‘Good faith effort’ in FAR

      DoD, GSA, and NASA issued a final rule to include in the FAR examples of prime contractors’ failure to make good faith efforts to comply with their small business subcontracting plans.

      The SBA amended its regulations in 2019 to provide guidance on evaluating whether a prime contractor made a good faith effort to fulfill its subcontracting plan. SBA also provided examples of failures of good faith efforts. The SBA also clarified that primes with commercial subcontracting plans must include indirect costs in their subbing goals.

      The new final rule, effective Sept. 10, puts the SBA’s changes in the FAR.

More Information:
Fed Register final rule: https://bit.ly/2VZNcAz

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