Small Business Committee Requests Status Update on FAR Subcontracting Rule

Statement

Today, House Committee on Small Business Chairman Steve Chabot (R-OH) and Ranking Member Nydia Velázquez (D-NY), along with Members of the Committee on Armed Services Mo Brooks (R-AL), Trent Kelly (R-MS), Steve Knight (R-CA), William Shuster (R-PA), Scott DesJarlais (R-TN), Walter Jones (R-NC), Bradley Byrne (R-AL), and Stephanie Murphy (D-FL), sent a letter to the Federal Acquisition Regulation (FAR) Council Chair, Ms. Lesley A. Fields, Acting Administrator of the Office of Federal Procurement Policy at the Office of Management and Budget. The letter expresses concern about lengthy delays by the FAR council in finalizing its rule revising the limitations on subcontracting, as required by Section 1561 of Public Law 112-239, the National Defense Authorization Act for Fiscal Year 2013.

The letter states:

"Given that nearly six years have lapsed since the 2013 NDAA was signed into law and two since SBA's final rule was issued, we respectfully request a status update on FAR case Number 2016-011, an estimated timeline of completion, and an explanation as to why this case was changed from an "interim final rule" to a "proposed rule."

Background: Section 1561 of Public Law 112-239 made significant changes to the limitations on federal subcontracting, which were reflected in corresponding regulations made by the Small Business Administration (SBA) in 2016. These changes have not been reflected in the FAR. This discrepancy creates confusion for small contractors and the delay in implementation detrimentally impacts small contractors relying on the application of these revisions to the limitations on subcontracting.