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Federal Market Intelligence for Small Business |
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When will new limitations on subs be in FAR?The House Small Business Committee wants to know when the longstanding revision on limitations on subcontracting actually will go into the Federal Acquisition Regulation. Chairman Steve Chabot, R-OH, and Ranking Member Nydia Velázquez, D-NY, sent a letter to the acting administrator of the Office of Federal Procurement Policy requesting a status update. Congress revised the limitations in the national defense authorization of fiscal 2013, and the SBA released regulations in 2016, to set new limitations on subcontracting based on a percentage of government payments rather than on the previous cost of labor. It also exempted “similarly situated entities.”
Joint employer change may hit small firmsThe National Labor Relations Board’s recent proposal to change the definition of “joint employer” could be detrimental to some small firms, according to Sarah L. Nash, associate with PilieroMazza PLLC. Small employers and subcontractors often employ a workforce subject to demands from larger companies, or from prime contractors. Under current law, if those larger companies impose unreasonable demands, the large companies likely would have to share the costs of litigating or remedying any unfair labor practices that occur as a result. Under the new proposed rule, the small business owners would be on their own, Nash wrote in a recent blog. “Small businesses that take heavy-handed suggestions from a business with influence over them, even if the influence is a threat to terminate business, may alone be forced to pay for the consequences of a discriminatory employment action that was driven by those directives,” Nash wrote.
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