New Pilot Program Will Give Certain Small Businesses New Option to Obtain Past Performance Ratings

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The difficulties faced by new small businesses lacking past performance ratings in winning federal contracts are well-known. Perhaps the most common approach by which new small businesses get their start in federal contracting is by working as a subcontractor to a federal prime contractor. Often this is accomplished by working as a subcontractor under federal prime contracts that require the prime contractor to develop a subcontracting plan. For small businesses that perform as first-tier subcontractors under such federal contracts and lack past performance ratings as a prime contractor, Congress has provided for a new “pilot program,” under section 1822 of the recently-enacted 2017 NDAA. Under the pilot program, these first-tier subcontractors can obtain a past performance rating in the federal past performance system that they can use to obtain a federal prime contract.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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