13 CFR 125.6 - What are the prime contractor's limitations on subcontracting?

§ 125.6 What are the prime contractor's limitations on subcontracting?

(a)General. In order to be awarded a full or partial small business set-aside contract with a value greater than the simplified acquisition threshold (as defined in the FAR at 48 CFR 2.101)” in paragraph (a) introductory text; and an 8(a) contract, an SDVO SBC contract, a HUBZone contract, a WOSB or EDWOSB contract pursuant to part 127 of this chapter, a small business concern must agree that:

(1) In the case of a contract for services (except construction), it will not pay more than 50% of the amount paid by the government to it to firms that are not similarly situated. Any work that a similarly situated subcontractor further subcontracts will count towards the 50% subcontract amount that cannot be exceeded.

(2)

(i) In the case of a contract for supplies or products (other than from a nonmanufacturer of such supplies), it will not pay more than 50% of the amount paid by the government to it to firms that are not similarly situated. Any work that a similarly situated subcontractor further subcontracts will count towards the 50% subcontract amount that cannot be exceeded. Cost of materials are excluded and not considered to be subcontracted.

(ii) In the case of a contract for supplies from a nonmanufacturer, it will supply the product of a domestic small business manufacturer or processor, unless a waiver as described in § 121.406(b)(5) of this chapter is granted.

(A) For a multiple item procurement where a waiver as described in § 121.406(b)(5) of this chapter has not been granted for one or more items, more than 50% of the value of the products to be supplied by the nonmanufacturer must be the products of one or more domestic small business manufacturers or processors.

(B) For a multiple item procurement where a waiver as described in § 121.406(b)(5) of this chapter is granted for one or more items, compliance with the limitation on subcontracting requirement will not consider the value of items subject to a waiver. As such, more than 50% of the value of the products to be supplied by the nonmanufacturer that are not subject to a waiver must be the products of one or more domestic small business manufacturers or processors.

(C) For a multiple item procurement, the same small business concern may act as both a manufacturer and a nonmanufacturer.

Example 1 to paragraph (a)(2).

A contract calls for the supply of one item valued at $1,000,000. The market research shows that there are no small business manufacturers that produce this item, and the contracting officer seeks and is granted a contract specific waiver for this item. In this case, a small business nonmanufacturer may supply an item manufactured by a large business.

Example 2 to paragraph (a)(2).

A contract is for $1,000,000 and calls for the acquisition of 10 items. Market research shows that nine of the items can be sourced from small business manufacturers and one item is subject to an SBA class waiver. The projected value of the item that is waived is $10,000. Therefore, at least 50% of the value of the items not subject to a waiver, or 50% of $990,000, must be supplied by one or more domestic small business manufacturers, and the prime small business nonmanufacturer may act as a manufacturer for one or more items.

Example 3 to paragraph (a)(2).

A contract is for $1,000,000 and calls for the acquisition of 10 items. Market research shows that only four of these items are manufactured by small businesses. The value of the items manufactured by small business is estimated to be $400,000. The contracting officer seeks and is granted waivers on the other six items. Therefore, the value of the items granted waivers is excluded from the calculation and at least 50% of $400,000 would have to be spent by the prime contractor on items it manufactures itself, or on items manufactured by one or more other small business concerns.

Example 4 to paragraph (a)(2).

A contract is for $1,000,000 and calls for the acquisition of 10 items. Market research shows that eight of the items can be sourced from small business manufacturers, and the estimated value of these items is $800,000. At least 50% of the value of the contract (i.e., at least $500,000) will be spent on items manufactured by one or more small business concerns. As such, the contracting officer is not required to request contract specific waivers for the other two items valued at $200,000. In this case, the prime contractor can meet the requirement by sourcing some of the items from small businesses manufacturers and some from large businesses without a waiver and still satisfy the requirement.

(3) In the case of a contract for general construction, it will not pay more than 85% of the amount paid by the government to it to firms that are not similarly situated. Any work that a similarly situated subcontractor further subcontracts will count towards the 85% subcontract amount that cannot be exceeded. Cost of materials are excluded and not considered to be subcontracted.

(4) In the case of a contract for special trade contractors, no more than 75% of the amount paid by the government to the prime may be paid to firms that are not similarly situated. Any work that a similarly situated subcontractor further subcontracts will count towards the 75% subcontract amount that cannot be exceeded. Cost of materials are excluded and not considered to be subcontracted.

(b)Mixed contracts. Where a contract combines services and supplies, the contracting officer shall select the appropriate NAICS code as prescribed in § 121.402(b) of this chapter. The contracting officer's selection of the applicable NAICS code is determinative as to which limitation on subcontracting and performance requirement applies. In no case shall the requirements of paragraph (a)(1) and (a)(2) of this section both apply to the same contract. The relevant limitation on subcontracting in paragraph (a)(1) or (a)(2) of this section shall apply only to that portion of the contract award amount.

Example 1 to paragraph (b).

