23R0002 Solicitation.docx

N6893623R0002

Section A - Solicitation/Contract Form

CLAUSES INCORPORATED BY FULL TEXT

FOR YOUR INFORMATION:

The following addresses and points of contact are provided:

Contract Specialist Name: Christine Beltramo Phone: 760-608-0819 Email address: christine.r.beltramo.civ@us.navy.mil

U.S. Postal Service Mailing Address:

Direct Delivery Address (UPS, FedEx, etc.):

Contracting Officer Name: Scott Hansen Phone: (760) 793-4451 Email address: scott.c.hansen.civ@us.navy.mil

U.S. Postal Service Mailing Address:

Direct Delivery Address (UPS, FedEx, etc.):

Section B - Supplies or Services and Prices

Digital Information Technology

FFP

The contractor shall provide various types of digital information technology equipment in accordance with the Statement of Work (SOW) shown in Section C and as specified on each Delivery Order (DO). The contract ordering period is five (5) years, also referred to herein as a five (5) year period of performance.

NOTE: The requirements in DFARS 252.211-7003, Item Identification and Valuation, are applicable for this line item. The contractor shall provide DoD unique identification or a DoD recognized unique identification equivalent.

FOB: Destination

PURCHASE REQUEST NUMBER: 1301030007

PSC CD: 5935

MAX

NET AMT

CONTRACT MINIMUM/MAXIMUM QUANTITY AND CONTRACT VALUE

The minimum quantity and contract value for all orders issued against this contract shall not be less than the minimum quantity and contract value stated in the following table. The maximum quantity and contract value for all orders issued against this contract shall not exceed the maximum quantity and contract value stated in the following table.

MINIMUM

QUANTITY

MINIMUM

AMOUNT

MAXIMUM

QUANTITY

MAXIMUM

AMOUNT

DELIVERY/TASK ORDER MINIMUM/MAXIMUM QUANTITY AND ORDER VALUE

The minimum quantity and order value for each Delivery/Task Order issued shall not be less than the minimum quantity and order value stated in the following table. The maximum quantity and order value for each Delivery/Task Order issued shall not exceed the maximum quantity and order value stated in the following table.

MINIMUM

QUANTITY

MINIMUM

AMOUNT

MAXIMUM

QUANTITY

MAXIMUM

AMOUNT

1.00

5,000.00

CLIN DELIVERY/TASK ORDER MINIMUM/MAXIMUM QUANTITY AND CLIN ORDER VALUE

The minimum quantity and order value for the given Delivery/Task Order issued for this CLIN shall not be less than the minimum quantity and order value stated in the following table. The maximum quantity and order value for the given Delivery/Task Order issued for this CLIN shall not exceed the maximum quantity and order value stated in the following table.

CLIN

MINIMUM

QUANTITY

MINIMUM

AMOUNT

MAXIMUM

QUANTITY

MAXIMUM

AMOUNT

Section C - Descriptions and Specifications

STATEMENT OF WORK

STATEMENT OF WORK

Digital Information Technology Contract

1.0 SCOPE

The Weapons and Energetics Department (Code D550000) of the Naval Air Warfare Center, Weapons Division, China Lake, CA (NAWCWD-CL) intends to procure various types of digital information technology equipment and services over a five-year period. The Energetics Enterprise will specify the applicable data for each procurement through the issuance of individual Delivery Orders (DOs) in support of department needs and earthquake recovery efforts. The contractor shall provide each particular part as ordered and specified in the individual DO.

The products procured herein, will be separately ordered and priced on each individual DO to include shipping & handling at the time each DO is placed.

2.0 APPLICABLE DOCUMENTS

2.1 The actual product requirements for each Digital and Information Technology item will be delineated in each applicable DO. Any applicable revisions shall be the version in effect at the time of DO issuance, unless otherwise specified in writing by the Energetics Enterprise at NAWCWD-CL.

3.0 DIGITAL INFORMATION TECHNOLOGY PRODUCT REQUIREMENTS

3.1 PRODUCT REQUIREMENTS

The contractor shall procure and deliver products in accordance with this SOW. The items being procured at a minimum include IT hardware and software products and licenses and laboratory equipment. It is the estimation of the Government that all of the items represented by this requirement would be Commercial off the Shelf (COTS) Items. Each individual DO will delineate the required products and any special preparation or packing pertinent to the specific job. Products procured as part of this contract will be considered time critical. A reasonable and accurate delivery schedule will be required for each DO. The contractor shall be responsible for delivery of compliant items to Energetics Department at NAWCWD-CL, as delineated in each DO. Orders may include a wide variety of components, equipment and consumables with regular frequency, as well as installation and initial calibration of equipment as specified in individual delivery orders.

