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GovCon FAQs: Is There Still an Ostensible Subcontractor Rule?
Koprince McCall Pottroff – We recently blogged about a decision that focused on the ostensible subcontractor rule and how the SBA’s Office of Hearings and Appeals (OHA) determines whether a subcontractor is an ostensible subcontractor. This and other similar cases have raised the question: How has SBA’s regulatory update affected the analysis of the ostensible subcontractor rule, and what remains of that rule? Understanding the Ostensible Subcontractor rule is important as many larger contractors may be seeking subcontracting arrangements with small and small disadvantaged firms to sustain themselves.