Proposed Dept. of Defense Rule Relating to Small Businesses

On November 6, 2014, the Department of Defense Defense Acquisition Regulations System published in the Federal Register a proposal to amend the Defense Federal Acquisition Regulation Supplement ("DFARS") to clarify that entering into a contract award may cause a small business to eventually exceed the applicable small business size standard.

Comments on the proposed rule should be submitted in writing to the address shown below on or before January 5, 2015, to be considered in the formation of a final rule.

DoD is proposing to revise the DFARS to implement policy to ensure a small business contractor is made aware that entering into a covered contract conveys its acknowledgement that doing so may cause it to eventually exceed the small business size standard of the North American Industry Classification System ("NAICS") code identified in the solicitation and contract. This clarification is required by section 1611 of the National Defense Authorization Act for Fiscal Year 2014, (10 U.S.C. 2419).