On December 29, 2014, the Small Business Administration (SBA) published its proposed rule to implement provisions of the National Defense Authorization Act of 2013 (NDAA) that change the way firms calculate compliance with the limitation on subcontracting rule on small business set-asides. SBA’s proposed rule also proposes changes dealing with the nonmanufacturing rule, including affiliation and joint ventures, among other topics. This memorandum provides our analysis of the new rules.