When an agency decides to set aside an acquisition for participation only by small businesses, certain subcontracting limitations apply to the small business awardee. For construction contracts, the small business contractor cannot pay subcontractors more than 85% of the amount they receive from the agency. For service and supply contracts, the small business contractor cannot pay more than 50% of the amount paid to it by the agency to other entities that are not similarly situated. Work performed by similarly situated entities is not considered in determining if the limitation on subcontracting is violated. A similarly situated entity is defined as a small business subcontractor that is a participant of the same small business program as the prime contractor and is small for the NAICS code assigned by the prime contractor to the subcontract.
Continue Reading Recent GAO Decision Suggests SBA Regulation Regarding Limitations on Subcontracting Takes Precedence Over the FAR
NDAA of 2013
HOT OFF THE PRESSES: SBA TO RELEASE PROPOSED RULE ON NEW MENTOR-PROTEGE PROGRAM ON THURSDAY
By Edward T. DeLisle on
Posted in Small Business Contracting
My firm is a big supporter of the National 8(a) Association and a proud sponsor of its Winter Conference, which is taking place right now in Orlando, Florida. I just left a presentation given by the SBA and several other SBA experts and found out that the SBA will finally issue its new proposed regulations…
SBA's Mentor-Protege Program – Are Changes on the Horizon?
By Edward T. DeLisle on
Posted in Small Business Contracting
I have been inundated with questions about the SBA’s Mentor-Protege Program over the last six to eight months. That interest is being driven by what Congress included in the National Defense Authorization Act of 2013. After failing to implement changes to the Mentor-Protege Program following the passage of the Small Business Jobs Act of…