Obama Administration to Stick with Parity Rule The Obama administration will continue to follow SBA’s parity rule for set-asides while it appeals a court decision striking down the rule. The Justice Department has told agencies that the decision by the U.S. Court of Federal Claims applies only to the single contract that was at issue in the case, Mission Critical Solutions v. U.S. The court ruled earlier this year that HUBZone companies are first in line for set-asides. In a May 18 memo, Shay Assad, director of defense procurement and acquisition policy, notified DOD components that the parity rule “continues to be the Executive Branch policy.” He cited the Justice memo and a prior directive from the Office of Management and Budget, then added, “We will advise you of any changes or updates.” Agencies appear to be following the policy. Set-Aside Alert’s Contract Opportunities listings have shown no noticeable increase in HUBZone set-asides. The Government Accountability Office ruled last year that HUBZone firms had first claim on set-asides because the language of the HUBZone law says a contract “shall” be set aside under the rule of two. Laws creating the 8(a) and service-disabled veterans programs say contracts “may” be set aside. The federal claims court backed GAO’s interpretation, and added that Congress had never provided for parity among socioeconomic programs. (SAA, 3/19 and 4/2) Legislation is pending in Congress to write the parity rule into law. The Obama administration has said it supports that. In a recent bid protest decision, GAO repeated its opinion, but acknowledged that executive branch agencies were ignoring it. GAO said it will rule on future parity protests on an expedited basis “in the interest of reducing the costs associated with filing and pursuing such protests.” The case is Matter of DGR Associates Inc, released May 14. The Justice Department has filed an appeal of the claims court ruling with the U.S. Court of Appeals for the Federal Circuit in Washington.