Legal Corner: The FAR Council and SBA Propose Significant Updates the Limitations on Subcontract, and DoD Issues Accompanying Class Deviation
Partner Robert Tompkins and Associate Mitchell Bashur contributed to The Coalition for Government Procurement on the FAR Council's new proposed rule which standardizes the limitations on subcontractors (LOC) and the non-manufacturer rule (NMR). The proposed rule implements portions of the 2013 National Defense Authorization Act (NDAA) and seeks to align the FAR with SBA's regulations. Unfortunately, the two proposed rules are not completely aligned and have created potential discrepancies if left unresolved.
Mr. Tompkins and Mr. Bashur also discussed the Department of Defense's (DoD) issuance of class deviations which updates the limitations on subcontracting and NMRs for all small businesses. The class deviations were made effective immediately as it requires new contract clauses which contractors should check for on upcoming solicitations for compliance.