Secise Challenges Sabre Acquisition Under SBA's 180-Day Rule
Deal News | May 06, 2025 | EIN
The U.S. Small Business Administration (SBA) recently provided clarity on its 180-day rule, which impacts small businesses that are acquired after submitting a bid for a federal contract. This rule ensures that a company acquired within 180 days after submitting its initial proposal is considered a large business, potentially affecting its eligibility for contract awards. The case in question involved Secise, LLC, who contested that Sabre Systems, LLC was not a small business after its acquisition by a private equity firm following the submission of its bid. The SBA regulation 13 C.F.R. 125.12 mandates that businesses recertify their size status post-acquisition if such an event occurs within the 180-day period, impacting their eligibility for awards. The revised rules aim to offer firms stability and planning assurance during the procurement process, identifying 'offer' as the initial proposal, not subsequent revisions.
Sectors
- Private Equity
- Government Contracting
- Aerospace & Defense
Geography
- United States – The article involves the U.S. Small Business Administration and pertains to regulations affecting U.S. federal contracts.
Industry
- Private Equity – Relevant because Sabre Systems, LLC was acquired by a private equity firm, impacting its small business status.
- Government Contracting – The article discusses procurement processes and contracts set-aside for small businesses, pivotal in government contracting sectors.
- Aerospace & Defense – Relevant because the procurement discussed was a Navy contract, likely involving defense-related systems engineering support.
Financials
- – The article does not provide specific financial figures related to the acquisition or contracts.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Secise, LLC | Appellant | Company | Challenged the size status of Sabre Systems in a procurement-related appeal. |
| Sabre Systems, LLC | Acquired Company | Company | A private equity firm acquired them post-bid submission, leading to their size eligibility challenge. |
| SBA (Small Business Administration) | Regulatory Body | Government | Provided the rules and decision-making framework regarding small business acquisition impacts. |
| OHA (Office of Hearings and Appeals) | Judicial Body | Government | Adjudicated the appeal involving Secise and Sabre's contract eligibility. |