Tag Archives: Limitations on Subcontracting

Webinar Event: Limitations on Subcontracting: A Step-by-Step Compliance Guide (Update 2022)

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Koprince McCall Pottroff LLC will be presenting a webinar hosted by Govology, Limitations on Subcontracting: A Step-by-Step Compliance Guide will be on January 20 at 1:00pm EST.

In this webinar, government contracts attorneys Shane McCall and John Holtz will help you make sense of the limitations on subcontracting. Using a step-by-step process and plenty of examples to help bring the rule to life, they will help to ensure that you understand and comply with this essential rule.

If you’d like to join us for this webinar you can sign up for registration here.

Hope to see you there!

Event: The Basics of Small Business Limitations on Subcontracting and Nonmanufacturer Rule Compliance Webinar, Hosted by EPHCC

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Koprince McCall Pottroff LLC presents a webinar hosted by EPHCC that covers two important topics in federal government contracting – Limitations on Subcontracting and the Nonmanufacturer Rule.

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. 

The nonmanufacturer rule is one that is commonly misunderstood in the federal government contracting realm. But it is also one we encounter quite often in our role assisting federal contractors.

On December 8, join me, Shane McCall, as I go over both of these important topics in plain English in a single webinar.

To register, just click here.

Picking Your Teams: Joint Ventures Versus Prime/Subcontractor Teams (Part One, Workshare)

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Federal contractors often ask: “Is it better to team up for government work with a prime-sub arrangement or with a joint venture?” Well, (spoiler alert) the answer is: it depends. But I won’t leave you with just that. This three-part series will provide insight on some of the major differences between these two types of “teams” that offerors should consider when making the decision between a joint venture or prime/subcontractor team in competing for and performing federal contracts. While this series will not provide a comprehensive list of all the differences between these two types of teams, it will cover some of the big ones that seem to come up more frequently in this decision-making process. The focus of this first article will be work share.

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FAR Issues Final Rule on Limitations on Subcontracting

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

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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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Limitations on Subcontracting: Compliance Presumed Unless Proposal Clearly Shows Otherwise

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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

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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.