Proposed FAR Rule – Small Business Subcontracts

by Craig Stetson CPA, CGMA, Director Government Contract Regulatory Compliance Practice

A proposed FAR rule, issued today and effective to DoD, GSA and NASA, addresses several potential revisions aimed at improving small business subcontracting opportunities.  Many of the proposed changes relate to the prime’s  subcontracting goals and plans.

The proposed rule would implement several changes included in SBA’s final rule of July 16, 2013.  Several of the proposed FAR revisions are included below:

  •  Authorizing contracting officers to establish subcontracting goals in terms of total contract dollars in addition to the required goals in terms of total subcontracted dollars, for individual plans.
  • Providing contracting officers discretion to require a subcontracting plan in instances where a prime contractor’s size status changes from small to other than small business as a result of re-representation.
  • Requiring subcontracting plans, to the extent that subcontracting opportunities exist, when a modification causes the overall contract value to exceed the subcontracting plan threshold, even if the modification’s value is less than the threshold.
  • Requiring prime contractors to assign North American Industry Classification System (NAICS) codes to subcontracts.Show citation box
  • Providing that prime contractors cannot prohibit a subcontractor from discussing payment or utilization matters with the contracting officer.
  • Requiring prime contractors to resubmit a corrected subcontracting report within 30 days of receiving the contracting officer’s notice of report rejection.
  • Clarifying a requirement that prime contractors notify unsuccessful offerors for subcontracts in writing.
  • Requiring prime contractors with individual subcontracting plans to report order level subcontracting information

Learn more about revisions aimed at improving small business subcontracting opportunities and how we can help:

Contact US: by phone 855-CAPEDGE (855-227-3343) or email
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