2011 SBA LEXIS 57
Small Business Administration Office of Hearings and Appeals
June 16, 2011
SBA No. SIZ-5249
This appeal is decided under the Small Business Act of 1958, 15 U.S.C. § 631 et seq., and 13 C.F.R. Parts 121 and 134.
Whether the Area Office made clear error of fact or law in concluding that the protested concern is not affiliated with other concerns under the totality of the circumstances.
A. The Solicitation and Protest
On December 22, 2009, the Contracting Officer (CO) for the Air National Guard, Selfridge ANG Base, Michigan, issued [*2] Solicitation No. W912JB-10-R-4001 for professional and administrative support services. The CO set the procurement aside for small businesses and designated it under North American Industry Classification System (NAICS) code 561210, Facilities Support Services, with a corresponding $ 33.5 million annual receipts size standard. TSI Corporation (TSI) submitted its initial proposal on January 26, 2010.
On December 29, 2010, the CO notified offerors that TSI was the apparent successful offeror. On January 5, 2011, Native Energy and Technology Inc. (Appellant) filed a size protest with the CO. Appellant alleged TSI was affiliated, based on the totality of the circumstances, with six other concerns: Jantec, Inc. (Jantec); Jancorp Enterprises, Inc. (Jancorp); Jantec Services Group; The Trend Group, LLC (TTG); The Siegel Group, LLC (The Siegel Group); and TrendTec, Inc. (TrendTec).
Appellant attached to its protest 48 exhibits. These exhibits included material from the sbcontract.com and Governmentcontractswon.com websites showing TSI's address at 2810 W. Charleston Blvd., Las Vegas, which is also Jantec's address; and pages from the Central Contractor Registration (CCR) showing, [*3] among other things, that TSI and Jantec share a line of business in NAICS code 561210. Exhibit 5 is a Dun & Bradstreet (D&B) Report, listing Heidi Siegel as TSI's President and noting, "Director(s): The Officer(s)" and "100% of capital stock is owned by officers." Exhibit 9 is TSI's foreign corporation filings in the State of Florida, showing Mr. Jarvis as President and Director in 2005; and Ms. Siegel as President and Ms. Clark as Director in 2007-2010. Exhibit 44 is a printout from manta.com showing TTG's sales as $ 230,000.
Appellant also alleged that TSI and Jantec shared several employees. Further, Heidi Siegel, a Service-Disabled Veteran, joined TSI in order to qualify it for set-aside contracts. Appellant alleged TSI's receipts combined with its affiliates' exceed the size standard, emphasizing a $ 45 million Navy contract (No. N00140-07-D-0011) awarded to TSI in 2007 and completed in 2008.
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2011 SBA LEXIS 57 *
SIZE APPEAL OF: Native Energy and Technology Inc., Appellant; RE: TSI Corporation; Appealed from Size Determination No. 6-2011-029
affiliate, protest, stock, joint venture, shareholder, new evidence, xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx, totality of the circumstances, adverse inference, solicit, bid, government contract, motion to dismiss, power to control, self-certification, registration, non-voting, technology, meritless, founder, entity