HANDYMAN 
Handyman Insurance, Shift in Conceptual Framework
Under the old version of the regulation, compliance with the performance of work requirements differed based on the type of small business program set-aside at issue (i.e. small as compared to 8(a), WOSB/EDWOSB, SDVOSB, or HUBZone). Moreover, the method for calculating compliance not only varied by program set-aside type, but also based on whether the acquisition was for services, supplies, general construction, or specialty trade construction. For example, a prime contractor on a general construction contract set-aside for HUBZone companies had to spend “at least 15% of the cost of contract performance incurred for personnel on the concern’s employees.” In comparison, an 8(a) prime contractor performing a set-aside contract for supplies or products had to “perform at least 50 percent of the cost of manufacturing the supplies or products (not including the costs of materials).” In other words, compliance was determined using a percentage threshold, which the prime contractor had to meet.
The rule shakes this up a bit. The overall goal remains the same: Keep a minimum of small business dollars in small business pockets. However, as the SBA explains, the revised regulation “creates a shift from the concept of a required percentage of work to be performed by a prime contractor to the concept of limiting a percentage of the award amount to be spent on subcontractors.” For instance, using the example above, rather than requiring a contractor to self-perform 15%, the revised 13 C.F.R. § 125.6 mandates that the prime contractor cannot subcontract more than 85%. It’s a slightly different, but important, change in perspective
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