Attachment 11 - Mandatory Certification Limitations on Subcontracting (LOS) (1 page).pdf

Subject: Compliance with 13 C.F.R. 125.6

DATE:

Contractor Point of Contact:

Business Name:

DUNS #:

Solicitation Number:

Offerors are required to comply with 13 C.F.R. 125.6. In accordance with 13 C.F.R. 125.6(3) “In the case of a contract for general construction, it will not pay more than 85% of the amount paid by the government to it to firms that are not similarly situated. Any work that a similarly situated subcontractor further subcontracts will count towards the 85% subcontract amount that cannot be exceeded. Cost of materials are excluded and not considered to be subcontracted.”

Offerors are to check which block applies:

[ ] I certify that no subcontractors are anticipated in performing general construction under this contract. My Company receives 100% of the cost of this contract.

[ ] I certify that my company and those subcontractors that are similarly situated are estimated to receive at least 15% of the value of this contract. I understand that a similarly situated subcontractor must meet the size standard for NAICS assigned by the prime and must be in certified in VIP. The following information identifies and calculates the cost of the work self-performed and what is subcontracted.

For each subcontractor provide the following: business name, DUNs number, description of work, Percentage COST of Contract.

CONTRACTOR DUNS NUMBER DESCRIPTION OF WORK VALUE OF WORK IN %

Total % of value of contract by Prime Contractor

Total % of value of contract by similarly situated subcontractors

WARNING: Severe Penalties for Contractors that violate the Limitations on Subcontracting Rule: If caught during the performance violating the FAR government subcontracting rules or limitations on subcontracting clause under the Code of Federal Regulations 13 C.F.R. 125.6(g), there can be stiff penalties: “Whoever violates the requirements set forth in paragraph (a) of this section shall be subject to the penalties prescribed in 15 U.S.C. 645(d), except that the fine shall be treated as the greater of $500,000 or the dollar amount spent, in excess of permitted levels, by the entity on subcontractors. A party's failure to comply with the spirit and intent of a subcontract with a similarly situated entity may be considered a basis for debarment on the grounds, including but not limited to, that the parties have violated the terms of a Government contract or subcontract pursuant to FAR 9.406-2(b)(1)(i) (48 CFR 9.406- 2(b)(1)(i)).” Contracting Officers may require the contractor to demonstrate its compliance with the limitations on subcontracting at any time during the performance of the contract by having the Contractor provide invoices, copies of subcontracts, or a list of the value of tasks performed.

IAW 1001 of Title 18, I certify the above representations are true and correct to the best of my knowledge.

I certify the above representations are true and correct to the best of my knowledge.

Contractor Date (MM/DD/YYYY)

RETURN COMPLETED CERTIFICATION VIA EMAIL ALONG WITH YOUR PROPOSAL AT: ana.alvarado@va.gov mailto:ana.alvarado@va.gov