13 C.F.R. § 125.6 sets out the limitations on subcontracting for all small business set-asides (including 8(a), SDVOSB/VOSB, HUBzone, and WOSB/EDWOSB set asides.) These limitations on subcontracting are crucial for any small business federal contractor to be familiar with, and we have discussed how they work here. But, while the regulation does provide for certain legal penalties for violations of these limitations, up until SBA’s recent rule change, it didn’t provide for any direct consequences for a company’s past performance (although conceivably an agency could mention limitations on subcontracting as part of a CPARS review). Furthermore, SBA now will require that compliance with the limitations be looked at on an order-by-order basis for multi-agency set aside contracts where more than one agency can issue orders under the contract, and for full and open contracts where the task order is set aside for small businesses. All this is effective May 30, 2023, and we explore these changes here.
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New Defenses to the Ostensible Subcontractor Rule are Coming
You may have noticed that SBA issued a final rule last week that created sweeping changes to the SBA’s 8(a) Program regulations, but along with that, SBA made sure to slip in a change to the ostensible subcontractor rule that has been a sticking point for many contractors when facing affiliation concerns. With this final rule, SBA will update the regulations to provide contractors certain ways to defend against potential ostensible subcontractor rule affiliation, depending on the type of contract at issue. This represents a shift in thinking, related to how to combat allegations brought under this affiliation rule and could present some new wrinkles for contractors to consider when setting up subcontracting arrangements.
Continue readingSmallGovCon Week in Review: April 3-7, 2023
Happy Friday, Readers. We hope you have had a great week. It’s a beautiful day in Lawrence, Kansas and it should be a great weekend for Easter egg hunting if you are so inclined. We hope you can spend time with family and friends this weekend and enjoy the spring weather.
There were some important announcements in federal government contracting this week including the continued saga of CIO-SP4 and anticipation over the Oasis+ contracts. You can read more about that and other federal government contracting news in the articles below. Enjoy the weekend.
Continue readingSmallGovCon Week in Review: March 27-31, 2023
Happy Friday, Readers! We hope you have had a productive week and are finishing out the month of March strong. There was, of course, lots of activity in the federal government contracting world this week including more buzz around federal cybersecurity issues and the SBA announced that they will be hosting a virtual summit for National Small Business Week. You can read more about these topics, and other federal government related news, in the articles below. Have a great weekend!
Continue readingSmallGovCon Week in Review: February 6-10, 2023
Happy Friday, Readers! We hope you had a great week and are looking forward to a fun Super Bowl Sunday. If you aren’t a Chiefs or Eagles fan, there’s always the food and halftime show to look forward to! Enjoy the weekend.
This week in federal government contracting saw an interesting perspective on contracting law and national power, new cloud computing and IT policies and initiatives, and AI potentially helping to write contracts.
Continue readingSmallGovCon Week in Review: January 30- February 3, 2023
Happy Friday, Readers! Hope you have been having a great week and a great start to February! Around these parts, we’re getting geared up for another exciting Super Bowl with our hometown Chiefs and the anticipation is building.
We hope you had a great week and our looking forward to a very nice weekend. We have included a few articles of interest concerning federal government contracting below. Of special note is a new contract management standard and a priority for small business engagement in DoD contracts. Enjoy!
Continue readingSmallGovCon Week in Review: January 23-27, 2023
Happy Friday, Readers. The Kansas City Chiefs secured another win on Saturday and have moved forward into the AFC Championship game. I think everyone in town had on their Chiefs gear last weekend. It was a sea of red. With temperatures predicted to be in the 20’s on Sunday, it will be a cold one in Kansas City for the big game! Brr.
We hope you had a great week and can grab a game or two this weekend and root for your favorite team. We have included some noteworthy articles below on federal government contracting, including SBA moving to a new certification platform and enhancing training for contracting officers. Enjoy the weekend and Go Chiefs!
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