Tysons Corner, VA— On June 27, 2012, Centre won a ground-breaking size protest on behalf of
A2Z Supply Corp (A2Z), a Service Disabled Veteran Owned Small Business (SDVOSB).
The Small Business Administration’s Area Office had initially held against A2Z, whose size status
was protested after it won a VA contract to provide interment flags to the families of our
nation’s deceased veterans. However, on Appeal, SBA’s Office of Procurement Law (OPL) agreed
with Centre’s arguments that the decision was faulty, and moreover, if upheld would have the
effect of eliminating most, if not all, small business dealers and distributors from the federal
marketplace. OPL noted that this effect would be contrary to SBA policy and worked with Centre
to have the case sent back to the Area Office (AO). Upon second review, the AO concluded that
A2Z should prevail. Centre’s efforts on this case resulted in success for its client, A2Z, but this
case is also a massive victory for all small business dealers and distributors.
The case turned on whether A2Z satisfied SBA’s “Non-Manufacturer Rule,” codified at 13 C.F.R.
406(b). The AO’s first determination interpreted this rule to mean that dealers must always take
physical possession of the products they sell, a requirement that would dramatically increase
their cost of doing business. The second determination came down in favor of vendors like A2Z,
interpreting the rule to only require that dealers take ownership of the products at some point
during the transaction.
In response to the win, Stephen Ramaley, Esq., Associate Attorney at Centre stated, “I think we
had a very strong case under the law, but what may have carried the day was our success in
convincing SBA that their initial ruling would cost the Government money and undermine an
entire business model. I am satisfied that this case reached the right conclusion for our client,
the VA and for all small business dealers.”
For more information on this case and related issues, contact Stephen Ramaley, Esq. at
firstname.lastname@example.org or (703) 288-2800, ext. 232.