Status Report on Small and Small Minority Business Subcontracting and Waiver of Surety Bonding for 8(a) Firms

The Small Business Act was amended to emphasize the use of subcontracting as a method of promoting the long-term viability of small and minority businesses. The Small Business Administration (SBA) is authorized to provide financial assistance to large businesses for the purpose of training and upgrading potential small and small minority contractors. This authority generally has not been used. The Act was also amended to provide small and small minority businesses with a maximum practicable opportunity to participate in the performance of contracts let by federal agencies. The amendments required an implementing clause to be included in all contracts exceeding $10,000, and required that construction contracts in excess of $1 million and other contracts in excess of $500,000 contain subcontracting plans for SBA review for the purpose of determining whether maximum practicable opportunity has been afforded to small and minority businesses. These reviews must be reported annually to the House and Senate Small Business Committees.