What is the primary industry exception to limitations on subcontracting?
The primary industry exception applies when a business operates in a specialty trade industry (e.g., electrical, plumbing, HVAC) or a primary industry where it is standard practice to subcontract. In these cases, the prime may subcontract more work than the standard 50% requirement, provided the prime performs the work its business type normally performs. This exception is documented in SBA regulations and must be well-supported.
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