What Is a Small Business? The SBA Office of Hearings and Appeals Rejects the Bid Solve Standard - Arnold & Porter
The SBA Office of Hearings and Appeals (OHA) rejected the 'Bid Solve' standard for determining small business status, potentially changing how size is calculated for government contracts.
Aforeworn detected this change in the Government Contracting (SAM/FAR) space on July 8, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated High urgency. Small businesses seeking or holding federal set-aside contracts, including those under SAM.gov, GSA schedules, and defense contracts. should confirm how it applies to their specific situation before acting. There is a time constraint attached: Immediately; apply to all pending and future contract actions. Past awards may be subject to review if challenged.. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors Government Contracting (SAM/FAR) continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
OHA ruled that the 'Bid Solve' methodology (which aggregated affiliates based on potential to bid) is invalid. Size determinations must now rely on traditional affiliation rules under 13 CFR § 121.103.
Who it affects
Small businesses seeking or holding federal set-aside contracts, including those under SAM.gov, GSA schedules, and defense contracts.
What you must do
Review current size certifications and ensure compliance with standard affiliation rules. Re-evaluate any past size determinations that relied on Bid Solve.
Deadline
Immediately; apply to all pending and future contract actions. Past awards may be subject to review if challenged.
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