New SBA Rule Allows Subs to ask Primes for Rating

On Aug. 22, the Small Business Administration (SBA) final rule will go in effect that will greatly expand the ability for certain small business federal subcontractors to receive past performance ratings for small business joint venture members and small business first-tier subcontractors.  Under the new rule, certain first-tier small business subcontractors under prime contracts that include subcontracting plans, can request from the prime contractor a performance rating within 30 days of prime contract’s completion, and requires the prime contractor to provide a rating to those subcontractors within 15 calendar days. SBA did not provide a standard form for Primes to use, but requires primes to use the five-scale rating system similar to CPARS (FAR 14.1503): Exceptional, Very Good, Satisfactory, Marginal, and Unsatisfactory.  It is unclear how federal agencies will use these rating systems and the final rule does not specify.  Additionally, certain small businesses may use the past performance of the joint venture with the small business' offer on a prime contract.  The small business must identify: (i) the joint venture; (ii) the contract(s) of the joint venture that the small business elects to use; and (iii) describe to the agency what duties or responsibilities the small business carried out as a joint venture member. For more information, contact Jordan Howard at Jordan.Howard@agc.org or (703) 837-5368.