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Defense Federal Acquisition Regulation: Past Performance of Affiliate Companies of Small Business Concerns (DFARS Case 2024-D016)

Detected July 30, 2026 · in Government Contracting (SAM/FAR)

DoD final rule requires contracting officers to consider past performance of small business affiliates when evaluating bids, potentially affecting small business eligibility for set-aside contracts.

Aforeworn detected this change in the Government Contracting (SAM/FAR) space on July 30, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated Medium urgency. Small business concerns (including those with affiliates) seeking DoD contracts, especially those relying on set-aside programs. should confirm how it applies to their specific situation before acting. There is a time constraint attached: Effective November 15, 2024 (the date of publication in the Federal Register).. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors Government Contracting (SAM/FAR) continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.

What changed

Contracting officers must now evaluate the past performance of a small business's affiliates (e.g., parent companies, subsidiaries) when determining the small business's own past performance record for contract awards.

Who it affects

Small business concerns (including those with affiliates) seeking DoD contracts, especially those relying on set-aside programs.

What you must do

Review and document the past performance of all affiliate companies; ensure accurate and favorable past performance data is submitted to the Past Performance Information Retrieval System (PPIRS).

Deadline

Effective November 15, 2024 (the date of publication in the Federal Register).

Source: https://www.federalregister.gov/documents/2024/11/15/2024-26055/defense-federal-acquisition-regulation-past-performance-of-affiliate-companies-of-small-business

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