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Limitations on Subcontracting: Key Updates and Tips for Compliance

The limitations on subcontracting (LOS) rules generally require that small business prime contractors self-perform 50% of supply and service contracts awarded to them, with lower self-performance percentages for different kinds of construction contracts. This requirement is applied to small business set-aside solicitations and contracts through the LOS clause at FAR 52.219-14 and seeks to prevent small businesses from becoming pass-through vehicles for large businesses. Though the reasoning for the LOS may be clear, it can be difficult to interpret how they apply to the various types of small businesses and contract vehicles. And understanding the LOS and their impact on your business can be key to maintaining compliance. Join attorneys in PilieroMazza’s Government Contracts Group as they discuss recent LOS developments, how the regulations may apply to your business, and tips for maintaining compliance. Disclaimer This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome. Attorney Advertising It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation. © 2022 PilieroMazza PLLC All rights reserved.