Large businesses’ subcontracting plans would be subject to stricter compliance standards under a SBA proposed rule introduced December 29, 2014.
The intent of the new regulations is to compel prime contractors to make good faith efforts to comply with their subcontracting plans by implementing reporting mechanisms and harsher penalties for fraudulent actions or actions made in bad faith. Small businesses subcontractors are likely to agree that these are positive changes.
Many large businesses take their subcontracting obligations seriously, and make every effort to meet (or exceed) their goals. But there are also the bad apples–those that continually over-promise and under-deliver when it comes to small business subcontracting. Dealing with these bad apples have led some small businesses to become skeptical that large primes will follow through on their stated subcontracting intentions.
The SBA’s proposed regulation attempts to address this problem.
Comments on SBA’s proposed rule are due by Feb. 27, 2015.
Keep reading this article at: http://smallgovcon.com/statutes-and-regulations/subcontracting-plans-sba-proposes-stronger-enforcement/
– See more at: http://smallgovcon.com/statutes-and-regulations/subcontracting-plans-sba-proposes-stronger-enforcement/#more-3551