Small Biz Subcontracting Rules May Complicate Acquisitions

Originally published by Aerospace & Defense Law360, Government Contracts Law360, Mergers & Acquisitions Law360, Private Equity Law360, and Public Policy Law360, August 2016

On July 14, 2016, the Federal Acquisition Regulation Council issued a final rule implementing changes to the Federal Acquisition Regulation small business subcontracting regulations.[1] These changes — which will become effective on Nov. 1, 2016 — are consistent with the 2013 regulatory changes to small business subcontracting made by the U.S. Small Business Administration to implement the Small Business Jobs Act of 2010 (Pub. L. 111-240). In addition to existing recertification requirements for small businesses following a merger or acquisition, the new rules add requirements for new subcontracting plans, notification, and reporting; create new compliance obligations; and have implications for past performance evaluations in future procurements.