3.1.1 At a minimum, the following IT hardware would be in scope of this requirement: laptops, desktops, smartboards and projectors, monitors, printers, scanners, headsets, web cameras, motherboards, central processing units, wireless and Bluetooth capable devices, switches, routers, rackmount systems and desktop peripherals.

3.1.2 At a minimum, the following software items would be in scope of this requirement: Any COTS software products and licenses, Open Source, and all vendor provided software.

3.1.3 At a minimum, the following laboratory equipment items would be in scope of this requirement: High-speed cameras, fiber optic measurement tools, Data Acquisition (DAQ) and data logger equipment, digital inspection devices, laser devices, Radio Frequency (RF) capable devices, signal conditioners, vision measuring systems, digital microscopes, oscilloscopes with “Smart” features, and programmable logic controllers (PLCs).

3.1.4 Data files, requests, and instructions will be transmitted via electronic mail; therefore, the Contractor shall be capable of accepting applicable information in this form.

3.1.5 The Contractor shall maintain capability and/or access to sub-contract capability, to meet NAWCWD needs and requirements for instrumentation and electronic components.

3.2 TERM OF CONTRACT

The Government intends to procure the above aforementioned products for a term of five (5) years.

3.2.1 The procurement will be for digital and information technology items listed in paragraph 3.1 above.

4.0 SPECIAL CONSIDERATIONS

4.1 CERTIFICATE OF CONFORMANCE

4.1.1 When requested at the delivery order level, the Contractor shall ship with a Certificate of Conformance any supplies for which the contract would otherwise require inspection at source. In no case shall the Government's right to inspect supplies under the inspection provisions of this contract be prejudiced. Shipments of such supplies will not be made under this contract until use of the Certificate of Conformance has been authorized in writing by the Ordering Officer or the Procuring Contracting Officer (PCO), or inspection and acceptance have occurred.

4.1.2 The Contractor's signed certificate shall be attached to or included with copies of the inspection or receiving report accompanying the shipment. The certificate shall read as follows:

"I certify that on [insert date], the [insert Contractor's name] furnished the supplies or services called for by Contract No. -[insert Contract Number] via - [insert Carrier] on - [identify the bill of lading or shipping document] in accordance with all applicable requirements. I further certify that the supplies or services are of the quality specified and conform in all respects with the contract requirements, including specifications, drawings, preservation, packaging, packing, marking requirements, and physical item identification (part number), and are in the quantity shown on this or on the attached acceptance document."

Date of Execution:

Signature:

Title:

4.1.3 The Government has the right to reject defective supplies or services as promptly as practicable after delivery by written notification to the Contractor. The Contractor shall in such event promptly replace, correct, or repair the rejected supplies or services at the Contractor's expense.

4.2 CYBER SECURITY

The Contractor shall coordinate with the Ordering Officer to obtain these permissions prior to commencement of any work.

4.2.1 Authorization must be obtained through the (Code D550000) Weapons & Energetics Department Visiting Equipment process BEFORE bringing electronic devices into the lab area.

These devices include, but are not limited to:

· All computing devices - Laptops, Desktops, Tablets, etc.

· Devices capable of transmitting/receiving data - Ethernet, Wi-Fi, Laser, Bluetooth, Radio Frequency (RF), Infrared (IR), etc.

· Removable storage - Thumb drives, hard drives, SD cards, etc.

· Devices capable of collecting and/or storing data - Laser scanners, cameras, external hard drives, etc.

Prior authorization is also required for the following:

· Connections to any device (including vendor service and support of industrial devices)

· Access to government systems

· Removal of hard drives and memory from any device

· Removal of system data or imagery

Any violation of this cybersecurity plan will be treated on a case-by-case basis and could result in immediate removal from the area. Unauthorized equipment may be subject to removal until a decision on disposition of said equipment is made by the Department or Command Information Systems Security Manager.

