Construction Law

New Rule Affecting all Federal Subcontractors

By Ryan McCabe

http://edocket.access.gpo.gov/2010/pdf/2010-30565.pdf

Effective December 13, 2010, contractors on all federal projects ?shall not enter into any subcontract in excess of $30,000? with contractors at any tier who have been suspended or disbarred.  Previously this rule, which exists to protect the government?s interest, only applied to first tier contractors.

Contractors must provide a ?compelling reason? in writing to the contracting officer to avoid this prohibition.  If the contract is for the ?acquisition of commercial items, the notification requirement applies only for first-tier subcontracts.?

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Full post as published by The South Carolina Construction Law Blog on December 21, 2010 (boomark / email).