AWI e-briefs - 01/22/2015 (Plain Text Version)

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National Defense Authorization Act Impacts Subcontractors

If you’re a small business doing business with the government, the proposed SBA rule includes a number of provisions that could impact you.

The U.S. Small Business Administration (SBA) recently published a proposed rule to implement Section 1651 of the National Defense Authorization Act of 2013 (NDAA), proposing to change several key areas, including: the performance requirements applicable to small business and socioeconomic program set aside contracts and small business subcontracting, the nonmanufacturer rule and affiliation rules, and the performance requirements for joint ventures.  If you’re a small business doing business with the government, the proposed rule includes a number of provisions that could impact you.  Comments must be received on or before Feb. 27, 2015.  The highlights of the proposed revisions to the NDAA include:

  • Subcontracting: Changing the way that performance is calculated on small and socioeconomic set-aside contracts, and authorizes similarly situated subcontractors to count towards the performance requirements. (Section 1651).
  • Joint Ventures: Making the performance requirements consistent, regardless of whether or not a small business chooses to joint venture or perform in a prime or subcontractor relationship. (Section 1651).
  • NonManufacturer Rule:  Revisions to SBA’s regulations pertaining to the Nonmanufacturer rule and affiliation rules including the treatment of software as a commodity and the elimination of waiver requests for procurements within the Simplified Acquisition Threshold. (Section1651)

For more information about the proposed revisions, visit: www.sba.gov.
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