The U.S. Small Business Administration (SBA) has proposed new rules to improve the Small Business Subcontracting Program. These changes aim to ensure small business subcontractors get paid faster and make it easier to report subcontracting activities. Prime contractors would need to inform contracting officers if they fail to pay subcontractors on time and work with them to fix such issues. The new rules also involve simplifying subcontracting reporting, clarifying how to assign size classifications to subcontractors, and expanding the authority of who can sign Subcontracting Summary Reports (SSRs).
Simple Explanation
The U.S. Small Business Administration wants to make sure that when big companies hire smaller ones to help with jobs, they pay them on time and let others know if they don’t. They also want to make it easier for everyone to understand and keep track of what happened.