Opinion ID: 2795702
Heading Depth: 2
Heading Rank: 2

Heading: Initial OHA Appeal

Text: SBA’s regulations provide that “[a]ny interested party adversely affected by a NAICS code designation may appeal the designation to OHA.” 13 C.F.R. § 121.1103(a)(1). “An appeal from a contracting officer’s NAICS code or size standard designation must be served and filed within 10 calendar days after the issuance of the solicitation or amendment affecting the NAICS code or size standard.” 13 C.F.R. § 121.1103(b)(1). On March 10, 2014, a prospective offeror— Information Ventures, Inc.—filed a timely OHA Appeal. Upon receipt of the appeal, OHA issued a notice and order instructing the contracting officer to amend the solicitation to notify potentially interested parties of the appeal. The order indicated that any response to the appeal must be filed with OHA and received no later than March 25, 2014. Pursuant to that order, and consistent with SBA regulations, NIH amended the solicitation to notify all potential offerors—including Palladian—of the OHA appeal. Palladian did not respond to or seek to participate in the appeal. In its appeal, Information Ventures argued that the contracting officer erred in selecting NAICS code 541712, because the tasks identified in the solicitation were unrelated to research and development. According to Information Ventures, “with the exception of Task 3— which contains some work properly viewed as information technology, such as developing a website—all of the tasks fit squarely within NAICS code 541611,” “Administrative Management and General Management Consulting Services.” NAICS Appeal of: Info. Ventures, Inc., SBA No. PALLADIAN PARTNERS, INC. v. US 7 NAICS-5544, 2014 WL 1395651, at  (Apr. 2, 2014) (IV OHA Appeal). On March 20, 2014, NIH contracting officer Goodling filed a response, defending his selection of NAICS code 541712. Specifically, he argued that: The primary purpose of the solicited contract and the majority of the anticipated cost of the contract will be in the implementation of Task 3 of the Statement of Work. The Contractor will use ma- terials researched and submitted by the CoEPEs to develop the online case-scenarios. Further, the Contractor will perform additional research, program, format and code as needed to develop the website on the NIH Pain Consortium page for re- search support in disseminating health based in- formation. Palladian, 119 Fed. Cl. at 427. Goodling explained that the contractor would be responsible for the “R&D [Research & Development] creation of the two predominant products in the contract:” the case-based scenarios and the website to host them. Id. On April 2, 2014, OHA granted the appeal, concluding that the contracting officer “clearly erred in assigning NAICS code 541712” because the solicitation “does not call for research and development.” IV OHA Appeal, 2014 WL 1395651, at . OHA found that the contractor would have “little, if any, substantive role in any research” and would instead be coordinating among entities that were engaging in research. Id. OHA agreed with Information Ventures that NAICS code 541611 was the most appropriate for the solicitation. In reaching this conclusion, OHA noted that it has affirmed use of NAICS code 541611 “in situations where a contractor will ‘assis[t] with the administration and management’ of an important program.” Id. at  (citations omitted). OHA found that the “instant contractor will perform precisely such work, 8 PALLADIAN PARTNERS, INC. v. US acting as the ‘Coordination Center,’ assisting with administrative matters, and managing communications and interactions between NIH and the CoEPEs.” Id. Because OHA’s decision issued before the close of the solicitation, it informed the contracting officer that he “MUST amend the RFP to change the NAICS code desig- nation from 541712 to 541611.” Id. OHA concluded by stating that “[t]his is the final decision of the Small Business Administration.” Id. Pursuant to OHA’s decision, the contracting officer amended the solicitation to change the NAICS code to 541611, “Administrative Management and General Management Consulting Services,” which has a size standard of $14 million average annual receipts. NIDA issued another amendment to the solicitation, this time extending the due date for offers to April 22, 2014.