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Family ties plus business ties may equal affiliation

July 14, 2014 By ei2admin

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/

Filed Under: Contracting Tips Tagged With: affiliation, identity of interest, Navy, SBA, small business

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