October 13, 2015 - Small Business

The Small Business Administration Proposes a Rule to Provide Credit for Lower Tier Small Business Subcontracting

small-business -2On October 6, 2015, the Small Business Administration (SBA) proposed a rule to implement Section 1614 of the National Defense Authorization Act for Fiscal Year 2014. The proposed rule would amend the SBA regulations to allow a prime contractor with a subcontracting plan to receive credit towards its small business subcontracting goals for subcontract awards made to small business concerns at any tier. The proposed rule would remove the current prohibition against claiming small business credit for sub-tier small business subcontracts.

The proposed rule also obligates prime contractors to flow down various subcontracting plan requirements and monitor subcontractor compliance with subcontracting plan commitments, including accurate, and timely reporting.