Analysis of SBA’s Proposed Rule Regarding Limitations on Subcontracting

On December 29, 2014, the Small Business Administration (SBA) published its proposed rule to implement provisions of the National Defense Authorization Act of 2013 (NDAA) that change the way firms calculate compliance with the limitation on subcontracting rule on small business set-asides. SBA’s proposed rule also proposes changes dealing with the nonmanufacturing rule, including affiliation and joint ventures, among other topics. On Tuesday, February 10, 2015 at 2:00 p.m. EDT, join Pam Mazza and Katie Flood, attorneys in our Government . . . Read More

Analysis of SBA’s Proposed Rule Regarding Limitations on Subcontracting

On December 29, 2014, the Small Business Administration (SBA) published its proposed rule to implement provisions of the National Defense Authorization Act of 2013 (NDAA) that change the way firms calculate compliance with the limitation on subcontracting rule on small business set-asides. SBA’s proposed rule also proposes changes dealing with the nonmanufacturing rule, including affiliation and joint ventures, among other topics. This memorandum provides our analysis of the new rules.

SBA Regulation Invalidated by Court of Federal Claims: Nonmanufacturer Rule Applies to Supply Portions of Service Contracts

It has been the common understanding within the U.S. Small Business Administration (“SBA”), and the small business government contracting community as a whole, that the nonmanufacturer rule applies only to contracts for the provision of supplies (i.e., goods) and not to service contracts, regardless of whether or not such service contracts have a supply component. This understanding was even memorialized in a regulatory change that SBA made in 2011 whereby the agency stated that the nonmanufacturer rule did not apply . . . Read More

SBA’s Template for Joint Venture Agreements – Is it OK to Use for your 8(a) Joint Venture?

By Kimi Murakami The answer as to whether 8(a) firms can use the U.S. Small Business Administration’s (“SBA”) joint venture (“JV”) agreement template seems to depend on which SBA District Office your small business is governed by. Recently, some of our small business clients that are governed by the SBA’s Washington Metropolitan Area District Office received notice from their Business Opportunity Specialist (“BOS”) that the agency’s template for JV agreements would no longer be accepted. It is unclear whether this is true for all SBA . . . Read More

A Husband’s “Illusory” Control: Recent SBA Decision Clarifies Role of Spouse in EDWOSBs

Since inception of the WOSB Program, the SBA has been sensitive to the involvement of husbands in WOSBs and EDWOSBs.  To combat the risk of a husband (or another man) running a WOSB or EDWOSB, the regulations require that the management and daily business operation of the concern be controlled by one or more women. However, the SBA also recognizes that as part of her management and control over the company, a woman may choose to hire her husband. But . . . Read More

GAO Affirms Timeline for SBA Approval of Joint Venture Agreements

By Kelly DiGrado The U.S. Government Accountability Office (GAO) recently affirmed that joint venture (JV) agreements need not be approved by the Small Business Administration (SBA) prior to submission of a proposal for an 8(a) set aside contract. See BGI-Fiore JV, LLC,  B-409520 (May 29, 2014). The case arose in the context of a pre-award protest of NASA’s decision to eliminate of BGI-Fiore’s proposal from competition for an 8(a) set aside contract.  NASA rejected the proposal of BGI-Fiore, JV, LLC, a JV between . . . Read More

It’s Not Just About Being Disadvantaged: An Overview of the SBA’s Potential for Success Requirement for 8(a) Program Entry

Gaining entry to the Small Business Administration’s (“SBA”) 8(a) Business Development Program (the “8(a) Program”) is not just about proving a social and economic disadvantage. If you are a small business owner thinking about applying to the 8(a) Program, there is another eligibility requirement you need to understand: potential for success. A business applying for 8(a) status must possess reasonable prospects for success competing in the private sector before it can be admitted to the 8(a) Program. What does that . . . Read More