A procuring agency is acquiring both services and supplies through a small business set-aside. The total value of the requirement is $3,000,000, with the supply portion comprising $2,500,000, and the services portion comprising $500,000. The contracting officer appropriately assigns a manufacturing NAICS code to the requirement. The cost of material is $500,000. Thus, because the services portion of the contract and the cost of materials are excluded from consideration, the relevant amount for purposes of calculating the performance of work requirement is $2,000,000 and the prime and/or similarly situated entities must perform at least $1,000,000 and the prime contractor may not subcontract more than $1,000,000 to non-similarly situated entities.

Example 2 to paragraph (b).

A procuring agency is acquiring both services and supplies through a small business set-aside. The total value of the requirement is $3,000,000, with the services portion comprising $2,500,000, and the supply portion comprising $500,000. The contracting officer appropriately assigns a services NAICS code to the requirement. Thus, because the supply portion of the contract is excluded from consideration, the relevant amount for purposes of calculating the performance of work requirement is $2,500,000 and the prime and/or similarly situated entities must perform at least $1,250,000 and the prime contractor may not subcontract more than $1,250,000 to non-similarly situated entities.

(c)Subcontracts to similarly situated entities. A small business concern prime contractor that receives a contract listed in paragraph (a) of this section and spends contract amounts on a subcontractor that is a similarly situated entity shall not consider those subcontracted amounts as subcontracted for purposes of determining whether the small business concern prime contractor has violated paragraph (a) of this section, to the extent the subcontractor performs the work with its own employees. Any work that the similarly situated subcontractor does not perform with its own employees shall be considered subcontracted SBA will also exclude a subcontract to a similarly situated entity from consideration under the ostensible subcontractor rule (§ 121.103(h)(4)).

Example 1 to paragraph (c):

An SDVO SBC sole source contract is awarded in the total amount of $500,000 for hammers. The prime contractor is a manufacturer and subcontracts 51% of the total amount received, less the cost of materials ($100,000) or $204,000, to an SDVO SBC subcontractor that manufactures the hammers in the U.S. The prime contractor does not violate the limitation on subcontracting requirement because the amount subcontracted to a similarly situated entity (less the cost of materials) is excluded from the limitation on subcontracting calculation.

Example 2 to paragraph (c):

A competitive 8(a) BD contract is awarded in the total amount of $10,000,000 for janitorial services. The prime contractor subcontracts $8,000,000 of the janitorial services to another 8(a) BD certified firm. The prime contractor does not violate the limitation on subcontracting for services because the amount subcontracted to a similarly situated entity is excluded from the limitation on subcontracting.

Example 3 to paragraph (c):

A WOSB set-aside contract is awarded in the total amount of $1,000,000 for landscaping services. The prime contractor subcontracts $500,001 to an SDVO SBC subcontractor that is not also a WOSB under the WOSB program. The prime contractor is in violation of the limitation on subcontracting requirement because it has subcontracted more than 50% of the contract amount to an SDVO SBC subcontractor, which is not considered similarly situated to a WOSB prime contractor.

(d)HUBZone procurement for commodities. In the case of a HUBZone contract for the procurement of agricultural commodities, a HUBZone SBC may not purchase the commodity from a subcontractor if the subcontractor will supply the commodity in substantially the final form in which it is to be supplied to the Government.

(e)Determining compliance with applicable limitation on subcontracting. The period of time used to determine compliance for a total or partial set-aside contract will be the base term and then each subsequent option period. For an order set aside under a full and open contract or a full and open contract with reserve, the agency will use the period of performance for each order to determine compliance unless the order is competed among small and other-than-small businesses (in which case the subcontracting limitations will not apply).

(1) The contracting officer, in his or her discretion, may require the concern to comply with the applicable limitations on subcontracting and the nonmanufacturer rule for each order awarded under a total or partial set-aside contract.

(2) Compliance will be considered an element of responsibility and not a component of size eligibility.

(3) Work performed by an independent contractor shall be considered a subcontract, and may count toward meeting the applicable limitation on subcontracting where the independent contractor qualifies as a similarly situated entity.

(f)Inapplicability of limitations on subcontracting. The limitations on subcontracting do not apply to:

(1) Small business set-aside contracts with a value that is greater than the micro-purchase threshold but less than or equal to the simplified acquisition threshold (as both terms are defined in the FAR at 48 CFR 2.101); or

(2) Subcontracts (except where a prime is relying on a similarly situated entity to meet the applicable limitations on subcontracting).

