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News & Press: Policy News

New Proposed rule on SubContracting

Tuesday, December 30, 2014  
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The Small Business Administration (SBA) released a proposed rule today implementing subcontracting reforms that were part of the FY13 Defense bill. The proposed rule would impact federal contractors, especially women-owned and small businesses. The proposed rules includes an important provision allowing small businesses (including WOSBs) to subcontract unlimited amounts with other small businesses (or WOSBs). This change, along with other in the rule, are something WIPP testified on as important to woman business owners. 

The proposed rule also makes changes to affiliation, joint venture, size protest, NAICS code appeals, SBIR program and re-certification requirements. WIPP is drafting a comprehensive summary available next week. In addition, federal contractors are encouraged to review the proposed rule.  

The summary from SBA describes what the rule covers:

The U.S. Small Business Administration is proposing to amend its regulations which pertain to performance requirements applicable to small business and socioeconomic program set aside contracts and small business subcontracting. SBA is also proposing to make changes to its regulations concerning the nonmanufacturer rule and affiliation rules. Further, SBA is proposing to allow a joint venture to qualify as small for any government procurement as long as each partner to the joint venture qualifies individually as small under the size standard corresponding to the NAICS code assigned in the solicitation. Finally, SBA is requesting comments on the timeline and procedures for North American Industry Classification System code appeals. 


Comments are due February 27, 2015. WIPP will be submitting a comment. Please contact WIPP by February 15, 2015 if you would like to share thoughts on this proposed rule for incorporation in WIPP’s comment. 

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