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New SBA rule mandates notification if contractors don’t use small business subcontractors

July 22, 2013 By ei2admin

A new rule set to go into effect Aug. 15, 2013 directs prime contractors to notify  contracting officers if they don’t use small business subcontractors that were  integral to producing a bid proposal.

In the Small Business Administration’s discussion of the final  rule, the agency says a prime contractor must represent that it will  make a good faith effort to utilize the small business subcontractors used in  preparing its bid or proposal.

The rule, authority for which comes from the Small Business Jobs Act of 2010,  spells out three conditions of small business involvement in a prime contract  bid, any one of which trigger the notification requirement: the prime  specifically references a small business in a bid or proposal; the small  business has entered into a written agreement with the prime to perform specific  work as a subcontractor under the contract should the prime win; or the small  business drafted portions of the proposal or submitted pricing or technical  information that appears in the bid or proposal.

Keep reading this article at: http://www.fiercegovernment.com/story/new-sba-rule-mandates-notification-if-contractors-dont-use-small-business-s/2013-07-19

 

Filed Under: Contracting News Tagged With: SBA, small business, Small Business Jobs Act, subcontracting, subcontracting goals

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