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Sba Size Determination Was Flawed Subcontractors; Bids

Friday, December 03, 2004 03:20 pm

Sba Size Determination Was Flawed Subcontractors; Bids

The Small Business Administration Office of Hearings and Appeals has ruled that an SBA Area Office improperly found a proposed subcontracting arrangement to be a sham and then aggregated corporate revenues when determining that the contractor was not a small business.

The Department of Housing and Urban Development issued a solicitation for proposals for the negotiated procurement of a contract for the management and marketing of foreclosed single-family properties. The procurement was set aside for small business entities.

Greenleaf Construction Co., Inc. submitted a proposal. Greenleaf, a small business enterprise primarily engaged in construction management and design/build projects, proposed to utilize Michaelson, Connor & Boul (MCB) as a subcontractor on the project. MCB is a major provider of services to HUD in the areas of mortgage foreclosure, mortgagee compliance and property marketing. MCB was also the incumbent contractor on the contract in question.

A c [...]

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