Analytica LLC (B-422681.3; B-422681.4)

Category: 8(a) novation

Date: 26 November 2024

URL: https://www.gao.gov/products/b-422681.3%2Cb-422681.4

You should not care.

Analytica LLC protested its elimination from consideration for a task order under the OASIS 8(a) small business pool by DHS for data strategy support services for USCIS. Analytica argued it had rightfully acquired an OASIS 8(a) contract from Potomac Management Solutions via novation, approved by GSA. However, GAO determined DHS properly excluded Analytica because SBA approval—required under regulations governing the transfer of 8(a) contracts—was not finalized until after the proposal submission deadline.

GAO’s decision turned on the failure to meet the clear regulatory requirements. While GSA had approved the novation, SBA had not granted either the required waiver or explicit permission for novation without termination under 13 CFR §124.515 and §124.518, respectively. Analytica argued GSA’s approval sufficed, but GAO emphasized that the regulations made SBA's approval nondelegable. Despite SBA supporting Analytica’s eligibility retrospectively, GAO held SBA’s interpretation of its regulations unreasonable given their plain language.

GAO denied the protest, affirming DHS’s determination of ineligibility. This case underscores the strict compliance required for 8(a) contract transfers and the nondelegable authority of SBA in such matters.

Digest

Protest that the agency unreasonably found the protester ineligible for award for failure to hold the required Small Business Administration (SBA) 8(a) contract is denied; the protester was acquiring the contract from another firm, and the record demonstrates that, because the SBA had not waived the required termination of that contract or authorized the novation without the waiver, the contracting officer reasonably concluded that the protester was not an eligible contract holder as required by the solicitation.