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ARTICLE · 02 JUNE 2016

SBA Final Rule Adopts Changes To Subcontracting Limitations And Other Regulations

In many instances, the final rule adopts with little or no change to the provisions of the proposed rule issued on Dec. 29, 2014.

United StatesGovernment, Public Sector

Joseph Hornyak is a Partner in Holland & Knight's Northern Virginia office
Bob Tompkins is a Partner in Holland & Knight's Washington D.C. office

HIGHLIGHTS:

  • The U.S. Small Business Administration (SBA) has issued a long-awaited final rule to implement certain small business-related provisions of the National Defense Authorization Act of 2013 (NDAA), including key changes in the Limitations on Subcontracting regulation.
  • In response to public comments on the proposed rule issued on Dec. 29, 2014, SBA made important changes, including changes regarding subcontractors that qualify as "similarly situated" for purposes of the limitations on subcontracting, as well as how contracts for both services and supplies – described as "mixed" contracts – are treated for such purposes.

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