SBA’s Office of Hearings and Appeals (OHA) Finds that the Joint Venture Exemption for 8(a) Affiliation is Contract Specific, Remanding the Case to the Area Office for Further Findings on Other General Principals of Affiliation

By: Christine V. Williams on 05/12/2017

In this size appeal case, the Office of Hearings and Appeals (“OHA”) remanded a case to the Area Office for further findings.  In remanding the case, OHA found that even though the small firms qualified for a joint venture exemption at the time-with the regulations in place, the Area Office failed to consider other means of affiliation and should have done so.  That is, the joint venture exemption in place at the time allowed the two small firms to bid on an 8(a) contract and not be found affiliated.  That exemption, however, did not apply to other general affiliation principles, such as identity of interest, the 70% revenue rule, business relations and connections, and previous work done together.  This case is attached.

SBA’s Office of Hearings and Appeals Finds that the Joint Venture Exemption for 8(a) Affiliation is Contract Specific