(g)Request to change applicable limitation on subcontracting. SBA may use different percentages if the Administrator determines that such action is necessary to reflect conventional industry practices among small business concerns that are below the numerical size standard for businesses in that industry group. Representatives of a national trade or industry group or any interested SBC may request a change in subcontracting percentage requirements for the categories defined by six digit industry codes in the North American Industry Classification System (NAICS) pursuant to the following procedures:

(1)Format of request. Requests from representatives of a trade or industry group and interested SBCs should be in writing and sent or delivered to the Director, Office of Government Contracting, U.S. Small Business Administration, 409 3rd Street SW., Washington, DC 20416. The requester must demonstrate to SBA that a change in percentage is necessary to reflect conventional industry practices among small business concerns that are below the numerical size standard for businesses in that industry category, and must support its request with information including, but not limited to:

(i) Information relative to the economic conditions and structure of the entire national industry;

(ii) Market data, technical changes in the industry and industry trends;

(iii) Specific reasons and justifications for the change in the subcontracting percentage;

(iv) The effect such a change would have on the Federal procurement process; and

(v) Information demonstrating how the proposed change would promote the purposes of the small business, 8(a), SDVO, HUBZone, WOSB, or EDWOSB programs.

(2)Notice to public. Upon an adequate preliminary showing to SBA, SBA will publish in the Federal Register a notice of its receipt of a request that it considers a change in the subcontracting percentage requirements for a particular industry. The notice will identify the group making the request, and give the public an opportunity to submit information and arguments in both support and opposition.

(3)Comments. SBA will provide a period of not less than 30 days for public comment in response to the Federal Register notice.

(4)Decision. SBA will render its decision after the close of the comment period. If SBA decides against a change, SBA will publish notice of its decision in the Federal Register. Concurrent with the notice, SBA will advise the requester of its decision in writing. If SBA decides in favor of a change, SBA will propose an appropriate change to this part.

(h)Penalties. Whoever violates the requirements set forth in paragraph (a) of this section shall be subject to the penalties prescribed in 15 U.S.C. 645(d), except that the fine shall be treated as the greater of $500,000 or the dollar amount spent, in excess of permitted levels, by the entity on subcontractors. A party's failure to comply with the spirit and intent of a subcontract with a similarly situated entity may be considered a basis for debarment on the grounds, including but not limited to, that the parties have violated the terms of a Government contract or subcontract pursuant to FAR 9.406-2(b)(1)(i) ( 48 CFR 9.406-2(b)(1)(i)).

[ 81 FR 34262, May 31, 2016; 81 FR 67093, Sept. 30, 2016; 83 FR 12852, Mar. 26, 2018]

Editorial Note:

At 81 FR 48585, July 25, 2016, § 125.6 was amended; however, the amendment could not be incorporated due to inaccurate amendatory instruction.

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.

United States Code

U.S. Code: Title 15 - COMMERCE AND TRADE

§ 632 - Definitions

§ 634 - General powers

§ 637 - Additional powers

§ 644 - Awards or contracts

§ 657f - Procurement program for small business concerns owned and controlled by service-disabled veterans

§ 657q - Consolidation of contract requirements

Title 13 published on 18-Aug-2018 03:37

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 13 CFR Part 125 after this date.

2018-10-31; vol. 83 # 211 - Wednesday, October 31, 2018

83 FR 54812 - Small Business HUBZone Program; Government Contracting Programs

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type	regulations.gov
FR Doc.	2018-23285
RIN	3245-AG38

SMALL BUSINESS ADMINISTRATION

Proposed rule.

Comments must be received on or before December 31, 2018.

13 CFR Parts 115, 121, 125, and 126

Summary

The U.S. Small Business Administration (SBA or Agency) proposes to amend its regulations for the Historically Underutilized Business Zone (HUBZone) Program to reduce the regulatory burdens imposed on HUBZone small business concerns and government agencies, implement new statutory provisions, and eliminate ambiguities in the regulations. SBA has reviewed all of its HUBZone regulations and is proposing a comprehensive revision to the HUBZone Program to clarify current HUBZone Program policies and procedures and to make changes that will benefit the small business community by making the HUBZone Program more efficient and effective. The proposed amendments are intended to make it easier for small business concerns to understand and comply with the program's requirements and to make the HUBZone program a more attractive avenue for procuring agencies.

2018-09-28; vol. 83 # 189 - Friday, September 28, 2018

83 FR 48908 - Ownership and Control of Service-Disabled Veteran-Owned Small Business Concerns

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type	regulations.gov
FR Doc.	2018-21112
RIN	3245-AG85

SMALL BUSINESS ADMINISTRATION

Final rule.

This rule is effective October 1, 2018.

13 CFR Part 125

Summary

The U.S. Small Business Administration (SBA or Agency) is amending its regulations to implement provisions of the National Defense Authorization Act for Fiscal Year 2017 (NDAA 2017). The NDAA 2017 placed the responsibility for issuing regulations relating to ownership and control for the Department of Veterans Affairs verification of Veteran-Owned (VO) and Service-Disabled Veteran-Owned (SDVO) Small Business Concerns (SBCs) with the SBA. Pursuant to NDAA 2017, SBA issues one definition of ownership and control for these concerns, which applies to the Department of Veterans Affairs in its verification and Vets First Contracting Program procurements, and all other government acquisitions which require self-certification. The legislation also provided that in certain circumstances a firm can qualify as VO or SDVO when there is a surviving spouse or an employee stock ownership plan (ESOP).

