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15 U.S.C. § 657s — Limitations on subcontracting

Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 657s — Limitations on subcontracting

**(a) In general** If awarded a contract under section 637(a), 637(m), 644(a), 657a, or 657f of this title, a covered small business concern— (1) in the case of a contract for services, may not expend on subcontractors more than 50 percent of the amount paid to the concern under the contract; (2) in the case of a contract for supplies (other than from a regular dealer in such supplies), may not expend on subcontractors more than 50 percent of the amount, less the cost of materials, paid to the concern under the contract; (3) in the case of a contract described in paragraphs (1) and (2)— (A) shall determine for which category, services (as described in paragraph (1)) or supplies (as described in paragraph (2)), the greatest percentage of the contract is awarded; (B) shall determine the amount awarded under the contract for that category of services or supplies; and (C) may not expend on subcontractors, with respect to the amount determined under subparagraph (B), more than 50 percent of that amount; and (4) in the case of a contract which is principally for supplies from a regular dealer in such supplies, and which is not a contract principally for services or construction, shall supply the product of a domestic small business manufacturer or processor, unless a waiver of such requirement is granted— (A) by the Administrator, after reviewing a determination by the applicable contracting officer that no small business manufacturer or processor can reasonably be expected to offer a product meeting the specifications (including period for performance) required by the contract; or (B) by the Administrator for a product (or class of products), after determining that no small business manufacturer or processor is available to participate in the Federal procu

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Source file: Laws/federal/codes/united-states-code/title-15/section-657s-limitations-on-subcontracting--ccf65d1ea1.md
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Source location: Title 15, Chapter 14A, § 657s; chapter-14a-aid-to-small-business.md

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**(a) In general** If awarded a contract under section 637(a), 637(m), 644(a), 657a, or 657f of this title, a covered small business concern— (1) in the case of a contract for services, may not expend on subcontractors more than 50 percent of the amount paid to the concern under the contract; (2) in the case of a contract for supplies (other than from a regular dealer in such supplies), may not expend on subcontractors more than 50 percent of the amount, less the cost of materials, paid to the concern under the contract; (3) in the case of a contract described in paragraphs (1) and (2)— (A) shall determine for which category, services (as described in paragraph (1)) or supplies (as described in paragraph (2)), the greatest percentage of the contract is awarded; (B) shall determine the amount awarded under the contract for that category of services or supplies; and (C) may not expend on subcontractors, with respect to the amount determined under subparagraph (B), more than 50 percent of that amount; and (4) in the case of a contract which is principally for supplies from a regular dealer in such supplies, and which is not a contract principally for services or construction, shall supply the product of a domestic small business manufacturer or processor, unless a waiver of such requirement is granted— (A) by the Administrator, after reviewing a determination by the applicable contracting officer that no small business manufacturer or processor can reasonably be expected to offer a product meeting the specifications (including period for performance) required by the contract; or (B) by the Administrator for a product (or class of products), after determining that no small business manufacturer or processor is available to participate in the Federal procurement market. **(b) Similarly situated entities** Contract amounts expended by a covered small business concern on a subcontractor that is a similarly situated entity shall not be considered subcontracted for purposes of determining whether the covered small business concern has violated a requirement established under subsection (a) or (d). **(c) Modifications of percentages** The Administrator may change, by rule (after providing notice and an opportunity for public comment), a percentage specified in paragraphs (1) through (4) of subsection (a) if the Administrator determines that such change is necessary to reflect conventional industry practices among business concerns that are below the numerical size standard for businesses in that industry category. **(d) Other contracts** (1) **In general** — With respect to a category of contracts to which a requirement under subsection (a) does not apply, the Administrator is authorized to establish, by rule (after providing notice and an opportunity for public comment), a requirement that a covered small business concern may not expend on subcontractors more than a specified percentage of the amount paid to the concern under a contract in that category. (2) **Uniformity** — A requirement established under paragraph (1) shall apply to all covered small business concerns. (3) **Construction projects** — The Administrator shall establish, through public rulemaking, requirements similar to those specified in paragraph (1) to be applicable to contracts for general and specialty construction and to contracts for any other industry category not otherwise subject to the requirements of such paragraph. The percentage applicable to any such requirement shall be determined in accordance with paragraph (1). **(e) Definitions** In this section, the following definitions apply: (1) **Covered small business concern** — The term “covered small business concern” means a business concern that— (A) with respect to a contract awarded under [section 637(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section637/a&num=0&edition=prelim), is a small business concern eligible to receive contracts under that section; (B) with respect to a contract awarded under [section 637(m) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section637/m&num=0&edition=prelim)— (i) is a small business concern owned and controlled by women (as defined in that section); or (ii) is a small business concern owned and controlled by women (as defined in that section) that is not less than 51 percent owned by 1 or more women who are economically disadvantaged (and such ownership is determined without regard to any community property law); (C) with respect to a contract awarded under [section 644(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section644/a&num=0&edition=prelim), is a small business concern; (D) with respect to a contract awarded under [section 657a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section657a&num=0&edition=prelim), is a qualified HUBZone small business concern; or (E) with respect to a contract awarded under [section 657f of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section657f&num=0&edition=prelim), is a small business concern owned and controlled by service-disabled veterans. (2) **Similarly situated entity** — The term “similarly situated entity” means a subcontractor that— (A) if a subcontractor for a small business concern, is a small business concern; (B) if a subcontractor for a small business concern eligible to receive contracts under [section 637(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section637/a&num=0&edition=prelim), is such a concern; (C) if a subcontractor for a small business concern owned and controlled by women (as defined in [section 637(m) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section637/m&num=0&edition=prelim)), is such a concern; (D) if a subcontractor for a small business concern owned and controlled by women (as defined in [section 637(m) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section637/m&num=0&edition=prelim)) that is not less than 51 percent owned by 1 or more women who are economically disadvantaged (and such ownership is determined without regard to any community property law), is such a concern; (E) if a subcontractor for a qualified HUBZone small business concern, is such a concern; or (F) if a subcontractor for a small business concern owned and controlled by service-disabled veterans, is such a concern.

