Miscalculation of Subcontracting Percentage Leads to Sustained Protest

Agencies and contractors must do their math right (even fractions) when evaluating proposals against solicitation terms, and GAO will call them on it if they don’t. GAO recently sustained a protest where an agency improperly calculated a small business subcontracting percentage by including the prime contractor’s fee as part of the subcontracted costs when the fee shouldn’t have been included.

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Accelerated Small Business Subcontractor Payments Extended To December 31, 2017

The government’s policy encouraging prompt payment to small business subcontractors has been extended to December 31, 2017.

In a Memorandum issued on January 11, 2017 by the Office of Management and Budget, OMB Director Shaun Donovan ordered that the popular policy be extended to the end of the year, and provided additional direction to agencies regarding their quarterly reports on implementing the accelerated payment policies.

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