8(a) SUBCONTRACTING LIMITATIONS: Continued Noncompliance with Monitoring Requirements Signals Need for Regulatory Change

reportActive / Technical Report | Accesssion Number: AD1102974 | Open PDF

Abstract:

Subcontractors can perform work under 8(a) contracts, but certain limitations apply regarding the percentage of personnel costs that these firms may incur under service, supply, and construction contracts. For example, for service contracts, the 8(a) prime contractor must incur at least 50 percent of the personnel costs with its own employees. In other words, the total personnel costs associated with the employees of the 8(a) prime contractor must be equal to or greater than the total personnel costs associated with the employees of all subcontractors performing work under the service contract. Table 1 identifies how much work the firm awarded the 8(a) contract must perform according to the requirements in the subcontracting limitation clause currently in the FAR and applicable to the contracts reviewed for this report.

Author(s):
Mackin, Michele
Author Organization(s):
United States Government Accountability Office
Funding Organization(s):
Publication Date:
2014 Sep 01
Pagination:
0

Security Markings

RECORD

Collection: TRECMS
Subject Terms
Communities of Interest:
Human Systems
Descriptor(s):
business administration, air force, contractors, contracts, procurement, united states government, small business, acquisition, governments, contract administration, cost reimbursement contracts, materials, commerce, corporations, fixed price contracts, accountability, agreements
Keyword(s):
small business administration, subcontractors, compliance, 8(a) contracts
Subject Categories:
Behavioral and Social Sciences
Update Date:
2020 Jul 09