Rule targets primes not using subs

     The federal acquisition councils have published a final rule aimed at reducing situations in which federal prime contractors name small business subcontractors in their bids, but then do not follow through in hiring those subcontractors when the contract is won. It includes other provisions to improve small business subcontracting as well.

      The final rule was published in the Federal Register on July 14. It implements a proposed rule from June 2015.

      Under the final rule, prime contractors must make a good faith effort to utilize their proposed small business subcontractors during performance of a contract “to the same degree the prime contractor relied on the small business in preparing and submitting its bid or proposal.”

      If, for some reason, the prime is unable to make a good faith effort as described,......
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