The SBA Office of Hearings and Appeals (“SBA OHA”) ruled that an SDVOSB was not unduly reliant on a non-SDVOSB subcontractor under a contract to provide the VA in home oxygen and ventilator services to veterans. SBA OHA looked at whether the SDVOSB will comply with the limitations on subcontracting requirements. If yes, then the SDVOSB would not be unduly reliant on its subcontractor based on SBA regulation 13 C.F.R. § 125.18(f)(2):
SBA will find that a prime SDVO contractor is performing the primary and vital requirements of a contract or order and is not unduly reliant on one or more non-similarly situated subcontract[or]s where the prime contractor can demonstrate that it, together with any similarly situated entity, will meet the limitations on subcontracting provisions set forth in § 125.6.
SBA OHA looked at the SDVOSB’s proposal and teaming agreement and found that they indicated that the limitations ion subcontracting would be complied with. Specifically, since it was a services contract, at least 50% of the contract services must be performed by the SDVOSB.
CVE Protest of Veterans Care Medical Equipment, LLC, SBA No. CVE-241-P (August 29, 2022)
