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SBA Cannot Replace Agency Responsibility Findings with Its Own

Sep.30.2011

In Spiral Solutions & Techs., Inc., the Small Business Administration’s Office of Hearings and Appeals (“OHA”) reversed a size decision finding a violation of the ostensible subcontractor rule because the SBA Area Office improperly made findings on matters of responsibility--matters reserved for the contracting officer.  Additionally, OHA explained that Spiral’s hiring of its subcontractor’s incumbent, non-management personnel is no longer indicative of “undue reliance” in light of Executive Order 13,495, which encourages companies to offer a right of first refusal of employment to qualified employees performing under a predecessor contract for similar services at a particular location.

Click here to read OHA's decision.

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Amy Laderberg O'Sullivan
Partner – Washington, D.C.
Phone: +1 202.624.2563
Email: aosullivan@crowell.com
John E. McCarthy Jr.
Partner – Washington, D.C.
Phone: +1 202.624.2579
Email: jmccarthy@crowell.com