Good News for Small Business Subcontracting in 2014!
In the coming year we can expect to see an emphasis on small business subcontracting in the federal sector. This is due to updates in the regulations on how large prime contractors meet their small business subcontracting goals, and the Small Business Administration’s completion of a multi-year process to revise standards for small businesses.
Changes to Come for Small Business Subcontracting
Some of the main changes for small business subcontracting were implemented through the National Defense Authorization Act (NDAA). The change comes from a small part of the 1608 section which reflects some of the benefits from the Small Business Act (SBA). The new additions in 1608 are arranged to continue further participation from businesses in highly-underutilized business zones (HUBZones) as well as disadvantaged, veteran-owned, and women owned businesses.
The most encouraging factor from the new additions states that “companies winning a prime contract exceeding certain thresholds must submit to a contracting officer through small business subcontracting plans.” Small businesses from not only one tier, but all subs will be able to recognized as a result and become more attractive to prime contractors and potentially conduct more business.
Read more in the Washington Business Journal full article.