Question 1

How does SBA determine whether a business qualifies as small?

Accepted Answer

Size is determined as of the date the business certifies its size as part of an offer. SBA conducts formal size determinations when a size protest is filed. The Area Office examines the firm's revenues or employees (including affiliates) and issues a written determination within 15 business days. Either party can appeal an Area Office decision to SBA's Office of Hearings and Appeals (OHA).

Question 2

What is a size protest and how does it work?

Accepted Answer

A size protest challenges whether the apparent awardee qualifies as a small business under the applicable size standard. Any interested party (usually a competing offeror) can file a size protest with the contracting officer within five business days of notification of the apparent award. The CO forwards the protest to the SBA Area Office, which investigates and issues a determination. If the firm is found to be other-than-small, it loses the award.

Question 3

How does affiliation affect size standard calculations?

Accepted Answer

Affiliated businesses' revenues and employees are combined when determining size. Affiliation exists when one entity controls or has the power to control another, through common ownership, management, stock options, contractual relationships, or economic dependence. SBA's affiliation rules are complex — common triggers include family members owning related businesses, identical or near-identical owners, and the ostensible subcontractor rule for subcontracting relationships.

Question 4

What is SBA's Office of Hearings and Appeals (OHA)?

Accepted Answer

SBA's Office of Hearings and Appeals (OHA) is an independent adjudicative body within SBA that hears and decides appeals of SBA program decisions, including SDVOSB status protests, size determinations, and VetCert certification denials. OHA judges are administrative law judges who issue formal written decisions. OHA decisions are binding on SBA program offices and contracting officers, though final appeal to federal court is available.

How does SBA determine whether a business qualifies as small?

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