Family ties plus business ties may equal affiliation

July 14, 2014 by

The SBA affiliation rules are not always intuitive, and perhaps no SBA affiliation rule is as little understood as the so-called “identity of interest” rule under 13 C.F.R. 121.103(f).

Identity of interest affiliation can arise in several ways, including when close family members also have business ties.  As demonstrated in a recent SBA Office of Hearings and Appeals decision, a close family relationship between two business owners, plus significant business ties, may cause affiliation between the businesses.

SBA OHA’s decision in Size Appeal of Knight Networking & Web Design, Inc., SBA No. SIZ-5561 (2014) involved a Navy procurement for ship and shore satellite communications support services.  The solicitation was issued as a small business set-aside under NAICS code 541330.

After evaluating competitive proposals, the Navy announced that Knight Networking & Web Design, Inc. was one of several awardees.  An unsuccessful competitor subsequently filed a size protest, claiming that Knight was affiliated with various other entities.

Keep reading this article at: http://smallgovcon.com/sbaohadecisions/sba-affiliation-rules-family-ties-plus-business-ties-may-equal-affiliation/

Want to grow your government contracting business? Be ready for what you wish for!

July 11, 2014 by

Federal small business programs are valuable. But they can also inadvertently stunt or even slash the growth of companies that the programs are intended to help.

First, small business owners with big ambitions can capture big wins that pump up their revenue beyond their small business size standards. But without the support of federal small business programs, more than a few can’t win new work to sustain that growth. When the company shrinks again, that slide back into small business status means lost jobs.

Then there’s those that deliberately cap their business growth to hang on to the advantages of small business programs. Their plan is either to hold steady, or get acquired. That holding pattern represents lost opportunity.

But stagnation and backsliding aren’t inevitable. Practical tactics can help in the short term.

Keep reading this article at: http://www.bizjournals.com/washington/blog/fedbiz_daily/2014/06/want-to-grow-your-government-contracting-business.html?page=all

Small biz size status ordinarily is based on underlying GSA Schedule contract

July 8, 2014 by

When a small business submits an offer for a Blanket Purchase Agreement issued against a GSA Schedule contract, the offeror does not automatically recertify its size.  Rather, a new regulation effective December 31, 2013 provides that an offeror’s size status for a BPA issued against a GSA Schedule ordinarily is determined by looking to the offeror’s self-certification for the underlying GSA Schedule contract.

In a recent size appeal decision, the SBA Office of Hearings and Appeals relied, in part, on the new regulation to find that an offeror had not recertified its small business status by submitting a quotation for a BPA to be issued against the offeror’s GSA Schedule contract.

SBA OHA’s decision in Size Appeal of Total Systems Technologies Corp., SBA No. SIZ-5562 (2014) involved a Homeland Security RFQ for business management support at the Coast Guard’s C4IT Service Center.  The Coast Guard issued the RFQ under the MOBIS Schedule 874, and stated that the RFQ would result in the award of a single BPA.  The RFQ was set aside for HUBZone firms.

Keep reading this article at: http://smallgovcon.com/sbaohadecisions/gsa-schedule-bpa-awards-size-status-ordinarily-is-based-on-underlying-gsa-schedule-contract/

 

Contracting facts and fictions

July 2, 2014 by

Many debates on the issues in government acquisition rely on assumed “facts” that may or may not be based on reality.

However, examining the latest actual, comprehensive, uniform, and unbiased information directly provided by contracting officers (from the Federal Procurement Data System) sheds light on some discrepancies.

For example, despite the budget drama of the past two years, inflation-adjusted figures reveal that contract awards remain over 20 percent higher in 2013 than back in 2003. For the contracting profession, this news is encouraging, especially considering the wind-down of the longest war in American history and indicative of the continued increase in government contracting in providing essential citizen services.