4.3 INFORMATION SECURITY

Direct Support contractor personnel working under the purview of a DoN Commanding Officer/Commander shall comply with the local security provisions and the requirements of SECNAV M-5510.36 (series). The contractor shall implement and maintain security procedures and controls to prevent unauthorized disclosure of controlled unclassified information and to control distribution of controlled unclassified information in accordance with DoD 5220.22-M, National Industrial Security Program Operating Manual (NISPOM), and SECNAV M-5510.36

For Official Use Only information generated and/or provided under this contract shall be marked and safeguarded as specified in DoDM 5200.01, Information Security Program Manual (Volume 4) available at http://www.dtic.mil/whs/directives/corres/pdf/520001_vol4.pdf . Contractor shall not store or transmit Controlled Unclassified Information (CUI) on personal information technology systems or via personal e-mail. Unclassified e-mail containing any DoD CUI shall be encrypted. Prior to sending CUI to any non-Navy Marine Corps Internet (NMCI) addressees, the sender must first positively verify all recipients are authorized access to CUI and have need-to-know. Non-NMCI recipients must have a DoD compliant Private Key Infrastructure (PKI) certificate that enables electronic transmission via unclassified networks while protecting the CUI with a digital signature and encryption.

4.4 OPERATIONS SECURITY (OPSEC)

The Contractor shall develop, implement, and maintain an OPSEC program to protect controlled unclassified activities, information, equipment, and material used or developed by the Contractor and any subcontractor during performance of the contract. The Contractor shall be responsible for the subcontractor implementation of the OPSEC requirements. The OPSEC program shall be in accordance with National Security Decision Directive (NSDD) 298, and at a minimum shall include:

1) Assignment of responsibility for OPSEC direction and implementation.

2) Issuance of procedures and planning guidance for the use of OPSEC techniques to identify vulnerabilities and apply applicable countermeasures.

3) Establishment of OPSEC education and awareness training.

4) Provisions for management, annual review, and evaluation of OPSEC programs.

5) Flow down of OPSEC requirements to subcontractors when applicable.

4.5 DELIVERY SCHEDULE

As aforementioned, products procured as part of this contract are considered time critical, therefore, timely delivery of the subject products is extremely important. Specific delivery details including a NAWCWD (Code D550000) point of contact (POC) will be included in each DO.

4.5.1 The contractor shall be responsible for delivery of all items to NAWCWD-CL Energetics Department as delineated in 4.6 below.

4.6 PACK AND SHIP

Shipping and preservation shall be by the best commercial practice with delivery to:

NAWC-WD China Lake, 2400 E. Pilot Plant Rd Bldg. 11130, China Lake, CA 93555 or as specified in each DO.

4.7 COUNTERFEIT PREVENTION POLICY

The Contractor shall review and adhere to the measures to prevent the introduction of counterfeit material at any level of the DoD supply chain, as per the Department of Defense Instruction 4140.67.

Section D - Packaging and Marking

5252.247-9508 PROHIBITION AND LIMITATIONS FOR PACKAGING MATERIALS

(NAVAIR) (AUG 2019)

The use of loose fill materials, asbestos, excelsior, newspaper and shredded paper (all types) are prohibited. In addition, all Wood Packaging Materials (WPM) shall be heat treated or chemically treated in accordance with the requirements of the International Standards for Phytosanitary Measures (ISPM) 15:2009, "Regulation of Wood Packaging Material in International Trade."

Section E - Inspection and Acceptance

INSPECTION AND ACCEPTANCE TERMS

Supplies/services will be inspected/accepted at:

CLAUSES INCORPORATED BY REFERENCE

Section F - Deliveries or Performance

DELIVERY INFORMATION

KAYLA WATKINS

2400 E PILOT PLANT RD.

BLDG. 11130

CHINA LAKE CA 93555

(760) 939-7780 FOB: Destination N68936

Section G - Contract Administration Data

52.216-32 TASK-ORDER AND DELIVERY-ORDER OMBUDSMAN (SEPT 2019)

(a) In accordance with 41 U.S.C. 4106(g), the Agency has designated the following task-order and delivery-order Ombudsman for this contract. The Ombudsman must review complaints from the Contractor concerning all task-order and delivery-order actions for this contract and ensure the Contractor is afforded a fair opportunity for consideration in the award of orders, consistent with the procedures in the contract.

[ ___ Contracting Officer to insert name, address, telephone number, and email address for the Agency Ombudsman or provide the URL address where this information may be found.]

(b) Consulting an ombudsman does not alter or postpone the timeline for any other process (e.g., protests).

