Proposed Limitations on Subcontracting

In late December 2014 the SBA proposed changes to the National Defense Authorization Act (NDAA) of 2013 specifically in the area of subcontracting limitations and how they are calculated and enforced.

The rewrite will govern limitations on subcontracting for WOSBís, 8(a)ís, VOSB/SDVOSBís , HUBzone and Small Businesses. The main revisions include language such as: ìno more than 50% of the amount paid by the government to the prime may be paid to firms, at any tier, that are not similarly situated.î The NDAA also identifies certification of compliances, potential penalties for violating these limitations and the procedures for notification of changes to the contract.

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In late December 2014 the SBA proposed changes to the National Defense Authorization Act (NDAA) of 2013 specifically in the area of subcontracting limitations and how they are calculated and enforced.

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