Similarly, while awards have dropped within the General Services Administration, the Department of Defense, and the Department of State, other agencies—such as the Department of Education, the Department of the Treasury, the Department of Health and Human Services, the Department of Justice, and the Department of Veterans Affairs—have seen increases, as have contracts awarded to small businesses.

Keep reading this article at: http://www.federaltimes.com/article/20140603/BLG06/306030013/Contracting-facts-fictions 

These are the Georgia firms who won federal contracts in June 2014

July 1, 2014 by

Ever wonder who’s winning federal contracts in Georgia?

Wouldn’t this information be helpful if you are looking for subcontracting prospects?  Or when you’re trying to figure out who your competitors are?  Or when considering who might be a good partner on an upcoming bid proposal?

Each month, the Georgia Tech Procurement Assistance Center (GTPAC) publishes a list of federal contracts awarded to Georgia businesses.  The list comes complete with point-of-contact information on the awardees, the name of the awarding agency, the dollar value of the contract, and much more.

Download details on the award winners for June 2014 right here:  FEDERAL CONTRACT AWARDS IN GEORGIA – JUNE 2014

Winners of federal contracts earlier this year may be found at the links below:

For information on Georgia businesses that won federal contracts in 2013, click here.

How mature is the government contracting market?

June 20, 2014 by

A few months ago, I was preparing some course material to address corporate strategy in the government contracting space.  I wanted, as almost all business school professors do, to use a case study or two from any one of the famous business schools that produce them.

(EDITOR’S NOTE – This is the first in a three-part series on the future of the government contracting market. The series is based on a speech John Hillen, former CEO of Sotera Defense Solutions, delivered as part of the Brown & Brown distinguished lecture series at George Mason University’s School of Management. This first essay deals with the maturation of the GovCon market over the past 50 years.)

Out of tens of thousands of case studies, I could hardly find one done about a government contracting firm.  When I asked a former Harvard Business school professor why this was so, he offered that he doubted that many professors producing these case studies thought that government contracting was a “real” market.

The view is more widely held than one might suspect – even in the national capital region.  Many thoughtful members of Congress involved in acquisition policy, senior leaders in the executive branch, members of media, academia, and elsewhere that I’ve spoken with think that the GovCon market is really more of a political process than a “real” market characterized by competition, innovation, and transparency.  Their prevailing view is that if a GovCon firm can figure out the political process and play that game better than the next guy, they win the contract, right? One monolithic buyer served by a few cartels in a closed cottage industry, right?

Keep reading this article at: http://washingtontechnology.com/Articles/2014/05/20/Insights-Hillen-GovCon-maturity.aspx?m=2&Page=2&p=1

When it comes to winning contracts, small businesses need to think strategically

June 19, 2014 by

Ask any small-business chief executive competing in the federal market, and he or she will tell you that finding a niche within the competitive spectrum has become increasingly difficult.

 Some small businesses find themselves competing against larger businesses that have ventured into smaller contracts. With the Small Business Administration’s changes to business size standards in 2012, some small businesses also find themselves competing against much larger — but now small, by definition — businesses for set-asides.

Despite these challenges, the current government contracting environment encourages small-business participation. More than $51 billion in 2013 contract obligations went to small business via set-aside contracts, and although the total dollar figure is declining, the percentage of total obligations is increasing.

Small-business contracting continues to be a priority for contracting offices, which are under increasing scrutiny regarding small-business utilization. These offices have the burden of proof and must justify not using a set-aside for certain requirements. The Obama administration and Congress are also helping shape the path with policies that address small-business competition.

Keep reading this article at: http://www.washingtonpost.com/business/capitalbusiness/when-it-comes-to-winning-contracts-small-businesses-need-to-think-strategically/2014/06/06/64bc1b7e-ea6b-11e3-b98c-72cef4a00499_story.html

Newly organized concern affiliation: “Key Employee” must influence entire company

June 16, 2014 by

Newly organized concern affiliation under the SBA’s affiliation rules did not exist when the alleged former key employee of the affiliate did not exercise influence over the entire company.

