FAR Codification of the New Limitation on Subcontracting Rules

Mondaq – The Federal Acquisition Regulation Council revised Federal Acquisition Regulation (“FAR”) 52.219-14, Limitations on Subcontracting, and related FAR sections to address an inconsistency between that clause and the corresponding Small Business Administration (“SBA”) regulation at 13 C.F.R. § 125.6.¹ Limitations on subcontracting limit the percentage of work small business prime contractors performing covered contracts can subcontract to large businesses. These restrictions apply to contracts or portions of contracts that an agency has reserved or set aside for small-businesses, including orders under certain multiple award contracts, and that are expected to exceed the simplified acquisition threshold (currently $250,000), except contracts set aside based on socioeconomic status, in which case limitations on subcontracting apply regardless of value.² Please click here to read more.