The Army Banned Teaming. Joint Ventures Were Fine.

Four words sat inside a fifty billion dollar solicitation: no teaming is permitted. A small firm in Alexandria read them, filed, and on August 11 the Government Accountability Office said those words break the Small Business Act.

LOLSBA · Federal contracting desk · August 22, 2026

The entrance of the Government Accountability Office Building in Washington DC, with the words accountability, integrity and reliability etched across the glass

Picture two small companies that want the same federal work. Neither can do the whole job. Together they can. There are exactly two paperwork routes to putting them on one bid.

Route one, they form a joint venture. That means a new legal entity, a written joint venture agreement that satisfies the SBA's rules, a designated managing venturer, allocated profits, and a lawyer who does this for a living.

Route two, one of them is the prime and the other is the subcontractor. That means a teaming agreement. It is a contract between two companies. It costs a fraction of route one and it does not require standing up a company that did not exist last month.

The Army's MAPS solicitation, RFP number W15P7T26RA006, permitted route one and banned route two.

Fifty Billion Dollars With The Cheap Door Locked

MAPS is the Marketplace for the Acquisition of Professional Services. It carries a ceiling of fifty billion dollars. It consolidates work that used to run through two separate Army vehicles, RS3 and ITES-3S, into one. Reporting on the solicitation describes roughly seventy awards per domain across five professional services domains, which works out to as many as 350 contracts hanging off it.

This is not a niche procurement. For a decade, a large chunk of the Army's professional services spending is going to walk through this door, and the department wrote the entry rules.

The rule it wrote said no teaming is permitted, and offerors could not propose subcontractors. Joint ventures could still bid.

Two small firms pooling their capability was allowed. Two small firms pooling their capability using the cheaper instrument was not.

Read that twice, because the substance on both sides of the line is identical. Same two companies. Same combined past performance. Same people doing the work. The only thing that changed is which legal instrument you hired somebody to draft.

Intelligence Consulting Enterprise Solutions, Alexandria, Virginia

A small business in Alexandria called Intelligence Consulting Enterprise Solutions filed a protest. GAO docketed it as B-424433.3 and B-424433.7 and decided it on August 11, 2026.

The decision sustained the protest in part and denied it in part, and the denied parts are worth listing first because they are the part nobody is quoting.

GroundOutcome
Solicitation numbering method and how amendments were postedDenied. GAO found the protester had actual knowledge of the amendments and the numbering followed the regulations.
Ban on using classified contracts as past performance referencesDenied. GAO accepted the Army's security and administrative burden justification as rational.
Inadequate answers to pre-proposal questions, and solicitation ambiguityDenied. GAO found the solicitation clear enough for intelligent competition.
Prohibition on small business teaming arrangementsSustained. Inconsistent with both the purpose and the plain language of the Small Business Act.

One ground out of four. ICES walked into GAO, lost most of its arguments, and still came out holding the only one that mattered.

The Word Was "Or"

The Army's defence was textual, and it was not stupid. The relevant provisions of the Small Business Act, at 15 U.S.C. 644(e)(4)(A) and 644(q)(1)(A), read alongside the mandate at 644(e)(1) to maximise small business participation, refer to teaming arrangements or joint ventures. The Army read that "or" as a menu it got to order from. Congress offered two options, so the agency picks one.

GAO read the same "or" and said the menu belongs to the bidder.

The choice belongs to the offeror, not the agency. The Army was wrong about with whom the discretion lies.

That is the whole ruling in two sentences. A statute written to widen the door was being used to narrow it, and the narrowing happened to fall on exactly the companies least able to absorb the cost of the alternative.

Because that is the part the textual argument keeps sliding past. Banning teaming does not stop consortium bidding. It taxes it. A firm with an in-house counsel and a compliance department stands up a joint venture and shrugs. A nine person shop with a bookkeeper and a good reputation reads the same clause and decides not to bid at all.

What GAO Can Actually Do About It

GAO recommended three things. Amend the solicitation so small business teams are allowed alongside joint ventures. Reopen MAPS for revised proposals. Reimburse ICES for the cost of its protest.

Recommended. Not ordered. A GAO bid protest decision is a recommendation to the agency, and agencies almost always follow one, because when they refuse GAO reports the refusal to Congress. Almost always is not always, and the word doing the work in that sentence is almost.

Meanwhile the queue keeps growing. More than a dozen protests have been filed against MAPS. Six of them were still pending at GAO when this one landed. The Army had hoped to make awards this month.

Where This Site Is Being Unfair

Three things cut the other way, and this page is not going to pretend otherwise.

The first is that this is the Army, not the SBA. Nobody at the Small Business Administration wrote the clause, and the agency that spends most of its year getting shouted at on this website is not the defendant here. It is the statute the SBA administers that did the work.

The second is that MAPS is not obviously hostile to small firms. Hundreds of awards across five domains is a wide gate by federal standards, and consolidating two ageing vehicles into one modern one is a defensible thing to want. Consolidation gets treated as a slur in this corner of the internet and it is not automatically one.

The third is that the Army's reading of the statute was a real argument that a real lawyer made in good faith, and GAO rejected three of ICES's four other grounds, including one about classified past performance that would have been far more damaging if it had stuck. This was not a rout.

What survives all of that is the shape of the thing. A department consolidated its professional services buying into a single fifty billion dollar instrument, and on the way in it wrote a rule that made the expensive form of small business cooperation legal and the cheap form illegal. It took a small company in Alexandria, its own money, and a federal watchdog to get the sentence struck.

Four words. Fifty billion dollars. Somebody had to file a protest to delete them.

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