New, Steep Penalty In Proposed SBA Subcontracting Rule

Law360, New York (February 6, 2015, 10:29 AM EST) -- On Dec. 29, 2014, the U.S. Small Business Administration issued a proposed rule to enact changes to the limitations on subcontracting rules mandated in the National Defense Authorization Act of 2013. See 79 FR 77955. The rule proposes important amendments to the SBA's rules for affiliation, joint ventures, calculation of annual receipts, size protests, North American Industry Classification System appeals, the nonmanufacturer rule, and the limitations on subcontracting. This article will focus only on the changes to the limitations on subcontracting rules, including the mandatory fine of at least $500,000 for noncompliance with the limitation on subcontracting....

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