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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 657f — Procurement program for small business concerns owned and controlled by service-disabled veterans

**(a) Contracting officer defined** For purposes of this section, the term “contracting officer” has the meaning given such term in [section 2101 of title 41](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section2101&num=0&edition=prelim). **(b) Certification of small business concerns owned and controlled by service-disabled veterans** With respect to a procurement program or preference established under this chapter that applies to prime contractors, the Administrator shall— (1) certify the status of a concern as a small business concern owned and controlled by service-disabled veterans; and (2) require the periodic recertification of such status. **(c) Sole source contracts** In accordance with this section, a contracting officer may award a sole source contract to any small business concern owned and controlled by service-disabled veterans if— (1) such concern is determined to be a responsible contractor with respect to performance of such contract opportunity and the contracting officer does not have a reasonable expectation that 2 or more small business concerns owned and controlled by service-disabled veterans will submit offers for the contracting opportunity; (2) the anticipated award price of the contract (including options) will not exceed— (A) $7,000,000, in the case of a contract opportunity assigned a standard industrial classification code for manufacturing; or (B) $3,000,000, in the case of any other contract opportunity; and (3) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price. **(d) Restricted competition** In accordance with this section, a contracting officer may award contracts on the basis of competition restricted to small business concerns owned and co

Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 657f

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 2304 — Repealed. Pub. L. 116–283, div. A, title XVIII, § 1881(a), Jan. 1, 2021, 134 Stat. 4293]

### Statutory Notes Section, act Aug. 10, 1956, ch. 1041, 70A Stat. 128; Pub. L. 85–800, § 8, Aug. 28, 1958, 72 Stat. 967; Pub. L. 85–861, § 33(a)(12), Sept. 2, 1958, 72 Stat. 1565; Pub. L. 87–653, § 1(a)–(c), Sept. 10, 1962, 76 Stat. 528; Pub. L. 90–268, § 5, Mar. 16, 1968, 82 Stat. 50; Pub. L. 90–500, title IV, § 405, Sept. 20, 1968, 82 Stat. 851; Pub. L. 93–356, § 4, July 25, 1974, 88 Stat. 390; Pub. L. 96–513, title V, § 511(76), Dec. 12, 1980, 94 Stat. 2926; Pub. L. 97–86, title IX, § 907(a), Dec. 1, 1981, 95 Stat. 1117; Pub. L. 97–295, § 1(24), Oct. 12, 1982, 96 Stat. 1290; Pub. L. 97–375, title I, § 114, Dec. 21, 1982, 96 Stat. 1821; Pub. L. 98–369, div. B, title VII, §§ 2723(a), 2727(b), July 18, 1984, 98 Stat. 1187, 1194; Pub. L. 98–577, title V, § 504(b)(1), (2), Oct. 30, 1984, 98 Stat. 3086; Pub. L. 99–145, title IX, § 961(a)(1), title XIII, § 1303(a)(13), Nov. 8, 1985, 99 Stat. 703, 739; Pub. L. 99–500, § 101(c) [title X, §§ 923(a)–(c), 927(a)], Oct. 18, 1986, 100 Stat. 1783–82, 1783–152, 1783–155, and Pub. L. 99–591, § 101(c) [title X, §§ 923(a)–(c), 927(a)], Oct. 30, 1986, 100 Stat. 3341–82, 3341–152, 3341–155; Pub. L. 99–661, div. A, title IX, formerly title IV, §§ 923(a)–(c), 927(a), title XIII, § 1343(a)(14), Nov. 14, 1986, 100 Stat. 3932, 3935, 3993, renumbered title IX, Pub. L. 100–26, § 3(5), Apr. 21, 1987, 101 Stat. 273; Pub. L. 100–26, § 7(d)(3), Apr. 21, 1987, 101 Stat. 281; Pub. L. 100–456, div. A, title VIII, § 803, Sept. 29, 1988, 102 Stat. 2008; Pub. L. 101–189, div. A, title VIII, §§ 812, 817, 818, 853(d), Nov. 29, 1989, 103 Stat. 1493, 1501, 1502, 1519; Pub. L. 101–510, div. A, title VIII, § 806(b), Nov. 5, 1990, 104 Stat. 1592; Pub. L. 102–25, title VII, § 701(d)(2), Apr. 6, 1991, 105 Stat. 114; Pub. L. 102–484, div. A, title VIII, §§ 801(

Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 2304

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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 657a — HUBZone program

**(a) In general** There is established within the Administration a program (to be known as the HUBZone program) to be carried out by the Administrator to provide for Federal contracting assistance, including promoting economic development in economically distressed areas (as defined in section 636(m)(11)),11 See References in Text note below. to qualified HUBZone small business concerns in accordance with this section. **(b) Definitions relating to HUBZones** In this section: (1) **Historically underutilized business zone** — The terms “historically underutilized business zone” or “HUBZone” mean any area located within 1 or more— (A) qualified census tracts; (B) qualified nonmetropolitan counties; (C) lands within the external boundaries of an Indian reservation; (D) redesignated areas; (E) base closure areas; (F) qualified disaster areas; or (G) a Governor-designated covered area. (2) **HUBZone small business concern** — The term “HUBZone small business concern” means— (A) a small business concern that is at least 51 percent owned and controlled by United States citizens; (B) a small business concern that is— (i) an Alaska Native Corporation owned and controlled by Natives (as determined pursuant to [section 1626(e)(1) of title 43](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title43-section1626/e/1&num=0&edition=prelim)); or (ii) a direct or indirect subsidiary corporation, joint venture, or partnership of an Alaska Native Corporation qualifying pursuant to [section 1626(e)(1) of title 43](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title43-section1626/e/1&num=0&edition=prelim), if that subsidiary, joint venture, or partnership is owned and controlled by Natives (as determined pursuant to [secti

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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 637 — Additional powers

**(a) Procurement contracts; subcontracts to disadvantaged small business concerns; performance bonds; contract negotiations; definitions; eligibility; determinations; publication; recruitment; construction subcontracts; annual estimates; Indian tribes** (1) It shall be the duty of the Administration and it is hereby empowered, whenever it determines such action is necessary or appropriate— (A) to enter into contracts with the United States Government and any department, agency, or officer thereof having procurement powers obligating the Administration to furnish articles, equipment, supplies, services, or materials to the Government or to perform construction work for the Government. In any case in which the Administration certifies to any officer of the Government having procurement powers that the Administration is competent and responsible to perform any specific Government procurement contract to be let by any such officer, such officer shall be authorized in his discretion to let such procurement contract to the Administration upon such terms and conditions as may be agreed upon between the Administration and the procurement officer. Whenever the Administration and such procurement officer fail to agree, the matter shall be submitted for determination to the Secretary or the head of the appropriate department or agency by the Administrator. Not later than 5 days from the date the Administration is notified of a procurement officer’s adverse decision, the Administration may notify the contracting officer of the intent to appeal such adverse decision, and within 15 days of such date the Administrator shall file a written request for a reconsideration of the adverse decision with the Secretary of the department or agency head. For the purposes of this subparagrap

Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 637

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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 644 — Awards or contracts

**(a) Small business procurements** (1) **In general** — For purposes of this chapter, small business concerns shall receive any award or contract if such award or contract is, in the determination of the Administrator and the contracting agency, in the interest of— (A) maintaining or mobilizing the full productive capacity of the United States; (B) war or national defense programs; or (C) assuring that a fair proportion of the total purchases and contracts for goods and services of the Government in each industry category (as defined under paragraph (2)) are awarded to small business concerns. (2) **Industry category defined** (A) *In general* — In this subsection, the term “industry category” means a discrete group of similar goods and services, as determined by the Administrator in accordance with the North American Industry Classification System codes used to establish small business size standards, except that the Administrator shall limit an industry category to a greater extent than provided under the North American Industry Classification System codes if the Administrator receives evidence indicating that further segmentation of the industry category is warranted— (i) due to special capital equipment needs; (ii) due to special labor requirements; (iii) due to special geographic requirements, except as provided in subparagraph (B); (iv) due to unique Federal buying patterns or requirements; or (v) to recognize a new industry. (B) *Exception for geographic requirements* — The Administrator may not further segment an industry category based on geographic requirements unless— (i) the Government typically designates the geographic area where work for contracts for goods or services is to be performed; (ii) Governmen

Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 644

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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 645 — Offenses and penalties

**(a) False statements; overvaluation of securities** Whoever makes any statement knowing it to be false, or whoever willfully overvalues any security, for the purpose of obtaining for himself or for any applicant any loan, or extension thereof by renewal, deferment of action, or otherwise, or the acceptance, release, or substitution of security therefor, or for the purpose of influencing in any way the action of the Administration, or for the purpose of obtaining money, property, or anything of value, under this chapter, shall be punished by a fine of not more than $5,000 or by imprisonment for not more than two years, or both. **(b) Embezzlement, etc.** Whoever, being connected in any capacity with the Administration, (1) embezzles, abstracts, purloins, or willfully misapplies any moneys, funds, securities, or other things of value, whether belonging to it or pledged or otherwise entrusted to it, or (2) with intent to defraud the Administration or any other body politic or corporate, or any individual, or to deceive any officer, auditor, or examiner of the Administration, makes any false entry in any book, report, or statement of or to the Administration, or, without being duly authorized, draws any order or issues, puts forth, or assigns any note, debenture, bond, or other obligation, or draft, bill of exchange, mortgage, judgment, or decree thereof, or (3) with intent to defraud participates or shares in or receives directly or indirectly any money, profit, property, or benefit through any transaction, loan, commission, contract, or any other act of the Administration, or (4) gives any unauthorized information concerning any future action or plan of the Administration which might affect the value of securities, or, having such knowledge, invests or speculates, dire

Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 645

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Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 8127 — Small business concerns owned and controlled by veterans: contracting goals and preferences

**(a) Contracting Goals.—** (1) In order to increase contracting opportunities for small business concerns owned and controlled by veterans and small business concerns owned and controlled by veterans with service-connected disabilities, the Secretary shall— (A) establish a goal for each fiscal year for participation in Department contracts (including subcontracts) by small business concerns owned and controlled by veterans who are not veterans with service-connected disabilities in accordance with paragraph (2); and (B) establish a goal for each fiscal year for participation in Department contracts (including subcontracts) by small business concerns owned and controlled by veterans with service-connected disabilities in accordance with paragraph (3). (2) The goal for a fiscal year for participation under paragraph (1)(A) shall be determined by the Secretary. (3) The goal for a fiscal year for participation under paragraph (1)(B) shall be not less than the Government-wide goal for that fiscal year for participation by small business concerns owned and controlled by veterans with service-connected disabilities under section 15(g)(1) of the Small Business Act ([15 U.S.C. 644(g)(1)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section644/g/1&num=0&edition=prelim)). (4) The Secretary shall establish a review mechanism to ensure that, in the case of a subcontract of a Department contract that is counted for purposes of meeting a goal established pursuant to this section, the subcontract was actually awarded to a business concern that may be counted for purposes of meeting that goal. **(b) Use of Noncompetitive Procedures for Certain Small Contracts.—** Except as provided in subsection (d)(2), for purposes of meeting the goals under subsecti

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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 657s — Limitations on subcontracting

Page 1077 TITLE 15—COMMERCE AND TRADE § 657s (iii) qualified HUBZone small business concerns; (iv) small business concerns owned and controlled by socially and economically disadvantaged individuals; or (v) small business concerns owned and controlled by women; (C) describes the type of assistance pro- vided to proteges under each such program; (D) describes the benefits provided to men- tors under each such program; and (E) describes the progress of proteges under each such program with respect to competing for Federal prime contracts and subcontracts. (2) Provision of information The head of each Federal department or agency carrying out a mentor-protege pro- gram shall provide to the Administrator, on an annual basis, the information necessary for the Administrator to submit a report required under paragraph (1). (d) Definitions In this section, the following definitions apply: (1) Mentor The term ‘‘mentor’’ means a for-profit busi- ness concern, of any size, that— (A) has the ability to assist and commits to assisting a protege to compete for Federal prime contracts and subcontracts; and (B) satisfies any other requirements im- posed by the Administrator. (2) Mentor-protege program The term ‘‘mentor-protege program’’ means a program that pairs a mentor with a protege for the purpose of assisting the protege to compete for Federal prime contracts and sub- contracts. (3) Protege The term ‘‘protege’’ means a small business concern that— (A) is eligible to enter into Federal prime contracts and subcontracts; and (B) satisfies any other requirements im- posed by the Administrator. (4) Covered mentor The term ‘‘covered mentor’’ means a mentor that enters into an agreement under this chap- ter, or under any mentor-protege program ap-

Source: Supplied 2024 U.S. Code historical extraction · 15 U.S.C. § 657s

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