Government Contracts SBA Rule Would Implement NDAAs and Disaster Relief Act
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Wednesday, January 2, 2019

SBA Rule Would Implement NDAAs and Disaster Relief Act

By Government Contracts Editorial Staff

The Small Business Administration is proposing to amend its 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 would also implement the Recovery Improvements for Small Entities After Disaster Act of 2015 (PL 114-88) and other clarifying amendments. The proposed rule would clarify that contracting officers have the authority to request information in connection with a contractor’s compliance with applicable limitations on subcontracting clauses, and provide exclusions from compliance with the limitations on subcontracting for certain contracts performed outside of the United States, environmental remediation contracts, and information technology service acquisitions that require substantial cloud computing. Also, the rule would require a prime contractor with a commercial subcontracting plan to include indirect costs in its subcontracting goals. Further, the rule would establish that failure to provide timely subcontracting reports may constitute a material breach of the contract, clarify the requirements for size and status recertification, and limit the scope of Procurement Center Representative reviews of Department of Defense acquisitions performed outside of the U.S. and its territories. The proposed rule would also authorize agencies to receive double credit for achieving small business goals as announced in SBA’s scorecard for local area small business set asides in connection with a disaster. Finally, SBA is proposing to remove the kit assembler exception to the non-manufacturer rule. Comments are due February 4, 2019. For the text of the proposed rule, see ¶70,425.631.

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