad nature of SBA’s general rule that a contractor maintains its size and socio-economic status for the life of a contract. See In the Matter of Analytic Strategies, Inc., SBA No. VET-268 (Jan. 29, 2018) . This case required OHA to interpret the SBA regulation establishing the recertification rule in the context of Service-Disabled Veteran-Owned Small Business Concern (“SDVO SBC”) status. The regulation permits a concern that initially qualifies as an SDVO SBC . . . Read More

Big Changes Proposed to SBA’s Size Standards Methodology

Being and remaining a small business in the eyes of the government is one of the most important considerations for every federal contractor participating in small business set-aside programs. The rules of the contracting game change significantly if your company is small versus “other than small.” On April 27, 2018, SBA released a proposed rule that could impact your status as a small business, as SBA goes forward with its statutorily mandated revision of the size standards that dictate the . . . Read More

SBA’s Office of Hearings and Appeals Clarifies the (Not So Obvious) Effect of Size and Status Recertifications

In a recent case with wide-ranging implications, the Small Business Administration’s (“SBA”) Office of Hearings and Appeals (“OHA”) confirmed the broad nature of SBA’s general rule that a contractor maintains its size and socio-economic status for the life of a contract. See In the Matter of Analytic Strategies, Inc., SBA No. VET-268 (Jan. 29, 2018) . As a quick primer, SBA regulations provide that, where a concern represented itself and qualified as small and/or for a certain socio-economic status (e.g., SDVOSB, HUBZone, EDWOSB/WOSB) at the time of its initial offer, it maintains that . . . Read More

Successful Defense of a Size Appeal Before SBA’s OHA

Size Appeal of Chenega Support Services, LLC, SBA No. SIZ-5874 (2017) PilieroMazza successfully defended a size appeal before the SBA’s Office of Hearings and Appeals (“OHA”), allowing the awardee to maintain an important contract award. The Air Force awarded the contract in December 2016. No size protests were filed, but two competitors filed bid protests with GAO. In response to the bid protests, the Air Force took corrective action but did not terminate the contract. In October 2017, the Air . . . Read More

Defining “Unconditional” Ownership and Control of SDVOSBs: SBA Proposes to Relax Ownership and Control Requirements

Recently, we wrote about the VA’s proposed rule to eliminate its own ownership and control criteria for SDVOSB and VOSB eligibility under the Vets First contracting program. The proposed rule stems from Congress’ mandate in the National Defense Authorization Act for Fiscal Year 2017 (“NDAA”) that SBA be the sole agency responsible for issuing regulations relating to the ownership and control of SDVOSBs and VOSBs. On Monday, the SBA released a proposed rule regarding the sole definition of ownership and control that would apply . . . Read More

The VA Proposes to Align Vets First Ownership and Control Eligibility Criteria with the SBA’s Regulations

On January 10, 2018, the VA issued a  proposed rule  to eliminate its own ownership and control criteria for SDVOSB and VOSB eligibility under the Vets First contracting program, in order to align ownership and control requirements with the SBA’s SDVOSB program regulations. The proposed rule implements Congress’ mandate in the 2017 National Defense Authorization Action (“NDAA”) that the SBA be the sole agency responsible for the establishment of ownership and control requirements governing SDVOSB and VOSB eligibility.  In an attempt to . . . Read More

SBA Proposes Rules for OHA to Consider CVE Appeals and Protests

In late October 2017, the period to comment on SBA’s proposed rule to amend the SBA Office of Hearings and Appeals (“OHA”) rules of practice to implement provisions of the National Defense Authorization Act for Fiscal Year 2017 (“2017 NDAA”) closed. By way of background, the 2017 NDAA, which Congress passed on December 23, 2016, prohibits the VA from issuing rules related to the status of SDVOSB, requiring it to instead follow SBA regulations. The 2017 NDAA specifically granted OHA . . . Read More