Sub credits at lower tiers

New proposed rule

      The SBA issued a proposed rule that tweaks how a prime contractor with an individual subcontracting plan may obtain credit toward its subcontracting goals for subcontracts to small businesses at second-tier and lower.

      Comments are due by Feb. 17.

      Not-small prime contractors generally must have subbing plans for contracts over $750,000 ($1.5 million for construction), with some exceptions.

      A 2016 final rule allowed lower-tier subcontracts to be counted toward goals. Previously, it was only the first tier. The 2020 NDAA made three changes: 1) A prime contractor may elect to receive credit for lower tiers; 2) agencies are prohibited from setting tier-specific goals; and 3) subcontracting plans must include records on how contractors will substantiate lower-tier credits.

More information:
Proposed rule: https://bit.ly/3GOy10y

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Sub credits at lower tiers

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