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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FAR Update: Simplified Acquisition Threshold and Micro-Purchase Threshold are Going Up

The Simplified Acquisition Threshold and Micro-Purchase Threshold are officially increasing under the FAR. While various agencies had already increased the thresholds through deviations, this change will officially update the rules in the FAR.

Although this may seem like a minor update, it will cause changes across the federal contracting landscape and will result in more contracts being issued under the Micro-Purchase and Simplified Acquisition Thresholds.

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Proposed FAR Update to Allow Small Business Set-Asides for Contracts Outside USA

Traditionally, small business set-asides are not utilized in Federal contracts performed outside the United States. The SBA allows for contracts performed outside the United States to use set-asides or sole-source awards, but the FAR does not reflect this. Recently, the Department of Defense, General Services Administration, and NASA have proposed an update the FAR that would reflect the allowance of small business set-asides and sole-source awards in contracts performed outside of the United States. 

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