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 »
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 »
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… Read more »
In government contracts, 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 relationship and discusses the roles of each to the government during the bidding and evaluation process. by contrast, in a joint venture… Read more »
Under SBA small business regulations, the ostensible subcontractor rule requires that when a subcontractor is actually performing the primary and vital contract requirements of the contract, or when the prime contractor is unusually reliant upon the subcontractor, the two firms are affiliated for purposes of the procurement at issue. The rule’s purpose… Read more »
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 common management and past affiliation between firms had ended well before the date for determining size and that identity of interest… Read more »
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 »
SBA size determination protests and disputes about the Ostensible Subcontractor Rule are continuously litigated. Many companies are still unclear about how the SBA evaluates the various aspects of the relationship between participating firms. Simply choosing to submit a teaming partner or subcontractor in your bid is not the end of… Read more »
Meeting SBA size protest timeliness requirements can be a problem when you are not sure when the clock actually starts. More importantly, filing an untimely size protest can eliminate your opportunity for a second chance at a government project. In many situations, because there is confusion about when the… Read more »
Although it is relatively easy to qualify, small businesses often find themselves in adverse situations when a competitor challenges their SBA NAICS size standards under 13 CFR Part 121 for certain industries. When an SBA bid protest is filed, the SBA then conducts an investigation and then makes a formal… Read more »