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This rule will update the limitations on subcontracting for small business concerns by revising or clarifying: (1) the exclusion of indirect costs from the limitation on subcontracting for services, (2) the application of the limitations on subcontracting to similarly situated entities, (3) the application of the nonmanufacturer rule to kit assemblers, and (4) the application of the limitation on subcontracting to construction contracts that also contain supplies and/or services.  This rule is being issued in accordance with section 1651 of the National Defense Authorization Act for Fiscal Year 2013; and the Small Business Administration final rules published on May 31, 2016, November 29, 2019, and October 16, 2020.