Prime contractors will need to issue notices to contracting officers when they do not use the small vendors referenced in their bids, according to a new final rule effective Aug. 15 issued by the Small Business Administration.

The notices could lead to more awareness of the small vendors being dropped by larger primes, said Dona Storey, American Express Open advisor on procurement.

“There have been a lot of situations where the small companies are not getting their fair share,” Storey told Set-Aside Alert. It is more common with long-term multiple-award contracts, she said.

While Storey is pleased that the government will track whether small subcontractors are being used, she said it’s still not clear what consequences, if any, a prime would face for dropping a sub.

Also in the final rule, the primes must notify agencies when paying late. There also is guidance on crediting subcontract awards.

More information: Federal Register notice: http://goo.gl/USrHPE