House Subcommittee Proposes New SBIR/STTR Phase III Transition Pilot Program

Congress is at work on the 2022 National Defense Authorization Act–major annual legislation that often includes significant changes to the laws impacting government contractors.

This year’s NDAA promises to be no different. Among potential changes: the House Subcommittee on Cyber, Innovative Technologies, and Information Systems has proposed to establish a pilot program to help transition more Phase II SBIR/STTR awardees to Phase III.

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FAR Update: Good Faith in Small Business Subcontracting

For many contracts, large businesses must establish and have the government approve a subcontracting plan that details the goals and efforts the large prime contractor will take to award subcontracts to various types of small businesses. Well, how does the government hold large businesses accountable for these goals? The FAR will soon have a final rule addressing good faith efforts to comply with a small business subcontracting plan.

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FAR Issues Final Rule on Limitations on Subcontracting

It has been a long time coming, but the Department of Defense, in conjunction with the GSA and NASA, are finally issuing a final rule amending the FAR guidance regarding limitations on subcontracting. In this post, we are going to explore just what these changes are and what they mean for government contractors such as yourself. The hope is this brief summary and analysis will provide you some insight as to just what the new rules do.

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CIO-SP4 Amendment 11 Removes a Small Business Requirement

A quick update on CIO-SP4. NITAAC has issued amendment number 11 to CIO-SP4. It moves the deadline to August 27, and takes out some confusing language about small business teams.

Specifically, it has removed the language saying: “The small business prime must demonstrate how they will comply with the LOS by including in their Small Business Teaming Agreement the specific level of effort and how each will ensure compliance with 52.219-14.”

That is now deleted.

That is the only change of note from Amendment 11. As it was a confusing provision and had been vexing many small business teams, it’s good that NITAAC took it out. But did they have to wait until the last possible moment?

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CIO-SP4 Amendment 10: More Changes and No Delay

Amendment 10 clarifies obligated dollar values, how to have subcontracted federal work counted, restrictions to contractor participation in task areas, evaluation of contractor program manager(s), establishing a static date from which to calculate the three-year look-back for corporate experience relevance, and evaluation of labor rates.

Needless to say, there is a lot of things packed into Amendment 10, and here’s the kicker, proposals are still due August 20th! With little time to digest, let alone alter, proposals in line with Amendment 10, NITAAC has left little room for offerors to catch up with the changes.

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Is the Revision to the FAR’s Limitations on Subcontracting Finally Nearing the Finish Line?

On June 30, 2016, a major new SBA regulation took effect, overhauling the limitations on subcontracting. The SBA’s new regulation, codified at 13 C.F.R. 125.6, replaced the “old” formulas for calculating compliance–like “cost of the contract incurred for personnel,” for service contracts, with new, easier-to-use formulas based on the amount paid by the government. And, in a major boon for small businesses, the SBA’s new regulation allowed small primes to count work performed by “similarly situated entities” toward the prime’s own self-performance.

But more than five years after the SBA regulation took effect, the FAR’s provisions governing the limitations on subcontracting still resemble Marty McFly: stuck in the past. The FAR Council still has not updated the FAR to conform with the SBA’s regulations and the underlying Congressional mandate, causing considerable confusion for contractors trying to figure out which rule to follow.

Now, though, we may finally (hopefully!) be nearing the finish line for this important and long-delayed FAR change.

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CIO-SP4 Amendment 8 – NIH Puts Small Businesses Behind the 8-ball

CIO-SP4 Amendment 7, we barely knew you. Less than a week after Amendment 7 went live, we have another amendment to dig into. What is new in this amendment? We have major changes to Other Than Small Business (OTSB) and Emerging Large Business (ELB) certifications. For small businesses, NIH is digging in its heels on consideration of CTA members.

While we are not sure how long this amendment will last, it puts small businesses behind the 8-ball.

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