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/