Size Protest

A size protest is a formal complaint filed with the SBA's Office of Government Contracting by an interested party, typically a competing offeror, alleging that the apparent awardee of a small business set-aside or sole source contract does not meet the applicable SBA size standard for the NAICS code assigned to the solicitation.

What is a Size Protest?

Size protests are governed by 13 CFR Part 121 and FAR 19.302. An interested party, any offeror who submitted an offer on the solicitation, may protest the size status of the apparent awardee after the contracting officer announces the selection decision. The protest must be filed with the SBA's Area Office serving the area where the apparent awardee's principal office is located, with a copy to the contracting officer, within five business days of notification of award or the identification of the apparent awardee.

The SBA does not adjudicate size protests filed at GAO, protests challenging a contracting officer's size determination must go to the SBA Area Office, with appeal rights to the SBA's Office of Hearings and Appeals (OHA). Upon receiving a timely size protest, the contracting officer typically withholds award pending the SBA's determination (or issues a stop-work order if already awarded), unless contract performance is urgently needed.

The SBA investigates the protested firm's annual revenues or employee count and, critically, applies affiliation rules. Firms are affiliated when one controls or has the power to control the other, creating a situation where the revenues or employees of multiple entities must be combined. Identifying affiliation relationships, through shared ownership, common management, economic dependency, or identity of interest, is often the heart of a successful size protest. The SBA has 15 business days to issue its determination from receipt of a complete protest and the protested firm's size information.

Why Size Protests Matter for Government Contractors

For a losing offeror, a size protest is one of the few mechanisms available to challenge a competitor's eligibility on a set-aside contract. When a competitor appears to have grown significantly, perhaps through acquisitions or undisclosed affiliates, a size protest can reverse an award. For small businesses defending their size status, being prepared for a protest with clean, organized financial records and a clear affiliation analysis is essential operational readiness. A surprise size protest without documentation can result in loss of an awarded contract.

Example

A small business IT firm loses a WOSB set-aside contract to a competitor. The losing firm's business development team notices that the apparent awardee's parent company recently acquired a large technology services firm. The losing firm files a size protest with the SBA Area Office within five business days, citing the acquisition and requesting an affiliation analysis. The SBA investigates, finds the parent and its affiliates push the awardee above the $34M size standard, and issues a determination that the awardee is other-than-small. The contracting officer re-evaluates remaining offerors and makes a new selection.

Frequently Asked Questions

What is the filing deadline for a size protest?

The protest must be filed within five business days of the protestor receiving written notification of the contracting officer's selection decision or identification of the apparent awardee. Late protests are dismissed without review. The five-day clock starts from the date the contracting officer notifies offerors of the selection, which may occur before formal contract award documents are signed.

Can a size protest be filed at GAO instead of the SBA?

No. Size protests are within the exclusive jurisdiction of the SBA. GAO does not review size determinations. If a protestor believes the contracting officer incorrectly determined that an offeror is small (rather than challenging the underlying size calculation), that challenge is a bid protest at GAO or the Court of Federal Claims, but even then, GAO defers to the SBA on actual size determinations. The two protest forums have different subject matter authority.

What if the SBA's size determination is wrong?

Either the protested firm or the protestor may appeal the SBA Area Office's size determination to the SBA's Office of Hearings and Appeals (OHA) within 15 calendar days of receiving the decision. OHA is an independent adjudicatory body that reviews size determinations de novo. OHA decisions may be further appealed to the Court of Federal Claims. This multi-tiered review process can extend an award dispute for months.

Does a size protest automatically stop contract award?

When a timely size protest is filed before award, the contracting officer must withhold award pending the SBA's determination, absent urgent and compelling circumstances. If award has already been made, the contracting officer may continue performance pending the determination but has discretion to stop work. The SBA's determination, once issued, is binding: if the apparent awardee is found other-than-small, the contract must be re-evaluated with the awardee excluded.