SBA proposed rule

SMALL BUSINESS ADMINISTRATION

13 CFR Parts 121 and 125

RIN 3245–AG22

Small Business Subcontracting

AGENCY: U.S. Small Business

Administration.

ACTION: Proposed rule.

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, which

pertain to small business

subcontracting. SBA is proposing to

amend its regulations to provide for a

‘‘covered contract’’ (a contract for which

a small business subcontracting plan is

required, currently valued above $1.5

million for construction and $650,000

for all other contracts), a prime

contractor must notify the contracting

officer in writing whenever the prime

contractor does not utilize a

subcontractor used in preparing its bid

or proposal during contract

performance. SBA is also proposing to

amend its regulations to require a prime

contractor to notify a contracting officer

in writing whenever the prime

contractor reduces payments to a

subcontractor or when payments to a

subcontractor are 90 days or more past

due. In addition, SBA is proposing to

clarify that the contracting officer is

responsible for monitoring and

evaluating small business

subcontracting plan performance. SBA

is also proposing to clarify which

subcontracts must be included in

subcontracting data reporting, which

subcontracts should be excluded, and

the way subcontracting data is reported.

SBA is also proposing to make other

changes to update its subcontracting

regulations, including changing

subcontracting plan thresholds and

referencing the electronic

subcontracting reporting system (eSRS).

Some of the SBA’s proposed changes

would require the contracting officer to

review subcontracting plan reports

within 60 days of the report ending

date.

Finally, SBA is also proposing to

address how subcontracting plan

requirements and credit towards

subcontracting goals can be

implemented in connection with Multiagency,

Federal Supply Schedule,

Multiple Award Schedule and

Government-wide Acquisition

indefinite delivery, indefinite quantity

(IDIQ) contracts.

DATES: Comments must be received on

or before December 5, 2011.