netcents2  MC-130J Commando IIs conduct low-level formation training  netcentsii
netcents-2  netcentsii NETOPS
netcents-2  Thunderbirds at Las Vegas airshow netcentsii
netcents2  Airman advances through green smoke cover during building clearance training,  netcentsii
Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES Old picture of drones netcentsii
Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES  Chief Master Sgt. Paul Koester freefalls from the C-17 Globemaster III ramp into a high-altitude low-opening parachute deployment  netcentsii
Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES  USAF photo:  F-16 on afterburner     netcentsii
Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES  USAF photo: F-15 flying over cloud bank  netcentsii
Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES A crew chief taxis in an MQ-1 Predator remotely piloted aircraft netcentsii
Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES   preflight check on a C-130H Hercules netcentsii
Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES  Oklahoma ANG personnel help tornado victims in Moore, OK  netcentsii
Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES   Pilot hugs his children Rylie and Carter after returning from a deployment   netcentsii
netcents2  A-10 Thunderbolt deploys flares   Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES
Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES  Members of the Security Forces Squadron respond to a ground attack   netcentsii
netcents2  F-35 completes a series of night flights   netcentsii
Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES
Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES
A-10 firing Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES
Thunderbirds Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES
Special Tactics Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES
Tuskegee airman rearms P-51 Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES
P-51 Mustang  Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES
Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES
Mt Rushmore Color Guard Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES
F-22 Raptor on runway Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES
B-52 Stratofortress Netcents-2, netcentsii, App services, NETOPS, Air Force Small business, EISM, PEO-BES

NDAA 2013 Small Business Rules Take Effect June 30

Limitations On Subcontracting: Important New SBA Rule Takes Effect June 30, 2016

Shout-out:  Many thanks to the PEO-BES Small Business Director, Ms. Denise Baylor, for tracking and updating industry on these updates.

The SBA has issued a final rule implementing the changes to the limitations on subcontracting enacted by Congress in the 2013 National Defense Authorization Act. The SBA’s final rule takes effect June 30, 2016–and will significantly change the way the limitations on subcontracting are calculated and enforced moving forward. The SBA’s final rule makes a number of important changes regarding the limitations on subcontracting.

First, as directed by Congress, the SBA’s regulations will allow prime contractors to take credit for the work performed by “similarly situated” subcontractors. The SBA explains that the regulation “creates a shift from the concept of a required percentage of work to be performed by a prime contractor to the concept of limiting a percentage of the award amount to be spent on subcontractors.” The SBA continues:

The NDAA prohibits subcontracting beyond a certain specified amount for any small business set-aside, 8(a), SDVO small business, HUBZone, or WOSB/EDWOSB contract. Section 1651(b) of the NDAA creates an exclusion from the limitations on subcontracting for “similarly situated entities.” In effect, the NDAA deems any work done by a similarly situated entity not to constitute “subcontracting” for purposes of determining compliance with the applicable limitation on subcontracting. A similarly situated entity is a small business subcontractor that is a participant of the same small business program that the prime contractor is a certified participant and which qualifies the prime contractor to receive the award. Subcontracts between a small business prime contractor and a similarly situated entity subcontractor are excluded from the limitations on subcontracting calculation because it does not further the goals of SBA’s government contracting and business development programs to penalize small business prime contract recipients that benefit the same small business program participants through subcontract awards.

The SBA recognizes that simply looking at whether a subcontractor is “similarly situated” could lead to potential problems because “[i]f all that was looked at was the first tier subcontract, that first tier subcontractor could in turn pass all of its performance on to a large or otherwise not similarly situated entity through a second subcontract.” The SBA explains how it will address these concerns:

SBA will apply the limitations on subcontracting collectively to the prime and any similarly situated first tier subcontractor, and any work performed by a similarly situated first tier subcontractor will count toward compliance with the applicable limitation on subcontracting. Any work that a similarly situated first tier subcontractor subcontracts, to any entity, will count as subcontracted to a non-similarly situated entity for purposes of determining whether the prime/sub team performed the required amount of work. In other words, work that is not performed by the employees of the prime contractor or employees of first tier similarly situated subcontractors will count as subcontracts performed by non-similarly situated concerns.

Similarly Situated Entity

Similarly situated entity is a subcontractor that has the same small business program status as the prime contractor. This means that: For a HUBZone requirement, a subcontractor that is a qualified HUBZone small business concern; for a small business set-aside, partial set-aside, or reserve a subcontractor that is a small business concern; for a SDVO small business requirement, a subcontractor that is a self-certified SDVO SBC; for an 8(a) requirement, a subcontractor that is an 8(a) certified Program Participant; for a WOSB or EDWOSB contract, a subcontractor that has complied with the requirements of part 127. In addition to sharing the same small business program status as the prime contractor, a similarly situated entity must also be small for the NAICS code that the prime contractor assigned to the subcontract the subcontractor will perform.

For additional in-depth information, click here: http://smallgovcon.com/statutes-and-regulations/limitations-on-subcontracting-important-new-sba-rule-takes-effect-june-30-2016/

Link to Federal Register:  https://www.federalregister.gov/articles/2016/05/31/2016-12494/small-business-government-contracting-and-national-defense-authorization-act-of-2013-amendments?utm_campaign=subscription+mailing+list&utm_medium=email&utm_source=federalregister.gov