In a recent decision, the SBA Office of Hearings and Appeals held that no matter the size of the alleged affiliate, a former “key employee” must have had the ability to influence the entire company in order for the newly organized concern affiliation rule to apply.

SBA OHA’s decision in Size Appeal of Metis Technology Solutions, Inc., SBA No. SIZ-5538 (2014) involved a size determination conducted in connection with Metis Technology Solutions’ application for admission to the 8(a) program.  The SBA Area Office initially found Metis to be affiliated with two large businesses.

Metis subsequently applied for recertification as a small business.  The SBA Area Office found that Metis was no longer affiliated with one of the large businesses.  However, the SBA Area Office found that Metis was still affiliated with the second large business, Booz Allen Hamilton, Inc., under the newly organized concern affiliation rule.

Keep reading this article at: http://smallgovcon.com/sbaohadecisions/newly-organized-concern-affiliation-key-employee-must-influence-entire-company/

How one Navy contractor navigated Washington’s choppy waters

June 12, 2014 by

Raymond Lopez Jr. spent three decades in the Navy, starting out as a seaman apprentice and retiring with the rank of commander. When Lopez and his wife Carol started Engineering Services Network, a defense services company, in 1997, they built their business on Navy contracts, growing from a small start-up into a $38 million-a-year enterprise. Lopez felt like he had never really retired from the Navy.

But when the clouds of budget cuts gathered in Washington a few years ago, he realized it was time to move out of his comfort zone. The Crystal City company decided to diversify its business — a hot button word in defense contracting circles.

Back in 2004, ESN had worked on a $551,000 Air Force contract. Seven years later, when Lopez was looking to expand outside of Navy work, the connections established on that job helped the company win a crucial five-year, $38 million IT services contract with the Air Force.

The experience cemented Lopez’s decision to enter information technology. More than half of ESN’s business is still generated from providing engineering, operations and technical support services for the Navy, but federal IT jobs — managing tasks in cybersecurity and software development — now account for nearly 30 percent of its revenue. The company has worked with the Air Force, the Department of Veterans Affairs and the Department of Health and Human Services.

Keep reading this article at: http://www.washingtonpost.com/business/capitalbusiness/how-one-navy-contractor-navigated-washingtons-choppy-waters/2014/05/30/4cc6d0e6-e5c9-11e3-a86b-362fd5443d19_story.html

Limitations on subcontracting: 1099 contractor’s work didn’t count

June 11, 2014 by

Under the FAR’s limitations on subcontracting clause, the work to be performed by a 1099 independent contractor did not count toward the prime contractor’s performance.

In a recent bid protest decision, the GAO held that a procuring agency properly rejected an offeror’s proposal because the offeror was relying, in part, on an independent contractor to meet its obligations under the limitations on subcontracting clause.

The GAO’s decision in MindPoint Group, LLC, B-409562 (May 8, 2014) involved a Department of Justice solicitation for information technology infrastructure support.  The proposal was issued as a set-aside for Economically Disadvantaged Woman Owned Small Businesses (EDWOSBs), and incorporated FAR 52.219-14, the standard limitation on subcontracting clause.  For a services contract, FAR 52.219-14 requires the EDWOSB to perform at least 50 percent of the cost of contract performance incurred for personnel with its own employees.

MindPoint Group, LLC submitted a proposal.  MindPoint’s proposal stated that MindPoint would self-perform 53.3 percent of the contract effort using seven individuals, including an individual designated as the “Systems Administrator MS.”  However, MindPoint’s proposal included a letter of commitment stating that the Systems Administrator MS would be an “independent consultant,” and MindPoint’s price proposal referred to the individual as a “1099 Consultant.”

Keep reading this article at: http://smallgovcon.com/gaobidprotests/limitations-on-subcontracting-1099-contractors-work-didnt-count/