Limitations on Subcontracting: SBA Proposes Sweeping Changes

The limitations on subcontracting would undergo sweeping changes under a recent SBA proposal.

On December 29, the SBA issued a proposed rule to enact the changes implemented by Congress in the National Defense Authorization Act of 2013–including a thorough re-write of the way that compliance with the subcontracting limits is calculated and enforced.

Continue reading

GAO: Subcontracting Plan Requirement Applies Broadly

When a Contracting Officer determines that subcontracting possibilities will exist under a qualifying unrestricted contract, subcontracting plans are required from all offerors other than small businesses–including entities that do not intend to issue any subcontracts.

In a recent bid protest decision, the GAO rejected a protester’s argument that the subcontracting plan requirement is to be determined on an “offeror by offeror” basis, and held that the requirement to provide a subcontracting plan is broadly applied.

Continue reading

8(a) Subcontracting Limitations: Compliance Oversight Lacking

Compliance with the limitations on subcontracting are not adequately being monitored by the contracting officers responsible for 8(a) contracts, according to a recent GAO report.

After reviewing a representative sample of ten 8(a) contracts, the GAO determined that contracting officers effectively monitored subcontracting limit compliance on two of those contracts.  In other cases, agency contracting officers failed to effectively monitor compliance, even in situations presenting a heightened risk of potential violations–such as where ineligible incumbents were serving as subcontractors.

Continue reading

GAO: Agency Reasonably Considered Subcontractor’s Experience

Absent an express prohibition in the solicitation, the experience of a proposed subcontractor may be considered by an agency in determining whether an offeror meets the solicitation’s experience requirements.

In a recent bid protest decision, the GAO confirmed that the experience of a proposed subcontractor could be considered in an agency’s evaluation because the solicitation did not prohibit the agency from considering the subcontractor’s experience.

Continue reading

Davis-Bacon Act Fraud: Subcontractor’s Owner Sentenced

Davis-Bacon Act fraud has resulted in a criminal sentence for the owner of a now-defunct construction subcontractor.

According to a Department of Justice press release, the subcontractor’s owner has been sentenced to four years of probation (including 18 months of home confinement) and ordered to pay $164,627 in restitution, after pleading guilty to charges of conspiracy to pay employees less than prevailing wages on a federal construction project in Boston.

Continue reading

Large Business’s Unmet Subcontracting Goals Result In “Marginal” Score

A large business was appropriately awarded a “Marginal” score for small business participation based on the large business’s history of failing to meet its small business subcontracting goals.

In a recent bid protest decision, the GAO held that the procuring agency properly assigned the large business a low score based on the large business’s history of unmet subcontracting goals, even though the large business apparently pledged to subcontract a significant amount of work to small businesses under the solicitation in question.

Continue reading

Agency Properly Considered Joint Venture Partners’ Past Performance, Says GAO

A procuring agency properly considered the past performance of a joint venture’s two partners, even though the solicitation prohibited the consideration of subcontractors’ past performance.

In a recent bid protest decision, the GAO held that where a solicitation only allowed past performance references for the “prime offeror,” the agency was permitted to consider the past performance of two joint venture partners–the entities comprising a “prime offeror.”

Continue reading