 So, one of the issues that people have come to me is, Eric, I'm just starting out and I have a small business but the government says there's a requirement for the percent of work that I need to perform. Yes, that is correct. So, the good news about today's video is we're going to discuss the new changes that came out in December of 2018 and how the rule on subcontracting and the percent in which you can subcontract has just been modified and updated as of December of 2018. So, we're going to discuss that in today's video. Stay tuned and watch right now. All right, so listen for all of you guys out there who are concerned about your ability to be able to meet the requirement on performance in terms of hiring subcontractors, how many subcontractors can you hire, what percentage of the work that you have to perform. This is the video we're talking about today. So, I created a little chart that we're going to show on the screen right now and what the chart is discussing is the new rule just came out and was released in December and it's called the limitations on subcontracting for small businesses, class deviation O as an Oscar 0003. Forget about the name of it but just know that this rule just was just released so it may or may not have taken effect where you're working at but I want all of you out there to what? Govcom better. So, in order to do that you've got to have all the information available to you. If the rule has probably taken effect maybe the contracting officer or contracting officials don't know this rule. Remember guys, when I was doing Govcom a lot of times the contracting people would come to me and ask me how to do things because they weren't up to speed on all the new training. If they haven't gone through a training recently or they just or if they were certified or recently became a new contracting official it's quite possible that they're not even aware of these rules. So, guess what? You're going to get the information from me Eric Coffey Score Contracts so that you can stay up to date, up to be in your Govcom journey. So, let's talk about the new rule today and how it affects people out there like yourself. So, first and foremost the main deviation of this rule from the previous rule on subcontracting was that if you had a business and you were doing like say supplies or services you were supposed to perform 50% of the work and you cannot contract out more than 50% of the work. So, you ABC business had to do 50% and then the subcontractors could do 50%. The new rule in terms of deviation allows for what they call a similarly um similarly situated entity. I had to review that again myself similarly situated entity. So, that means that uh an entity that let's say you if you were awarded this contract as a hub zone if you've got another hub zone business that's also a small business you guys can now work together to meet your 50% requirement. If it's an 8A contract and you've got another 8A firm that you can work with you guys can work together to meet your 50% requirement. So, now it's not just it doesn't it allows more flexibility in terms of not only do you're not the only person or the only entity that has to meet that requirement it allows you to bring on another entity that's similar in terms of size you know I mean in terms of small business size. So, if you're a million and they're 2 million that's similar in terms of the government's eyes. Remember we're talking about the federal government here. So, when we say similar we mean as long as they are the same certification that was issued under this particular contract if it's small business and their general small business if it's hub zone, tub zone 888 and they fall under the umbrella of the small business arena then they can help you meet your percent requirement for supplies services or construction. So, the same thing on the construction arena what they talk about is now your entity can bring in a similarly situated entity to help you meet your 25% requirement. So, you can technically subcontract out 75% of the work as long as you can bring in someone alongside of you that small business that's in construction and that's under the same type of small business category that the contract was awarded in they can help you meet your 25% requirement. So, this is great news for small business out there because why a lot of times people are just getting started and you may not have everything that you need to get the wheels turning. So, the government I'm telling you ladies don't listen the fellow arena they're the bomb. The government is creating rules policies to allow small businesses to really embark on this journey. So, they're making it more favorable for the little guys to get started and to start growing their business. So, listen take advantage of the new rule also I'm going to have a link to it below in the show notes description. As always, GovCon better. Thank you for watching. Aaron from Score Contracts. We'll see you next time.