Council Submits Comments Raising Concerns over Proposed Rule

ACEC News / Advocacy

July 28, 2021

Council Submits Comments Raising Concerns over Proposed Rule

ACEC joined with the Professional Services Council in commenting on a proposed rule requiring contractors to prepare past performance evaluations for their first-tier subcontractors.

Section 823 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Pub. L. 115–232) requires performance evaluations in accordance with specified conditions for certain subcontractors and joint venture (JV) partners for construction and architect-engineer (A&E) services contracts.

As our comments make clear, our belief is that the government is aware when a prime contractor has a poorly performing subcontractor and can use existing tools rather than create a duplicative rating system. 

Requiring prime contractors to conduct past performance evaluations of first-tier subcontractors may result in some contractors avoiding doing business on federal contracts. Having a subcontractor’s performance documented in a government-wide, publicly accessible reporting tool may disincentivize them from seeking additional business opportunities that result in working on a federal contract in either a subcontractor or joint venture role.

The Council also wrote to the House and Senate Armed Services Committees, requesting their attention to this provision as Congress debates the National Defense Authorization Act.

Click here to view our comments.

All comments to blog posts will be moderated by ACEC staff.