SBA Operating Agreement & Negative Control Definition

When making size determinations and affiliation under the negative control definition for small businesses, the SBA not only looks at finding actual control over the protested business but also whether a non-disadvantaged person or entity has the ability to control the company. Companies should make sure that their operating agreements do not… Read more »

SBA Non Manufacturer Rule

How Does the SBA Nonmanufacturer Rule, 13 CFR 121.406, Impact Your Small Business Size? The SBA Non Manufacturer Rule has become the topic of litigation for small businesses in the SBA 8a Program.  Under the rule, 13 CFR 121.406, your small business may qualify for a requirement to provide manufactured products… Read more »

Mergers and Acquisitions of Federal Contractors

After federal contractors acquire government contracts, some of them seek an exit strategy structuring a merger and acquisition of the company. However, when compared to the traditional commercial practice, when there are existing government contracts involved, buyers and sellers should beware. If you are contemplating joining your company with a… Read more »

Small Business Mergers and Acquisitions

Avoid the Wrath of the SBA’s Present Effect Rule Many government small businesses make the huge step of merging with other companies for viable business reasons. However, when considering small business mergers and acquisitions impact, the  SBA’s “present effect” rule, the SBA considers agreements to merge (including agreements in principle) as… Read more »

Filing or Intervening SBA Small Business Size Protests

Oftentimes government contractors may want to file SBA size standards protest because they have reason to believe that the awardee does not meet the definition of a small business. However, given the short deadlines, companies have a difficult time explaining why the competitor is not a small business. This procedural requirement that… Read more »

Contractor Teaming Agreement vs Joint Venture

The subtle difference between using a contractor teaming agreement vs joint venture agreement is that a teaming contract essentially identifies the prime contractor and subcontractor and discusses the roles of each to the government. In a joint venture arrangement, a third entity is an actual offeror and not the individual… Read more »

SBA Size Appeal and Determinations of Common Management and Control

In the recent case of SBA Size Appeal of Medical Comfort Systems, Inc., and B&B Medical Services, Inc., SBA No. SIZ-5640 (2015), OHA found that the Area Office correctly determined that past affiliation between firms had ended well before the date for determining size and that identity of interest analysis did not… Read more »

SBA Size Protest Family Relationship & Identity of Interest

Often times, small businesses enter into family relationships that can impact the SBA Size standards application. When competitors challenge a government contract award in an SBA size protest, the analysis will usually be conducted under an Identity of Interest and family relationship basis. Companies that do not understand these rules can find… Read more »