Positive Change Stemming from AGC Legislative Action
The U.S. Small Business Administration (SBA) released a proposed rule that would allow prime contractors to count lower-tier, small business subcontracts towards their small business subcontracting goals. Currently, prime contractors can only take credit for their small business subcontracts at the first tier. This proposed rule will allow prime contractors to take credit for such subcontracts—above $650,000—at any tier to meet such goals.
SBA issued the proposed rule as a result of AGC’s congressional advocacy efforts. In 2013, Congress passed and the president signed into law the National Defense Authorization Act of FY 2014, which included a provision mandating this change. AGC testified before the House Small Business Committee on this issue and worked with key members in the House and Senate to ensure its passage from bill introduction to enacted law. Comments on the proposed rule are due December 7.
For more information, please contact Jimmy Christianson at christiansonj@agc.org or (703) 837-5325.