Jump to content

Affiliate and Common Parnter Definitions


slammee

Recommended Posts

We are looking at potential award limitations and have decided to put a limit on prime contractors and their affilitates. In our RFI to the offeror community we used the definitions in the FAR to define these entities. The response from the potential offerors was a request for further clarification regarding affilitates, common partners, etc. Many were asking about reporting lines, funding sources, board makeup, etc.

Does anyone have any solid definitions that would help clarify the relationship between companies that may be subsidiaries of a larger corporation, may come together to form a separate partnership, and/or have shared financial ties with other parent corporations.

Link to comment
Share on other sites

We are looking at potential award limitations and have decided to put a limit on prime contractors and their affilitates. In our RFI to the offeror community we used the definitions in the FAR to define these entities. The response from the potential offerors was a request for further clarification regarding affilitates, common partners, etc. Many were asking about reporting lines, funding sources, board makeup, etc.

Does anyone have any solid definitions that would help clarify the relationship between companies that may be subsidiaries of a larger corporation, may come together to form a separate partnership, and/or have shared financial ties with other parent corporations.

According to HIPAA--

Two (or more) legally separate entities may choose to designate themselves as a single ?affiliated covered entity? if they are under common ownership or common control. ? 164.504(d)(2)(i).

a. Common ownership exists if an entity or entities possess an ownership or equity interest of 5 percent or more in another entity. ? 164.504(a).

b. Common control exists if an entity has the power, directly or indirectly, significantly to influence or direct the actions or policies of another entity. ? 164.504(a).

How the SBA determines affiliation for small business size eligibility can be found here:

http://ecfr.gpoaccess.gov/cgi/t/text/text-...5.3&idno=13

Also, check out these definitions --

http://www.allbusiness.com/glossaries/affi.../4942600-1.html

http://www.teachmefinance.com/Financial_Terms/affiliate.html

Hope this helps.

Link to comment
Share on other sites

Guest Vern Edwards
We are looking at potential award limitations and have decided to put a limit on prime contractors and their affilitates. In our RFI to the offeror community we used the definitions in the FAR to define these entities. The response from the potential offerors was a request for further clarification regarding affilitates, common partners, etc. Many were asking about reporting lines, funding sources, board makeup, etc.

Does anyone have any solid definitions that would help clarify the relationship between companies that may be subsidiaries of a larger corporation, may come together to form a separate partnership, and/or have shared financial ties with other parent corporations.

I don't know what kind of "potential award limitations" you are trying to establish or why you want to establish them, but if you have to come here to get definitions you should stop right now. The terms for which you are seeking definitions are not simple and may be defined in different ways in statute and regulation. If you don't know exactly what you are doing and the implications of any definitions you choose, you might be setting yourselves up for serious legal complications. You should take the inquiries from offerors as a warning and stop what you are doing.

Link to comment
Share on other sites

... you might be setting yourselves up for serious legal complications. You should take the inquiries from offerors as a warning and stop what you are doing.

I don't know how serious the legal complications might be, but you might be trolling for a GAO Protest.

I am assuming that you work for a federal agency, and as I understand it you want to serve notice that the agency wants to award to a Prime that does not have a bunch of entangling alliances with affiliates and partners. I'm trying to guess why you want to do that, and again assuming more than you've written, I'm guessing that you hope to avoid dealing with firms that claim to be small, but really aren't, and conceal that fact through a web of daughter and sister entities.

OK. If I've misunderstood, then you can disregard what follows.

I am a firm believer in the GAO Protest as a way for the disappointed bidder to find out what happened. Government contracting officials sometimes refuse to say who won a contract, or why, and the Comptroller General will demand release of that information, if the protest isn't dismissed before the production of an Agency Report. I also believe that the GAO Protest is a critical fulcrum for disappointed bidders to leverage Agency contracting officials into abiding by what's in a solicitation, and for maintaining the integrity of the procurement system, acting as "private attorneys general."

Well, with this power comes responsibility.

If an award is made in a set-aside to a business that may not really be small, then it is up to the disappointed bidders to ferret that out.

The language in the federal government about "small business" is really phony. A business can be huge and still qualify as "small," under SBA Regs. Figure that over 98% of all businesses are "small."

I once lost out on a bid to a company with annual revenues exceeding $50 Million on an SBSA. I'm a Sole Prop.

So if your intent, Slammee, is to protect a $30 Million company from the predations of a $50 Million company, good luck.

.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
×
×
  • Create New...