Quigg Bros Inc. (“Contractor”) argued that it is a small business and challenged the Government Contracting, Area VI (“Area Office”) decision holding otherwise. The Contractor appealed this decision to the SBA Office of Hearing and Appeals (“OHA”).
On appeal, OHA found that Quiqq Bros Inc. is associated with six members of the Quigg family; Patrick Quigg and John D. Quigg holding the largest interests. As such, there is a presumption of affiliation between family member businesses unless there is a clear line of fracture between them. This could not be proven, however, because there were various business dealings between the brothers and their respective companies. For example, the family collaborated on loans and joint investments. OHA held that these “business dealings” prove there was no clear line of fracture present.” The SBA Office of Hearings and Appeals therefore found affiliation between the family member businesses.
Affiliation between family members often arises in size protests. To prevent affiliation, you must keep business relationships between family businesses to a minimum, or none at all. Our webpage talks more about this. Check it out.
Size Appeal of: Quigg Bros Inc. SBA No. SIZ-5786 (October 25, 2016)