2018-03-26; vol. 83 # 58 - Monday, March 26, 2018

83 FR 12849 - Conforming Statutory Amendments and Technical Corrections to Small Business Government Contracting Regulations

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type	regulations.gov
FR Doc.	2018-06033
RIN	3245-AH02

SMALL BUSINESS ADMINISTRATION

Direct final rule; request for comments.

This rule is effective on May 25, 2018 without further action, unless significant adverse comment is received by April 25, 2018. If significant adverse comment is received, SBA will publish a timely withdrawal of the rule in the Federal Register .

13 CFR Parts 121, 125, 126, and 127

Summary

The U.S. Small Business Administration (SBA or Agency) is amending its regulations to incorporate a provision of the National Defense Authorization Act of 2018 (NDAA 2018) and to update and provide several technical corrections to SBA's regulations. Specifically, the NDAA 2018 amended the Small Business Act by replacing fixed dollar amount thresholds with references to the micro-purchase and simplified acquisition thresholds. SBA is updating its regulations to conform to this new statutory language. SBA is also updating the sole source dollar amounts for the Service-Disabled Veteran-Owned (SDVO) small business and the Historically Underutilized Business Zone (HUBZone) small business regulations. The thresholds for sole source contracting are contained in the Small Business Act, SBA's regulations, and the Federal Acquisition Regulations (FAR). These thresholds are updated in the FAR for inflation periodically, and therefore, over time, SBA's regulations and the FAR's numbers diverge. SBA is making this change to conform the thresholds contained in SBA's regulations to those in the FAR. This rule also allows indirect ownership by United States citizens in the HUBZone program to more accurately align with the underlying statutory authority. Finally, SBA is making several technical changes to address mistakes and typos made in previous rulemakings. For example, this final rule will update some cross-references that were not updated when a previous rulemaking changed numbering. Other changes made are for errors, grammar, syntax, and clarity.

2018-01-29; vol. 83 # 19 - Monday, January 29, 2018

83 FR 4005 - Ownership and Control of Service-Disabled Veteran-Owned Small Business Concerns

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type	regulations.gov
FR Doc.	2018-01392
RIN	3245-AG85

SMALL BUSINESS ADMINISTRATION

Proposed rule.

Comments must be received on or before March 30, 2018.

13 CFR Part 125

Summary

The U.S. Small Business Administration (SBA or Agency) proposes to amend its regulations to implement provisions of The National Defense Authorization Act for Fiscal Year 2017 (NDAA 2017). The NDAA 2017 placed the responsibility for issuing regulations relating to ownership and control for the Department of Veterans Affairs verification of Veteran-Owned (VO) and Service-Disabled Veteran-Owned (SDVO) Small Business Concern (SBC) with the SBA. Pursuant to NDAA 2017, there will be one definition of ownership and control for these concerns, which will apply to the Department of Veterans Affairs in its verification and Vets First Contracting Program procurements, and all other government acquisitions which require self-certification. The legislation also provides that in certain circumstances a firm can qualify as VO or SDVO when there is a surviving spouse or an employee stock ownership plan (ESOP).

2016-12-27; vol. 81 # 248 - Tuesday, December 27, 2016

81 FR 94941 - Small Business Mentor Protégé Programs; Correction

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type	regulations.gov
FR Doc.	2016-30873
RIN	3245-AG24

SMALL BUSINESS ADMINISTRATION

Correcting amendments.

Effective December 27, 2016.

13 CFR Parts 125, 126, and 127

Summary

The U.S. Small Business Administration (SBA) published a final rule in the Federal Register on July 25, 2016, amending its regulations to establish a new Government-wide mentor-protégé program for all small business concerns, consistent with SBA's mentor-protégé program for Participants in SBA's 8(a) Business Development (BD) program. The rule also made several additional changes to current size, 8(a), Office of Hearings and Appeals, and HUBZone regulations, concerning among other things, ownership and control, changes in primary industry, economic disadvantage of a Native Hawaiian Organization (NHO), standards of review, and interested party status for some appeals. This document makes several technical corrections to that final rule, eliminating a portion of a sentence concerning joint venture profits.

2016-12-23; vol. 81 # 247 - Friday, December 23, 2016

81 FR 94246 - Credit for Lower Tier Small Business Subcontracting

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type	regulations.gov
FR Doc.	2016-30874
RIN	3245-AG71

SMALL BUSINESS ADMINISTRATION

Final rule.

This rule is effective on January 23, 2017.

13 CFR Parts 121 and 125

Summary

The U.S. Small Business Administration (SBA) is amending its regulations to implement section 1614 of the National Defense Authorization Act for Fiscal Year 2014 (NDAA 2014). Section 1614 amended the Small Business Act to provide that where a prime contractor has an individual subcontracting plan for a specific prime contract with an executive agency, the prime contractor shall receive credit towards its subcontracting plan goals for awards made to small business concerns at any tier under the contract. The changes authorized by this statute will allow an other than small prime contractor that has an individual subcontracting plan for a contract to receive credit towards its small business subcontracting goals for subcontract awards made to small business concerns at any tier, to the extent reported on the subcontracting plans of its lower tier subcontractors. The final rule also implements the statutory requirements related to the subcontracting plans of all subcontractors that are required to maintain such plans, including the requirement to monitor subcontractors' performance and compliance toward reaching the goals set out in those plans as well as their compliance with subcontracting reporting requirements. SBA is also clarifying that the size standard for a particular subcontract must appear in the solicitation for the subcontract.

