The rules for small businesses in government contracting could soon change. The Small Business Administration is re-evaluating how to measure the sizes of government contractors and subcontractors. Three agencies are proposing a new rule to give contractors credit towards a lower business tier for using smaller subcontractors. SBA is also considering changing the timeframe for size evaluations from every 3 years to every 5 years. Eric Crusius, partner at Holland & Knight, says that these regulations will improve the way the contracting base works with government.
“I think it’s also to help reflect reality. A lot of subcontractors are small businesses and those primes are not getting credit for that right now. This allows them to get credit for the work they’re doing to bring small businesses into the government contracting fold and the government really wants to develop small business relationships, get those small business contractors standing up so maybe one day they could be prime contractors also,” Crusius said.