Limitations on Subcontracting: Step-by-Step, Plain English Guides

In my legal career representing hundreds of small businesses in government contracting, few topics have caused as much confusion as the limitations on how much work can be subcontracted on small business set-aside contracts and sole source contracts (like 8(a) Program direct awards).

Earlier, working with my friends at Govology, I put together step-by-step compliance guides for service contractors, construction contractors, manufacturers, and nonmanufacturers. Each guide is written in plain English and includes examples to help demonstrate how the SBA’s limitations on subcontracting rule (13 C.F.R. 125.6) works in practice.

Here’s where to find my limitations on subcontracting guides:

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The 8(a) Program: Our New Handbook is Available

The 8(a) program can be a powerful accelerator for those small businesses eligible to participate; however, these benefits come with substantial strings attached.

The latest volume of the Koprince Law LLC GovCon Handbooks series discusses this unique and heavily-regulated program.

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Thank You, APTAC!

I am back in Kansas after a fantastic trip to Reno for the 2019 APTAC Spring Conference. On Sunday, I taught a four-hour class on the FAR, followed by a general session Monday on major changes in Government contracting.

By my count, this was the ninth time I’ve attended an APTAC conference, and they’ve all been great. It was wonderful to see so many old friends and make some new ones, too. Thank you to APTAC’s leadership for inviting me, and for Terri Bennett of our home-state Kansas PTAC, who introduced my general session. A big thanks also to Carroll Bernard of Govology and Joshua Frank of RSM Federal, who kindly allowed me to share their booth.

If you’re a government contractor who hasn’t yet connected with your local PTAC, you’re missing out. Visit the APTAC website to find out more.

Changes to Limitations on Subcontracting: My Game Changers Podcast

The limitations on subcontracting are undergoing some major changes in 2019, including a newly-effective DoD class deviation and the FAR Council’s long-awaited proposal for a comprehensive overhaul.

Recently, I joined host Michael LeJeune of RSM Federal on the Game Changers podcast to discuss these important changes. Click here to listen to my podcast, and be sure to check out the other great Game Changers podcasts featuring voices from across the government contracting landscape.

Offeror Provides Only First Pages of Teaming Agreements, Gets “Marginal” Score

An offeror provided a procuring agency with only the first pages of its teaming agreements with proposed subcontractors–and received a “Marginal” score on the small business participation factor as a result.

In a recent decision, the Court of Federal Claims held that the agency reasonably downgraded the offeror for failing to provide its entire teaming agreements, saying that the agency correctly determined that it was unable to determine what work would be performed by the subcontractors.

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“Eliminate Most DoD Small Business Set-Asides,” Says Section 809 Panel

The Section 809 Panel has recommended that Congress eliminate most small business set-asides for DoD acquisitions. The Panel would replace the longstanding set-aside system with a meager five percent small business price preference.

For small government contractors, this recommendation is the policy equivalent of a five-alarm fire. Small contractors may need to fight hard to save the set-aside system.

Get ready for a battle.

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Section 809 Panel Recommends Changing “Once 8(a), Always 8(a)” Rule

Under the so-called “once 8(a), always 8(a)” rule set forth in the FAR and SBA regulations, when a procurement has been accepted by the SBA for inclusion in the 8(a) Program, any follow-on contract generally must remain in the 8(a) Program, unless the SBA agrees to release it for non-8(a) competition.

Now, the Section 809 Panel has proposed a modest, but potentially important change to the “once 8(a), always 8(a)” rule–a change that would allow for acquisitions to be removed from the 8(a) Program without the SBA’s explicit consent.

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