SBA’s Office of Hearings and Appeals Holds that the Ostensible Subcontractor Rule is Contract Specific and Dismisses Appeal

By: Christine V. Williams on 06/26/2017

In Size Appeal of Bridgeway Professionals, Inc., SBA No. SIZ-5827 (May 2017), the SBA’s Office of Hearings and Appeals (OHA) found that the Ostensible Subcontractor Rule was a contract specific finding of affiliation.  In this case, the SBA’s area office had found Bridgeway, the prime contractor, was unduly reliant on its subcontractor and made a finding of affiliation  pursuant to the ostensible subcontractor rule.  The agency then cancelled the solicitation and deobligated the funding.

Bridgeway still appealed the Area Office’s determination to OHA because it alleged that even with a finding of affiliation it would still be small under the instant procurement’s employee number size standard and would be damaged in responding to solicitations for future contracts.  OHA dismissed the appeal finding that the ostensible subcontractor rule is a contract specific ruling, not a universal one.  Thus, when the contract at issue was cancelled and fund deobligated, the appeal become moot.  Accordingly, OHA dismissed the appeal.

 

Size Appeal of Bridgeway Professionals, Inc.
, SBA No. SIZ-5827 (2017)