If the small business activity a prime claims has nothing to do with the main contract, it may no longer qualify as small business subcontracting activity.
Until now, only prime contracts counted towards an agency’s 23% small business success rate, and this was measured only at the end of a contract. Not anymore!
If a prime contractor pays a subcontractor late or less than agreed upon, the contracting officer can take them to task, and even reduce their CPARS ratings.
One of the biggest complaints I’ve heard is that the large business will use the small business to get an award but then give the actual work to someone else. SBA's new final rule is trying to address this practice.
One thing the new SBA final rule states is that primes must provide “maximum practicable opportunity” to small businesses. This post will discuss what that means and why it’s good news.