2016-10-19; vol. 81 # 202 - Wednesday, October 19, 2016

81 FR 71981 - Small Business Mentor Protégé Programs; Correction

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type	regulations.gov
FR Doc.	2016-24832
RIN	3245-AG24

SMALL BUSINESS ADMINISTRATION

Final rule; correction.

Effective October 19, 2016.

13 CFR Part 125

Summary

The U.S. Small Business Administration (SBA) published a final rule in the Federal Register on July 25, 2016, (81 FR 48557) to, among other things, implement provisions of the National Defense Authorization Act of 2013, which pertain to performance requirements applicable to small business and socioeconomic program set-aside contracts and small business subcontracting. That rule contained an instruction to amend portions of § 125.6 that do not exist. This document removes the amendatory instruction.

2016-09-30; vol. 81 # 190 - Friday, September 30, 2016

81 FR 67093 - Small Business Government Contracting and National Defense Authorization Act of 2013 Amendments

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type	regulations.gov
FR Doc.	2016-23374
RIN	3245-AG58

SMALL BUSINESS ADMINISTRATION

Correcting amendments.

Effective September 30, 2016.

13 CFR Part 125

Summary

The U.S. Small Business Administration (SBA) is correcting a final rule that appeared in the Federal Register on May 31, 2016 (81 FR 34243). The rule described the limitations on subcontracting that apply to set aside contracts. The rule provides that the limitations on subcontracting apply to small business set asides above $150,000 and to 8(a), HUBZone, Service-Disabled and Veteran-Owned (SDVO) or Women-Owned Small Business (WOSB) set asides. The $150,000 threshold appears twice in 13 CFR 125.6(a), and thus could be misinterpreted as applying the threshold to 8(a), HUBZone, SDVO or WOSB set-asides. This action deletes the second $150,000 threshold that appears in 13 CFR 125.6(a).

2016-07-25; vol. 81 # 142 - Monday, July 25, 2016

81 FR 48558 - Small Business Mentor Protégé Programs

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type	regulations.gov
FR Doc.	2016-16399
RIN	3245-AG24

SMALL BUSINESS ADMINISTRATION, 125, 13 CFR Parts 121, 124, 126, 127, and 134

Final rule.

This rule is effective August 24, 2016.

13 CFR Part 121

Summary

The U.S. Small Business Administration (SBA or Agency) is amending its regulations to implement provisions of the Small Business Jobs Act of 2010, and the National Defense Authorization Act for Fiscal Year 2013. Based on authorities provided in these two statutes, the rule establishes a Government-wide mentor-protégé program for all small business concerns, consistent with SBA's mentor-protégé program for Participants in SBA's 8(a) Business Development (BD) program. The rule also makes minor changes to the mentor-protégé provisions for the 8(a) BD program in order to make the mentor-protégé rules for each of the programs as consistent as possible. The rule also amends the current joint venture provisions to clarify the conditions for creating and operating joint venture partnerships, including the effect of such partnerships on any mentor-protégé relationships. In addition, the rule makes several additional changes to current size, 8(a) Office of Hearings and Appeals and HUBZone regulations, concerning among other things, ownership and control, changes in primary industry, standards of review and interested party status for some appeals. Finally, SBA notes that the title of this rule has been changed.

2016-05-31; vol. 81 # 104 - Tuesday, May 31, 2016

81 FR 34243 - Small Business Government Contracting and National Defense Authorization Act of 2013 Amendments

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type	regulations.gov
FR Doc.	2016-12494
RIN	3245-AG58

SMALL BUSINESS ADMINISTRATION

Final rule.

This rule is effective on June 30, 2016.

13 CFR Parts 121, 124, 125, 126 and 127

Summary

This rule amends the U.S. Small Business Administration's (SBA or Agency) regulations to implement provisions of the National Defense Authorization Act of 2013, which pertain to performance requirements applicable to small business and socioeconomic program set-aside contracts and small business subcontracting. This rule also amends SBA's regulations concerning the nonmanufacturer rule and affiliation rules. Further, this rule allows a joint venture to qualify as small for any government procurement as long as each partner to the joint venture qualifies individually as small under the size standard corresponding to the NAICS code assigned in the solicitation.

2016-05-19; vol. 81 # 97 - Thursday, May 19, 2016

81 FR 31489 - Civil Penalties Inflation Adjustments

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type	regulations.gov
FR Doc.	2016-11868
RIN	3245-AG80

SMALL BUSINESS ADMINISTRATION

Interim final rule with request for comments.

