On November 12, 2020, the President of Mexico, Andres Manuel López Obrador, sent a draft bill to dramatically change subcontracting (outsourcing) regulations applicable to private companies. If approved by Congress, the bill will significantly impact companies with outsourcing and insourcing (with dual
Government contractors are familiar with the obligation to retain minority or women-owned businesses as subcontractors to obtain government work. Increasingly, apex private sector businesses require participation by minority or women-owned businesses as a condition of obtaining work, as well.
A recent decision by the federal court for the Southern District of New York is a cautionary tale, and highlights the care required when terminating a minority business enterprise (MBE) sub-contractor. Annuity Funds Operating Engineers Local 15 v. Tightseal, No. 17-CV-3670 (S.D.N.Y. August 14, 2018).