The Department of Defense, General Services Administration, and NASA are seeking approval from the Office of Management and Budget (OMB) to extend a requirement for subcontracting plans as part of the Federal Acquisition Regulation. These plans ensure that large contracts provide opportunities for small businesses, including those owned by veterans, women, or disadvantaged groups. Contractors must report their subcontracting activities annually in the Electronic Subcontracting Reporting System. Despite public comment suggesting that the requirement is burdensome, it remains necessary under current law.
Simple Explanation
The rules say big companies have to let small businesses help with big projects to be fair. Some people think it's a lot of work and not worth it, but the rules haven't changed because it's still considered important.