Effective Date: This rule is effective on August 1, 2016. Comment Date: Comments must be received on or before July 18, 2016.

13 CFR Parts 107, 120, 121, 124, 125, 126, 127, 142, and 146

Summary

The Small Business Administration (SBA) is amending its regulations to adjust for inflation the amount of certain civil monetary penalty that is within the jurisdiction of the agency. This adjustment is required by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. This rule also makes technical amendments to the regulations governing misrepresentations in SBA contracting programs to add a cross reference to the regulation that contains the applicable penalty amounts for misrepresentations and to correct a citation in the same regulations. Finally, the rule makes a technical amendment to an existing regulation governing small business investment companies to add a cross reference to a new civil penalty provision.

2015-10-06; vol. 80 # 193 - Tuesday, October 6, 2015

80 FR 60300 - Credit for Lower Tier Small Business Subcontracting

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type	regulations.gov
FR Doc.	2015-25234
RIN	3245-AG71

SMALL BUSINESS ADMINISTRATION

Proposed rule.

Comments must be received on or before December 7, 2015.

13 CFR Parts 121 and 125

Summary

The U.S. Small Business Administration (SBA or Agency) is proposing to amend its regulations to implement Section 1614 of the National Defense Authorization Act for Fiscal Year 2014. The proposed amendments authorized by this statute would allow an other than small prime contractor that has an individual subcontracting plan for a contract to receive credit towards its small business subcontracting goals for subcontract awards made to small business concerns at any tier. The prime contractor shall incorporate the lower tier subcontracting performance into its subcontracting plan goals. Currently, other than small business prime contractors establish small business subcontracting goals at the first tier level, and receive credit toward their subcontracting plan goal performance at the first tier level. The rule also proposes to implement the statutory requirements related to the subcontracting plans of all subcontractors that are required to maintain such plans, including the requirement to monitor subcontractors' performance and compliance towards reaching the goals set out in those plans as well as their compliance with subcontracting reporting requirements. SBA is also proposing to clarify that the size standard for a particular subcontract must appear in the solicitation for the subcontract.

2015-04-07; vol. 80 # 66 - Tuesday, April 7, 2015

80 FR 18556 - Small Business Mentor Protégé Program; Small Business Size Regulations; Government Contracting Programs; 8(a) Business Development/Small Disadvantaged Business Status Determinations; HUBZone Program; Women-Owned Small Business Federal Contract Program; Rules of Procedure Governing Cases Before the Office of Hearings and Appeals

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type	regulations.gov
FR Doc.	2015-07887
RIN	3245-AG24

SMALL BUSINESS ADMINISTRATION

Proposed rule; extension of comment period.

The comment period for the proposed rule published on February 5, 2015 is extended to May 6, 2015.

13 CFR Parts 121, 124, 125, 126, 127, and 134

Summary

The U.S. Small Business Administration (SBA) is extending the comment period for the proposed rule published in the Federal Register on February 5, 2015. The comment period is scheduled to close on April 6, 2015. SBA is extending the comment period an additional 30 days in response to the significant level of interest generated by the proposed rule and requests from multiple stakeholders for an extension. Given the scope of the proposed rule and the nature of the issues raised by the comments received to date, SBA believes that affected businesses need more time to review the proposal and prepare their comments.

2015-03-09; vol. 80 # 45 - Monday, March 9, 2015

80 FR 12353 - Small Business Government Contracting and National Defense Authorization Act of 2013 Amendments

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type	regulations.gov
FR Doc.	2015-05316
RIN	3245-AG58
Docket No.	SBA-2014-0006

SMALL BUSINESS ADMINISTRATION

Proposed rule; reopening of comment period.

The comment period for the proposed rule published on December 29, 2014 (79 FR 77955) is extended through April 6, 2015.

13 CFR Parts 121, 124, 125, 126 and 127

Summary

The U.S. Small Business Administration (SBA) is reopening the comment period for the proposed rule published in the Federal Register on December 29, 2014 at 79 FR 77955. In that rule SBA proposed to implement provisions of the National Defense Authorization Act of 2013, which pertain to performance requirements applicable to small business and socioeconomic program set aside contracts and small business subcontracting. SBA also proposed to make changes to its regulations concerning the nonmanufacturer rule and affiliation rules. Further, SBA proposed to allow a joint venture to qualify as small for any government procurement as long as each partner to the joint venture qualifies individually as small under the size standard corresponding to the NAICS code assigned in the solicitation. Finally, SBA requested comments on the timeline and procedures for North American Industry Classification System code appeals. The comment period closed on February 27, 2015. SBA is reopening the comment period in response to the significant level of interest generated by the proposed rule and due to the request of multiple stakeholders. Given the scope of the proposed rule and the nature of the issues raised by the comments received to date, SBA believes that affected businesses need more time to review the proposal and fully prepare their comments.

