Government Contracts Final SBA Rule Implements NDAAs and Disaster Relief Act
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Tuesday, December 31, 2019

Final SBA Rule Implements NDAAs and Disaster Relief Act

By Government Contracts Editorial Staff

A final rule amends the Small Business Administration’s regulations to implement several provisions of the National Defense Authorization Acts for FY 2016 (PL 114-92) and FY 2017 (PL 114-328). The rule also implements the Recovery Improvements for Small Entities After Disaster Act of 2015 (PL 114-88) and other clarifying amendments. Among other things, the rule:

  • clarifies that contracting officers have the authority to request information in connection with a contractor's compliance with applicable limitations on subcontracting clauses (SBA 125.6);
  • provides exclusions for limitations on subcontracting compliance for certain contracts performed outside of the United States, for environmental remediation contracts, and for information technology service acquisitions that require substantial cloud computing (SBA 125.6);
  • requires a prime contractor with a commercial subcontracting plan to include indirect costs in its subcontracting goals (SBA 125.3);
  • establishes that failure to provide timely subcontracting reports may constitute a material breach of the contract (SBA 125.3);
  • clarifies the requirements for size and status recertification (SBA 124.521, SBA 124.1015, SBA 125.18, SBA 126.601, SBA 127.503);
  • limits the scope of Procurement Center Representative reviews of Department of Defense acquisitions performed outside of the United States and its territories (SBA 125.2);
  • authorizes agencies to receive double credit for small business goal achievements as announced in SBA's scorecard for local area small business set-asides in connection with a disaster (new SBA Part 129); and
  • removes the kit assembler exception to the non-manufacturer rule (SBA 121.406).

A list of all the regulations affected by the rule appears in the table below. This rule goes into effect December 30, 2019. For the text of the proposed version of the rule, see ¶70,425.631. For the text of the final rule, see ¶70,425.641.

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