Amendments to Federal Acquisition Regulation Council obligations for prime contractors through the “Final Rule” adjusted the required obligations for small-business subcontracting. The new requirements, and consequences for not adhering, involve “good faith efforts” to earnestly use small businesses subcontractors mentioned in prime contractor’s proposals. Also amended have been “size status” related assurances, guaranteed use of NAICS codes, goal calculations, and reporting requirements. Prime contractors have been advised to review their existing plans and procedures in order to adhere to these new requirements.
Key Takeaways:
- Last week, the Federal Acquisition Regulation (“FAR”) Council issued a Final Rule to implement regulations adopted by the Small Business Administration in 2013. The Final Rule significantly amends FAR Parts 19 and 52 by imposing additional small business-related obligations on prime contractors and clarifying the consequences of failing to satisfy those obligations.
- The Final Rule requires that contractors include assurances in their small business subcontracting plans that they will use “good faith efforts” to use the small business subcontractors identified in their bid or proposal.
- Should a contractor not acquire from a small business identified in the bid or proposal, the contractor must inform its contracting officer in writing within 30 days of contract completion.
“Last week, the Federal Acquisition Regulation (“FAR”) Council issued a Final Rule to implement regulations adopted by the Small Business Administration in 2013. The Final Rule significantly amends FAR Parts 19 and 52 by imposing additional small business-related obligations on prime contractors and clarifying the consequences of failing to satisfy those obligations.”
http://www.natlawreview.com/article/changes-to-small-business-subcontracting-horizon