2015-02-05; vol. 80 # 24 - Thursday, February 5, 2015

80 FR 6618 - Small Business Mentor Protégé Program; Small Business Size Regulations; Government Contracting Programs; 8(a) Business Development/Small Disadvantaged Business Status Determinations; HUBZone Program; Women-Owned Small Business Federal Contract Program; Rules of Procedure Governing Cases Before the Office of Hearings and Appeals

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type	regulations.gov
FR Doc.	2015-01548
RIN	3245-AG24

SMALL BUSINESS ADMINISTRATION

Proposed rule.

Comments must be received on or before April 6, 2015.

13 CFR Parts 121, 124, 125, 126, 127, 134

Summary

The U.S. Small Business Administration (SBA or Agency) is proposing to amend its regulations to implement provisions of the Small Business Jobs Act of 2010 and the National Defense Authorization Act for Fiscal Year 2013. Based on authorities provided in these two statutes, the proposed rule would establish a Government-wide mentor-protégé program for all small business concerns, consistent with SBA's mentor-protégé program for Participants in SBA's 8(a) Business Development (BD) program. The proposed rule would also make minor changes to the mentor-protégé provisions for the 8(a) Business Development program in order to make the mentor-protégé rules for each of the programs as consistent as possible. The proposed rule would amend the current joint venture provisions to clarify the conditions for creating and operating joint venture partnerships, including the effect of such partnerships on any mentor-protégé relationships. Finally, the proposed rule would make several additional changes to current size, 8(a) Office of Hearings and Appeals or HUBZone regulations, concerning among other things, ownership and control, changes in primary industry, standards of review and interested party status for some appeals.

2014-12-29; vol. 79 # 248 - Monday, December 29, 2014

79 FR 77955 - Small Business Government Contracting and National Defense Authorization Act of 2013 Amendments

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type	regulations.gov
FR Doc.	2014-29753
RIN	3245-AG58
Docket No.	SBA-2014-0006

SMALL BUSINESS ADMINISTRATION

Proposed rule.

Comments must be received on or before February 27, 2015.

13 CFR Parts 121, 124, 125, 126 and 127

Summary

The U.S. Small Business Administration (SBA or Agency) is proposing to amend its regulations to implement provisions of the National Defense Authorization Act of 2013, which pertain to performance requirements applicable to small business and socioeconomic program set aside contracts and small business subcontracting. SBA is also proposing to make changes to its regulations concerning the nonmanufacturer rule and affiliation rules. Further, SBA is proposing to allow a joint venture to qualify as small for any government procurement as long as each partner to the joint venture qualifies individually as small under the size standard corresponding to the NAICS code assigned in the solicitation. Finally, SBA is requesting comments on the timeline and procedures for North American Industry Classification System code appeals.

2014-06-03; vol. 79 # 106 - Tuesday, June 3, 2014

79 FR 31848 - Acquisition Process: Task and Delivery Order Contracts, Bundling, Consolidation; Correction

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type	regulations.gov
FR Doc.	2014-12609
RIN	3245-AG20

SMALL BUSINESS ADMINISTRATION

Correcting amendments.

Effective June 3, 2014.

13 CFR Parts 125 and 127

Summary

The U.S. Small Business Administration (SBA) published a final rule in the Federal Register on October 2, 2013, which amended its regulations governing small business prime contracting by implementing provisions of the Small Business Jobs Act of 2010. That rule was published with inadvertent errors in two of the regulatory sections. Those errors are corrected in this document.

2013-10-02; vol. 78 # 191 - Wednesday, October 2, 2013

78 FR 61114 - Acquisition Process: Task and Delivery Order Contracts, Bundling, Consolidation

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type	regulations.gov
FR Doc.	2013-22064
RIN	3245-AG20

SMALL BUSINESS ADMINISTRATION

Final rule.

This rule is effective on or before December 31, 2013.

13 CFR Parts 121, 124, 125, 126, and 127

Summary

The U.S. Small Business Administration (SBA) is amending its regulations governing small business contracting procedures. Specifically, this rule amends SBA's regulations to establish policies and procedures for setting aside, partially setting aside and reserving Multiple Award Contracts for small business concerns. SBA is also is establishing policies and procedures for setting aside task and delivery orders for small business concerns under Multiple Award Contracts. In addition, SBA is addressing how it will determine size under certain Agreements and when recertification of status will be required. Finally, SBA is establishing a new definition of consolidation and reorganizing its prime contracting assistance regulations.

2013-09-30; vol. 78 # 189 - Monday, September 30, 2013

78 FR 59798 - Small Business Subcontracting: Correction

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type	regulations.gov
FR Doc.	2013-23257
RIN	3245-AG22

SMALL BUSINESS ADMINISTRATION

Correcting amendments.

Effective September 30, 2013 and is applicable beginning August 15, 2013.

13 CFR Part 125

Summary

This document contains corrections to the final regulations [FR Doc. 2013-169671, which were published in the Federal Register on Tuesday, July 16, 2013 (78 FR 42391). The document amended SBA's regulations governing small business subcontracting to implement provisions of the Small Business Jobs Act of 2010. This correction amends a cross-reference contained in the regulations.

