http://edocket.access.gpo.gov/2010/pdf/2010-30565.pdf

Effective December 13, 2010, contractors on all federal projects “shall not enter into any subcontract in excess of $30,000” with contractors at any tier who have been suspended or disbarred.  Previously this rule, which exists to protect the government’s interest, only applied to first tier contractors.

Contractors must provide a “compelling reason” in writing to the contracting officer to avoid this prohibition.  If the contract is for the “acquisition of commercial items, the notification requirement applies only for first-tier subcontracts.”

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