GOVERNMENT CONTRACTS
Federal Acquisition Regulation: Simplified Acquisition Threshold for Overseas Acquisitions
The Department of Defense, General Services Administration, and NASA have issued a proposed rule to amend the Federal Acquisition Regulation (FAR) to implement a higher simplified acquisition threshold for overseas acquisitions in support of humanitarian or peacekeeping operations, 80 Fed. Reg. 60832. Comments are due December 7, 2015.
Federal Acquisition Regulation: Improvement in Design-Build Construction Process
The Department of Defense, General Services Administration, and NASA have issued a proposed rule to amend the Federal Acquisition Regulation to implement section 814 of the National Defense Authorization Act for Fiscal Year 2015 that requires the head of the contracting activity to approve any determinations to select more than five offerors to submit phase-two proposals for a two-phase design-build construction acquisition that is valued at greater than $4 million, 80 Fed. Reg. 60833. Comments are due December 7, 2015
SMALL BUSINESS ADMINISTRATION
Small Business Investment Companies; Passive Business, Expansion & Technical Clarifications
The Small Business Administration (SBA) issued a proposed rule revising the regulations for the Small Business Investment Company (SBIC) program to expand the use of passive businesses and provide further clarification with regard to investments in such businesses. SBICs are generally prohibited from investing in passive businesses under the Small Business Investment Act of 1958, as amended. SBIC program regulations provide for two exceptions that allow an SBIC to structure an investment utilizing a passive small business as a pass-through. This proposed rule would clarify the first exception, and it would expand the permitted use of blocker corporations and eliminate the prior approval requirement in the second exception. The rule also proposes to add new reporting and other requirements for passive investments to help protect SBA's financial interests and ensure adequate oversight and make minor technical amendments, 80 Fed. Reg. 60077. Comments to the proposed rule are due December 4, 2015.
Credit for Lower Tier Small Business Subcontracting
SBA issued a proposed rule to amend its regulations to implement Section 1614 of the National Defense Authorization Act for Fiscal Year 2014. The proposed amendments authorized by this statute would allow an other than small prime contractor that has an individual subcontracting plan for a contract to receive credit towards its small business subcontracting goals for subcontract awards made to small business concerns at any tier.
The prime contractor shall incorporate the lower tier subcontracting performance into its subcontracting plan goals. Currently, large business prime contractors establish small business subcontracting goals at the first tier level, and receive credit toward their subcontracting plan goal performance at the first tier level.
The rule also proposes to implement the statutory requirements related to the subcontracting plans of all subcontractors that are required to maintain such plans, including the requirement to monitor subcontractors' performance and compliance towards reaching the goals set out in those plans, as well as their compliance with subcontracting reporting requirements. SBA is also proposing to clarify that the size standard for a particular subcontract must appear in the solicitation for the subcontract, 80 Fed. Reg. 60300. Comments on the proposed rule are due December 7, 2015.
