Small Business Avoids Ostensible Subcontractor Affiliation Despite Hiring 100% Of Incumbent Personnel

Rogers Joseph O'Donnell – When a government service contract transitions from one firm to another, it is common practice for the new contractor to hire employees from the incumbent.  In contracts set aside for small business, this practice can create an affiliation between the two firms under the so-called “ostensible subcontractor” rule if the small business plans to subcontract a large portion of the work to the incumbent.