2nd Rothe case in court

The Small Business Administration and the Defense Department are defending against a lawsuit that claims that minority-related provisions in the 8(a) program are unconstitutional, according to a report by Law360.

The government said historical studies have shown a large disparity in the awarding of federal contracts to minority-owned businesses vs. non-minority-owned businesses, justifying the 8(a) provisions under the Fifth Amendment.

The plaintiff, Rothe Development Inc., won a favorable ruling from the Federal Circuit Court in 2008 in a case involving DOD preferences for small, disadvantaged businesses.

Rothe sued the DOD and the SBA in 2012 to seek a broader ruling on 8(a). The company claims that 8(a) minority-related provisions are unconstitutional because they are not narrowly tailored.

More information: Law360 article http://goo.gl/lfNbEu

Safe harbor rule

Small businesses would have a “safe harbor” from allegations of fraudulent misrepresentation of their size if they previously obtained an advisory opinion on size from a Small Business Development Center or Procurement Technical Assistance Center, according to a new rule from the SBA.

But the SBDCs and PTACs are not required to provide such advisory opinions–-and no new funding will be awarded for this purpose, Steven Koprince, contracting attorney, wrote in a blog entry (http://goo.gl/4GjOX4).

Due to those shortcomings, the SBA’s safe harbor provisions are not likely to be of much help to contractors, J. Alex Ward and Damien C. Specht, of Jenner & Block, wrote in a report (http://goo.gl/yTpGFw).

More information:New SBA rule: http://goo.gl/dlC955

SDVOSB 3% goal likely met for fiscal 2013, but will it slip again?

SBA exec retires

Washington Insider: