Tag Archives: subcontractors

Large Business’s Unmet Subcontracting Goals Result In “Marginal” Score

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A large business was appropriately awarded a “Marginal” score for small business participation based on the large business’s history of failing to meet its small business subcontracting goals.

In a recent bid protest decision, the GAO held that the procuring agency properly assigned the large business a low score based on the large business’s history of unmet subcontracting goals, even though the large business apparently pledged to subcontract a significant amount of work to small businesses under the solicitation in question.

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Agency Properly Considered Joint Venture Partners’ Past Performance, Says GAO

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A procuring agency properly considered the past performance of a joint venture’s two partners, even though the solicitation prohibited the consideration of subcontractors’ past performance.

In a recent bid protest decision, the GAO held that where a solicitation only allowed past performance references for the “prime offeror,” the agency was permitted to consider the past performance of two joint venture partners–the entities comprising a “prime offeror.”

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Small Business Subcontractors: Accelerated Payment Policy Extended

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The Office of Management and Budget has extended a policy aimed at providing accelerated payments to small business subcontractors.  Without an extension, the policy would have expired last week.

According to an OMB memorandum announcing the extension, the policy will remain in effect until December 31, 2016.  In the meantime, the memo states, the FAR Council is “considering strategies that might be used over the longer term to help maintain effective cash flow and prompt payment to small business subcontractors.”

SDB Fraud: Subcontractors Pay $1.9 Million Settlement

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Five subcontractors and two individuals have paid the government nearly $1.9 million to resolve allegations that they violated the False Claims Act by falsely representing themselves as small disadvantaged businesses.

According to a Department of Justice press release, the subcontractors self-certified as SDBs to their prime contractors, and those self-certifications were then passed on to the government.

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