Subcontracting limits

The Small Business Administration proposed several changes to its regulations on Dec. 29 to implement provisions of the National Defense Authorization Act for fiscal 2013.

The changes apply to limitations on subcontacting and joint ventures, among other programs.

The subcontracting limitations pertain to the work that small firms are allowed to subcontract out to larger firms. Under the defense bill, Congress approved a shift from limiting a percentage of work to be subcontracted, to limiting the percentage of award dollars paid for such work.

“SBA proposes to totally revise Sec. 125.6 to take into account the new definition and calculation for the limitations on subcontracting,” the agency wrote. The new rule also would standardize and simplify how to apply the limitations to various types of goods and services contracts, or both together, the SBA said. The SBA wants to exempt set- aside contracts valued between $3,000 and $150,000.

The SBA also wants to loosen the rules for joint ventures. “SBA proposes to remove the restriction on the type of contract for which small businesses may joint venture without being affiliated for size determination purposes,” the rule said.

Additional updates would affect SBA’s calculation of receipts, and appeals of size standards.

More information:SBA proposed rule http://goo.gl/DfrHQc

AG sues FL firm

The Florida Attorney General announced she is charging telemarketing firm Federal Verification Co. Inc. of Oldsmar, FL of deceptive practices related to alleged promises of small business contracts with the General Services Administration.

The company conducts business through more than 50 business names and websites. It is headed by James Dale Sprecher.

More information: http://goo.gl/hlKwOD

DOD IG upholds vendor

The Defense Department’s inspector general agreed with a vendor that the company should receive $6.6 million in reimbursements for subcontractor costs that had previously been rejected by the Defense Contract Audit Agency.

DCAA did not comply with proper auditing practices when it rejected the claims, the IG wrote in a report, adding that DCAA auditors made errors and applied an arbitrary standard. The IG recommended that DCAA accept the contractor's charges and reconsider its audit methods.

More information: http://www.dodig.mil/pubs/documents/DODIG-2015-061.pdf

GSA MAS changes

Federal Acquisition Service Commissioner Tom Sharpe plans to reach out to industry this month for advice on how to improve the GSA’s Multiple-Award Schedules program. Read his blog about his plans here: http://goo.gl/pnX3IX

US contracting with small firms jumps in FY2014

WOSBs to lose self-certification?

HUBZone change stalled

Column: How to use USASpending.gov for market research

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