Room for Improvement: GAO Reviews Agency Oversight of Small Business Subcontracting Plans

Recently, GAO published a report on small business subcontracting plan compliance, concluding that agency oversight of these plans need improvement.

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Regulatory Update: SBA Moves to Clean Up Small Disadvantaged Business Rules

Last month, the SBA moved to edit its regulations, taking a red pen to its current rules governing Small Disadvantaged Businesses (or SDBs), as described in the Federal Register.

This post will highlight what the new rule will mean for current SDBs—and how businesses can become eligible for SDB subcontractor status under the new rule. While the SDB program is still alive and kicking, the rules will be simplified to eliminate a lot of language that is simply no longer applicable.

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CAAC Recommends Class Deviation to Accelerate Payments to Small Business Contractors

In the ongoing effort to minimize the effects of COVID-19, the Civilian Agency Acquisition Council (CAAC) has recommended that agencies implement a class deviation to accelerate payments to small business prime contractors to prime contractors with small business subcontractors.

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SBA Clarifies Subcontracting Plan Rules

The SBA recently issued a final rule concerning numerous aspects of small business contracting. In previous posts, we wrote about a few parts of the rule, including changes to the limitations on subcontracting.

The new rule also clarifies some important facets of the rules governing subcontracting plans.

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Miscalculation of Subcontracting Percentage Leads to Sustained Protest

Agencies and contractors must do their math right (even fractions) when evaluating proposals against solicitation terms, and GAO will call them on it if they don’t.

GAO recently sustained a protest where an agency improperly calculated a small business subcontracting percentage by including the prime contractor’s fee as part of the subcontracted costs when the fee shouldn’t have been included.

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Accelerated Small Business Subcontractor Payments Extended To December 31, 2017

The government’s policy encouraging prompt payment to small business subcontractors has been extended to December 31, 2017.

In a Memorandum issued on January 11, 2017 by the Office of Management and Budget, OMB Director Shaun Donovan ordered that the popular policy be extended to the end of the year, and provided additional direction to agencies regarding their quarterly reports on implementing the accelerated payment policies.

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