(c) Before consulting with the Ombudsman, the Contractor is encouraged to first address complaints with the Contracting Officer for resolution. When requested by the Contractor, the Ombudsman may keep the identity of the concerned party or entity confidential, unless prohibited by law or agency procedure.

(End of clause)

252.232-7006 WIDE AREA WORKFLOW PAYMENT INSTRUCTIONS (DEC 2018)

(a) Definitions. As used in this clause—

“Department of Defense Activity Address Code (DoDAAC)” is a six position code that uniquely identifies a unit, activity, or organization.

“Document type” means the type of payment request or receiving report available for creation in Wide Area WorkFlow (WAWF).

“Local processing office (LPO)” is the office responsible for payment certification when payment certification is done external to the entitlement system.

“Payment request” and “receiving report” are defined in the clause at 252.232-7003, Electronic Submission of Payment Requests and Receiving Reports.

(b) Electronic invoicing. The WAWF system provides the method to electronically process vendor payment requests and receiving reports, as authorized by Defense Federal Acquisition Regulation Supplement (DFARS) 252.232-7003, Electronic Submission of Payment Requests and Receiving Reports.

(c) WAWF access. To access WAWF, the Contractor shall—

(1) Have a designated electronic business point of contact in the System for Award Management at https://www.sam.gov; and

(2) Be registered to use WAWF at https://wawf.eb.mil/ following the step-by-step procedures for self-registration available at this web site.

(d) WAWF training. The Contractor should follow the training instructions of the WAWF Web-Based Training Course and use the Practice Training Site before submitting payment requests through WAWF. Both can be accessed by selecting the “Web Based Training” link on the WAWF home page at https://wawf.eb.mil/.

(e) WAWF methods of document submission. Document submissions may be via web entry, Electronic Data Interchange, or File Transfer Protocol.

(f) WAWF payment instructions. The Contractor shall use the following information when submitting payment requests and receiving reports in WAWF for this contract or task or delivery order:

(1) Document type. The Contractor shall submit payment requests using the following document type(s):

(i) For cost-type line items, including labor-hour or time-and-materials, submit a cost voucher.

(ii) For fixed price line items—

(A) That require shipment of a deliverable, submit the invoice and receiving report specified by the Contracting Officer.

Invoice and Receiving Report (COMBO)

(B) For services that do not require shipment of a deliverable, submit either the Invoice 2in1, which meets the requirements for the invoice and receiving report, or the applicable invoice and receiving report, as specified by the Contracting Officer.

N/A

(iii) For customary progress payments based on costs incurred, submit a progress payment request.

(iv) For performance based payments, submit a performance based payment request.

(v) For commercial item financing, submit a commercial item financing request.

(2) Fast Pay requests are only permitted when Federal Acquisition Regulation (FAR) 52.213-1 is included in the contract.

[Note: The Contractor may use a WAWF “combo” document type to create some combinations of invoice and receiving report in one step.]

(3) Document routing. The Contractor shall use the information in the Routing Data Table below only to fill in applicable fields in WAWF when creating payment requests and receiving reports in the system.

Routing Data Table*

(4) Payment request. The Contractor shall ensure a payment request includes documentation appropriate to the type of payment request in accordance with the payment clause, contract financing clause, or Federal Acquisition Regulation 52.216-7, Allowable Cost and Payment, as applicable.

(5) Receiving report. The Contractor shall ensure a receiving report meets the requirements of DFARS Appendix F.

(g) WAWF point of contact.

(1) The Contractor may obtain clarification regarding invoicing in WAWF from the following contracting activity’s WAWF point of contact.

Dava Maples, dava.l.maples.civ@us.navy.mil

(2) Contact the WAWF helpdesk at 866-618-5988, if assistance is needed.

*To be completed at time of award*

*To be completed at time of award.

Addendum to G-TXT-02 For orders up to $100,000, payment shall be made in accordance with the instructions above.

For orders exceeding $100,000, WAWF shall be used for invoicing and payment in accordance with NAVAIR clause 252.232-7006, Wide Area WorkFlow Payment Instructions.

G-TXT-03 CONTRACTOR ACCESS TO NAVAL AIR WARFARE CENTER WEAPONS DIVISION CHINA LAKE (JUL 2014)

Contractors requiring access to the Naval Air Warfare Center Weapons Division China Lake are required to have credentials in Defense Biometric Identification System (DIBIDS) or obtain a day pass from the Pass and ID Office. The Government will not be responsible for work delays or work stoppages due to failure to comply with these access requirements. Questions should be directed to Tina Todd at (760) 939-3154.

