Limitations on Subcontracting: Compliance Presumed Unless Proposal Clearly Shows Otherwise

America’s criminal justice system is founded on the principle that a defendant is innocent until proven guilty. And when it comes to compliance with the limitations on subcontracting, a similar principle applies.

In a recent bid protest decision, the GAO confirmed that a small business’s proposal does not need to affirmatively demonstrate compliance with the “LoS.” Instead, compliance is presumed, unless the proposal “on its face” should lead the procuring agency to conclude that the small business will not comply.

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Event: APTAC Limitations on Subcontracting Session

For small businesses and their teammates, few topics in government contracting are as confusing as the limitations on subcontracting for set-aside and socioeconomic sole source contracts.  And if that isn’t stressful enough, the “LoS” is an area of heavy enforcement: get it wrong, and a contractor can face major penalties.  

Wouldn’t it be nice if someone would explain the limitations on subcontracting in plain English?  Well, if you’re a PTAC counselor, you’re in luck. On November 5, 2020, Koprince Law LLC Senior Partner Steven Koprince will present a session at the 2020 APTAC Fall Conference to help PTAC counselors and their clients understand and comply with this essential rule.

Joint Ventures and the Limitations on Subcontracting: SBA Provides Some Clarity

Joint ventures operating under the SBA’s regulations are subject to two work share restrictions: the limitations on subcontracting, which governs work share between the joint venture and its subcontractors) and the so-called “40 percent rule,” which governs work share between the joint venture partners.

It can be easy to get confused about how the rules work together. Fortunately, in a new rule published on October 16, SBA has provided some much-needed clarity.

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Alert: SBA Issues Final Rule on Consolidation of Mentor-Protégé Programs and Other Contracting Rules

As we discussed, in late 2019 the SBA issued a proposed rule that would make a number of significant changes to the Mentor/Protégé programs and other small business contracting rules. Well, the SBA will soon issue its final rule on these changes, so make sure you are aware of the new rules.

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Event: Small Business Contracting Update & 2021 Preview

Fiscal Year 2020 is officially in the books. For small businesses in government contracting, it was a year of major changes–and many more changes are on their way in FY 2021.

On November 18, please join me (virtually) for “Small Business Contracting Update & 2021 Predictions,” sponsored by the National Contract Management Association, Boston Chapter. I’ll cover the biggest changes in FY 2020, from the HUBZone Program overhaul to WOSB certification to increases in the 8(a) Program economic thresholds. Then I’ll dust off my crystal ball and predict what’s on the way in FY 2021, including the long-awaited changes to the limitations on subcontracting and a revamping of the rules governing debriefings.

It’s easy to register: just click here. I hope to see you for this great pre-Thanksgiving event!

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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Protester Goes Seven for Seven in Arguments Before GAO

Veterans of the bid protest process know that it’s not uncommon for a protester to make half a dozen arguments and prevail on only one.

Know what that’s called? A win. But when a protester goes seven for seven, you have to tip your cap.

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