Credit for Lower Tier Small Business Subcontracting

The Small Business Administration (SBA) is proposing to amend its regulations to implement Sec. 1614 of the National Defense Authorization Act for Fiscal Year 2014. The proposed amendments authorized by this statute would allow another than small prime contractor that has an individual subcontracting plan for a contract to receive credit towards its small business subcontracting plan goals for subcontract awards made to small business concerns at any tier. The prime contractor shall incorporate the lower tier subcontracting performance into its subcontracting plan goals. Currently, other than small business prime contractors establish small business subcontracting goals for first tier level, and receive credit toward their subcontracting plan goal performance at the first-tier level. This also proposes to implement that statutory requirements related to the subcontracting plans of all subcontractors that are required to maintain such plans, including the requirement to monitor subcontractors’ performance and compliance towards reaching the goals set out in those plans as well as their compliance with subcontracting reporting requirements. SBA is also proposing to clarify that the size standard for a particular subcontract must appear in the solicitation for the subcontract.