Section H - Special Contract Requirements

ORDERING PROCEDURES

INTRODUCTION

The Government intends to allow contract awardees (herein referred to as contractor) a fair opportunity to compete for orders that are estimated greater than the micro-purchase threshold. The micro-purchase threshold is $10,000 for supplies, $2,500 for services subject to Service Contract Labor Standards (SCLS), or $2,000 for construction subject to Davis Bacon. For purposes of this requirement, an order is defined as the total estimated value of an entire order, and not individual line items or single unit price.

ORDERING OFFICER WARRANT AUTHORITY

The Ordering Officer’s authority is limited to orders up to $25,000.

The Contracting Officer authority is for orders over $25,000.

The Ordering Officers do not have authority to approve other acquisition documentation such as justifications, determinations, and clearances. Additionally, trade-off analysis and decisions are reserved for Contracting Officers only.

The following individual(s) are designated as authorized Ordering Officers for this contract:

Ordering Officer (Primary): *

Ordering Officer (Alternate): *

Ordering Officer (Alternate): *

*To be completed at time of award.

Contracting Officer:

Scott Hansen Phone: 760-793-4451 Email: scott.c.hansen.civ@us.navy.mil Orders over $25,000

Ordering Officers are responsible for issuing and administering oral orders placed for this contract within their authority stated above. Ordering Officers have no authority to modify any of the terms and conditions of the basic contract.

ORDERS BELOW THE MICRO PURCHASE THRESHOLD

Orders valued at less than the micro-purchase threshold may be direct awarded to any contractor or competed at the discretion of the Ordering Officer. The Government reserves the right to request a quote from any or all contractors.

ORDERS ABOVE THE MICRO-PURCHASE THRESHOLD AND UP TO $25,000

Orders estimated to be valued over the micro-purchase threshold and up to $25,000 will be competed using the procedures described herein.

ORDERS GREATER THAN $25,000

Orders that are estimated to exceed $25,000 will be competed using the procedures described herein; however, the solicitation will be issued by the Contract Specialist (CS) and any ensuing orders will be issued on a written SF 1449 by the Procuring Contracting Officer (PCO).

ORDER SOLICITATION REQUEST FOR QUOTE (RFQ)

The Ordering Officer designated under the contracts will issue a request for quotation, via electronic mail.

This request may include:

1. RFQ # and or PLAN#

2. Item(s) description and corresponding line item number from base contract

3. Quantity

4. Delivery date

5. Place of delivery or performance

6. Freight on Board (FOB) (Order specific: destination or origin)

7. Specifications and other documents

8. (Order specific: Manufacturer or Quality) Certification requirements

9. Quotation submission deadline (date and time)

10. Evaluation and award method

11. Payment Method (P-Card or WAWF)

12. North American Industry Classification System code

13. Solicitation Provisions

CONTRACTOR’S QUOTE

The contractor’s quote shall include, as a minimum:

1. Quantity by Line Item

2. Unit price by Line Item

3. Total order price, including shipping

4. Delivery date by Line Item

5. Origin of materials

6. Other information as delineated in each RFQ

7. If subcontracting is contemplated, the quote shall include:

a. Name, address, and CAGE code of subcontractor

b. Business size (Reference FAR 19.102). If subcontractor is a small business, include any additional small business subcategories which the subcontractor represents

c. Price

d. Percent of work to be performed by the subcontractor

8. Validity period for quote

EVALUATION/AWARD

Evaluation and award procedures will be tailored to each acquisition and will typically be issued either on the basis of price alone or Trade-off as described below. The evaluation and award method for each competitive order will be specified in the Order solicitation RFQ.

1. Price Alone

The Government may issue an order to the lowest price Quoter that meets the requirements of the Order Solicitation RFQ, including the delivery schedule, and that the Quoter has a satisfactory past performance.

2. Tradeoff

The Government may issue an order resulting from the RFQ to the Quoter whose quote conforming to the RFQ will be most advantageous to the Government, price and other factors considered.

The following factors may be used to evaluate quotes, as specified in the RFQ:

a. Technical

b. Delivery Date

c. Past Performance

d. Price

The Government will conduct evaluation of quotes. The PCO will conduct the tradeoff and select the quotation that offers the greatest value to the Government.

