Bill Would Count Lower-Tier Subcontracts Toward Goals
A proposed House bill will allow prime contractors to count lower-tier subcontracts toward percentage goals for small business subcontracting. Large contractors with contracts over $650,000 ($1.5 million for construction) must afford small businesses “the maximum practical opportunity” to participate in federal contracting where failure to do so can adversely affect performance ratings and opportunities to win awards. Only first tier subcontractors are included in meeting subcontract goals where the proposed change will include all tiers of subcontractors. The bill has received praise from industry saying it will expand small business participation at all levels.
