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My Blog

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Small Business Q&A

Posted on November 19, 2012 at 8:35 PM
Q.       Don’t you as a Small Business have to perform 15% of the contract value of a subcontract?
A.       That requirement pertains to an 8a set aside or Small Business set aside project with the direct contract with the government.  It does not pertain to a first tier subcontractor on a project awarded to a General Contractor as the prime contractor.  Small Business credits are properly accounted for by the prime contractor through the first tier subcontractors and material procurement directly purchased by the prime contractor.  Looking at the Small Business Size Standards, design and manufacturing is based on the number of company employees and contracting is based on whether it is a specialty contract or general contracting contract requirements that must be met to qualify.

Categories: Basic SBA Programs, Federal Contracts, Small Business Procurement Goals, Small Business Size

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9 Comments

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1:18 AM on February 2, 2013 
Thanks for sharing this knowledge. Small Business credits are properly accounted for by the prime contractor through the first tier subcontractors and material procurement directly purchased by the prime contractor
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