ONE OFFER

If only one offer is received in response to a competitive Order solicitation exceeding the simplified acquisition threshold that is placed on a competitive basis, the requirements at DFARS and PGI 215.371 may apply.

CLARIFICATIONS

Quoters may request the Ordering Officer to provide clarification of technical and delivery requirements; however, questions and answers may be shared with all prospective contractors. Proprietary information will be protected, providing the Quoter clearly identifies which data are proprietary and the Government agrees with the determination.

LATE SUBMISSIONS, REVISIONS, AND WITHDRAWAL OF QUOTES

Quotes received after the submission deadline as specified in the RFQ are “late” and may not be considered. Contractors may request that the Ordering Officer extend the deadline. If an extension is granted, all contractors who received the RFQ will be notified of the extension.

Quote revisions must be received prior to the quote submission deadline in order to be considered. However, revisions of an otherwise successful quote that make its terms more favorable to the Government will be considered at any time it is received and may be accepted, prior to award of the Order.

Quotes may be withdrawn by written notice (email is acceptable) at any time before the quote submission deadline.

NO BID/NON INTEREST

Contractors that are unable to provide quotes for RFQs issued by the Government are requested to respond with a no-bid/non-interest letter. Contractors who frequently do not respond to RFQs, or frequently respond with no-bid/non-interest may be terminated for convenience. The contractor will be notified of such decisions before any action is taken.

DELIVERIES

Delivery times are considered critical. On-time and late deliveries will be tracked for all contractors.

Consideration to revise the delivery date of existing Orders may be proposed by the contractor and the consideration must be of value to the Government. Suggestions include free/expedited shipping, product discount, additional product, invoice reduction. Consideration may result in a modification to revise the delivery date and will not adversely impact past performance. The Ordering Officer will notify the Contracting Officer of any contractor who is consistently late in making deliveries. This may result in the Contracting Officer making a determination on a case-by-case basis that the contractor is excluded from competition on future orders. The contractor will be notified of such decisions before any action is taken.

Addendum to 5252.216-9508 The maximum combined value of all orders issued under the awarded contracts for solicitation N6893623R0002 shall not exceed $49,000,000.00.

H-TXT-EQR California earthquake recovery efforts July 2019 - Earthquake Recovery

Emergency acquisition flexibilities identified in FAR 18.203, "Emergency Declaration or Major Disaster Declaration" and DFARS 218.203 "Incidents of national significance, emergency declaration, or major disaster declaration" as they relate to the California earthquake recovery efforts identified on July 2019 apply to this procurement.

Contracting officers consult the Disaster Response Registry via the System for Award Management (SAM) to determine the availability of contractors for debris removal, distribution of supplies, reconstruction, and other disaster or emergency relief activities inside the United States and outlying areas. See FAR 26.2 as it relates to disaster or emergency assistance activities.

Section I - Contract Clauses

52.216-18 ORDERING. (AUG 2020)

(a) Any supplies and services to be furnished under this contract shall be ordered by issuance of delivery orders or task orders by the individuals or activities designated in the Schedule. Such orders may be issued from __*__ through __*__.

(b) All delivery orders or task orders are subject to the terms and conditions of this contract. In the event of conflict between a delivery order or task order and this contract, the contract shall control.

(c) A delivery order or task order is considered "issued" when--

(1) If sent by mail (includes transmittal by U.S. mail or private delivery service), the Government deposits the order in the mail;

(2) If sent by fax, the Government transmits the order to the Contractor's fax number; or

(3) If sent electronically, the Government either--

(i) Posts a copy of the delivery order or task order to a Government document access system, and notice is sent to the Contractor; or

(ii) Distributes the delivery order or task order via email to the Contractor's email address.

(d) Orders may be issued by methods other than those enumerated in this clause only if authorized in the contract.

*Dates to be entered at time of award.

52.219-14 LIMITATIONS ON SUBCONTRACTING (DEVIATION 2021-O0008) (SEP 2021)

(a) This clause does not apply to the unrestricted portion of a partial set-aside.

(b) Definition. “Similarly situated entity,” as used in this clause, means a first-tier subcontractor, including an independent contractor, that—

(1) Has the same small business program status as that which qualified the prime contractor for the award (e.g., for a small business set-aside contract, any small business concern, without regard to its socioeconomic status); and

(2) Is considered small for the size standard under the North American Industry Classification System (NAICS) code the prime contractor assigned to the subcontract.

