A new rule set to go into effect Aug. 15, 2013 directs prime contractors to notify contracting officers if they don’t use small business subcontractors that were integral to producing a bid proposal.
In the Small Business Administration’s discussion of the final rule, the agency says a prime contractor must represent that it will make a good faith effort to utilize the small business subcontractors used in preparing its bid or proposal.
The rule, authority for which comes from the Small Business Jobs Act of 2010, spells out three conditions of small business involvement in a prime contract bid, any one of which trigger the notification requirement: the prime specifically references a small business in a bid or proposal; the small business has entered into a written agreement with the prime to perform specific work as a subcontractor under the contract should the prime win; or the small business drafted portions of the proposal or submitted pricing or technical information that appears in the bid or proposal.
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