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News & Press: WIPP Legislative Updates

SBA Proposes Subcontracting Credit For All Tiers

Monday, December 14, 2015  
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SBA Proposes Subcontracting Credit For All Tiers

Subcontracting is an important way for women entrepreneurs to engage in the federal marketplace. The Small Business Administration (SBA) recently proposed a rule to allow prime contractors to receive credit towards their small business subcontracting goals for subcontract awards made to small business concerns at any tier. Currently, prime contractors only receive credit for subcontracts to small businesses on the first tier.


Given that the federal government has yet to reach its 5% goal of prime contracts to women-owned small businesses (WOSBs), WIPP hopes SBA and other agencies will remain adamant about the importance of prime contracts. While WIPP thinks that this rule will increase subcontracting opportunities for WOSBs, it cautioned the SBA that this rule could shift agencies’ focus away from meeting their prime contracting goals. WIPP would like to see an increase in contracting opportunities for women-owned firms at all levels, but prime contracts provide the best opportunities for WOSBs.


WIPP’s full comment can be viewed here


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