(c) Applicability. This clause applies only to—

(1) Contracts that have been set aside for any of the small business concerns identified in 19.000(a)(3);

(2) Part or parts of a multiple-award contract that have been set aside for any of the small business concerns identified in 19.000(a)(3);

(3) Contracts that have been awarded on a sole-source basis in accordance with subparts 19.8, 19.13, 19.14, and 19.15;

(4) Orders expected to exceed the simplified acquisition threshold and that are—

(i) Set aside for small business concerns under multiple-award contracts, as described in 8.405-5 and 16.505(b)(2)(i)(F); or

(ii) Issued directly to small business concerns under multiple-award contracts as described in 19.504(c)(1)(ii);

(5) Orders, regardless of dollar value, that are—

(i) Set aside in accordance with subparts 19.8, 19.13, 19.14, or 19.15 under multiple-award contracts, as described in 8.405-5 and 16.505(b)(2)(i)(F); or

(ii) Issued directly to concerns that qualify for the programs described in subparts 19.8, 19.13, 19.14, or 19.15 under multiple-award contracts, as described in 19.504(c)(1)(ii); and

(6) Contracts using the HUBZone price evaluation preference to award to a HUBZone small business concern unless the concern waived the evaluation preference.

(d) Independent contractors. An independent contractor shall be considered a subcontractor.

(e) Limitations on subcontracting. By submission of an offer and execution of a contract, the Contractor agrees that in performance of a contract assigned a North American Industry Classification System (NAICS) code for—

(1) Services (except construction), it will not pay more than 50 percent of the amount paid by the Government for contract performance, excluding certain other direct costs and certain work performed outside the United States (see paragraph (e)(1)(i)), to subcontractors that are not similarly situated entities. Any work that a similarly situated entity further subcontracts will count towards the prime contractor’s 50 percent subcontract amount that cannot be exceeded. When a contract includes both services and supplies, the 50 percent limitation shall apply only to the service portion of the contract. The following services may be excluded from the 50 percent limitation:

(i) Other direct costs, to the extent they are not the principal purpose of the acquisition and small business concerns do not provide the service. Examples include airline travel, work performed by a transportation or disposal entity under a contract assigned the environmental remediation NAICS code 562910), cloud computing services, or mass media purchases.

(ii) Work performed outside the United States on awards made pursuant to the Foreign Assistance Act of 1961, or work performed outside the United States required to be performed by a local contractor.

(2) Supplies (other than procurement from a nonmanufacturer of such supplies), it will not pay more than 50 percent of the amount paid by the Government for contract performance, excluding the cost of materials, to subcontractors that are not similarly situated entities. Any work that a similarly situated entity further subcontracts will count towards the prime contractor’s 50 percent subcontract amount that cannot be exceeded. When a contract includes both supplies and services, the 50 percent limitation shall apply only to the supply portion of the contract;

(3) General construction, it will not pay more than 85 percent of the amount paid by the Government for contract performance, excluding the cost of materials, to subcontractors that are not similarly situated entities. Any work that a similarly situated entity further subcontracts will count towards the prime contractor’s 85 percent subcontract amount that cannot be exceeded; or

(4) Construction by special trade contractors, it will not pay more than 75 percent of the amount paid by the Government for contract performance, excluding the cost of materials, to subcontractors that are not similarly situated entities. Any work that a similarly situated entity further subcontracts will count towards the prime contractor’s 75 percent subcontract amount that cannot be exceeded.

(f) The Contractor shall comply with the limitations on subcontracting as follows:

(1) For contracts, in accordance with paragraphs (c)(1), (2), (3) and (6) of this clause – [Contracting Officer check as appropriate.] ___ By the end of the base term of the contract and then by the end of each subsequent option period; or ___ By the end of the performance period for each order issued under the contract.

(2) For orders, in accordance with paragraphs (c)(4) and (5) of this clause, by the end of the performance period for the order.

(g) A joint venture agrees that, in the performance of the contract, the applicable percentage specified in paragraph (e) of this clause will be performed by the aggregate of the joint venture participants.

52.219-33 NONMANUFACTURER RULE (SEP 2021)

(a) Definitions. As used in this clause--

Manufacturer means the concern that transforms raw materials,…