Wednesday, August 7, 2013

Small Business to Benefit From New Federal Rules

 
Agencies and Prime Contractors to pay more attention to Small Business Subcontractors.
The U. S, Small Business Administration (SBA) is SBA B&W
amending its regulations governing small business subcontracting to implement provisions of the Small Business Jobs Act of 2010.
The new rules include:
  • Prime Contractors are required to issue notices to contracting officers specifically when they are late in making payments to small business sub-contractors;
  • Prime Contractors must notify contracting officers in writing if they do not use the contractor originally referenced in the submitted bid or proposal;
  • Agency Contracting Officers must monitor the small business sub-contractors' plan performance more closely;
  • Clarifications as to which subcontracts should be included or excluded in data reporting (specifically, Prime Contractors record should be limited to awards made to immediate next-tier subcontractors; credit cannot be taken for awards made beyond the immediate next-tier);
  • Changes subcontracting plan thresholds and updates to the use of the electronic subcontracting reporting system (eSRS);
The new rule will be effective August 15, 2013.