One of the common questions small business contractors ask themselves when planning performance of a contract is “how much of this work are we allowed to subcontract?” Trying to answer this question inevitably leads contractors to one of the most commonly used and frequently misunderstood rules in federal contracting, the Limitations on Subcontracting. In this post, we will break down some of the basics of this rule, and hopefully clear up any basic misunderstandings regarding it.
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Back to Basics: The Nonmanufacturer Rule
To qualify as a small business under most set-aside or sole-source contracts seeking manufactured products or supplies, SBA’s regulations require an offeror to be the item’s manufacturer or, alternatively, comply with the nonmanufacturer rule.
In this post, we’ll discuss qualifying under the nonmanufacturer rule.
Continue readingLimitations on Subcontracting Part 1: What They Are and How They Apply
Congratulations! Your woman-owned small business (WOSB), Sun Corp, has just been awarded a contract. This particular contract was set aside for WOSBs, meaning only WOSBs may be considered for award. Small Corp is a relatively new company, and you have determined that you will need some help to successfully complete performance of the contract. As luck would have it, you are acquainted with the owner of Moon Corp, and Moon Corp is in the business of doing the exact type of work that Sun Corp needs help with. While diligently reading through the contract prior to its execution, you notice the following language:
Performance of this contract must comply with the subcontracting limitations set forth in FAR 19.505 and 13 C.F.R. § 125.6.
What do you do?
Continue readingSBA Proposes to Eliminate Some Nonmanufacturer Rule Class Waivers
SBA is currently considering terminating some class waivers for its small business Nonmanufacturer Rule, as it has received information to established the existence of small business manufacturers of
the subject products.
Webinar Event: Limitations on Subcontracting: A Step-by-Step Compliance Guide (Update 2022)
Koprince McCall Pottroff LLC will be presenting a webinar hosted by Govology, Limitations on Subcontracting: A Step-by-Step Compliance Guide will be on January 20 at 1:00pm EST.
In this webinar, government contracts attorneys Shane McCall and John Holtz will help you make sense of the limitations on subcontracting. Using a step-by-step process and plenty of examples to help bring the rule to life, they will help to ensure that you understand and comply with this essential rule.
If you’d like to join us for this webinar you can sign up for registration here.
Hope to see you there!
Event: The Basics of Small Business Limitations on Subcontracting and Nonmanufacturer Rule Compliance Webinar, Hosted by EPHCC
Koprince McCall Pottroff LLC presents a webinar hosted by EPHCC that covers two important topics in federal government contracting – Limitations on Subcontracting and the Nonmanufacturer Rule.
For small businesses and their teammates, few topics in government contracting are as confusing as the limitations on subcontracting for set-aside and socioeconomic sole source contracts. And if that isn’t stressful enough, the “LoS” is an area of heavy enforcement: get it wrong, and a contractor can face major penalties.
The nonmanufacturer rule is one that is commonly misunderstood in the federal government contracting realm. But it is also one we encounter quite often in our role assisting federal contractors.
On December 8, join me, Shane McCall, as I go over both of these important topics in plain English in a single webinar.
To register, just click here.
Picking Your Teams: Joint Ventures Versus Prime/Subcontractor Teams (Part One, Workshare)
Federal contractors often ask: “Is it better to team up for government work with a prime-sub arrangement or with a joint venture?” Well, (spoiler alert) the answer is: it depends. But I won’t leave you with just that. This three-part series will provide insight on some of the major differences between these two types of “teams” that offerors should consider when making the decision between a joint venture or prime/subcontractor team in competing for and performing federal contracts. While this series will not provide a comprehensive list of all the differences between these two types of teams, it will cover some of the big ones that seem to come up more frequently in this decision-making process. The focus of this first article will be work share.
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