8(a) SUBCONTRACTING LIMITATIONS: Continued Noncompliance with Monitoring Requirements Signals Need for Regulatory Change

Abstract

Subcontractors can perform work under 8(a) contracts, but certain limitations apply regarding the percentage of personnel costs that these firms may incur under service, supply, and construction contracts. For example, for service contracts, the 8(a) prime contractor must incur at least 50 percent of the personnel costs with its own employees. In other words, the total personnel costs associated with the employees of the 8(a) prime contractor must be equal to or greater than the total personnel costs associated with the employees of all subcontractors performing work under the service contract. Table 1 identifies how much work the firm awarded the 8(a) contract must perform according to the requirements in the subcontracting limitation clause currently in the FAR and applicable to the contracts reviewed for this report.

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Document Details

Document Type
Technical Report
Publication Date
Sep 01, 2014
Accession Number
AD1102974

Entities

People

  • Michele Mackin

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Accountability
  • Acquisition
  • Agreements
  • Air Force
  • Business Administration
  • Commerce
  • Contract Administration
  • Contractors
  • Contracts
  • Corporations
  • Cost Reimbursement Contracts
  • Department Of Defense
  • Department Of Homeland Security
  • Electronic Mail
  • Fixed Price Contracts
  • Governments
  • Homeland Security
  • Management Personnel
  • Materials
  • National Security
  • Personnel Management
  • Procurement
  • Security
  • Small Business
  • Test And Evaluation
  • United States Government

Fields of Study

  • Business

Readers

  • Government Contracting/Procurement.