2013-07-16; vol. 78 # 136 - Tuesday, July 16, 2013

78 FR 42391 - Small Business Subcontracting

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type	regulations.gov
FR Doc.	2013-16967
RIN	3245-AG22

SMALL BUSINESS ADMINISTRATION

Final rule.

Effective Date: This rule will be effective August 15, 2013.

13 CFR Parts 121 and 125

Summary

The U.S. Small Business Administration (SBA or Agency) is amending its regulations governing small business subcontracting to implement provisions of the Small Business Jobs Act of 2010. In particular, this rule adds a provision providing that for a “covered contract” (a contract for which a small business subcontracting plan is required), a prime contractor must notify the contracting officer in writing whenever the prime contractor does not utilize a small business subcontractor used in preparing its bid or proposal during contract performance. This rule also adds a provision requiring a prime contractor to notify a contracting officer in writing whenever the prime contractor reduces payments to a small business subcontractor or when payments to a small business subcontractor are 90 days or more past due. In addition, this rule clarifies that the contracting officer is responsible for monitoring and evaluating small business subcontracting plan performance. The rule also clarifies which subcontracts must be included in subcontracting data reporting, which subcontracts should be excluded, and the way subcontracting data is reported. The rule also makes changes to update its subcontracting regulations, including changing subcontracting plan thresholds and referencing the electronic subcontracting reporting system (eSRS). Further, the rule adds a provision to the regulations which addresses subcontracting plan requirements and credit towards subcontracting goals in connection with multiple award multi-agency, Federal Supply Schedule, Multiple Award Schedule and government-wide acquisition indefinite delivery, indefinite quantity contracts.

2013-06-28; vol. 78 # 125 - Friday, June 28, 2013

78 FR 38811 - Small Business Size and Status Integrity

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type	regulations.gov
FR Doc.	2013-15418
RIN	3245-AG23

SMALL BUSINESS ADMINISTRATION

Final rule.

This rule is effective August 27, 2013.

13 CFR Parts 121, 124, 125, 126, and 127

Summary

This rule implements provisions of the Small Business Jobs Act of 2010 (Jobs Act) pertaining to small business size and status integrity. This rule amends the U.S. Small Business Administration's (SBA or Agency) program regulations to implement statutory provisions establishing that there a presumption of loss equal to the value of the contract or other instrument when a concern willfully seeks and receives an award by misrepresentation. The rule implements statutory provisions that provide that: The submission of an offer or application for an award intended for small business concerns will be deemed a size or status certification or representation in certain circumstances; an authorized official must sign in connection with a size or status certification or representation for a contract or other instrument; and concerns that fail to update their size or status in the Online Representations and Certifications Application (ORCA) database or a successor thereto (such as the System for Award Management (SAM) database) at least annually shall no longer be identified in the database as small or some other socioeconomic status, until the representation is updated. The rule also amends SBA's regulations to clarify when size is determined for purposes of entry into the 8(a) Business Development, HUBZone and Small Disadvantaged Business (SDB) programs.

2012-05-16; vol. 77 # 95 - Wednesday, May 16, 2012

77 FR 29130 - Acquisition Process: Task and Delivery Order Contracts, Bundling, Consolidation

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type	regulations.gov
FR Doc.	2012-11317
RIN	3245-AG20
Docket No.	SBA-2011-011

SMALL BUSINESS ADMINISTRATION

Notice of proposed rulemaking.

You must submit your comments on or before July 16, 2012.

13 CFR Parts 121, 124, 125, 126, and 127

Summary

The U.S. Small Business Administration (SBA) proposes to amend its regulations governing small business contracting procedures. This proposed rule would amend SBA's regulations to implement the following sections of the Small Business Jobs Act of 2010: section 1311 (definition of multiple award contract); section 1313 (consolidation of contracts definitions, policy, limitations on use, determination on necessary and justified); and section 1331 (reservation and set-aside of multiple award contracts and orders against multiple award contracts for small businesses). In addition, the proposed rule revises 13 CFR part 125 by reorganizing the part for clarity and creating a definition section.

2012-01-12; vol. 77 # 8 - Thursday, January 12, 2012

77 FR 1857 - Women-Owned Small Business Federal Contract Program

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type	regulations.gov
FR Doc.	2012-467
RIN	3245-AG34

SMALL BUSINESS ADMINISTRATION

Interim final rule; request for comments.

Effective Date: This rule is effective on January 12, 2012. Comment Date: Comments must be received on or before February 13, 2012.

13 CFR Parts 124, 125, 126, and 127

Summary

The U.S. Small Business Administration (SBA) is amending its regulations to make them consistent with the inflationary adjustments that are already codified in the Federal Acquisition Regulation (FAR) as they relate to the Women-Owned Small Business (WOSB) Program and the Simplified Acquisition Threshold. In addition, the SBA is amending its regulations pertaining to the WOSB Program protest procedures so that they are consistent with the protest procedures for SBA's other government contracting programs.

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