Recent SBA Decisions from the Office of Hearings and Appeals

Agency Intransigence Moots Size Appeal.

 Size Appeal of Columbia Research Corporation, (June 27, 2003)

Despite a timely-filed size protest and appeal alleging that the contract awardee was affiliated with a large business, the SBA Office of Hearings and Appeals dismisses the appeal as moot.  The Navy declined to stay performance despite the size protest, and the Navy informed OHA it would not terminate the award regardless of the outcome of the appeal.  OHA rules a protester's appeal of a size  determination is moot, when- (1) the procuring agency has awarded the contract; (2) the award has not been stayed; (3) no litigation is pending that might overturn the award; and (4) the CO has stated that the award will be left in place regardless of the decision on appeal. 

Also see Size Appeal of Raloid Corporation, No. 4564 (June 17, 2003) (Air Force notifies OHA it will not cancel award even if awardee found to be other than small).

Publicly Traded Company May Not Qualify As Small.

Size Appeal of Aspect Medical Systems, Inc., No. 4567 (June 24, 2003)

NIH Contracting Officer sought clarification of eligibility for SBIR grant of publicly traded company.  To be considered small under applicable size standard, company was required to have less than 500 employees and 51% of stock held by U.S. individuals.  OHA rules that because more than 51% of stock in medical research firm was held by institutional and foreign investors, company was other than small and, therefore, not eligible, for SBIR grants.

Nonspecific Size Protest Dismissed; No Right To Present New Evidence On Appeal.

Size Appeal of Stuard & Associates, Inc., No. 4566 (June 24, 2003)

A competitor for an order from GSA protested the award to the Contracting Officer in a letter stating the awardee "may be other than small" due to its national presence and operations.  The SBA regional office dismissed the protest as nonspecific.  On Appeal, the protester presented new information showing the awardee's annual receipts over the past three years exceeded the applicable $6 million size standard.  Regardless, OHA declines to consider the evidence and dismisses the appeal because the original protest was nonspecific.